HIGH PRIORITY MARKET - AUTOMOBILE
RISING INCOME AND MIDDLE-CLASS POPULATION DRIVING GROWTH IN DOMESTIC DEMAND
Increasing income and middle-class population
GDP per capita has grown from USD1,430.19 in 2010 to USD1,595.7 in 2014 , and is expected to reach USD2,128.78 by 2018 ( E ).
Apart from the impact of rising incomes , widening of the consumer base will also be aided by expansion of the middle class , increasing urbanisation , and changing lifestyles .
A young population is boosting demand for cars .
Demand for commercial vehicles increased due to the development of roadways and greater market access .
Changing income dynamics of India ’ s population
Source : IMF , World Bank , McKinsey Quarterly , TechSci Research Note : E-Expected
EASIER ACCESS TO CREDIT A KEY DETERMINANT OF GROWTH IN AUTOMOTIVES
Easy availability of credit
Greater access to credit eases the purchase of passenger and commercial vehicles .
Indian car finance market size
The Indian car finance market is growing at a CAGR of 13.20 per cent from the year 2010-15 and it is expected to grow to USD30.43 billion by 2020 .
BMW , Audi , Toyota , Skoda , Volkswagen and MercedesBenz have started providing customized finance to customers , dealers and suppliers through dedicated Non-Banking Finance Companies ( NBFCs ).
Source : Kotak Mahindra Prime , TechSci Research Note : Greater distributional efficiencies , increasing demand ( especially from rural areas ) due to rising disposable incomes have created new markets for products within the country mn – million ; bn - billion
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