As per the OICA – “Organisation Internationale des Constructeurs d’Automobiles” sales Data from January to October 2011, India has sold over 2.73 Million (27.3 Lakh) vehicles which is a 0.8% growth from the precious year, exceeding the sales of vehicles in Brazil. The total production during this period in India has been 2.04 Million (20.4 Lakh). In 2009, India became 7th largest auto maker leaving Spain behind. Now it seems that India has overtaken Brazil and secured 6th place on global chart of automakers. If the trend continues, it is projected that India will overtake Korea, Germany and Japan by 2017.
image – Production and Sales Data from January to June 2011
The ratio of vehicles owner per person in India is one of the lowest in the world (1% as per SIAM’s data), which leaves a lot of potential for growth for Indian automobile market in coming decade. The export market from India is growing stronger than the domestic market which is also likely to improve the Indian economy on a larger level and it will also help the domestic sales to grow over a larger period of time.
As of now, the India Automobile industry seems to be in a slowdown phase because of high fuel prices, interest rates, inflation and increasing input costs. Depreciation of Indian Rupee has also added to to the worries of car makers who import auto components and also put pressure on fuel prices in India. It may take a couple of years before the Indian auto market can change its growth trend to a more upbeat and positive direction, till then, the growth will be sluggish.
via – BSMotoring
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