Car Sales Climb 15% in India

Sales of passenger cars in India advanced last month to 160,200 units from 139,300 in June 2013, the Society of Indian Automobile Manufacturers reports.

It was the largest monthly improvement in 10 months.

SIAM credits the increase to a six-month extension of tax breaks on cars, coupled with improving consumer sentiment under the new government headed by Prime Minister Narendra Modi.

But the trade group cautions that signs of recovery are weak. It points out that demand for trucks and buses dropped 9% to 51,100 units in June, underscoring the country's sluggish economy. Still, SIAM notes that the sales gap for commercial vehicles has narrowed over the past three months.