Competitively-priced new cars to drive vehicle market

Tags: News
Competitively-priced new cars in mid-size and super compact segments will steer the passenger vehicle market forward over the next few years, says a Frost & Sullivan survey.

As per the survey titled 'Market Forecast and Key Trends in the Passenger Vehicle Market in India', passenger vehicles sales are estimated to reach 3.6 million in 2019. It stood at 2.4 million units in 2013.

The survey also said that by 2019, gasoline (petrol) variant vehicles will dominate the market due to the narrowing price difference between gasoline and diesel as well as the introduction of new models in the utility vehicle and super compact segments.

"The low car per thousand ratio in India has encouraged global manufacturers to launch vehicles catering to the specific needs of the Indian market," said Frost & Sullivan Automotive and Transportation Analyst in a statement.

"Entry level sedans and SUVs from Honda, Ford and Renault offer buyers advanced vehicles at lower costs, thereby spurring demand and increasing business margins," Analyst added.

Frost & Sullivan pointed out that global original equipment manufacturers are also expanding their production capacity in India to make it an export hub.

In 2015, however, this is likely to reduce to an extent primarily owing to massive duty hikes by the Sri Lankan government and Europe's non-tariff barriers and preferential duty agreements with certain African and Latin American countries, it added.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The world is moving away from fast food like never before

    Despite spending $1.8 billion every year on worldwide advertising and promotion, McDonald’s sales are plummeting.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schoettli

It’s time for Japan to step out of its shell

The execution of a Japanese hostage by ISIS has sho­cked ...

Zehra Naqvi

The urge to tell stories

One wants to tell a story, like Scheherzade, in order ...

Bubbles Sabharwal

Truth about truth

The question to ponder is, “is it the truth because ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture