Car sales in India hit a new record high in February according to industry data.

Car sales jumped 23% from a year earlier in February to 189,008 units according to data issued by the Society of Indian Automobile Manufacturers (SIAM).

The figure exceeds January’s all-time monthly record sales of 184,332 cars.

A strong economy and available consumer finance is underpinning rapid market growth in India, but buyers stepped up purchases ahead of a likely hike in excise duty applying to car purchases.

Local analysts are cautious on the outlook, noting that a likely rise in interest rates and higher fuel prices are among the factors that could dampen demand in the coming months.