mumbai the focus of indias automobile companies on the east paid dividends with the region emerging as a key driver of expansion in the last fiscal year there is a lot of untapped growth potential in east india and there was a conscious focus and efforts on our part to build volumes and market share rate of growth in passenger car twowheeler and sports utility vehicle sales was almost twice as fast in the east as all of india according to society of indian automobile manufacturers siam data compiled by etigpassenger cars twowheelers and suvs grew 14 249 and 264 respectively in the east in fy18 states such as assam recorded growth of 44 from the year earlier thanks to greater government expenditure that boosted disposable income the northeastern states have also been getting higher budgetary support from new delhi analysts said advt west bengal bihar odisha assam jharkhand along with the seven northeastern states account for 15 of total passenger vehicles including two wheelers sold in india yet it accounted for a fourth of total national incremental sales in fy18 the eastern region accounts for 12 20 and 13 of passenger car motorcycle and scooter volumes and its contribution to gdp is about 17according to consultancy firm kpmg west bengal bihar odisha assam and jharkhand are expected to account for a fourth of the nations gdp by the end of 2035 indicating substantial growth potentialthe east has the lowest penetration of passenger vehicles and twowheelers in india for instance the average penetration of the eastern states in passenger vehicles and twowheelers was 96 and 73 per 1000 compared with indias average of 20 and 110an assam secretary level official told et that increased loan availability and peer pressure along with better road connectivity was persuading people to buy vehicles with ample scope of growth vehicle tax will continue to support growth of the states own tax collection in the long term he saidcompact suvs suited to rough roads had emerged as viable options in terms of price and need said rakesh srivastava director sales and marketing at hyundai motors higher sales volumes in the eastern states is expected to continue to stay in the long term he saidmahindra mahindra which has been facing stiff competition elsewhere in india still has over 50 market share in the east it outperformed in the east by registering a growth of 17 as against panindia growth in the low single digits the growing economy and employment are key drivers and growth is likely to be sustained said veejay nakra chief of sales and marketing automotive sector mahindra mahindra advt there is a lot of untapped growth potential in east india and there was a conscious focus and efforts on our part to build volumes and market share nakra said we have seen exceptional performance in the northeast and west bengal bihar jharkhand and odisha have also shown strong tractionscooter sales are also improving in nontraditional eastern market scooter volume growth in