The car price hike post-budget and rising interest rates have taken a heavy toll on passenger car sales in India.

On a 1400 square metre stand with 17 cars on show, Peugeot presents all the modernity of its range, the youngest and most extensive in its history in China, an expression of the allure and the modernity of all that is French, with a complete offering of vehicles carrying the Roland Garros identity and an original concept car, the "Urban Crossover Concept", a worldwide reflection on the evolution of the offering in the B segment.

Renault is gearing up to launch a cheaper variant of the Renault Fluence, powered by the same 1.5-litre dCi diesel engine, but in a lower state of tune, producing 85 PS.

Car prices are set to rise in India, after a 2 % hike in basic excise duty from the present 10% to the proposed 12 %. Additionally, excise duty on large cars will also increase from 22% presently to 24%. However, the government has decided against imposing a ‘diesel tax’, a move which has brought some respite to car-makers in the country.

Car sales in February have been better than expected, especially coming on the back of the depressed sentiment in the market in the last quarter of 2011. Most car-makers have reported better than expected sales, but are cautious before commenting on whether such momentum will be maintained in the coming months.