Monthly car sales in India jumped 38% year-on-year in July, hitting a record high of 158,764.
Cheap credit, low penetration and strong demand for small cars drove the sales, The Wall Street Journal reported. Only 12 out of every 1,000 Indians owns a car or utility vehicle, and the figure is much lower in the countryside.
"The growth in the car market is helped by the sustained effort of auto companies to tap the rural market," said Vishnu Mathur, director-general of the Society of Indian Automobile Manufacturers.
The growth in sales may overtake the official forecast by the society. The society had predicted growth of 12%-13% in the fiscal year through March.
"We are looking at our growth projections and may revise them upward in the next few months," Mathur said.
What are Penny Stocks
The lucrative and dangerous world of penny stocks.View Course »