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Passenger Car Sales Rise In India By 20% In 2006
May 03, 2007

With the launch of new models, sales incentives offered by manufacturers and other similar factors, sales of passenger cars grew exponentially in the year 2006.

Data released by the Society of Indian Motor Manufacturers (SIAM) shows an increase of 20% in sales of passenger cars and light vehicles in India during 2006. However, the sales of multi-purpose vehicles and utility vehicles grew 16.3 % and 12.4 %, respectively, as per Global Insight.

Indian passenger car sales for the year 2006 were 1,099,712 units in comparison of 920,239 units in 2005. The three carmakers, Hyundai, Maruti and Tata Motors, were the major sellers of passenger cars in the year 2006.

The increase in demand of passenger cars rose due to the launch of new models, sales incentives offered by manufactures, and the variant coupled with several low cost finance schemes. Another main reason for booming demand of passenger cars is growing income level of Indian middle class.

The country has also seen an increase in the number of global auto manufactures that makes Indian auto sector one of the most competitive markets because it provides low cost manufacturing base and ready market to launch their new models.

According to the Economic survey of Indian Government by the year 2007, India's high -growth domestic automobile market would attract a huge investment of US$ 18 Billion, but the export potential of Indian automobile is still not being utilized despite its gaining global recognition.

The biggest carmakers in the world like General Motors and Ford are also looking forward to enter in Indian automobile market seeing the great growth prospects here. Also the major manufacturers are lining up major investments in India, in an apparent bid to exceed each other. The foreign models like BMW, Porsche, Mercedes, Audi, Rolls Royce and Bentley have already made their presence in Indian market.

"Overall performance in all segment of the automobile sector of India improved dramatically in the year 2006. This will also encourage foreign investors to jump into the Indian automotive sector. And, it is expected that by the year 2010, the number of auto manufacturing units in India will grow up to 20 for multi-utility vehicles and passenger cars", as per the industry experts at
RNCOS.

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