India’s Car Sales Could Rise 12% in Year Ahead

Passenger car sales in India are likely to grow 10%-12% to as much as 2.3 million vehicles in the fiscal year that began on April 1, says the Society of Indian Automobile Manufacturers. India's auto sales eked out a 2% gain in the previous fiscal year, the smallest increase in three years.

SIAM raised its outlook because sales were stronger than expected in the January-March period of 2012. Analysts predict that new models and lower interest rates will lure customers to Indian dealer showrooms.