The year 2010 was a turning point for the Indian passenger vehicle (PV) market with several predictions taking the market size to beyond 2 million units. It now seems the 2 million mark may barely be reached on the production front.

Dilip Chenoy, the secretary general for the Society of Indian Automobile Manufacturers (SIAM), confirmed to DNA “Sales are unlikely to hit the 2 million figures”. SIAM's own forecast for PV segment growth this fiscal is 3-5%. This means the ambitions of many global big wigs to snatch 10% share; each of the domestic car market are not anywhere near realization.

Sandeep Singh, deputy managing director, Toyota Kirloskar Motors (TKM), said the company has redefined its 10% market share target and is aiming for it only in 2015. He added "From all available indications, the car market will grow by only 2-3% this year but next calendar, we expect the market to show double digit growth... we are revaluating our investment in a second manufacturing facility for sure but there is no scale-back as of now in either the money being invested or the volumes."

On the other hand, Toyota is still committed to producing and selling 70,000 of its small car variants (a hatchback and a sedan on the same platform) by the end of 2010. Europe's largest carmaker, Volkswagen has its plans tweaked for the Indian market.

A spokesperson for Renault in India said the initial sales target for the Logan of achieving 50,000 units per annum sales from third year of launch (2010) looks focused and more ambitious now.

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Posted by Amrith K.A on 17 April, 2009 5:51:53 PM IST #