Easy available car loans pushed sales in January

The Indian auto industry which has started the year with the international auto show at New Delhi registered a  jump of 32 % in its January sales due to easy available loans on low interest rate. While the domestic passenger car sales in January, 2010 increased by 32.28 per cent to 145,905 units from 110,300 units same period last year. Motor Cycle sales grew even higher, increased by 43.69 per cent to 650,633 units as compare to 452,809 in January 2009.

Interestingly the sales of commercial vehicles as buses jumped by 131 percent to 53,447 units, which certainly shows signs of economic recovery. According to SIAM the total sales jumped by more then 45% to 1,114,157 units in January.

According to Market analysts the major reason behind the growth across all segments was governments stimulus package which was announced in the month of December 2008 with a duty cut of 4% for both Big and small cars.

The momentum of high growth will remain in coming months as many major car manufacturers launching their new cars in India including Ford Figo (Will be launched in first week next month), Toyota Etios (to be launched by this year end), Volkswagen Polo (will be launched in April 2010) and Tata Aria (April, 2010).

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