India seems to have a low car ownership percentage, something that has been in the news in the news since some time and various people in the sector have even commented on it.
Recently, Maruti Suzuki India Chairman R C Bhargava gave his thoughts on the low car ownership in the country saying that “Government policies are such that they treat cars as luxury products that need to be heavily taxed,” and added that “Car affordability is not at all related to income.”
According to Bhargava the decrease of the growth of the car industry in India from 12% to 3% in the last 12 years is due to government policies.
Alongside this discourse, Anand Mahindra, made a tweet about the car ownership status in India statewise and asked people to share their observations on it.
India’s Car Ownership Status
On 27th December 2022, Anand Mahindra, the Mahindra & Mahindra Group chairman tweeted a map of India split into how many households in each state own a car. He then wrote that “What are your conclusions when you see this map? I’m curious…”
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The infographic map taken from the National Family Health Survey 5 (2019-21) showcased each state and how many households own a car in each one.
One user commented that “Very interesting Data … Above 20% car ownership at Kerala, J&K, Himachal Pradesh, Punjab, Sikkim…Goa (45%)… Arunachal Pradesh & Delhi (more than 19%). … Total average India is 7.5% …. May be due to Indian car pricing is so higher with so much tax component.”
While another added that “Wherever the number of houses, population is less and there is no shortage of money, the percentage is more there. Whereas in the states where there is a shortage of money and the population is high, the percentage is less there.”
Twitter user @ashramachandran observed that “Wherever public transport is good car ownership is less I think,” and user Amit Paranjape wrote, “Need micro-segmentation of the data in case of large states. Western Maharashtra would have a very high vehcile ownership percentage. “
Reports stated that currently, just around 7.5% of Indian households own a car. This number is lower than China’s which boasts of almost half of urban homes and one-quarter of rural homes owning a car.
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