The Hindu Business Line : India slips to 14th in passenger car growth rankings

According to the International Organisation of Automobile Manufacturers (OICA), India posted a growth of 16.5 per cent in 2006 compared with 7 per cent in 2005. Yet, it was pushed down the ranking list largely because countries such as Finland and Nigeria whose annual production is in mere four figures, posted growth of over 50 per cent.

However, in absolute terms, India, with a production of 14.73 lakh cars, moved up one place to the seventh position in 2006 replacing the UK, which produced a total of 14.42 lakh cars, recording a drop of 9.7 per cent from the previous year.

India manufactured 14.73 lakh cars growing at 16.5 per cent.

Japan ranks first with a production of 97.56 lakh cars followed by Germany with about 54 lakh and China with 52.33 lakh cars.

Even with a 7 per cent growth in 2005, India had managed to hold on to the 11th position, the same as in 2004. The Fiat India Managing Director, Mr De Filippis Giovanni, told Business Line that even though India has slipped to the 1 4th position, it was no cause for worry.

“The market is robust. We expect the growth momentum to be sustained even this year,” Mr Giovanni said.

World growth

The total number of passenger cars produced in the world, however, grew 6.3 per cent to nearly five crore in 2006 compared with 3.3 per cent in 2005. Japan produced nearly one-fifth of the total number of passenger cars manufactured in the world last year posting a growth of 8.2 per cent. China improved its growth rate to 33.1 per cent compared with about 30 per cent growth achieved in 2005.

Some of the largest markets for passenger cars such as the US, France and Germany showed negative or flat growth.