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annual 31 percent, as new launches and cheaper finance boosted demand,
industry figures showed Monday. Domestic passenger car sales rose to 115
,067 units in July from 87 ,901 units a year ago, the Society of Indian
Automobile Manufacturers ( SIAM) said in a statement. Falling interest rates
and a spate of new models have helped stoke demand in the country of nearly
1.2 billion people, manufacturers say. Sales of commercial vehicles, seen as
an important barometer of economic health, jumped by 9.6 percent to 37 ,624
units, ending nearly a year of continuous decline. India's economy grew by a
better-than- expected 5.8 percent in the quarter ended March. But a weak
monsoon has clouded the outlook for growth in the months ahead as rural
areas, where some 700 million people live, feel the impact of poor harvests.
Motorcycle sales climbed 19.48 percent to 546 , 245 units in July from a
year earlier. The country's vehicle makers cut prices following a government
reduction in value- added tax last December, part of a stimulus package to
help the sector. Vehicle manufacturers see huge potential in countries such
as India and China, with their billion-plus populations. India is one of the
world's least penetrated car markets with just seven autos per 1 ,000 people
compared with 850 cars per 1 ,000 people in the United States.
