Car sales in India rose by 4.99 percent in 2014-15 after falling for two consecutive fiscals, as lower fuel prices and softening of interest rates led to reduction in the overall cost of ownership.

According to data released by the Society of Indian Automobile Manufacturers (SIAM), domestic car sales in FY15 stood at 18,76,017 units as compared to 17,86,826 units in the previous fiscal.

In 2013-14, car sales in India had fallen by 4.65 percent from 18,74,055 units in the previous fiscal. In 2012-13, they had fallen by 6.69 percent, which was the first decline in a decade.

"During FY15, general sentiment improved in the car industry. Investment cycles restarted and the worries which people were having was greatly diminished," SIAM Director General Vishnu Mathur told reporters here.

Besides, interest rates and fuel rates came down during the last fiscal thereby reducing the overall cost of ownership, he added.

In FY15, the total vehicle sales across categories were up 7.22 percent at 1,97,52,580 units from 1,84,23,223 units in 2013-14 fiscal.

Two wheeler sales did well during the fiscal, on account of scooters. Total sales were up 8.09 percent for the 2014-15 fiscal at 1,60,04,581 units, up from 1,48,06,778 units in 2013-14.

Motorcycle sales for the fiscal ended March 31, were up 2.50 percent to 107,43,549-units from 104,81,115 units in corresponding fiscal.

"Motorcycle sales were impacted due to moderate demand from rural markets, which saw scant rainfall last year. Even now the rural markets have been impacted by unseasonal rains," Mathur said.

Scooters however posted a robust growth of 25.06 percent during FY15 at 45,05,529 units as compared to 36,02,743 units in 2013-14.

Commercial vehicles, however, continued to reel under a prolonged slump, posting a decline of 2.83 percent at 6,14,961 units as against 6,32,851 units in the earlier fiscal.

"Sales of heavy trucks have gained traction due to start of various infrastructural activities like mining and construction of roads, while sales of light commercial vehicles have still not picked up," Mathur said.

On the export front, during 2014-15, car shipments fell by 1.66 percent at 5,42,082 units as against 5,51,218 units in the previous fiscal. Overall auto exports from India grew by 14.89 percent in FY15 at 35,73,806 units compared to 31,10,584 units in 2013-14.

On the outlook for the car sales in FY16, Mathur said the industry is "hoping for a moderate growth".

- Manohar