Fiat gains, Renault loses as Indian car sales surge

India's passenger car sales gained at the fastest pace in six years to a record as economic growth and introduction of new models such as Tata Motors Ltd.'s Nano and Fiat SpA's Grande Punto boosted demand.

Car sales rose 25 percent from a year earlier to 1.53 million, according to data released today by the Society of Indian Automobile Manufacturers in New Delhi. Industrywide vehicle sales, including vans, SUVs and trucks, increased 28 percent to 2.48 million vehicles, the group said.

Toyota Motor Corp., Volkswagen AG and General Motors Co. introduced 10 models in January as carmakers boosted investments in India and China after recession slammed demand in their home markets. Still, growth may slow this year as auto loan rates are poised to rise in Asia's third-largest car market, said Umesh Karne, an analyst at BRICS Securities Ltd.

"The surge in economy, rising incomes and new models helped demand last year," said Mumbai-based Karne. "It may not be possible to sustain such a fast growth rate going forward as we are looking at the possibility of another two to three rounds of interest-rate hikes."