India has overthrown Germany to become the World Number 4 in the Passenger Car market owing to the accelerated growth in sales of cars and SUVs. India witnessed sales of 5,60,806 units in the first two months of 2018 as is expected to witness a 10% growth by the end of the year.

India: India has become the fourth-largest Passenger Vehicle (PV) market globally for the first time ever, overthrowing Germany, in January and February 2018 owing to accelerated growth in sales of cars and SUVs. With sales of 5,60,806 units in the first two months of 2018, India overtook Germany’s tally of 5,31,100 units. India is now preceded by China, US and Japan in the global hierarchy with Germany in the fifth position, followed by Brazil and France.

As per the study conducted by SIAM, China dominated with the sales of nearly 4 million units in January and February 2018, while US at number two with 8,18,882 units and Japan at number 3 with 7,41,385 units saw a significant reduction in sales.

The automotive industry body of Germany (VDA) had already predicted the slip. According to VDA, Germany is anticipated to see a 2% reduction in its 3.4 Million-unit sales in 2018, while India is projected to witness a 10% growth around the same time.

India is expected to hit around 3.6 million units in 2018 sales, exceeding Germany’s tally for the year 2018. India is the only market in the top four that is inclining towards growth and is predicted to witness a significant increase in sales, unlike the US and Japan which are likely to be flat or negative, and even China, which was flat in the first two months of 2018. The VDA predicts China’s 2018 total at 25 million units, followed by the US at around 17 million and Japan at 4.3 Million. The European Union’s collective numbers are expected to be 15.6 million units.

The Indian auto experts also agree. According to an expert, the Passenger Vehicle market in India is expected to witness 8-10% growth in FY18, facilitated by new model launches and a promising macroeconomic environment, with improving GDP growth rate in the second half of FY18, and recovery in rural income.

According to TechSci Research, the Passenger Vehicle Market in India is expected to witness robust growth in the coming years. The growth in the market is facilitated by a various factor like new model launches, easy financing options and the surging penetration of CNG vehicles in the Indian Market. Moreover, the promising macroeconomic conditions in the country like rising per capita income coupled with increasing Foreign Direct Investment in the automotive sector will drive the growth of the market in the coming years.

According to the recently published report by TechSci Research, “India Passenger Car Market, By Vehicle Type (Hatchback, Sedan, SUV & MUV), By Segment Type (Mini, Compact, Micro, C1, C2, D, E, & F), By Fuel Type (Petrol, Diesel & CNG), By Engine Capacity, Competition Forecast & Opportunities, 2012 – 2022”, India passenger car market is projected to reach $ 64.3 billion by 2022, on the back of growing disposable income, rising urban population, launch of several low-cost car models, and rapid development of road infrastructure across the country. Growth is also expected to be driven by surging number of Completely Knock Down (CKD) plants, availability of simple and effortless financing options and increasing demand for SUVs for off-road activities.

Moreover, TechSci Research predicts that the growth in the Passenger Car Market in India will pave the way for robust growth of tire market in India in the coming years. The increasing sales of vehicles will also propel the demand for tires. Moreover, factors such as the strengthening automotive sector, increasing production as well as continuously expanding automobile fleet across various regions, introduction of new vehicle models in the domestic market as well as growing purchasing power among the citizens of the country will drive the Indian Tire Market in the coming years.

According to the recently published report by TechSci Research, “India Tire Market Forecast & Opportunities, 2012 – 2022”, India tire market stood at $ 8.67 billion in 2016, and is expected to grow at a CAGR of 9.17%, in value terms, to reach $14.41 billion by 2022, on the back of growing demand for tires, continuous development of infrastructure and increasing purchasing power among the consumer of the country has also increased. In India, total vehicle production has increased from 4.17 million units in 2012 to 4.49 million units by 2016, consequently expected to propel the OEM tire market in the country.

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