Vehicle Output in India Headed for Record 4.1 Million Units

India’s output of cars, SUVs and light commercial vehicles this year appears likely to reach a record 4.1 million units in calendar 2016, predicts PwC Autofacts. The forecast also expects the countries vehicle exports will grow to a record 700,000 units this year.

The market research company projects that India’s output will climb to 5.8 million vehicles in 2020 and 6.5 million vehicles by 2022. But it says the industry currently has some 2.7 million units of excess capacity that will grow to 3 million by 2017 before declining to 2.2 million units in 2022.

PwC says vehicle sales in India this year are being driven by a 25% jump in demand for SUVs and a 12% hike in light commercial vehicle sales.