Car sales in India rose an annual 7.2% in January, an industry body said, marking the third consecutive monthly rise as automakers bounce back from record falls in sales in late 2011.
Demand for cars in India fell for the first time in three years last July as high interest rates and rising fuel costs deterred buyers.
Automakers sold 196,013 cars last month, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Wednesday.
Sales of trucks and buses, a key indicator of economic activity, rose 13.5% in January from a year previous to 69,859 vehicles, SIAM said.
India's auto industry may miss a car sales growth expectation of 0-2% in the fiscal year that ends in March if sales continue at their current pace, SIAM reported.