Passenger vehicle sales to touch 3.75 mn units by 2014

Passenger vehicle sales are expected to nearly double by 2014 from the current 1.89 million units, mainly driven by anticipated economic growth fuelling the aspirational lifestyles of consumers.     

According to global consultant Ernst & Young (E&Y), the total sales of passenger vehicles are expected to touch 3.75 million units within next five years witnessing an annual growth of 12 per cent.     

While domestic market is expected to contribute 2.75 million units to the total tally, the remaining would come from exports, an E&Y report said.     

"Economic growth with changing demographics and aspirational lifestyles are the main drivers for the growth in domestic market, supported by government support in the form of reduced excise duties, concessions on cleaner fuels and the ongoing improvement in highways," it added.     

The study further said stimulus packages would prevent the market from a free fall and the benefits are expected to continue till assurance of sustenance of manufacturers is established.     

Taking note of the changing scenario of the Indian auto industry, the consultant said the entry of ultra low-cost cars, like Nano, would increase the penetration level from the existing nine cars per 1,000 persons.