New Delhi, April 12 -- Retail sales of automobiles in India increased 8% sequentially in March to 1.68 million vehicles as companies offered discounts and other incentives to lure buyers and reduce dealer stocks, showed data issued by the Federation of Automobile Dealers Associations (FADA) on Wednesday.

Retail sales however fell compared with March last year because of the high base and prevailing weak market sentiments.

Retail sales of two-wheelers rose 10% month-on-month (m-o-m) in March to 1.32 million units, while those for passenger vehicles grew 5% to 242,708 units.

Sales of commercial vehicles grew at a modest 2% m-o-m to 61,896 units amid the prevailing liquidity crunch at non-banking financial companies (NBFCs), which has squee...