Mumbai : India's auto sales surged 49 per cent in February compared to a year ago, as customers scrambled to buy cars before tax hikes and new emissions norms take effect.

Sales of commercial vehicles, a sign of economic activity, led gains, rising 119.4 per cent, to 68,024 vehicles, the Society of Indian Automobile Manufacturers, a trade group, said Monday. Sales of passenger cars rose 33.2 per cent to 153,845 units, and sales of other passenger vehicles, like utility vehicles, rose 37.2 per cent, to 40,703 units.

India is one of the few automobile markets that have continued to grow through the global downturn. Economic growth is picking up and demand for cars remains strong, even in the face of rising prices, analysts say. The government announced a 2 percentage point hike in excise taxes on Feb. 26, part of a rollback of fiscal stimulus measures, dismaying automakers, who quickly passed on those higher costs to consumers.

But the government's focus on road building and rural infrastructure will likely boost vehicle sales in the long run, said Angel Broking analyst Vaishali Jajoo. ``Over the longer term, comparatively low penetration levels, a healthy economic environment, and favourable demographics, supported by higher per-capita income levels, are likely to help the auto companies in sustaining their top-line growth,'' she said in a research note.

India's leading carmaker, Maruti Suzuki, sold 96,650 vehicles in February, up 22 per cent from a year ago, the highest total monthly sales in the company's history. Demand is so strong the company is ramping up production capacity from 1 million to 1.25 million vehicles a year, Jajoo said.