Passenger car sales in India rose only slightly in February due to a high sales base and as potential buyers, hoping for a cut in manufacturing tax that would make cars cheaper, put off their purchases, according to Reuters.
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The Society of Indian Automobile Manufacturers said in a Monday statement cited by the news agency that car sales rose to 81,152 units from 80,476 units in the same month last year.
Car sales in the April-February period, the first 11 months of the fiscal year to March 2006, rose 5.9% to 1,000,412 units, from 944,974 a year earlier, as attractive discounts lured buyers, Reuters said.
Analysts reportedly have forecast the market to double to 2 million units by 2010 as millions of young, urban Indians earn ever-higher salaries and are tempted by new models.
The government, which has proposed cutting the manufacturing tax on small cars to 16% from the current 24% for the year to March 2007, wants to make India a global hub for the production of small cars, Reuters noted.
It added that sales of commercial vehicles – trucks and buses – surged 19.2% to 35,049 units in February helped by a vibrant construction industry and existing fleets being replaced.
