Automotive vehicle sales figures for seven consecutive months have brought cheers to the automobile industry amid strong signs that the industry may be in for good times.

Sales have been growing over the last seven months with double-digit growth in the last two months and industry and analysts feel the overall industry growth may exceed the 5 per cent that was projected earlier. According to Sugato Sen, senior director, Society of Indian Automobile Manufacturers, sales are expected to be robust in September and October as well and there is a possibility of the sales target going higher than the previously set target of 5 per cent growth for 2009-10.

Sen's optimism is understandable following yeteday's announcement by the automobile industry body that the total automobile sales in the country grew by 24. 3 per cent in August at 10,08,702 units against 8,11,341 units sold in August last year. Passenger vehicles grew 22.4 per cent at 1,52,100 units vis-à-vis 1,24,240 units in August last year, commercial vehicles sales grew by 18.5 per cent at 40,624 units as compared to 34,289 units during the same month last year. (See: Auto sales in India jump over 25 per cent in August) 

Two-wheelers, which constitute nearly 70 per cent of total automotive vehicles sold in the country grew 25.1 per cent in sales last month at 7,76,777 units, vis-à-vis 6,20,883 units last year.

According to industry analysts a potential for near double-digit growth in 2009-10 exists

as several positive developments, including better liquidity conditions, loans at lower interest rates, new products coupled with deeper penetration into rural and semi-urban markets will drive the market.