India Is the Second Fastest Growing Auto Market

Judging by the high number of new models launched there, India was already looking like one of the most important markets in Asia, but now it has been revealed that it is the second fastest growing market and the seventh largest one in the world.

According to a Hindustan Times article, sales in the country have risen an impressive 31 percent last year, to a total of 1.9 million units. This puts it in firmly in the No.2 sport when it comes to sales growth, second only to China. Also, the milestone 10 million motorcycle sales per year figure has been crossed for the first time, with all major two-wheeler manufacturers registering double digit growth.

India is now also the seventh biggest car market in the world, according to figures released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday. This is quite an achievement, considering that it was at the 15th position in 2000.

Sales of passenger vehicles, including cars, utility vehicles and SUVs, grew by 31.3 percent to 2.4 million last year, compared to the 1.8 million result in 2009. Much of the credit is due to the booming economy, but part of it also should go new model launches and buying incentives. In the last month of the year, domestic passenger car sales increased 28.9% to 148,681 units, while two-wheeler sales grew by 31% to 10,06,545 units.

"We are seeing interest rates firm up and it is already as high as 14.5% on passenger vehicles and 18% on commericial vehicles. It is a worry," said Pawan Goenka, president, SIAM.