Car Demand Soars 23% in India

Wholesale shipments of passenger cars in India surged to 172,500 units in October from 140,100 units a year earlier, the Society of Indian Automobile Manufacturers reports.

The 23% growth rate was the highest since January 2011. India's sales of SUVs soared 88% last month to 309,200 units.

SIAM says the year-over-year changes were so dramatic because the country's festival season, when auto sales typically soar, is a month later this year than in 2011. Volume also rebounded last month because strikes depleted the inventories of industry leader Maruti Suzuki in October 2011.

Demand for light commercial vehicles rose 31% to 45,900 units, but sales of heavy trucks fell 23% to 20,800 units.

In the April-September period the first six months of the fiscal year India's car sales were unchanged year over year at 910,000 units, according to SIAM. The group slashed its full-year sales outlook last month to 1%-3% growth from its previous forecast of as much as 11% expansion.