Indian Auto market to see 7% growth in 2006
Canada’s Bank of Nova Scotia has released a research report, which claims that the Indian automobile market is expected to see a growth of close to 7% next year. The economy is booming and the middle class is getting easy finance schemes to upgrade to four wheelers from scooters and motorcycles. In addition, as per the government reports, even the household income in the country is advancing at a double-digit pace.
The report also claims that around 24 million households would become capable of purchasing a new car in the next two years leading to massive boom in this market. 2004 was a boom time for the carmakers in India as the year saw an impressive growth rate of 29 per cent. 2005 has been relatively dull as the growth is expected to shrink to around seven per cent.
Much of this slowdown is credited to rising fuel prices and the rulings related to the emissions from these cars. In addition, the rising interest rates from the bank also played its part in slowing down the growing demands for cars in the market. Bank of Nova Scotiaâ€™s auto industry specialist Carlos Gomes said in a statement: “Household income in India is advancing at a double-digit pace and estimates suggest that 24 million households will be able to afford a new car by 2007.â€
The research report also claimed that rich nations would see a decline in demands for cars while the growth would be noticed in emerging economies like India, Mexico, and Brazil along with China.