Millions of Indians Will Not Afford Cars in Future

Between 2005 and 2009, India witnessed a compounded annual growth rate of 5.5 percent vs. the world rate of 0.2 percent. India consumed 155.5MMT (Million Metric Tonne) of crude oil in 2010, which represents 4 percent of world’s total. Indian oil demand is almost back to full momentum with strong demand from industrial, agricultural and transportation sectors. India’s consumption is forecasted to be 3.4 mb/d (millions of barrel per day). There has been no significant change in production as India produced 1 percent of the world’s total oil production in 2010 reports mba skool.com. India's oil imports are expected to more than triple from 2005 levels by 2020, rising to 5 million barrels per day

According to reports transportation consumes the largest portion of energy and it is the only sector which has over years saw a huge growth in demand in recent decades.  The growth majorly comes from personal use vehicles and this sector also has the highest consumption rates, accounting for approximately 55 percent of oil use worldwide. As documented in the Hirsch report and 68.9 percent of the oil used in the United States in 2006. Cars and trucks are predicted to cause almost 75 percent of the increase in oil consumption by India and China between 2001 and 2025.