The largest automotive market in the world is now in Asia, with China taking this position sooner than expected and the United States slipping to second position largely because of the recent recession and subsequent drop in car sales. Asia’s dominant position in the auto industry seems to be growing even stronger with India expected to overtake China within the next five years.

Several factors have contributed to this shift in global car sales many of which are related to the changing demographics in these countries and the consumer’s preference. China and India both have large populations with a rapidly growing middle class that can afford to buy cars and other luxury items. According to some estimates, India’s middle class could triple within the next decade making it an extremely important market for car sales.

Another main reason for growing car sales in this region is the availability of cheaper small cars, specifically designed and manufactured to cater to the customers is these countries. A majority of car sales are in the small vehicle segment and low prices and economical performance make them highly popular with the middle class in these countries.

A growth in car sales for Asian countries however poses several challenges. These include pollution, better infrastructure and monitoring of traffic regulations. Growing car sales will also mean a higher demand for fuel and additional expenditure for the government. Effective policies will be needed to ensure that the future sustainability of these massive car sales can be maintained by adopting fuel efficient and progressive technologies that do not burden these countries unexpectedly.