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Vehicle sales in India touched all time high of 1.96 crore units in 2015

Maruti Alto 800 TVC (2)
Alto is the most exported Maruti car today.

The vehicle registration was less than 10 lakhs in 1993.

The steady growth of vehicle sales in India clearly indicates a growing economy and increased purchasing capacity of the people. However, the spurt in sales is not healthy if the development of infrastructure doesn’t keep pace with it.

The vehicle sales in India stood at 1.96 crore units in 2016 – highest in history. Urban expert N Ranganathan says that if the sale momentum is sustained, there will be around 35 crore vehicles on Indian roads in the next 20-30 years from the current 18.6 crore vehicles.

Renault Kwid Custom (4)

Easily availability of vehicle loans is one of the primary reasons for sharp increase in vehicle sales.

That’s an alarming number of vehicles to deal with given that our road and urban infrastructures, general on-road behaviour, and vehicular safety are not up to the mark. The traffic congestion is already maddening in most cities and imagine double the number vehicles plying the roads!

According to ET, Uttar Pradesh leads vehicle registrations last year with 24.38 lakh units. Maharashtra and Karnataka finish second and third with 19.91 and 15.15 lakh units respectively. The registration figures also include re-registration of old vehicles but their population is negligible.

New Activa-i

Roughly 75% of vehicle registrations last year were accounted for by two wheelers.

It’s to be noted that roughly 75% of the new registrations is accounted for by two wheelers. Easy availability of vehicle loans is one of the primary reasons for the steady growth of private vehicles.

One way to keep the alarming growth of vehicles at bay is to encourage people to embrace public transport systems. Taxes for private vehicle owners are much less than taxes for bus owners who need to pay annual taxes as per the number of seats. Such a system discourages entrepreneurs from exploring opportunities in public transport sector which could ultimately lead to less number of cars on roads.


About the author

Nithyanandh Karuppaswamy

Winner of national level automotive quiz competitions, Nithyanandh aka Nithz jumped into the blogosphere right after gaining a degree in Mechanical Engineering. Love for automobiles and an even greater drive to share his knowledge with the automotive community, Nithz is Deputy Editor at RushLane.

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