Car sales in India rose an annual 7.2% in January, according to data issued by trade body SIAM.
The rise is the third consecutive monthly gain. Demand for cars in India slowed sharply in 2011 due to higher fuel costs, increased interest rates and higher vehicle prices.
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Automakers sold 196,013 cars last month. Sales of trucks and buses rose 13.5% in January from a year previous to 69,859 vehicles, SIAM said.
The return to a growth trend will be welcome in the Indian auto industry, which is adding capacity as automakers move in on what many see as a very good long-term growth market that also doubles up as a low-cost global production source.
Nevertheless, annual car sales in India for the fiscal year ended March 31 are likely to drop for the first time since 2002.
