Domestic car sales zoom

The domestic car sales a likely to register a growth in this year comared with just 1.31 per cent last year on the back of buoyant sales in the first half of 2009-10, says Society of Indian Automobile Manufacturers (SIAM).

As quoted in media, "The main factors driving growth include the stimulus package and a cut in interest rates. Now we are cautiously optimistic about the future and hopeful of a double-digit growth this fiscal," Dilip Chenoy, director-general of SIAM, said.

Car sales in September jumped 20.61 per cent to 1,29,683 units â€ the highest in a month â€ from 1,07,517 units in the corresponding period a year ago. During the first half of the year, sales grew 14.75 per cent to 6,89,339 units from 6,00,738 units a year ago.

Other factors such as launches, festival discounts, a reduction in taxes, improved liquidity and the salary hike of government employees, following the recommendations of the pay commission, also helped.