To the relief of automakers in India, the car sales have increased after four consecutive months of contraction in the month of November recording a 7 per cent growth in the month.

The car sales increased mainly due to revival in demand in the country as well as a low base year factor. The Society of Indian Automobile Manufacturers (SIAM) released figures Thursday showing that the domestic passenger car sales stood at 1,71,131 units in November compared to 1,59,939 units in November 2010.

SIAM senior director Sugato Sen said, "Domestic car sales have bounced back as the base in November last year was low. Also, we have seen some revival of demand in last month."

The sales in December is expected to be lower than in November because of the effects of increased interest rates and high fuel prices on the small car segment. The car sales int eh country haven been falling since months due to increased rate of financing and high cost of fuel as well as due to the affects of labour unrest that affected production India's largest car-manufacturer Maruti Suzuki India.

MSI's sales fell 16.59 per cent to 73,078 units from 87,618 units in November, while that of Hyundai Motor India rose 10.72 per cent to 34,878 units in November, 2011, from 31,501 units in the same period previous year. Tata Motors also recorded an increase of 92.41 per cent to 23,540 units from 12,234 units, according to SIAM.