Indian Car Market Zooms Past Korea
Aug 31,2006 00:00 by reporter
The Indian car market has reportedly overtaken Korea to become the number three market in Asia-Pacific. The reason being - more people are buying cars in India. Statistics show that between April and June 2.43 lakh cars were sold in India against 2.25 lakh cars in Korea. Two years earlier, Korea was leading India by about 36,000 cars.

Meanwhile, carmaker General Motors believes low penetration of eight cars per thousand people and a strong economy offers potential. Tax sops in China and India and attractive finance options have encouraged many first-time buyers.

China which sold 1.1 million cars between April and June, has now displaced Japan as Asia's premier market. Two years earlier China trailed Japan by 4.48 lakh units. But manufacturers and analysts have one concern about China.

Meanwhile, the Indian market, which is expected to grow 10 to 15 per cent a year will get a boost as a small car hub if excise duty on them falls further.