Bangalore, Dec 24 (ANI): Automobile companies are launching new models as the market grows by 29 per cent.

The demand is not only for small automobiles, but for luxury cars, as well. The market recovery started in October, and is expected to grow by 25 per cent by next year.

Milind Bade, General Manager (Marketing) Bajaj Auto has said the two-wheeler sector is growing well and demand is likely to increase.

"It (the automobile industry) is growing in the region of 17 per cent this year. This is a phenomenal growth, if you look at what is expected, if we go along, I think, given the fact that the penetration for motorcycle in this country is in the region of 20 per cent. I think this growth will continue to happen," Bade added.

The upward trend has also encouraged companies to introduce new models in the luxury sector.

"Compared to last year, overall market is very much growing - not only the small segment, but this kind of luxury segment is also growing," said Hiroshi Nakagawa, Managing Director, Toyota Kirloskar Motors.

The world was hit by major financial crisis in 2008 after two American banks became insolvent. As a result there was a drop of 40 per cent in sales in the automobile market. (ANI)