As per the survey titled 'Market Forecast and Key Trends in the Passenger Vehicle Market in India', passenger vehicles sales are estimated to reach 3.6 million in 2019. It stood at 2.4 million units in 2013.
The survey also said that by 2019, gasoline (petrol) variant vehicles will dominate the market due to the narrowing price difference between gasoline and diesel as well as the introduction of new models in the utility vehicle and super compact segments.
"The low car per thousand ratio in India has encouraged global manufacturers to launch vehicles catering to the specific needs of the Indian market," said Frost & Sullivan Automotive and Transportation Analyst in a statement.
"Entry level sedans and SUVs from Honda, Ford and Renault offer buyers advanced vehicles at lower costs, thereby spurring demand and increasing business margins," Analyst added.
Frost & Sullivan pointed out that global original equipment manufacturers are also expanding their production capacity in India to make it an export hub.
In 2015, however, this is likely to reduce to an extent primarily owing to massive duty hikes by the Sri Lankan government and Europe's non-tariff barriers and preferential duty agreements with certain African and Latin American countries, it added.