India's leading auto maker, Tata Motors Ltd has recorded an increase of 22% on year in vehicle sales for December, according to a press release by the company.

Tata Motors sold 82,278 units in the month, recording a rise of 22 per cent over the same month previous year. The Indian market has seen healthy demand for diesel-powered vehicles despite an overall slowdown in the local auto industry.

The company offers the cheapest diesel-powered passenger cars in the country and has a portfolio with almost all diesel-powered vehicles. The company sold 29,417 passenger vehicles such as the Indica, Vista, Indigo and Aria in the month recording a rise of 27 per cent while the sales for Nano minicar rose 29 per cent to 7,466 units.

The Tata group company sold 47,747 units of trucks and buses in the month with an increase of 14 per cent. On the other hand, the exports for the company fell 3% to 5,615 units.

The Indian auto sector will remember 2011 as the year of prolonged strikes and falling sales and is thus looking at 2012 with optimism and hopes for better times. Car sales in the country have fallen mainly due to high interest rates on financing and increasing prices of fuel. The country's largest auto maker, Maruti Suzuki experienced a steel fall in production while General Motors and MRF found themselves in other issues.