As per recent estimates made by rating agency ICRA, the Indian passenger vehicle market will reach the mark of 48.6 lakh units in next five years. The major factors behind this robust growth will include robust economic growth, easy availability of finances and rising disposable income. ICRA said in a statement that it estimates the Indian passenger vehicle (PV) industry will reach 4.86 million in annual sales by FY16, representing a growth of 10.8 per cent CAGR (compound annual growth rate) over the coming five years.
The passenger vehicle segment in India, which grew at 26 per cent to 19.5 lakh units in the last financial year, is expected to jump by 21-23 per cent to 24 lakh units in the current fiscal.
Speaking on the report, ICRA Senior Vice President and Head (Corporate Ratings) Subrata Ray said "A buoyant economic growth, growing middle class population, rising disposable income levels, relatively low penetration of cars in India and adequate availability of financing are likely to provide an ideal backdrop for a sustained long-term demand growth for the sector."
According to ICRA, the stricter emission norms, presence of global players and introduction of global platforms indicate that the market is gradually attaining maturity.
