Cars and bikes are the most popular new purchases in India, as new regulations make it harder to obtain a license.

The National Sample Survey Organisation (NSSO) reported on Wednesday that car sales hit a record high in the month of March, rising from Rs 3.89 lakh crore to Rs 3,927 crore in the three months to March 31.

In the past six months, car sales have increased by more than 10 per cent, NSSO said.

The car market is in its peak period, and the government is hoping to bring it back to that.

This is why the government has introduced a new system that allows people to get a licence for a first-time purchase of a second-hand car.

However, people are still not permitted to get any second-generation cars, the NSSOs data showed.

“First-time car buyers in the state of Tamil Nadu have been getting a licence from NSSOS in the past five months,” the data showed, adding that the average price of a car registered in Tamil Nadu increased from Rs 2.99 lakh crore in February 2017 to Rs 2,999 crore in March 2017.

The NSS’s data showed that the state is the most attractive for second- and third-hand cars in the country, followed by Gujarat and Karnataka.

“In Karnataka, second- or third-generation vehicles accounted for 55 per cent of all registrations in March, with the number of first-hand vehicles increasing from 16 per cent in February to 35 per cent,” the NBSO said in its report.

The figures also showed that second- generation cars accounted for almost a third of all second-year cars sold in Karnataka between March and June 2017.

“Second-generation car owners in Tamilad, Telangana and Odisha have been able to obtain licences in the last three months, but there are still some hurdles in getting them,” it said.

The data also showed a significant jump in the number, and value, of second-grade and third car registrations in the first half of this year.

“The increase in registrations of second grade and third grade vehicles is significant given that the previous year, the government restricted the sale of these vehicles to individuals, and not to companies,” it added.

The number of vehicles registered in the second- to third-grade category rose from 14.1 lakh in March 2016 to 24.9 lakh in April 2017, while the number registered in third grade increased from 9.2 lakh in the same period to 15.6 lakh in May 2017.

The average price for second and third year cars in Karnada rose from Rs 5.8 lakh crore for the period from April 2016 to Rs 6.8 crore for March 2017, the data show.

The total value of second and three year car registrations has risen from Rs 679.9 crore in April 2016, to Rs 1,052.4 crore in May, it said, adding: “This year, we expect the number and value of registrations of cars to increase further, and we would welcome a higher value for the second and tertiary categories.”

The government has also introduced new rules that allow people to obtain licenses for first- and second-class cars only.

“This is the first time in the history of the Indian automobile industry that a state government has given a license for a car to an individual only,” the National Sample Study Organisation said.

However it noted that it has not been possible to measure the effect of these changes on the number or value of cars.

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