One of the main luxuries of emerging middle class in developing countries is the ownership of an automobile. Auto penetration rate is very low in emerging countries of China and India relative to the developed world as shown in the chart below:

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Source: CPD: All aboard the new Silk Road, Adviser Voice

The US has the highest auto penetration rate in the developed world since public transportation is virtually non-existent in most parts of the country. Relative to the US and other developed countries India has the lowest auto penetration rates. Though China is ahead of India in terms of economic development, the auto penetration rate in China is still far below than the rate in developed countries. While China will never have cars as the primary means of transport for majority of the people, opportunity exists for car ownership rates to go higher as rising incomes will lead to higher car sales.