Cheap loans boost India car sales in January

[Kalyan]

 India's car sales rose more than 32 per cent year-over-year in January as demand was boosted by cheap loans and an economic recovery, an industry group said Tuesday.

Domestic passenger car sales rose to 145,905 units from 110,300 in the corresponding month last year, according to the Society of Indian Automobile Manufacturers (SIAM).

Motorcycle sales grew even faster, jumping 43.69 per cent to 650,633 units from 452,809 in January 2008.

Sales of trucks and buses - seen as a key indicator of economic activity - increased 131 per cent to 53,447 units.

Total vehicle sales in all categories increased 45 per cent to 1,114,157 units in January, the industry body added.

An economic rebound, spurred by government stimulus and easier bank loans explained the sharp rise in sales, analysts said.

India is one of the few global markets displaying robust car sales growth.

Foreign automobile giants such as General Motors and Volkswagen have been ramping up production in the country as they eye the explosive expansion of the Indian car market, Asia's third biggest.

Car sales are forecast to double by 2016 from current levels of about 1.8 million annually, helped by the country's growing middle class, according to SIAM forecasts.

[rob11woods]

That seems like very good news.. this practically means that something good is going on with the world's economy..

[paulduminy]

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