Taxi market will hold 15- 17% of the share in Indian passenger vehicle market in coming years
Public transport has always been a prominent end user segment in case of demand in India. People trying to uplift their standards and inclining more on the comfort rather than going it all the way walking. The time factor is an important terminology these days. Indian taxi market is flourished with loads of private and government permitted vehicles in the fleet.
Indian transport ministry has some great amendments in their rule that serves the taxi market in a prosperous way. Taxi market has gained a great importance in the recent 2-3 years due to jump of app based service providers in the market. The perfect merging of technology and transportation has undoubtedly served the passengers in appreciable way. But on the other side this new launch has widely disrupted the business of traditional taxis and auto-rickshaws.
Highlighting the effect of the app based booking concept for travelling some desired distance has massively forced the automakers to modify their marketing and growth strategies.
As per a report, it can be firmly predicted that Indian passenger vehicle market will be majorly driven by the rising growth of domestic taxi segment. Changing lifestyles and increase in per capita income of the average earning individual has bolstered the growth of the passenger car market.
The growth figures of the Indian taxi market are estimated in double digit in coming future. The Indian Taxi market still has unpredictable growth opportunities but owing to low grade public infrastructure and stringent transportation rules have restrained the growth of the market till some extent.
The passenger car market growth also depends on the type of buyers. The numbers of the first time buyer of the car ranges between 40-45% of the total in the overall Indian car market. Replacement segment also plays a crucial role in the passenger car market in India.
Entry of the players like Ola and Uber has completely modified the competitive dynamics of the taxi market. Looking at the fleet size of the players which is not at rest, it won’t be bad to say that passenger vehicle market is solely dependent on this type of static demand.