Car sales in the country rose an annual 19.7% in March, an industry body said, a fifth straight monthly increase, but climbed only 2.2% in the fiscal year that ended last month due to sluggish sales in the first half of the year.
Demand for cars in India fell for the first time in three years last July as high interest rates and rising fuel costs deterred buyers.
Indian automakers sold 229,866 cars in March, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday. Total sales in the fiscal year 2011-12 were 2.02 million cars.
Sales of trucks and buses, a key indicator of economic activity, rose 14.8% in March and an overall 18.2% in 2011-12. Motorcycle sales rose 1.2% in March and 12% in the fiscal year.