Data collated from the automobile industry body Society of Indian Automobile Manufacturers (Siam) shows that passenger vehicle (cars, vans and utility vehicles) sales in Gujarat grew at 14.23 per cent in FY15. For Maruti Suzuki, the country's largest car maker, the Gujarat market grew at a sharp 27 per cent in FY15, much above its national growth rate of 11 per cent.
The sales growth in Gujarat is supported by factors like increasing Gross State Domestic Product as well as per capita income. The GSDP at factor cost (constant prices) grew by 8.8 per cent in FY14, the latest year for which data is available. The GSDP at current prices reported growth of 16.3 per cent. The per capita income at factor cost at constant prices grew by 6.8 per cent while the current prices growth was 14.8 per cent.
Hyundai, the second largest player in domestic car market, continues to see a double digit growth in Gujarat this year too. In the January-September period, the company sold 16 per cent more vehicles in the state.
The only other state to post a double digit growth was Himachal Pradesh (11.36 per cent). Like Gujarat, the economic indicators for Himachal too have grown. The GSDP of Himachal Pradesh at factor cost at constant price grew 6.2 per cent in FY14 while the current price GSDP grew by 12.6 per cent. The state's per capita income at current price rose by 11.4 per cent in FY14. Hyundai has seen a growth of almost 20 per cent in Himachal Pradesh.
Bihar presented a contrast picture to Gujarat and Himachal Pradesh. The decline in a state, which has seen improvement in economic indicators and better roads in recent years, is puzzling. The state saw a 15.83 per cent growth in GSDP at factor cost at current prices while the GSDP at constant prices grew 10 per cent. The per capita income too grew by 14.4 per cent at current prices and by 8.55 per cent at constant prices.
"We are seeing a growth in all the states. With an expanded product range including Baleno and S Cross, we hope this trend to continue", said a Maruti Suzuki spokesperson. Hyundai did not share the data for Bihar.
The largest passenger vehicle market, Maharashtra, grew by just 4 per cent. The state accounts for 13 per cent of industry sales. The second largest market, Uttar Pradesh, grew by almost 7 per cent. Kerala, which was the third largest market in FY14, slipped to fifth spot in FY15 after a decline of 3.65 per cent. The third spot was taken over by Gujarat which improved its ranking from the fifth spot in FY14. Karnataka, which grew by almost 7 per cent, retained the fourth spot. Delhi remained the sixth largest market for cars with a growth of 4 per cent in FY15.