The recession-hit auto industry has a reason to cheer, as auto sales are picking up, indicating earlier recovery of the market. The auto sales increased 14 per cent to 9.17 lakh units in June, as compared to 8.08 units in the same period last year.

Car sales during the period also increased 8 per cent, as per the figures released by the Society of Indian Automobile Manufacturers (SIAM). Total car sales stood at 1.07 lakh units, as compared to 99741 units in June last year. The country's leading passenger car maker, Maruti Suzuki again took the lead, selling 54,693 units and posting 12 per cent increase in sales, as compared to the figures of corresponding months last year.

A market analyst said: "Also, the discounts offered around the monsoon season and the gradually-improving situation on the front of retail financing has been keeping the numbers healthy. However, there could be some slowdown in the coming months as demand normally slackens during monsoons."

Other car manufactures, such as Hyundai and Honda Tata Motors, also reported an increase in sales during the period. The newly-launched models, such as Maruti Ritz, Honda Jazz and Fiat Grande Punto, created good interest among customers and helped increase sales.

Motorcycle and scooter segments also performed well, with all the top three players - Honda Motorcycle and Scooter India, TVS and Hero Honda - witnessing an increase in demand.