India Automobile Market Boosts PMDI Consumption
India’s PMDI Consumption was Boosted by its Booming Car Sector in 2018
PUdaily, Shanghai– In 2018, 3.99 million commercial and passenger cars were sold in India, up 8.3%. It overtook Germany to become the fourth largest car market in the world. Its car sales are expected to maintain an average annual growth rate of 7% over the next three years. As a result, India will overtake Japan to become the world’s third largest auto market. Despite the sharp increase in car sales, car prices in India are relatively low. This is caused by the limited spending power of Indian citizens. Currently, the Indian market sees a small share of medium- and high-end cars as low-end models play a dominant role there.
In addition, compared with motorcycles, cars witness poor sales. In 2018, 20.2 million motorcycles and scooters were sold in India.
The Indian government has made great efforts to promote the consumption of electric vehicles, hoping that by 2030, all cars sold in India will have been fully electric vehicles. In order to encourage electric vehicle manufacturers to assemble cars in India, the Indian government has recently decided to reduce tariffs on car parts from 15% to 10%.
In 2018, India’s PMDI consumption amounted to over 100,000 tons, up about 5%. India’s booming automobile and motorcycle sectors will fuel the growth of its polyurethanes industry. It is estimated that India’s PMDI consumption will keep growing at the rate of over 5% in 2019.