Indian passenger vehicle market grows by 7.87 per cent in FY2016; fastest in 5 years

A largely successful financial year for the passenger car market in India was capped off at the end of March 2016 with growth figures of 7.87 per cent – highest in five years. Selling 20,25,479 units domestically, the Indian passenger car market was driven by new model launches and heavy discounts of late, according to the Society of Indian Automobile Manufacturers (SIAM). 

SIAM deputy director general Sugato Sen told a media outlet that these are the best figures posted by the Indian car market since 2010-11. “The growth in 2015-16 was mainly because companies have tried to come up with new models, which have been accepted in the market,” he said.

Popular carmakers like Maruti Suzuki and Hyundai have all experienced positive movements during the previous fiscal year, according to their year-end sales figures. The staggering growth of luxury car brands, like Mercedes-Benz and Jaguar Land Rover, further boosted the cause of the Indian passenger car market.

Along with these growth figures, there was more positive news for India’s automotive fraternity. Two-wheeler sales were also up 3.01 percent for the fiscal at 16,455,911 units, against 15,975,561 units in FY 2014-15.

Despite strong overall figures for the previous financial year, passenger vehicles saw a marginal negative growth of 0.3 per cent in March 2016. Total sales stood at 175,730 units in March against the 176,260 units in the same month last year.

Conversely, the total two-wheeler sales aggregate in March increased by 10.92 percent to 1,467,714 units as against 1,323,184 units in the corresponding month last year. 

Elsewhere, commercial vehicles also saw a towering rise of 22.03 percent to 79,865 units in March.