Released on = June 28, 2007, 4:00 am

Press Release Author = Shushmul Maheshwari

Industry = Automotive

Press Release Summary = Despite a drop in car exports from India during April 2007,
car sales are expected to grow at an average rate of almost 12.9% during the next
couple of years (2007-2008).

Press Release Body = In its recently published market research report on
“Passenger Car Market: A Global Review (2006)\" RNCOS has found,
“Affordable prices, increased buyer incentives, attractive financing packages,
lower costs of ownership, and most importantly rising incomes will continue to
support the demand for cars in India. Car sales are expected to grow at an average
annual rate of around 12.9% between 2007 and 2008, and 11.6% during 2009-10.”

From the perspective of exports, April 2007 didn’t prove out to be a good
month for Indian automobile industry, as auto exports went almost 9.5% down during
the month. This decline came as a disappointment for India at a time when they are
attempting to portray its image as a global hub for small cars’ manufacturing.
SIAM (Society of Indian Automobile Manufacturers) has reported that the country
exported about 14,021 units during this April, whereas it was 15,497 units in the
same month last year (2006).

On the other hand, exports of three wheeler, including passenger & goods carriers,
witnessed a robust growth of almost 54.41% to reach around 14,326 units in April
’07 in comparison to approximately 9,134 units during last April.

While country’s car making giants Hyundai Motor India Ltd and Maruti Udyog Ltd
showed growth in export volumes, Tata Motors had to suffer a drop in its sales
overseas during the month. Hyundai remained the country’s largest car exporter
with 11,341 units, representing almost 4.6% increase compared to the same month last
year. On the other hand, Maruti exported 1,667 units, an increase of about 11.43%
from last year.

As per the RNCOS report “Passenger Car Market: A Global Review (2006)”,
“The automotive industry is amongst the largest and most rapidly growing
manufacturing sectors in India. Ongoing liberalization that began in the early 90s
combined with a large local market has made the country a major destination for
automotive players across the world. Share of automotive industry in country’s
GDP almost doubled to 4% in the FY 2004-05, around 2.8% up from FY 1992-93.”

The report looks into the details of worldwide passenger car industry. Key questions
it attempts to answer include: is the passenger car industry in the developed and
the emerging countries performing well, how attractive is the passenger car industry
for investors, what are the key opportunities and challenges in the passenger car
industry, and so on.

About RNCOS E-Services Pvt Ltd.:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM071.htm
Current Industry News: http://www.rncos.com/blog


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Contact Details = RNCOS E-Services Pvt Ltd.
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
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info@rncos.com