Figures released by SIAM show that sales of cars grew at an annual rate of 39.5% in April, confirming buoyant  demand prospects.

Analysts say that vehicle sales in India are being underpinned by robust economic growth and the improved availability of consumer finance.

Domestic car sales were 143,976 in April, up from 103,227 in the same month last year, SIAM data showed, led by Maruti Suzuki which sold 80,034 units.

However, there are concerns in India that rising raw material prices could force prices up further.