The last financial year closed with record automotive sales. The industry sold nearly 2.5 million passenger vehicles in the domestic market and an additional 4,40,000 cars in the export market with India becoming the global hub for a number of small models. The Industry leader Maruti-Suzuki alone sold over half of India’s domestic sales. Domestic sales of passenger cars were slightly under 2 million units with about 2,70,000 utility vehicles and about 1,50,000 SUV’s and multi utility vehicles. The Industry growth rate was 30 per cent.
Seventy seven per cent of this domestic market was hatchbacks that clocked over 1.6 million vehicles. 27 small, medium and large models with several different petrol and diesel options and trim levels jostled with each other for this highly competitive market.
The small saloons (of 4.0 to 4.5 Meters length like the Honda City) accounted for 3,60,000 units or 18 per cent of the sales. Executive saloons (4.5 to 4.7 m long like the Corolla Altis) accounted for a sale of about 52,000 cars or 2.6 per cent of the market. The premium and luxury segment (of over 4.7 m length) accounted for just 1 per cent of sales but has been growing at a rate of over 60 per cent.
Next to China, India is now the world’s fastest growing market and there are roughly 60 locally assembled and 60 imported models fighting for space on Indian roads and highways that are not expanding fast enough for the new additions. Today there is a population of roughly 80 million two-wheelers, 15 million cars and about 8 million trucks and buses.
On the export front India is now the global hub of Hyundai i10 and 120, Maruti A Star and Ford Figo exports. India alone makes the small Tata Nano that may soon have competition with an ultra low-cost car from Bajaj and perhaps a competitor from Suzuki.
It is important to remember that the auto industry is the world’s largest manufacturing industry that is also the largest generator of employment. Most of the employment is not in the car plants but in the component industry that makes 70 per cent of the automobiles as well as the millions employed in the service, spares and transportation, etc. The motorisation of India has now become irreversible and the urban planners of our cities will have to adjust to this new reality with new cities, more roads, better parking and much better traffic management.
The writer is an automotive expert and the former editor of a national magazine