New Delhi, Oct. 13: Domestic car sales grew 2.84 per cent in September after two months of slump. Motorcycle sales rose 15.22 per cent.

According to analysts, the festive season and product launches will improve growth in the next few months.

Car sales had declined 1.71 per cent in July and 4.36 per cent in August. The negative growth was attributed to rising oil prices and lack of finance. “A lot of pent-up demand coupled with car companies offering schemes and the festive season have improved the health of the industry,” said Murad Ali Baig, an auto analyst.

According to data released by the Society of Indian Automobile Manufacturers (Siam), domestic car sales in September stood at 1,08,823 units against 1,05,822 units in the same month last year, while that of motorcycles were at 6,32,369 units compared with 5,48,816 units last year.

Dilip Chenoy, director-general of Siam, said increased domestic sales was a reflection of confidence returning back to the industry after the rough ride in the previous two months. He, however, felt it was premature to say the worst was behind.

“For the full fiscal we would keep the growth projection to around 10-12 per cent for passenger vehicles. Companies have increased production in comparison to actual sales, which is a sign of confidence,” Chenoy said.

Market leader Maruti Suzuki India had a marginal increase in sales at 56,501 units against 56,322 units in the same month last year.

Hyundai Motor India clocked a growth of 23.98 per cent at 22,307 units compared with 17,993 units in the same month last year on the back of its new hatchback i10. Sales of Tata Motors, however, dipped 3.20 per cent, while that of General Motors fell 5.32 per cent.

Motorcycle sales registered 15.22 per cent growth in September at 6,32,369 units against 5,48,816 units in the corresponding month a year ago.

Hero Honda posted a 22.78 per cent growth in sales at 3,65,630 units in September compared with 2,97,792 units in the year-ago period.