It has come to light that the Indian automobile market has become the fourth-largest in the world. India recently overtook Germany to get into the list of top 4 auto markets globally. The Indian auto industry witnessed sales of 4.02 million units and hence, grew by as much as 9.5% in last one year.
The growth of Indian auto industry in terms of sales volumes has happened over the last few years due to a surge in sales of automobiles. It may be noted that India, which is the third-largest economy in Asia, is the fastest growing major automobile market in the world with a growth rate of 9.5%. In comparison, the German car market, which now stands at the fifth position, has a growth rate of only 2.8%. 3.8 million vehicles were sold in Germany last year. The Japanese car market, which is currently at the third position, enjoys a growth rate of 5.24%. 5.4 million vehicles were sold in Japan in 2016.
Another interesting detail here is that India and Brazil have grown at a similar pace. Many factors have a major role to play in the growth of the Indian car market. Many new companies have come to India in the last few years, thereby giving the consumer many choices. Moreover, the per capita income in India has seen a steady improvement, which has made many to bring home a vehicle. Easy finance options also make it easier for potential buyers to buy a new vehicle. Yet another factor is that of the ever-improving road network.
The largest player in the car market of India has been Maruti Suzuki India Ltd, which enjoys a nearly 50% market share. India is the largest automobile market for Suzuki, both in terms of four-wheelers and two-wheelers. Even other companies, like Hyundai, Tata, Mahindra, and Ford have been doing better numbers than before. The resales market has also grown at a good rate. Statistics show that the used car market in India is at least 2.5 times of the new car market, thereby clearly hinting at the huge number of people who choose to buy a used vehicle. At this rate, India is expected to soon become one of the top 3 car markets in the world.