More than three million cars were sold last year in India, a 6.4% increase over 2014, according to Euromonitor. Sales are expected to grow by 4.7% in 2016 as buyers are encouraged by lower fuel prices and reduced interest rates, reports CNN Money.
“We are going to see a flood of crossovers hitting the market,” said Anil Sharma, principal analyst at IHS Automotive. These models — half sedan and half SUV — appeal to consumers looking to make a lifestyle statement.
Indian consumers are very sensitive to shifts in economic conditions. For the vast majority of the country’s 1.3 billion citizens, cars are still a luxury product. Prices are also low compared to the global average: A new car can cost as little as $3,000.
Neil King, auto analyst at Euromonitor, says India has the potential to leapfrog Brazil, Germany and even Japan to become the third largest car market by 2030.
