India 2nd in auto market after China

New Delhi: While the global car market shrank, India’s auto industry displayed its resilience and strength, racing past several developed markets to emerge as the world’s second-fastest growing light vehicle market, second only to China and ahead of Germany, France, Japan and the US.

The gove r n m e n t ’s economic revival package gelled well with the country’s low car penetration, stable economic growth, new model launches and lower interest rates to increase the footfalls at showrooms and keep the demand ticking.

According to data released by industry body SIAM, the light vehicle market — that comprises passenger cars, utility vehicles, multi-purpose vehicles and light commercial vehicles — grew 27.5% in India in 2009-10, faster than Germany (23%), Brazil (11%), France (11%), Italy (-0.2%), UK (-6%), Japan (-9%), US (- 21%) and Russia (-50%).

China was the only market to have grown faster than India as light vehicle sales there grew 42%, especially after the government reduced vehicle tax by 50% in January 2009. Overall, the world light vehicle market contracted by 14%, registering its worst sales in eight years.
The yearly growth rates for all the other markets are based on 2009 calender year basis, SIAM said.
Light vehicle sales in India were driven by a rapid 25% growth in demand for passenger cars