ANALYSIS - INDIA'S AUTO INDUSTRY IN 2004.

(From Asia Pulse)

NEW DELHI, Dec 31 Asia Pulse - Low interest rates and higher income shrugged off rise in input costs, helping carmakers todrive to the elite club of nations by selling a record one million cars while Maruti engaged itself in a war of words over arch-rival Tata Motors' plan to develop a Rs 100,000 (US$2,300) people's car.

Surging sales forced almost all the major carmakers to augment capacity and the Indian automobile industry had the distinction of attracting a whopping Rs 60 billion investment by Suzuki Motor Corp. of Japan to set up a new car manufacturing plant for its Indian arm Maruti Udyog Ltd (BSE:MRTI).

Circa 2004 will …