Domestic car sales have increased 14.76 percent in June this year compared to the same month last year, apex industry body SIAM has said, a day before the first Narendra Modi government Union Budget. Passenger car sales have increased from 139,624 units in June 2013 to 160,232 units in June 2014. This can be deemed as the best bounce back for the automobile industry in a while.

Passenger car sales were led by Maruti Suzuki, Hyundai Motor India and Honda Cars, attributed to the fact that a reduction in excise duty was announced in the interim budget this year. The new government later also extended the excise sop for another six month, a decision that was welcomed by the industry.

Motorcycle sales, on the other hand, have grown from 799,254 units to 876,196 units, a 9.68 percent growth, according to SIAM. Total two-wheeler sales in June rose 12.99 percent to 12,61,589 units.

Sales of commercial vehicles, however, were down 9.03 percent to 51,119 units in the month. Vehicle sales across categories registered an increase of 12.15 percent to 15,78,884 units from 14,07,875 units in June 2013, it added.

Meanwhile, in its reaction to the Railway Budget announced yesterday, SIAM has said that the provisions of the Budget may make OES opt to consider transporting their vehicles by train. SIAM said that the proposals for better port connectivity and setting up of private freight terminals will benefit the auto sector.