India to be a five million car industry by 2020: Maruti Suzuki’s RC Bhargava

Maruti Suzuki India Ltd, India’s largest automobile maker, stated that the regional vehicle market will reach 5 million devices in yearly sales by 2020, making the nation the fourth-largest market worldwide.

The price quotes were provided by Maruti Suzuki chairman R.C. Bhargava at an auto parts conference on Monday.

“At 5 million cars by 2020, we will be practically number four (in the worldwide chain of command),” Bhargava stated in his address on Changing Trends in Automotive Supply Chain, arranged by the Auto Components Manufacturers of India.

Maruti’s projection is in line with the central federal government’s Auto Mission Plan II that anticipates the passenger vehicle (PV) market to more than triple to 9.4 million systems by 2026 from 2.8 million now if the economy grows at an average rate of 5.8% a year. If the economy rises at an average annual pace of 7.5%, the size of the passenger car market is anticipated to rise to 13.4 million systems, making it the world’s second biggest after China.

Bhargava included that the Indian automotive sector is poised for solid development and demand for vehicles will grow faster than in the last two years when a market slowdown impacted sales.

“Despite what NGT (National Green Tribunal) or others are attempting to do, we’ll achieve higher development than in 2014,” Bhargava said, describing a current order by the NGT that looks for to scrap diesel automobiles older than 10 years on Delhi roadways.

To be exact, the NGT order is also going to move growth in car sales as it will produce a replacement need in the market. Since 2015, Delhi had actually registered 8.9 million passenger automobiles. Of these, there are around 220,000 diesel traveler automobiles and 170,000 business automobiles that are more than 10 years old, according to industry estimates.