The passenger car sales in the first month of the new fiscal reported a growth of 4% at the back of increased finance availability and higher demand from rural areas.

Following the global financial crisis, the car sales growth in the country had been negative but the sales figure started improving in the last quarter of the previous fiscal. This has been the third month in a row when the car sales have clocked a positive growth.

As per the data released by the Society of Indian Automobile Manufacturers, auto maker Maruti Suzuki has reported a rise of 8% to 56,221 units in its domestic sales. Similarly Hyundai Motors India and Honda grew by 3.4% to 22,241 units and 16% to 3,565 units respectively during the month of April.

The sales figure has marked an improvement due to increased financing by the banks and revival of demand from the rural areas. However Tata Motors did not witness a rise in its sales that remained stagnant at 11,202 units. The company said that its sales remained flat for the period because of restricted lending by banks on some of its models designed for commercial purpose.

Chief General Manager of Maruti Suzuki, Shashank Srivastava said, "Marriage season and a good crop have led to high cash component of sales. But for the growth to be long-term, there has to be better availability of finance as the credit evaluation criteria of banks are still high."

Commercial vehicles sales increased because of the availability of passenger carriers and goods carrier in the light commercial vehicles segment. Sales figure in light commercial vehicle segment increased by 28% to 18,819 units in April.

On the other hand, medium and heavy vehicles sales remained almost flat. The buses sales rose by grew 4% to 2,253 units while trucks sales fell by 47% to 8,770 units on a year-on-year basis in April.

CFO of non-banking finance firm Magma Shrachi, Mr Ravi Todi said: "Commercial vehicles' sales in March are usually high because of depreciation benefit. But now, with the Government having extended the benefit till September, there should be better demand."

Meanwhile sales in the two-wheeler segment also increased. Scooter sales rose by 19% to 97,129 units and motorcycles recorded double digit growth of 12.11% on the back of healthy performance of Hero Honda and Honda motorcycles and scooters.

During the month of April, Hero Honda motorcycles witnessed a growth of 25% to 3.48 lakh units while Honda motorcycles sale rose by 94.5% to 39,136 units. However both Bajaj and TVS recorded a fall in their sales figure by 22% to 1.06 lakh units and 10% to 44,238 units respectively.