India is a growing economy, and it will continue its pace in the near future too. It has also become the biggest consumer market which is making it a big hub for all international brands and manufacturers. This spectacular growth is even seen in the automotive sector of India. With expansion and growth in the economy of India, the automobile industry is also reaching a new milestone every day. The passenger car and the commercial vehicle segment has witnessed a quantum leap in sales, with substantial growth of 9.5 percent and more 4 million units were sold in the year 2017, making India the fourth largest automobile market.
The future of the automobile sector is also bright as it expected that India will surpass Germany and become the third largest passenger vehicle market by 2021. It took India nearly seven years for increasing its vehicle production from three million to four million. After achieving the magical number of four million, the Indian automotive industry is set to touch the five million mark in less than five years. This increase will solely depend on the rapid economic development of the country which is projected at an annual GDP rate of 7 percent through 2020, flourishing consumer class, rapid urbanization, and supportive rules and regulation.
In the automobile segment today, the auto industry of India has become a star performer and has doubled its market share in a matter of a decade. According to a prediction made of IHS Markit, the growth rate of Indian automotive industry will continue to expand by 10 percent, and it is expected that it will overtake Japan by the year 2020 which is in the third position right now.
India’s economic power was seen at that time when TATA motors acquired Jaguar and Land Rover. So, it is not only ex
panding in the domestic market, but it is also spreading its wings across the world. According to World Bank data, the gross domestic product per capita of India showed an amazing increase of 70 percent between 2007 and 2016 to just over $1700.
Maruti Suzuki is one of the dominant players in the Indian car market which has around 80 percent market share, continues to be a leader in the passenger vehicle segment. Its subsidiary’s vehicle sales saw an increase of 15 percent, which is more than 1.6 million in 2017. It gave a boost to its market share by 2.6 percent.
Keeping the pace of boosting automobile sales other brands like Tata, Renault, Honda, Hyundai, and Ford are also launching new models and products to attract a maximum number of buyers towards them. Apart from the new cars, the market of resale cars is also growing at a tremendous pace. It is a sign of the growing economic strength of the people and their inclination towards an improved lifestyle. The government’s projects to make better roads within the cities and improving the highways have also played a crucial role in giving a boost to the sale of cars in India.
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