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Passenger vehicle market sets sight on 3 m units in 2011-12

08 Apr 2011 Evaluate

Buoyed by the boom witnessed in 2010-11, the passenger vehicle segment is expected to touch the three million unit sales milestone in the current fiscal. This is a year ahead of the industry's original target of 2012-13.

Passenger vehicle sales in 2010-11 have come as a welcome surprise after breaching the two million unit figure by a large margin. In the fiscal about 2.52 million passenger cars and utility vehicles were sold in the country, about 29 per cent growth over the 1.95 million unit sales recorded in 2009-10.

This growth spurt, coming as it did after the slump of 2009-10 and the global financial crisis, has also left many players strapped for capacity. Maruti Suzuki and rival South Korean carmaker Hyundai are now both trying various measures so as to not lose customers to the new competition that has come in. Maruti Suzuki, which already has production capacity of about 1.4 million units, would increase capacity by five million by 2012 at a cost of Rs 3,625 crore.

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