Price hike fears spur car sales in December

Car sales jumped 15% while two-wheeler sales saw a modest 4.5% increase in December. Sale of commercial vehicles too rose 9%. The increase in car sales was driven by anticipation that the excise duty exemption given by the government would end in December, resulting in a price hike. The government has not extended the excise duty exemption and most car manufacturers have since raised the price in January.