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Monday 13 February RNW - NEWS AND ANALYSIS FROM THE NETHERLANDS IN 10 LANGUAGES, WORLDWIDE 24/7 ON RADIO, TV AND ONLINE

India car sales jump 33 percent in August

Published on 9 September 2010 - 7:18am

Car sales in India jumped 33.2 percent year on year last month, data from an industry body showed Thursday, as increasingly affluent consumers flocked to showrooms in Asia's third-largest auto market.

Vehicle sales, including trucks and motorcycles -- seen as a key indicator of a buoyant economy -- have been robust, as the economy recovers from the global financial crisis.

Passenger car sales climbed in August to 160,794 units from 120,681 a year ago, while sales of trucks and buses grew 28 percent to 52,030 units, figures from the Society of Indian Automobile Manufacturers (SIAM) showed Thursday.

The sales have been driven by new model launches, easy access to low-cost loans and rising salaries.

Analysts forecast passenger car sales to remain strong in coming months, but say the rate of growth will moderate as fuel prices rise and auto loans become costlier due to increases in interest rates.

SIAM expects car sales to grow by 12-13 percent in this fiscal year to March 2011 while analysts say they could increase by up to 15 percent.

Asia's third-largest economy grew 7.4 percent in the financial year ended March 2010 and is forecast to grow at least 8.5 percent this year.

India's car market is projected to triple over the next decade to six million cars a year from the current two million, according to industry estimates.

© ANP/AFP

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