India Trails China as Fastest Growing Auto Market

The Asian automotive boom which started last year in China continues in 2010 with the same Asian superpower driving automotive sales of last year's battered carmakers. What interesting is that India joined the race and, backed by a strong stimulus package and easy finance rates, it trails China with a 26 percent increase in sales on the domestic market.

Passenger cars sales in India exploded 25 percent, reaching 1,526,787 units. The best performers of the Indian market are Maruti Suzuki (up 21 percent), Hyundai Motor (up 29 percent) and Tata Motors (24 percent).

Commercial vehicles sales increased by 38 percent, while the LCV segment posted a good 43 percent growth. The overall picture was completed by two- and three-wheeler segments, which increased by 26 percent.

“The industry has grown really well in 2009-10, but on a lower base of 2008-09. While the light commercial vehicles (LCVs) segment has done well, the medium and heavy commercial vehicles (M&HCV) segment has not yet reached the 2007-08 levels," Pawan Goenka, president of the Society of Indian Automobile Manufacturers was quoted as saying by thehindubusinessline.com.

“Overall the industry is in good shape and we are positive about the fiscal. However, the growth may be subdued because of a combination of four reasons - the excise hike, new emission norms, rising commodity prices and a possible hike in the interest rates."