MOTOWN ON FIRE: CAR SALES JUMP 61% IN NOVEMBER

61MILESTONE Indian auto industry has stepped on the gas. Riding on cheaper loan rates and economic revival, passenger car sales have posted best figures in almost 6 years. And not far behind are two-wheeler sales, which rose by 42.4% Our Bureau NEW DELHI  THEcountry's car industry is looking to cross the 2-million sales milestone next fiscal, with the market expected to maintain its high-growth momentum on the back of a slew of new models including Volkswagen's Polo and some Chinese hatchbacks from General Motors-SAIC combine.      The country saw the steepest rise in passenger car sales in more than five years in November at 61%, thanks to an abnormally low base a year earlier when car sales dropped, according to figures released by the Society of Indian Automobile Manufacturers on Tuesday.      Carmakers are buoyed by doubledigit growth in sales over the past one year, triggered by a stimulus package in December last that included tax cuts, despite the economy witnessing a slowdown in the wake of the worst global recession since the 1930s. Now that the country's economy firmly back on the high growth path, they expect sales to keep the momentum.      "Despite the weak sentiment in the domestic market, there has been robust growth in the past one year and going by the demand," said Sugato Sen, senior director at SIAM.      After selling 1.33 lakh cars in November to record the highest year-onyear jump in sales since the 73% rise in February 2004, the country's total passenger vehicle sales in the first eight months of 2009-10 stood at 1.21 million units. Companies are set to sell 1.8 million cars this year and more than 2 million next year, Mr Sen said.      "New car launches during the Auto Expo (in Delhi) in January and beyond will further boost demand," he added.      Major increase in volumes are expected from the country's top three carmakers Maruti Suzuki India, Hyundai Motors and Tata Motors, besides US major General Motors and Europe's largest carmaker Volkswagen AG.      All these companies are boosting investments in the country that will lead to the launch of a slew of new cars, particularly in the hatchback segment that accounts for four out of every five cars sold in the country.      "The positive sentiment in the economy is expected to translate into more footfalls in the showroom. We hope the economy will continue on a growth trajectory and push the Indian automotive industry to high double digit growth," said Arvind Saxena, senior VP (marketing and sales) at Hyundai Motors.      While Maruti Suzuki plans to increase its production capacity by 75% over the next five years to defend its 50% share in the market, Tata Motors is on cruise with world's cheapest car Nano.      GM last week formed a joint venture with SAIC Motor Corp to pave the way for China's largest automaker's entry into India with its array of competitively priced compact cars.      Volkswagen, meanwhile, has kickstarted a major advertisement campaign — that included India's first print roadblock on November 11 when Times of India carried only the German firm's ads across its editions — ahead of the launch of its Polo hatchback. In November, Maruti Suzuki saw its sales jump 60% to 76,359 cars, while Korean carmaker Hyundai almost doubled its sales to 28,162 cars. Tata Motors posted a 48% rise in sales to 18,480 cars.