- Follows China, USA and Japan
- China leads in PV sales while USA is the global leader in CVs
India has dislodged Germany to become the fourth-largest market globally when it comes to passenger as well as commercial vehicles combined. With gross sales crossing the four million mark in the calendar year 2017, India is now led by China (approx. 29.1 million), USA (approx. 17.5 million) and Japan (approx. 5.2 million).
The Indian automotive industry had been marred by slow growth for almost a decade before the upsurge in the past couple of years. With the combined passenger car sales crossing the 3 million mark and registering double digit growth in CY 2017 as compared to CY 2016, India’s growth story finally seems to be back on track.
The industry output, along with the GDP, has shown positive signs. The economy is expected to grow at about 8 per cent in the next financial year and with the GST regime slowly settling down, the economic clarity might boost sales.
The current challenge for the Indian car industry is the high petroleum prices and besides, the current taxation policy and targets of the government do not indicate a dip in petrol prices anytime soon. The next quarter, especially with the run-up to the prime-ministerial elections due next year, will be instrumental in indicating the way forward for the both the automotive industry as well as the overall economy and buying sentiment.