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UPDATE 1-India's May car sales rise 14 pct, bikes up 7 pct
  Reuters : June 10,2008
 
NEW DELHI, June 10 (Reuters) - India's domestic car sales rose an annual 14.3 percent in May, data from an industry body showed on Tuesday, helped by new models, while motorcycle and truck sales grew at a slower pace.

A 10 percent increase in state-set prices of petrol and diesel last week is expected to dampen auto sales, especially commercial vehicles, in June.

Car sales rose to 110,743 units in May from 96,923 a year earlier, data released by the Society of Indian Automobile Manufacturers (SIAM) showed.

In April, sales had jumped an annual 17.2 percent, the fastest pace in seven months.

Dilip Chenoy, director general of SIAM, said he expected sales in June to be higher than a year earlier though an eight-day maintenance shutdown by top carmaker Maruti Suzuki India Ltd (MRTI.BO: Quote, Profile, Research, Stock Buzz) could weigh.

High lending rates, ruling at a 5-1/2-year high, have put the brakes on demand growth, while rising prices of raw materials have increased costs for automakers.

"It's a challenging time for companies," Shenoy said.

Motorcycle sales, which had revived in April after falling nearly 12 percent in the year to March, rose 7.4 percent in May to 513,209 units from 477,901 in the same month last year.
 
       
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