India has surpassed France, the UK and Italy to become the sixth largest automotive market in the world in 2010 according to a special report by consultancy firm, J.D. Power and Associates. The report has forecast that India could become one of the world’s three largest automotive markets in 2020.
By then, it says India is expected to reach 11 million light-vehicle sales (or passenger cars) due to a booming economy and higher incomes. This will make India the third-largest light-vehicle market in the world, behind China which is expected to record sales of 35 million light-vehicle sales in 2020.
The average transaction price for all new passenger vehicles sold in 2010 in India was $ 10,000 (about Rs 4,50,000) as compared to China where it was $ 17,500 ( about Rs 7,87,500). The Maruti Alto, India’s best-selling passenger car had an average transaction price of $ 6,200 (about Rs 2,79,000). An estimated 2.4 million cars were sold in India in the financial year 2010-11.