New Delhi, July 8: Domestic passenger car and motorcycle sales rose nearly 8 per cent and 16.23 per cent, respectively, in June, buoyed by the introduction of models, interest rate cuts and more money in the hands of rural India.

According to industry players, the clearance of Sixth Pay Commission arrears has put more cash into the hands of the middle class, leading to higher sales.

“A combination of factors such as new models, aggressive rate cuts and fiscal stimulus has driven growth in the last five months,” Arvind Saxena, vice-president (marketing and sales), Hyundai Motor India Ltd, told The Telegraph.

Maruti Suzuki India sold 54,693 units in June, a growth of 11.77 per cent over 48,935 units sold in the same month last year.

The company began to sell the Ritz from May.

Fiat SpA, which introduced the Grande Punto last month, witnessed its sales grow to 2,464 units in June from 500 a year ago.

According to the Society of Indian Automobile Manufacturers (Siam), motorcycle sales were up 16.23 per cent to 5,50,833 units from 4,73,899 a year ago.

Two-wheeler sales surged 17.44 per cent to 7,06,937 units against 6,01,941 units a year earlier.

However, sales of trucks and buses — a barometer of economic activity — fell 12.5 per cent from a year earlier to 36,193 units.

The industry feels that in spite of its demands going unnoticed in the budget, the focus on farm sector should help.

“There was nothing done to propel direct demand, but the focus on farm sector will help tractor sales. Higher spending in urban schemes should increase the demand of buses. Also, the pent-up demand will play its own role in increasing sales,” analyst Murad Ali Baig said.

Overall, passenger car sales in June were at 1,07,531 units compared with 99,741 a year earlier, while motorcycle sales stood at 550,833 units.