India's total passenger vehicles sales volume grew 11 per cent in February to a record high as demand for utility vehicles stood strong, the Society of Indian Automobile Manufacturers (SIAM) said on Friday.
Wholesale passenger vehicle volumes rose to 2,91,928 units from 2,62,984 units a year ago, said SIAM, which records sales to dealers. Sales of passenger cars and utility vehicles formed up to 96 per cent of the total.
Earlier this month, the Federation of Automobile Dealers Associations (FADA), which publishes retail sales data, also said passenger vehicle sales grew 11 per cent in February.
FADA expects sales to rise in March on pre-buying ahead of a regulatory change that would increase prices from April and as automakers dish out promotional offers in the final month of fiscal year.
As one of the key indicators used to determine private consumption, auto sales numbers hold more than 50 per cent of the weight when calculating India's economic growth.
A rise in borrowing rates in February "remains a concern", said SIAM President Vinod Aggarwal, adding that he hopes for moderation in the lending rates.
Two-wheeler sales, an indicator of the financial health of India's lower- to middle-income households, were also up 7.6 per cent, doubling from 3.8 per cent in January.