Ford Motor

Despicable loans boost car sales in India

Passenger car sales in India jumped 32 per cent year-on-year in

January, boosted by easy financing terms and the economic recovery, an

industry group said on Tuesday.

Car sales rise to 145,905 units from 110,300 in January 2009,

according to data released by the Society of Indian Automobile

Manufacturers (SIAM). “This is the highest-ever sales by the auto

industry,” SIAM director general Dilip Chenoy told reporters. He said

that “economic growth, reduced car loan interest rates

and better money supply” were key factors behind the increase. Chenoy

added that the year-on-year jump was partly due to low sales figures

for January 2009, under the effect of the economic slowdown.

Major manufacturers including Maruti Suzuki, Mahindra and Mahindra,

Hyundai Motor Company and General Motors reported record sales in

January.

Total vehicle sales, including motorcycles and trucks, increased 45

per cent year-on-year to 1,114,157 units in January, the industry body

said. Car sales are expected to double by 2016 from the current annual

average of about 1.8 million units, according to industry forecasts.

International car makers including Volkswagen and Ford Motor Company

have been expanding their local production facilities and introducing

new models in India.

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