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Tremendous Increase in Indian Car Sale in November
Jan 08, 2008

The Indian economy is soaring high, so is the passenger car sales in the country. In November 2007, the car sales in India recorded stupendous growth of 16.42% over November 2006.

According to the statistics released by the Society of Indian Automobile Manufacturers (SIAM), the sale of passenger cars has increased tremendously in the month of November 2007 and touched 1,03,031 units, as compared to 88,501 units in the corresponding month in 2006. This reflects the positive movement in the automobile industry, which is maintaining the double-digit growth rate of 16.42%, as per the news published by Dnaindia.

Sale of passenger car in India is on a rise that has placed the country among the top three markets in the world, behind Japan and Brazil. During the period from 2003 to 2007, the passenger car sales in the Indian automobile industry grew at a CAGR of 18%. Experts believe that this trend would continue in coming years and hence, it would be difficult for the leading manufacturers of the world to neglect Indian market.

In a report by RNCOS, “Indian Automobile Sector – A Booming Market”, the registration of passenger car gone up by around 30% from 2004-05 to 2006-07 and touched the 1.38 Million mark. The continuous growth in the automobile sector made India Asia’s third largest market after China and Japan.

The high growth in passenger car sales in the month of November 2007 is due to enticing offers and heavy discounts given by the companies. Another factor for increasing in sales of passenger cars is booming Indian economy that is growing at annual rate of 9%.

Besides, change in lifestyle, increase in the income levels and enhancement of foreign trips also played very important role in the sale of cars in India. Financial institutions are offering car finances at reasonable rate of interest and easy payable installments, thus fuelling the car sales.

he market analysts said that car companies are working on innovative car designs that consumers are increasingly looking out for. Today’s customer gives importance to physical and emotional needs along with technological advancement.

The giant global car manufacturers are looking towards India to establish their base in the country and to exploit the potential of the Indian vehicle market. The conducive business environment provided by India, like rapidly expanding economy and flexible license issue policy, are also contributing in attracting foreign giants.

Related Market Research Reports:
Indian Auto Industry Market Overview
Vietnam Automobile Industry Forecast (2007-2010)
Asian Automotive Industry Outlook (2007-2011)