India Car Sales Rise By 9.8 Percent

  • Tuesday, 26 January 2016 09:28

India is riding on the new wave of automotive sales, as passenger-car sales for 2015 grew at the fastest rate in five years.

Amidst the turmoil hacked up by the slowing Chinese economy and the floundering European steel crisis, India has slowly maintained its march to become one of the largest consumer markets in the world.

Despite a ban on diesel cars in New Delhi, car sales have never been stronger as they finished 2015 at a five year high. The upsurge in sales is primarily due to the decline in fuel costs, lower interest rates, price incentives by auto makers and an increasingly urban population.

The total car sales surpassed two million for the first time in India’s history, a startling recovery from an auto industry that had only recently experienced a 9.9 percent decline in 2013.

Despite the positives, Sugato Sen, deputy director general of the industry body, warns of the continued floundering of demand in rural and semiurban areas, caused in no small part to two years of insufficient monsoon rain.

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