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Indian Passenger Car Market To Grow Up
May 01, 2007

Indian passenger car market is likely to cross 50 percent within coming four years on the back of changing preferences from motor cycles to four-wheeled cars.

According to Global Automotive Financial Review, the Indian passenger car market will go up to 19 lakh cars by the year end 2010 and the market is estimated to witness an impressive growth of above 50 percent by 2010.

India's passenger vehicle sales in the fiscal year, ended on March 31, 2006, rose to record 882,094 units, which is an increase of 7.6 percent from last year. Vehicle sales have increased in 7 year out of the past ten years. India has about 7 cars per thousand people, fewer than the 10 per thousand in China, 450 in the US and 500 in Western Europe.

RNCOS report "Global Passenger Car Industry (2010)" finds that the automotive sector is one of India's largest and fastest-growing manufacturing sectors. Total Indian passenger car production reached 1.3 million units in the year 2005 as compared to 1.2 million units in 2004. Despite India's low level of GDP per head, annual income per head measured at purchasing power parity was an estimated US$3,745 in 2005.

According to the Society of Indian Automobile Manufacturers, vehicle sales will increase at least 10 percent each year until the end of the decade, driven largely by first-time buyers.

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