The rapid expansion of the highway network and the increasing purchasing power of consumers in India are driving up vehicle sales in the country, according to Michael Mayer, Volkswagen's executive director of international sales. He noted that India has surpassed Japan to become the world's third-largest vehicle market, a development that would have been unthinkable a decade ago.
Mayer highlighted the impressive growth in India's automotive sector, with consumers showing an inclination towards not just smaller, cheaper cars but also larger and premium vehicles. He attributed this trend to improved infrastructure, increased road trips, and a growing demand for comfortable travel experiences with families.
India's highway expansion efforts, which are set to add 13,814 km of highways this fiscal year, have contributed significantly to the growth of the automotive market. Mayer pointed out that India's total highway network length now exceeds that of Germany, which has a little over 13,000 km of highways.
In 2023, new vehicle sales in India, including passenger vehicles and commercial vehicles, increased by 7% to 5.07 million units, surpassing Japan for the second consecutive year. Mayer expressed optimism about India's automotive market, projecting a growth rate of 5-7% this year, and reiterated Volkswagen's commitment to the Indian market. He emphasized that Volkswagen will continue to introduce premium products in India over the coming years.
