Passenger Vehicles Industry and Trade Summary - USITC

FIGURE 26 Passenger vehicle sales in Brazil, by manufacturer, 2011OtherRenaultPeugeotFordGMFiatVolkswagen0 100 200 300 400 500 600 700 800Thousand unitsSource: Binder, Ward’s Automotive Yearbook, 2012, 87–89.IndiaDue to competition from two-wheeled vehicles and high tariffs on imported vehicles, theIndian passenger vehicle market is small in relation to its population. Although India isthe world’s second most populous country, passenger vehicle sales are lower there than incountries with much smaller populations, including Germany and Brazil. Sales of twowheeledvehicles in India are four to five times larger than passenger vehicle sales, andthe former are likely to be preferred by many consumers because they are much lessexpensive. 466 Nevertheless, there is ample room for India’s passenger vehicle sales togrow because of India’s low ratio of cars to people (13 per 1,000 people), and sales areexpected to rise in view of India’s growing per capita income. 467Imports make up less than 1 percent (28,000 units) of the nearly 3-million-unit Indianpassenger vehicle market, 468 likely due to the 60 percent tariff India imposes on mostimported passenger vehicles. 469 Germany is India’s top source of passenger vehicleimports (figure 27), accounting for 49.8 percent of these imports in 2012. The UnitedStates was the sixth leading supplier by volume but was the third leading supplier byvalue, due to a higher vehicle unit price than many other suppliers to the Indian market. 470Other leading suppliers were Korea, Japan, and South Africa.466 Ranawat and Tiwari, “Influence of Government Policies on Industry Development,” March 2009, 5.467 Denyer, “U.S. Automakers in Race for Indian Market,” March 13, 2012.468 USITC calculation based on GTIS, Global Trade Atlas database (accessed November 15, 2012), andBinder, Ward’s Automotive Yearbook, 2012, 37.469 The tariff rate for light trucks is only 10 percent, but for reasons unknown, only four were importedin 2011. WTO, Tariff Analysis database (accessed October 10, 2012); GTIS, Global Trade Atlas database(accessed October 10, 2012).470 GTIS, Global Trade Atlas database (accessed October 10, 2012).68