NEW DELHI: Automakers in India got off to a strong start in 2018, as a fast-growing utility vehicle market more than made up for a drop in car sales in the first month of the year.Passenger vehicle sales increased 7.57% from a year earlier to 285,477 units in January, data from industry body Society of Indian Automobile Manufacturers SIAM ) showed on Monday. A lack of new launches hurt car sales, which dropped 1.25%, but the volume rose nearly 38% in the utility vehicle market. In commercial vehicles and two-wheelers, improved sentiment across urban and rural markets led to strong sales.After reporting upbeat January data, SIAM raised its final sales estimates for the current fiscal year through March. It expects passenger vehicle sales to grow at the upper end of its previous estimate of 7-9%. In commercial vehicles, its new prediction is for an expansion of 13%, compared with 4-6% previously, while in two-wheelers, it is now 12% against 11% earlier.The January utility vehicle sales of 85,850 units were the highest ever for a month in India after July last year. At that time, a fall in taxes on large vehicles after the introduction of GST had boosted sales. The levy has been increased since, but demand for SUVs and other utility vehicles has continued to remain strong, with automakers also launching several products in the space. Utility vehicles accounted for nearly a third of the passenger vehicle market in January.“The growth driver continues to be the utility vehicles segment, as it continues to draw a lot of customers,” SIAM director-general Vishnu Mathur said. “There has not been any new launches at the entry level, which has impacted sales of passenger cars. Besides, consumer preferences also have shifted in favour of crossovers and sports utility vehicles.”In December, too, sales of passenger cars had dropped by 0.18%. Sridhar V, partner at Grant Thornton India, said demand could soon pick up for cars, thanks to the new models that are set to hit the roads soon.“Consumers may have been holding on to purchases in the small car segment, anticipating launch of the upgraded products at the show (Auto Expo 2018),” he said.Industry leaders expect the sales momentum to sustain or even improve. Maruti Suzuki managing director Kenichi Ayukawa said the sentiment in the market would only improve from here.The company, which makes one in every two passenger vehicles sold in India, expects industry sales in 2018 to grow close to 10%. “…we will try to keep the same or expect it (Maruti’s growth) to be better,” he said.Meanwhile, steady government push towards infrastructure development and stricter implementation of the ban on overloading of trucks continued to push up sales of commercial vehicles, which rose nearly 40% to 85,660 units in the past month.“The (business) environment has stabilised. Fleet operators have started replacing older vehicles … the next two years should be positive,” said Girish Wagh, president of the commercial vehicle business unit at Tata Motors Hero MotoCorp chairman Pawan Munjal predicted the growth to pick further up now. “We are looking at better growth than last year, especially with the recent focus and impetus on the rural markets, the agricultural segment. That definitely will help us greatly,” he said.Total industry sales — passenger vehicles, two- and threewheelers and commercial vehicles — in January rose nearly 31% to 2,117,746 units.