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Tamil Nadu and Rajasthan ideal for automobile sales

Chennai, Apr 4 () : Automobile sales is to increase in Tamil Nadu and Rajasthan since both these States have a higher per capita income, generation of more jobs and high monthly consumption of durable goods, said ASSOCHAM, the trade body.

The survey conducted across 20 major cities looked into factors –employment generation, expenditure per household, that can drive the sales of automobiles. The study was on the saturation and potential of the Indian automobile industry.

Assocham report also states that the GDP of Tamil Nadu and motor vehicles registration numbers are also more than the national level.

In a release, the chamber stated employment opportunities from 2000-2007 and per capita income growth from 2004-2010. The study looked at whether the employment growth resulted in rise of individual incomes and finally whether those states with rising income spent more on transportation. It looked at spending on four-wheelers and two-wheelers for 2009-2010 and on consumer goods.

Between 2000-2001 and in 2007-2008, the all-India compounded annual growth rate of employment generation was about 3.7% , the same period in Rajasthan was about 6.8% and in Tamil Nadu was 4.4%.

Other states with more than the national level employment generation growth rate are topped by Uttarakhand (17%), followed by Himachal Pradesh (13.5%). Other States are Jammu and Kashmir (12.4%), Haryana (7.8%), Chhatisgarh (seven%), Karnataka (6.2%), Punjab (6.1%), Odisha (5.3%), Uttar Pradesh (4.7%) and Gujarat (4.7%).

Tamil Nadu enjoyed a 10.4% growth when India’s per capita income growth was 6%. Other States to enjoy more than national level were in 2004-2005 and 2010-2011.Theywere West Bengal (9.7%), Chhattisgarh (9.7%), Jharkhand (9.5%), Punjab (8.7%), Uttar Pradesh (8.1%), Haryana (7.7%), Assam (7.7%), Uttarakhand (6.9%), Kerala (6.7%), Jammu and Kashmir (6.6%), Madhya Pradesh (6.5%), Rajasthan (6.4%), Bihar (6.3%), Andhra Pradesh (6.1%), Punjab (52.6%), Haryana (43.1%), Madhya Pradesh (40.8%), Chhattisgarh (40.7%), Bihar (39.5%), Kerala (37.4%), Rajasthan (35.3%), Tamil Nadu (34.4%) and Karnataka (32.4%) are those with higher ratio regarding monthly transport goods per capita consumption expenditure in all-India level was 29.7% of durable goods expenditure.

More than the all-India figures are in Tamil Nadu, Punjab, Chhatisgarh, Haryana and Rajasthan where employment generation growth, per capita income and monthly transport per capita consumption, expenditure share in durable expenditure are the positive indicators.