India's biggest carmaker, Maruti Udyog Ltd, reported a 30.3 percent jump in unit sales in 2003/04 as robust GDP growth and low interest rates boosted car demand in Asia's third-largest economy.
Maruti, 54.2 percent owned by Japan's Suzuki Motor Corp, said in a statement on Thursday sales in the financial year ended March 31 rose to a record 472,122 vehicles from 362,242 in the previous year.
Domestic sales were up 27.6 percent to 420,947 units, helped by a product tax cut, while exports grew 58.7 percent to 51,175 as demand for its Alto compact car grew in Europe.
Indian car sales have powered ahead after the February 2003 federal budget cut production tax on cars and utility vehicles to 24 percent from 32, allowing auto-makers to cut sticker prices by more than five percent.
A booming economy, forecast to grow 8.1 percent this fiscal year, and interest rates near three-decade lows have also boosted sales as thousands of motorcycle buyers upgraded to cars in a price sensitive market.
The boom greatly benefited Maruti, which has a commanding 47 percent share of the market with its small, low-priced cars.
The New Delhi-based auto-maker, which mainly competes with the local unit of Hyundai and domestic firm Tata Motors, said its March sales rose 13.1 percent to 52,700 units, a new monthly high since it began operations 20 years.
Maruti's shares were trading up 2.44 percent at 509.15 rupees in the afternoon on the Bombay Stock Exchange, nearly matching a 2.11 percent rise in the benchmark index.
The shares have quadrupled since Maruti listed in July after a blockbuster IPO as part of a government privatisation plan.
Maruti said domestic sales of its mini Maruti 800, India's top-selling car, fell 24.9 percent in the month to 15,540 units while combined sales of its Omni and Versa vans dropped 2.5 percent to 6,059 vehicles.
The company sold 20,447 units of its three compact cars, the Alto, Zen and Wagon R, up 47.5 percent from a year ago.
Sales of its Baleno and Esteem sedans grew 10.4 percent to 1,465 but for the Gypsy and Vitara multi-utility vehicles nearly tripled to 907 units.
Analysts expect Maruti to gain from robust future demand in India, spurred by an improving road network and low ownership level of eight cars per 1,000 people.