MUMBAI (NewsRise) -- India's main automobile industry group expects sales of passenger vehicles to improve during this month and the next as lower interest rates and new models will help revive demand in Asia's third-largest economy.
Automakers including Maruti Suzuki India and Tata Motors have been grappling with one of the worst-ever downturns for almost a year as consumers cut back on spending in a slowing economy. India's gross domestic product expanded at the weakest pace in five years in April-June as banks tightened credit in the face of ballooning bad debt levels. In a bid to revive growth, Prime Minister Narendra Modi's government has announced a slew of measures including a sharp eight percentage-point cut in headline corporate tax rate to 22%.
