NewswireToday - /newswire/ -
Delhi, New Delhi, India, 2007/06/18 - In India, car sales showed remarkable growth during the month of April 2007 and this trend is expected to continue throughout the year.
As per a recent report “Passenger Car Market: A Global Review (2006)" published by RNCOS it has been found that increasing incomes combined with affordable prices, reduced ownership costs, attractive financing packages, and increased buyer incentives will continue to spur demand in India. Also, the growth in car sales is expected to average nearly 12.9% per year during 2007-08 and 11.6% during 2009-10.
Indian car industry continued to ride on the path of success in April 2007 as well, in spite of the fears of market’s susceptibility to suffer slowdown owing to spiking interest rates. Vehicle market grew by 23.7% in India and reached 1,847,580 units in the FY that ended on March 2007. SIAM (Society of Indian Automobile Manufacturers) revealed this data.
Growing openness of India, new & existing models’ arrival, easy availability of funds at relatively low interest rates, and price-discounts that the dealers & manufacturers keep offering from time to time, all these factors have stimulated the demand for vehicles & a strong growth in the automobile industry in India.
Maruti Udyog – leader in Indian car market – posted a growth of 17% in domestic market during this April over same month last year (2006). Hyundai Motor India, India’s second largest car maker and largest exporter of passenger car, registered yearly growth of 4.8% in domestic and 4.6% growth in export markets during the month of April this year.
As the govt. liberalized the standards for foreign investment & technology’s import, it seems to have been particularly advantageous for the automobile sector. Output of vehicles grew from 4.2 million during 1998-99 to reach 7.3 million during the years 2003-04. And it is further expected to reach 10 million in the next couple of years.
As per the RNCOS report “Passenger Car Market: A Global Review (2006)”, “Automotive sector is amongst the largest and most rapidly growing manufacturing sectors in India. Ongoing liberalization from the beginning of 1990s & a vast domestic market have made India a key destination among global automotive players. GDP share of this sector grew from 2.8% in the FY 1992-93 to 4% during 2004-05. Overall passenger car output reached around 1.36 million units during 2005, whereas it was roughly 1.24 million units in prior year (2004). There were ten companies that produced passenger vehicles during 2004-05.
Key questions answered in this report include: is the passenger car Industry in the developed and emerging countries performing well, how attractive is the passenger car industry for investors, what are the key challenges and driving forces in the passenger car industry, and so on.
About RNCOS E-Services Pvt Ltd.
RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.