Cars & Cows

1.3 Bn vs. 1.2 Bn. China & India, both with a huge population, have been identified as future growth engines of the world’s economy. There is still a vast disparity between these two countries, and recent release of car sales figures is a good illustration.

Car sales in India rose 26% in August to 120,669 units, the seventh month of straight increase. Comparatively, car sales in China in August was a hefty increase of 90%, rising to 858,300 units. The % increase might not be relevant due to sluggish car sales in China last year due to the Olympics. The absolute numbers do indicate where both countries stand. Total auto sales in China rose to 1,140,000 units in August, only surpassed by the US where 1,261,970 vehicles were sold. The Fed’s “cash for clunkers” program helped stimulate purchases.

India is Asia’s third biggest automobile market. Yet, it still has a long way to go to match the region’s first. Not being disrespectful, I reckon it takes some time for cars to catch up with cows in India.