India's retail vehicle sales by dealers are expected to remain steady in December, a dealers' body said on Monday, driven by a rebound in demand following recent tax cuts that made some cars cheaper and ongoing year-end incentive schemes for consumers.

Overall sales grew 2.14% in November, the Federation of Automobile Dealers Associations (FADA) said, with sales defying expectations of a slowdown after the festive season.

Automobile dealers cited confidence, pointing to stronger enquiry pipelines, the ongoing wedding season, improved inventory levels as well as year-end consumer schemes.

India, in late September, cut goods and services tax on sports utility vehicles with engine capacities of more than 1,500 cc to 40% from about 50% and on small cars to 18% from 28% in a bid to spur cons

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