Massive rise down to low interest rates and government aid
10 August 2009

Car sales in India rose by almost a third in July compared with the same month last year.

Analysts say the dramatic rise is due to lower interest rates, government stimulus packages, a reduction in excise duty rates towards the early part of the year and the growing presence of buyers in the rural markets.

Year-on-year sales rose by 31 per cent in July, to 115,067 units, according to the Society of Indian Automobile Manufacturers.

It is the sixth month in a row in which car sales have risen in India, and the trend is likely to continue.

The rise has also been boosted significantly by the first orders for the Tata Nano coming on stream. The budget car was launched in March, and so far 200,000 orders have been taken.

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Our Verdict

Tata Nano

Cheap and undeniably cheerful. Unbelievable value, if only you could buy one in the UK.

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