India's car sales are set to rise in the year ending March 2014 as economic growth gathers momentum, after sales recorded the sharpest fall in more than a decade in 2012-2013, data from the Society of Indian Automobile Manufacturers showed Wednesday.
The industry lobby forecasts that sales of Indian-made passenger vehicles would grow 5-7 percent during the year ending March 2014. Sales of trucks and buses are expected to increase 7-9 percent, while sales of motorcycles are seen rising in the 6-8 percent range.
Sales will be supported by improved performance of the economy and increased demand for larger cars among consumers.
In the year ended March, total car sales fell 6.7 percent annually to 1.89 million units, marking the sharpest fall since 2011. In the month of march, car sales fell 22.5 percent year-on-year to 180,675 units. The slump in sales reflects slowing economic growth and rising inflation.
India's economic growth eased more-than-expected to 4.5 percent in the three months ended December from 5.3 percent in the preceding quarter, due to the widespread weakness in farm, mining and manufacturing output.
The government forecasts 6.1-6.7 percent GDP growth in 2013-14, following an estimated 5 percent expansion last year.
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