India's carmakers see mild uptick in sales to dealers in January
Business
India's carmakers see mild uptick in sales to dealers in January
(Reuters) - India's overall car sales to dealers saw a slight increase in January, data released by automakers on Saturday showed, as inflation-wary customers continued to delay purchases.
Domestic sales of India's top four carmakers - which form 80% of the country's car market - rose 1.8% from a year ago, helped by sales of market leader Maruti Suzuki's small cars and Mahindra & Mahindra's sports utility vehicles.
WHY IT'S IMPORTANT
Car sales in India, the world's third-largest car market, have slowed after two years of rapid growth as higher inflation has squeezed buyers' pockets.
Higher raw material costs have forced carmakers to raise prices even as they offer discounts to perk up demand.
The government's proposal to slash personal income tax rates in its annual budget on Saturday has raised hopes of a consumption boost in the world's fifth-largest economy, which could entice more people to buy cars.
