Passenger vehicle sales in India have hit a major milestone, after passing the million-unit mark for the 2003/4 financial year.

Low interest rates helped bolster demand, as sales continued to rise throughout the first three months of 2004, according to The Society of Indian Automobile Manufacturers.

Further support was provided by tax cuts, which helped to reduce prices and spur demand.

Including exports, sales rose 32.2 per cent to 1.03 million for the financial year, marking a significant leap from 779,203 in the previous year.

Meanwhile, domestic car sales hit 696,207, up by more than a quarter from the previous year.

In March alone domestic car sales rose 11 per cent when compared to the same period in the previous year.

A total of thirteen companies operate production facilities in India, including Suzuki, Hyundai, General Motors and Ford.