Car sales in India, led by low interest rate regime, witnessed at least 31 per cent growth in July, after slipping 10 per cent in the past one year. Cities like Delhi, Mumbai, Bangalore, Cochin, Ahmedabad, Chandigarh, Calicut and Kolkata reported 12 per cent sales growth under improved market sentiments and hopes of early revival of economy.
A total of 115,067 cars were sold in July, as compared to 87,901 in the corresponding period last year, according to the data released by the Society of Indian Automobile Manufacturers.
Semi-urban and rural markets too reported increase in car sales, which had fallen by 1.7% to 87,724 units in July last year. The breakout of global financial crisis adversely hit car sales during July-November 2008 period as corporate customers, living under job uncertainties, postponed their decision to make car purchases.
A senior executive at HDFC Bank said: "Almost 75% of the new car buyers have home loan liabilities. They had been deferring their new car purchases on higher home loan payouts. Now, declining interest rates have reduced the burden significantly and these customers are revving up the car market."