The ratio between absolute increase in domestic sales over preceding year and absolute increase in production over the preceding year is highest during which year?

Total automobile production in the year 2004 = 800+500+475 = 1775

Total automobile production in the year 2005 = 700+550+450 = 1700

Total automobile production in the year 2006 = 1025+675+475 = 2175

Total automobile production in the year 2007 = 1200+650+475 = 2325

Total automobile production in the year 2008 = 1250+600+350 = 2200

Total domestic sales of automobiles in the year 2004 = (700+450+300) = 1450

Total domestic sales of automobiles in the year  2005 = (675+500+350) = 1525

Total domestic sales of automobiles in the year  2006 = (900+625+400) = 1925

Total domestic sales of automobiles in the year  2007 = (1050+600+375) = 2025

Total domestic sales of automobiles in the year  2008 = (975+550+350) = 1875

In the year 2005 and 2008 the production and sales respectively are not increasing absolutely. Hence, we will check only for the year 2006 and 2007. 

The ratio between absolute increase in domestic sales in the year 2006 over the year 2005 and absolute increase in production in the year 2006 over the year 2005 = $$\dfrac{1925-1525}{2175-1700}$$ = 0.84

Similarly, the required ratio for year 2007 = $$\dfrac{2025-1925}{2325-2175}$$ = 0.66

Hence, we can say that the ratio is the highest for the year 2006. Therefore, option B is the correct answer.