India: Strong growth in passenger vehicles

India was ranked as the second fastest growth market for passenger vehicles among top five global nations with a growth of 7 per cent during the year 2016. Passenger vehicle sales stood at 2.9 million units during the year 2016, as compared to 2.77 million units in 2015, according to the data released by the Organisation Internationale des Constructeurs d’Automobiles (OICA). India maintained its position as the fifth largest market for passenger vehicles in the world in 2016.

In another important development from the automobile sector, the Lok Sabha has recently approved the Motor Vehicle (Amendment) Bill, 2016. The bill is an amendment to the Motor Vehicle Act 1988 and includes important changes like 100 per cent e-governance and capping of maximum liability for third party insurance at Rs 10 lakh (US$ 15,493) in case of death in a motor accident. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.