India will be the fourth-largest market for passengercars within three years, according to consultants Booz & Company.

Booz said Indian car sales are growing between 15 pc and 20 pc a year and should reach 3.5 million units by 2013. That would make it the world’s biggest national market behind the US, China and Japan, Booz said.

The industry will, however, require  investment of about 20 billion dlrs to build six to nine new car plants that are needed to meet growing demand, the consultants said.

Indian passenger car sales total about 2 million units a year at the moment.

Separately, the Society of Indian Automobile Manufacturers (SIAM) said production of passenger cars and commercial vehicles, three -wheelers and two-wheelers soared 32.7 pc in 2010 to 17,076,659 units.