India becomes fastest growing passenger vehicles market; leapfrogs China, US

Registering a significant rise in the sales of passenger vehicles, India stood out as the fastest growing market among the eight largest auto markets in the world during the first 11 months of 2015. The economic slowdown in China and the sharp decline in the sales of automobiles in Brazil last year made India the clear winner with a 7.64 per cent growth statistic, reported a website.

According to data provided by the Society of Indian Automobile Manufacturers (Siam) and Organisation Internationale des Constructeurs d’Automobiles (OICA), a Paris-based federation of international automobile manufacturers, no less than 2.54 million passenger vehicles were sold in India between January and November in 2015.

As a result of this increase, India has now become the fifth largest passenger vehicle market by volume after leapfrogging Brazil and trails Germany by 4 lakh units. Though, China still holds forth as the world’s largest auto market with a market size of at least eight times more than that of India. 

“We are projecting India to become third-largest passenger vehicle market by 2018,” Anil Sharma, principal analyst at consulting and forecasting firm IHS Automotive, said to LiveMint.

“As we forecast double-digit growth for 2016, India is certain to cross the 3-million mark, which would mean surpassing Germany in the near term,” Sharma added.

Growth in India was fuelled by positive customer sentiment in cities, gradual uptick in the economy and hope that the economy will do much better in the coming quarters. However, experts have predicted an uneven pattern in this growth on the back of two consecutive bad monsoons and weak rural wage growth.

Other factors like global economic developments, oil prices, the recent ban by the Supreme Court on 2000cc-plus diesel vehicles in Delhi etc. could all have significant impact on the growth patterns in 2016. However, with the new unveilings at the upcoming edition of the Delhi Auto Expo things could get interesting and set the passenger car market on a further upward trajectory in the times to come.

Source: Livemint