Car sales in India rose to 941,118 vehicles in July from 779,354 vehicles a year earlier, an increase of 31%, according to data from the Society of Indian Automobile Manufacturers (SIAM).
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Lower interest rates and the introduction of new models, including the Tata Nano low-cost car, have stimulated demand, SIAM added. Commercial vehicle sales also rose by 9.6% after months of decline.
Vaishali Jajoo, analyst at Mumbai’s Angel Broking told BBC News: “Lower interest rates, government stimulus packages, a reduction in excise duty rates towards the early part of the year and the growing presence of players in the rural markets has aided this recovery in industry volumes.”
July was the sixth consecutive month in which car sales increased in India and analysts said the trend was likely to continue thanks to lower interest rates and banks that are now more willing to lend money.
Tata Motors says it has received more than 200,000 orders for the Nano, which costs INR100,000 (US$2,092) and was launched in March.
