Car sales in India rose 6.7% in August compared with a year earlier, the Society of Indian Automobile Manufacturers (SIAM) said Monday.

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SIAM said 53,177 cars were sold in August compared to 49,828 units in the same month the previous year. According to analysts, the August figure would have been even higher were it not for a strike at a key component supplier for India’s largest carmaker Maruti Udyog.

SIAM said overall car sales in the first five months of the 2003-04 financial year, which began April 1, had reached 262,678 units, up from 207,938 units sold in the same period last year – a gain of some 26.3%.

India’s car market is benefiting this year from stronger economic growth, tax cuts and strong replacement demand.

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