India’s passenger car market recorded an eight percent increase in sales to 155,763 units from 143,851 units in June 2011. UVs recorded a significant 44 percent increase to 38,068 units, as a result of being diesel-powered. Sales of vans fell and the Eeco sold less than 1,000 units as a result of a supplier glitch.

The CV sector remains under pressure as the slowing economy has affected sales of trucks that ply on the major inter-state and intra-state routes. The LCV market, however, was buoyant with sales going up by nearly 20 percent.

In the two-wheeler segment, bike sales grew by 6.58 percent to 879,713 units while scooters rose by 22.98 percent. Weak consumer sentiments have affected sales, explains a CRISIL report. Sales in the second quarter of the current fiscal will reflect the progress of the monsoon and any favourable government policy such as a reduction in interest rates will be seen as a boost.