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Passenger Car Market in India

India is believed to be the fourth-largest passenger car market in Asia comprising a range of cars belonging to different price segments and car segments. Starting from a 2-seater car, the Reva to a 7-seater SUV, Volvo XC90, the Indian car industry has huge portfolio of cars. In terms of price segment, India has a car starting from Rs 1 lakh, the upcoming Nano, to the one like Audi, Mercedes, and Bentley selling out in crore.

With the moving pace of time, Indian auto industry has gradually came up with various innovations and advancements. Some of the leading car manufacturers like the Tata Motors, Hyundai Motors, Honda Seil India, and Maruti Suzuki have also proved their worth in terms of production, designing, and marketing across the globe. These manufacturers have good number of cars crossing boundaries and winning appreciations. Many other global auto manufacturers have made their debut to India with their slew of car launches.

The global car manufacturers are investing on Indian market eyeing the growing earning potential, strong technological capability, availability of cheap and trained human resources. This further gave a boost to Indian car exports. Low cost of production along with low cost of designing and research has also contributed to increasing car exports.

According to the industry reports, the fiscal 2001-2002 recorded an increase of 5.3 million units which increased to 10.8 million units in the fiscal 2007-2008. The financial year 2007-2008 recorded a growth of 19%. The production of passenger cars in India is expected to grow to over 14 million units in 2014-2015 and the sales are expected to increase at a rate of 10% per annum.

The manufacturing of passenger cars in Indian car industry has recorded an overall growth of over 8%. Every year the rate of production is increased because of the advancing technology and increasing number of establishments in terms of production houses and design centers. Recently, many car manufacturers like Hyundai, Maruti Suzuki, and Fiat have established their design centers in the country. Furthermore, most of the car manufacturers are eyeing India as a hub for small car production.

The rising cost competition in the developed car markets coupled with high input cost pressure contributed to the increasing sales figure of passenger cars in the country. During financial year 2005-06, passenger vehicle sales witnessed a growth of 7.55% over the previous year. The major players are still in the process of expanding their production capacity and roll out more car models in response to the needs and aspirations of Indian car consumers.

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