Auto makers led by Maruti Suzuki, Hyundai and Mahindra & Mahindra reported significant rise in sales despite slowdown, thanks to revival of demand in the domestic market in August.

Country's passenger car segment grew by 10 per cent in July and did even better in August, indicating signs of recovery of the market.

India's largest passenger car maker Maruti Suzuki, holding 50 per cent of the market share, reported massive 29 per cent rise in sales during the last month, contributed by heavy demand in domestic and overseas markets.

The company sold 69,961 vehicles in the reporting period including export of 14847 units , getting overwhelming response to A-Star - its fifth strategic model to key European markets.

Maruti's CEO and MD Shinzo Nakanishi said, "The other key factor which contributed to last month's robust sales is the car loans made by PSU banks, like SBI, which begin at a rate of 8 per cent."

Mr. Nakanishi added that domestic demand may grow by around 10 per cent for the whole of the current year.

Hyundai, the second-largest player too reported 13 per cent rise in sales as compared to the corresponding year last year, selling 24,401 units of cars in the domestic market.

Hyundai Motor India Ltd Senior Vice-President (marketing & sales), Arvind Saxena said, "We are now entering the festival season phase and strong sales would help the industry return to a healthy growth."