Japanese carmaker Honda on Tuesday cautioned that high interest rates and inflation would impact car sales in India this financial year, though said premium segment would manage a double digit growth. The company, that rolled out its next-generation Accord sedan after the model was discontinued a few months back, said market conditions appear to be tough for the first two quarters of 2007-08. "We do not expect sales growth to be very aggressive, at least in the first half of this fiscal. However, we hope the latter half would be better as inflation is expected to stablise and interest rates may cool down,' Masahiro Takedagawa, president and CEO of Honda's Indian subsidiary Honda Siel Cars India (HSCI), told reporters. Takedagawa said many customers were delaying purchases due to the negative sentiments, but hoped that the situation would improve soon. Interest rates have risen by more than 400 basis points since December 2006, prompted by government's efforts to tame spiralling inflation and cool down demand. Honda had stopped selling the Accord sedan as it planned to get in the new 2.4-litre eighth generation model that made its global debut around eight months back. The company has priced the new model aggressively between Rs 16.4-18.1 lakh and it would be competing against models like Toyota Camry, Skoda Laura and Hyundai Sonata Embera. Takedagawa said the company's small car plans for India are on schdule and it would be rolled out in 2009 from its new plant that is coming up in Rajasthan. The company will also introduce a second small car in the market, though Takedagawa refused to specify whether it would be priced below the first car. "It is some years from now,' he said. Honda will begin stampings and powertrain component manufacturing from its Rajasthan plant from September this year, officials said, adding that these would also be sent to its existing plant at Greater Noida. Many customers are delaying purchases due to negative sentiments, but hope the situation will improve soon, says Takedagawa