The Indian automotive sector grew by 10 per cent overall during the year with substantial growth in the light commercial vehicles sector and new passenger car introductions.

In the country, 499,978 new commercial vehicles were sold during the year and passenger car sales grew to 1.53 million vehicles this year. Tata Motors registered a growth of 5.5 per cent over the previous year in commercial vehicles but lost market share.

The company introduced several new models and variants of commercial vehicles during the year, but was unable to exploit its full market potential due to inadequate deliveries of powertrains and components from major suppliers.

The company also entered a new market segment through the introduction of a new mini van and mini people’s carrier which are expected to see substantial growth in the years ahead.

Sales of Tata Daewoo Commercial Vehicles increased by 38 per cent and its market share in Korea improved from 26 per cent in 2006-07 to 33 per cent in 2007-08.

In the passenger car segment, delays of the mainstream line of the new Indica and Indigo passenger cars contributed to the decline in sales and market share of the company in their product segments.

It is expected that this loss in market share will be regained following the introduction of the new Indica range, which is expected to be launched shortly.

The market introduction of Sumo Grande towards the end of the year was well received and its true potential will be realised in the current year.

Image: Ratan Tata delivers a speech during the launch of the Tata Indigo Marina in Mumbai | Photograph: Sebastian D'Souza/AFP/Getty Images