Indian Passenger car segment to reach 48.5 lakh sales by 2016
The Indian automobile market achieved a record breaking hight in the last year. The industry faced a tremendous growth in year 2010 which resulted in multiple launches from manufacturers of different countries. Though the growth rate has been reduced it is still among the world’s fastest growing auto market. As per the latest reports, submitted by ICRA, the Indian passenger vehicle segment will reach a sale of 48.6 lakh units by year 2015-16.
The major reasons suggested behind the exponential growth is the high developing economy, rising disposable income and availability of finances easily. As per the reports, Indian passenger vehicle segment is expected to touch a height of 4.86 million in terms of its annual sales by fiscal 2016. With this growth the industry will mark a jump of 10.8 per cent CAGR (compound annual growth rate) in coming 5 years. In the year 2009-10, the Indian PV segment will expand by 26% which will amount to 19.5 lakh units.
While in the running financial year, the segment will achieve a height of 21-23% which will amount to 24 lakh units. Addressing the issue, ICRA Senior Vice President and Head (Corporate Ratings) Subrata Ray has stated that a remarkable economic growth along with increase in middle class population and increasing income levels will make an ideal situation for the growth in Indian passenger vehicle segment. He also propounded that other factors like easy availability of financing and relatively low penetration of cars will increase the demand in this segment. He also said that the domestic passenger vehicles industry is going through a steady growth since last few years which has resulted in a 10 years CAGR of 10.3% in this period. As per the reports, Indian passenger vehicle segment is the seventh largest in the world. The reports also said that this segment is developing with time and soon will turn into a mature market.
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