India’s passenger vehicle and two-wheeler market is slowly moving out of the sales slump it was facing for a couple of years. Research studies from Roland Berger Strategy Consultants (Munich based) suggest that the Indian automotive sector is moving towards a double digit growth figure in the near future.
The Indian passenger car market is expect to grow at a compound annual growth rate (CAGR) of 12% to 5 million units by 2020. The two-wheeler space is expected to grow at the same rate to 29.5 million units and the commercial vehicle segment is expected to grow at a CAGR of 7% to 1.175 million units. As a result, the auto components industry with grow to 14% CAGR making it a $100-billion industry by 2020.
Vehicle penetration in India is expected to be the fastest in India by 2025 to 72 vehicles per 1,000 from the 12 vehicles per 1,000 in 2010. This growth rate of 12.5% will surpass China which is growing at a rate of 10.1%.
Source – Economic Times