India overtook Germany to become the fourth-largest market globally when seen from the passenger as well as commercial vehicles combined sales. The gross sales crossed the figure of four million marks in the calendar year 2017. And as a fact, India is led by China (approx.. 29.1 million), USA (approx.. 17.5 million) and Japan (approx.. 5.2 million).
There has been a recent upsurge in sales since the past couple of years after it was marred by the Indian automotive industry’s slow growth. After the figures relating to the combined passenger car sales crossing the 3 million mark and registering double-digit growth in CY 2017 as compared to CY 2016, India seems to be on track as of now.
The industry output and GDP combined has shown positive signs. The economy is expected to grow at a rate of about 8 percent in the coming next financial year and with the GST regime slowly settling down; the economic clarity might certainly boost sales.
The biggest challenge before the India car industry is the high petroleum prices, and besides that, the current taxation policy and targets of the government do not at all indicate even a dip in petrol prices anytime soon. The coming quarter, especially with the run-up to the prime-ministerial elections being due next year, will prove to be instrumental in indicating the way forward for the automotive industry as well as the overall economy and buying sentiment.
With the growth in GDP and development initiatives taken up by the government of India, the sales are further expected to grow in the coming months. But there have been fears that the sale will also bring bane to the country with the rise in pollution. For this India too had committed to go for Electric enabled cars, which would reduce the pollution burden considerably.