More than 200,000 cars were sold in India in August.

According to a report, all car makers in the country posted their best-ever sales figures.

And the festive season starting in the country, automakers are hopeful of even better sales.

Nissan Motors has done well with the Micra hatchback in India.

Within just two months of its launch, more than 2,000 units have been sold and another 2,500 orders are pending.

The company is now planning to double the production of the Micra. It will also introduce a cheaper diesel variant by the end of next year.

“If you look at the growth of the automobile industry here, it is probably the highest in the world. It is growing in double-digits at 20 per cent plus. Really, no other time but this time is the right time to enter the market, when the automobile industry is going through the roof,” said Abhijeet Pandit, vice president of Sales and Marketing, Nissan Motor India Private Ltd.

Driven by strong domestic demand, India’s passenger car sales have reached an all-time high.

The month of August was sweet for all automakers with combined sales rising to 33 per cent in a year.

Most of them are riding on the success of their small cars, a popular choice in India.

On the export front though, passenger car sales have dropped seven per cent.

But automakers hope to make up for it with robust domestic sales.

The festive season, which lasts from late September to early November, triggers a buying spree.

“Our priority, between export and domestic, is essentially domestic market. This year we are looking to reach 46-44 per cent for exports, and the balance of more than 50 per cent for domestic because the domestic market is growing very fast now,” said Arvind Saxena, vice president of Marketing at Hyundai Motors India Ltd.

In the long run however, the numbers might not be sustainable.

India’s central bank has raised interest rates five times since March to clamp down on inflationary pressures.

Analysts believe consumers will have to pay more on car loan from November after Diwali – India’s biggest Hindu festival.

Some automakers are also facing a roadblock because of capacity constraints.

Leading car makers Mahindra & Mahindra and Maruti Suzuki India Ltd have cut production in the last few months after facing a shortage of key components such as tyres and diesel fuel injection pumps.

Despite constraints, automakers have big expansion plans in India.

Leading car makers have unveiled at least 10 models each this year.

Working with a WRS Info India Pvt Ltd.

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