According to Indian Automobile Manufacturers report, India auto sales surged 71.9 percent in November from a year earlier to 207.500.
Sales of passenger cars rose 60.8 percent to 133,687 units while commercial vehicle sales nearly doubled to 40,847 vehicles. The surge is a sign of how the Indian consumer, encouraged by government tax cuts, a big disbursement of back pay for government employees and falling interest rates, is fueling economic growth in Asia’s third-largest economy.
Last November, India’s auto sector was struggling with the fallout of the global financial crisis, which helped drive economic growth to its lowest in six years. Auto sales began to recover in February, thanks to government stimulus spending and early signs of an economic turnaround.
“The low base of last year resulted in strong year over year growth for most players,” Macquarie Securities analyst Sanjay Doshi wrote in a research note. “More important, demand remains strong in the passenger vehicle space, even after the festive season, and the commercial vehicle recovery appears to be gathering momentum.”