India’s Auto Industry to be a Global leader by 2012
Aug. 18 – India’s automobile sector is the tenth largest in the world with an annual car production of approximately 2 million of the world’s 73 million. India is the largest motorcycle manufacturer and the fifth largest commercial vehicle manufacturer, Industry experts only expect these statistics to increase. A report by the Asia Economic Institute expects India’s automobile sector to become one of the global leaders by 2012.
Currently, India dedicates 75 percent of its automobile industry to small cars, more than any other country in the world. India is expected to witness more than a dozen new compact car models in the auto market in the next few years, the report continues.
All-time highs in fuel prices and inflation have not dulled demand for automobiles. The last quarter has seen a substantial growth in sales of passenger cars and commercial vehicles on a year-on-year basis. Over the past year, the automobile industry has achieved a turnover of $34 billion, and the auto component industry has reached a turnover of $10 billion. In addition, India’s tire industry has registered a turnover of almost $3 billion. The contribution of the automotive industry to GDP rose from 2.77 percent in 1992-1993 to 5 percent in 2006- 2007. Both passenger car and commercial vehicle sales are up. India’s automobile sales are expected to grow at a CAGR of 9.5 percent up to 2010.
India’s automobile and global automotive giants, including General Motors (GM), Volkswagen, Honda, and Hyundai, have announced huge expansion plans. Because of its large market, low base of car ownership (25 per 1,000 people), and surging economy, India is well on its way to becoming an outsourcing country for global auto companies. The list of upcoming cars in India include the Maruti A-Star (Suzuki), Maruti Splash (Suzuki), VW Up and VW Polo (Volkswagen), Bajaj small car (Bajai Auto), Jazz (Honda), Cobalt, Aveo (GM), and more.