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In 2020, there were over motor vehicles across the southern state of Tamil Nadu in India. The number of passenger cars in the country have increased considerably over the past years making it one of the top automotive markets on a global scale.

Passenger vehicle segment

The domestic passenger vehicle market in India was led by Maruti Suzuki. The segment has observed a recent shift towards increased sales of SUVs and a slight drop in the demand of compact hatchbacks. In January 2020, passenger car and SUV sales witnessed a drop in sales by about *** percent following price increments by several market leaders. The price rise came as a result of newer variants in compliance with the new BS-VI standards to replace the old BS-IV models. And the sales were further impacted by the coronavirus pandemic.

Market outlook

Despite the industry kick-starting the year with the Auto Expo 2020, sector-specific factors and uncertainty in regulations are likely to create a few hurdles for a streamlined progress within the industry. Nevertheless, the expected growth in the infrastructure sector could compensate for the reduced demand from the consumer segment, until the new regulations are in effect and the uncertainties have settled.