The Society of Indian Automobile Manufacturers (SIAM) released its latest data on Tuesday. According to SIAM, the total automobile sales in the domestic market was reported 1114157 units in January , increasing by 44.9% while for the same period last year 7,68,698 units were reported sold.

Car sales in January saw a growth of 32% as it was reported 145000 units in the first month of 2010. The data for car sales surprised the analysts as it beats the previous best of 133000 sales recorded in November 2009, according to the data released by SIAM.

"This is the highest ever sales by the auto industry and has come on the back of economic growth, reduced interest rates and better money supply in the system," Dilip Chenoy, director general, SIAM said. Chenoy did not forget to say that the high growth in January was also contributed by last year's low base as well as reduced commodity prices.

While analysts in the industry see the low interest rates for car loans and economic recovery as important factors for this growth. Analysts also said fear of a hike in taxes in the Union Budget also aided the growth. Now the expectations are there by the industry experts that the total domestic industry will end the current financial year at over 11 million units, which will be a growth of 22.6% over 2008-09.