India to record world's fastest car sales growth

The top gear drive of India in car sales will help it to pip China as world’s fastest-growing market in the world. According to a study by Ernst &, the market of India will record the fastest compound annual growth rate which will be between 2009 and 2020. Also, this will be more than double of China and the triad of North America, Japan and  Europe. Between 2009 and 2020, the CAGR of India is likely to be 14% in comparison of that of 6 % of China. The study also predicts that the car sales and SUV sales of India will double from 2.2 million units in the year 2009 to 5 million units in 2015.

Carlos Ghosn, Nissan Renault boss has also predicted that sales of India’s passenger vehicle will hit about 6 million units by the year 2014 or 2015. The global CEO of Volkswagen, Martin Winterkorn has also predicted that the market of India market will grow to five million units by then. India’s position in the global pecking order will also improve drastically with ten million units in car and SUVs produced and sold every year, stated Rakesh Batra, partner and national leader (auto), E&Y. Presently India is the 10th largest passenger car market globally.

Looking at the strong focus of India on small cars, this segment will continue to dominate the market as well as the assembly lines. The production expertise will also support the auto industry of India from a $30-billion sector to one worth $108-119 billion. The exports are estimated to raise from $3.8 billion in the year 2009 to around $30 billion by the year 2020. The components industry will also raise to $103-113 billion in the coming 10 years.

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