India's August car sales up 18 pct yr/yr

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NEW DELHI, Sept 11 (Reuters) - Car sales in India rose 18 percent in August from a year earlier, an industry body said on Tuesday, as new models and discounts helped lure buyers in a market battling high interest rates and fierce competition.

But motorcycle sales fell 11 percent, while sales of trucks and buses rose 3.2 percent, the Society of Indian Automobile Manufacturers (SIAM) said in a statement.

Car sales rose to 98,893 units in August from 83,864 in the same month a year earlier, it said.

"Passenger cars have been able to overcome tough market conditions through new products and aggressive marketing push," Batlivala & Karani said in a note to investors last week.

Maruti Udyog Ltd (MRTI.BO: Quote, Profile, Research, Stock Buzz), India's largest car maker, which reported on Sept. 1 its sales jumped 27 percent in August to 65,958 units, led the way.

The company, 54.2 percent owned by Japan's Suzuki Motor Corp (7269.T: Quote, Profile, Research, Stock Buzz), said last week it could not give discounts forever. "Our sales are good, but at what cost? I don't know how long I could keep doing this," Managing Director Jagdish Khattar said, adding the discounts would be offered till Sept. 15.

Cumulative car sales in India rose 13.6 percent to 590,653 units during April-August, SIAM said.