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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World India's vehicle sales surge 72 percent in Nov By ERIKA KINETZ,AP Business Writer - Wednesday, December 9 Send IM Story Print MUMBAI, India – India's auto sales surged 71.9 percent in November from a year earlier to 207,500 vehicles, thanks to poor sales this time last year and robust consumer spending. Sales of passenger cars rose 60.8 percent to 133,687 units while commercial vehicle sales nearly doubled to 40,847 vehicles, the Society of Indian Automobile Manufacturers, a trade group, said Tuesday. Sales of other passenger vehicles, like utility vehicles, rose 94.5 percent, to 32,966 units. The surge is also a sign of how the Indian consumer _ encouraged by government tax cuts, a big disbursement of back pay for government employees and falling interest rates _ is fueling economic growth in Asia's third-largest economy. In the September quarter, India's gross domestic product grew a better-than-expected 7.9 percent, its fastest in a year and a half. Last November, India's auto sector was struggling with the fallout of the global financial crisis, which helped drive economic growth to its lowest in six years. Auto sales began to recover in February, thanks to government stimulus spending and early signs of an economic turnaround. "The low base of last year resulted in strong year over year growth for most players," Macquarie Securities analyst Sanjay Doshi wrote in a research note. "More important, demand remains strong in the passenger vehicle space, even after the festive season, and the commercial vehicle recovery appears to be gathering momentum." Hyundai, India's largest car exporter, reported its highest ever monthly sales in November. Domestic sales shot up 92.8 percent to 28,162 vehicles even as exports declined 4.6 percent to 27,103 vehicles. Market leader Maruti Suzuki clocked 61.6 percent growth in domestic sales to 76,106 vehicles, and a 128.6 percent surge in exports to 11,448 vehicles, thanks to rising sales of its A-Star model in Europe. Compared to November 2007, when Indian automakers were not struggling with what Maruti executives call their "worst ever slowdown," domestic sales were up 17.1 percent for the month. Domestic sales at Tata Motors _ India's largest commercial vehicle maker, which also owns Jaguar and Land Rover _ rose 64 percent to 50,114 vehicles, while exports grew 87 percent, to 3,994 vehicles, the company said. Overall auto exports from India rose 20.1 percent, with car exports up 15.0 percent to 39,786 vehicles and commercial vehicle exports up 76.9 percent to 4,845 vehicles. India has weathered the global slump in auto sales better than most. Global auto majors like Ford Motor Co., General Motors Co., Nissan Motor Co. and, most recently, China's Shanghai Automotive Industries Corp. are making significant investments in India, as they try to capture a piece of the fast-growing market. JD Power forecasts that car sales in India will grow from 1.7 million in 2008 to 3.2 million in 2015, while car sales in China will surge from 8.8 million to 16.0 million over the same period. 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