Demand for passenger cars in India is slated to grow at a compounded annual rate of growth (CARG) of eight per cent till 2011-12. According to a study undertaken by the National Council of Applied Economic Research (NCAER), the demand for passenger cars will grow from 6,13,000 units in 2002-03 to 12,27,000 units in 2011-12. The bulk of the demand will be coming from the northern and central region. Demand in this region is set to grow from 2,57,000 units in 2002-03 to 5,24,000 units in 2011-12.