Delhi, Delhi India (PressExposure) October 02, 2007 -- RNCOS, the market research consulting services company, has recently launched an exhaustive research report on the Indian auto sector - India Automobile Sector - A Booming Market. The report has found that in the zooming passenger vehicle market of India, passenger car is the dominating segment that accounted for over 76% sales during 2006-07.
According to the report, increase in car sales in India has roughly followed the trend shown by personal disposable income. It identifies rising incomes, low ownership costs, affordable prices, favorable finance schemes, and rising buyer incentives as the factors that are pushing the sales up and will continue to drive demand, thus taking the annual average growth in car sales to about 12% during 2007-08 to 2011-12.
Also, with Indian banks fixing the interest rates at 8-year high, automakers are launching new models everyday and offering discounts on older ones to catch the fancy of customers. Industry experts are of the view that new models are certainly spurring car sales and despite the escalating interest rates, demand is still picking up as most of the Indian customers turn to finance services to buy vehicles (over 50% of vehicles sold in the country are purchased on credit). Also, healthy economic growth of the country is making the consumers richer, thus encouraging them to invest in cars.
Besides this, the report provides information on the production, sales, export, investment, market drivers, new avenues, and challenges for the Indian auto market.
According to the latest statistics released by the Society of Indian Automobile Manufacturers (SIAM), in the initial quarter of this fiscal, consolidated sales of passenger vehicles jumped over 12.9% by selling more than 3,48,800 units against 3,08,700 units sold during April-June 2006. Segment-wise, utility vehicles upped by around 10.9%, MPVs (Multi-Purpose Vehicles) by nearly 23.5%, and passenger car segment inched up by about 12.6% during April-June 2007 as compared to same period in 2006.
June 2007 saw the Indian passenger vehicle market going strong with over 94000 units sold against over 80700 units in June 2006, a straight growth of more than 16%. But sales of commercial vehicles lagged behind by moving slightly over 4% to around 35,900 units in June this year from nearly 33,900 units.