The Indian automobile market can be divided into several segments viz., two-wheelers (motorcycles, geared and ungeared scooters and mopeds), three wheelers, commercial vehicles (light, medium and heavy), passenger cars, utility vehicles (UVs) and tractors.
Demand is linked to economic growth and rise in income levels. Further, it is inversely related to the interest rates and fuel prices as 85% of the total vehicles are bought on credit. Per capita penetration at around eighteen cars per thousand people is among the lowest in the world (including other developing economies like Pakistan in segments like cars).
India is also a prominent auto exporter and has strong export growth expectations for the near future. Automobile exports grew 26.5% during April-July 2018. It is expected to grow at a CAGR of 3% during 2016-2026.
Overall domestic automobiles sales increased at 7% CAGR between FY13-18 with 25 million vehicles getting sold in FY18. Auto sales in July 2018 witnessed a year-on-year growth rate of 7.9% across segments, driven by 46.2% growth in three-wheeler sales in terms of percentage