Growth in the Indian passenger vehicle market is expected to halve to just about 12-13 per cent for the year ending March 2011, according to Society of Indian Automobile Manufacturers (SIAM). However, the growth will still hit an all-time high of 2.2 million units on the back of rising income, easy access to finance and new car launches in the next six months.
Passenger vehicles sales shot up 33 per cent to 5.54 lakh in first quarter ended June over the year-ago period signalling robust demand. The strong growth could help the passenger car market to overtake the 3 million-mark much before 2016, as forecasted by the Indian government under its 10-year Automotive Mission plan.
SIAM president Pawan Goenka said the industry had benefited from improved economic environment in the first quarter. “We are expecting better sales in the coming months as all macro-economic conditions point towards robust demand,” he said. Total sales of all vehicles including two wheelers grew 30 per cent to 35.34 Lakh units in the first quarter over the same period last year.
However the auto industry body cautioned that passenger car sales growth rate could come down due to a higher base in the coming months.