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Auto sales fuel hopes

New Delhi, Nov. 11: New models and the festival season have jacked up car sales by 34 per cent in October, indicating strong recovery. Commercial vehicle sales, too, shot up 52 per cent

According to data of the Society of Indian Automobile Manufacturers (Siam), car sales stood at 1,32,615 units in October, the seventh consecutive month of growth, compared with 99,052 units in the same month a year ago.

Motorcycle sales in the month rose 14.22 per cent to 6,11,828 units from 5,35,642 units in October 2008.

The upward march began in July after 11 months of slump. Sales of commercial vehicles jumped 51.90 per cent to 42,562 units in October this year from 28,019 units in the year-ago period.

Experts say demand is expected to be strong in India, Asia’s third largest market, as delivery orders are pending, despite companies operating at optimal capacities.

“There are clear signs of robust demand by customers as delivery orders are pending for weeks. Continuation of excise duty benefits will always be a great help for the industry but even without that the industry will sell good numbers,” said auto analyst Murad Ali Baig.

Maruti Suzuki India, the country’s largest car maker, has a waiting period of six-eight weeks for its sedan Dzire and hatchback Swift. The waiting period for Honda sedans Civic and City is five weeks and six weeks, respectively.

Last October, car sales in India declined 6.5 per cent year-on-year.

Auto makers report sales based on units shipped to dealers.

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