Car sales in India rose 2.8% year-on-year in September to 108,823 units, bucking a trend to declining sales in recent months.

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The data released by the Society of Indian Automobile Manufacturers (SIAM) suggests that while the market in India remains weak, underlying demand did not deteriorate in September. August car sales were 4.4% of the previous year’s pace while July’s were 1.7% lower.


A jump in inflation to double digits since June forced India’s central bank to raise its key lending rate to a seven-year high of 9 percent. This has bumped up rates on automobile loans, damping consumer demand.


There are also signs that India’s fast pace economic growth is slowing, with the latest official figures pointing to annual GDP growth slipping under 8%.

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