Car sales in India rose 30% year on year in May to 148,481 units, according to the Society of Indian Automobile Manufacturers (SIAM).

Market leader Maruti Suzuki continued to post higher sales of its hatchback A-Star, Ritz and Swift models while Hyundai reported increased sales of its i10 and i20.

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A-Star (as the Alto and Nissan Pixo), Swift, i10 and i20 are all exported and SIAM said passenger vehicle shipments abroad were up almost 20%.

Car sales have been on the increase in India due to inexpensive loans, new models and a recovery in demand. The latest figures are the best May result ever.

Maruti Suzuki sales rose 21% to 76,120 cars in May from a year earlier and Hyundai reported 27,151 sales, up 15%.

SIAM also said that sales of trucks and buses, a barometer of economic activity, jumped 58% to 48,580 units in May,

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The Indian auto market is forecast to triple over the next decade to 6m cars a year from 2m now.