Data released by SIAM shows that passenger vehicle sales in India crossed the 3m units milestone for the first time in 2016-17 (fiscal year ended March 31), with the market registering growth of 9.2%.
SIAM data shows that the car market reached 3,046,727 units in the year (versus 2,789,208 in the previous year).
Analysts says that the Indian market is seeing rapid growth in demand for sport utility vehicles.
During the year, utility vehicle sales were put at 761,997 units against 586,576 units in the previous fiscal, a growth rate of 29.9%.
Sales of conventional cars grew by just 3.8% to 2,102,996 units.
Popular SUVs in the market include the Maruti Suzuki Vitara Brezza, Hyundai Creta, Renault Duster, Mahindra Scorpio and Ford EcoSport.
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The Indian car market has continued to grow despite issues for the economy such as ‘demonetisation’ (the botched withdrawal of high denomination banknotes late last year that reduced retail spending).
In 2016-17, passenger vehicle market leader Maruti Suzuki India retained its top position, selling 1,443,641 units, up 10.6% on the previous year.
In the month of March local passenger vehicle sales grew by 10% to 282,519 units, according to SIAM data.