India seems to have finally arrived in the big league of Asian car markets, making foreign investors sit up and take notice.
January 19, 2006 (Press Release) --
India seems to have finally arrived in the big league of Asian car markets, making foreign investors sit up and take notice. The steady and impressive annual growth rate, the presence of international automakers, and the relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports made by the government have played an important role in taking the Indian Auto Industry to great heights. India has now come to be recognized as a potential emerging auto market. A booming market has expectedly changed the perception of foreign investors with now, everybody wanting to be here.
Next year the Indian Auto Industry is slated to post a growth of nearly 7%. The flourishing economy has pushed up the living standards of the middle class. Those who were previously riding scooters or motorcycles are now able to afford four wheelers due to the easy availability of auto finance. Over 80 percent of the cars sold in the country now are financed, thanks to the continuously sliding interest rates for the past five years. With the increase in the number of double-income families and their changing lifestyles with greater need for mobility and pleasure making, cars have become an absolute must-have.
At the recently concluded Auto Expo Asia 2006, Maruti Udyog Limited one of the leading players in the Indian Auto Industry announced its decision to invest Rs 3000 crores towards the introduction of new models, R&D, and up gradation of models by 2008. They plan to roll out a new model almost every year from their factory.
The top German auto manufacturer, Volkswagen has shown their interest in investing to the tune of Rs 1,500 crores in setting up a manufacturing plant in the state of Haryana in India. This plant with a production capacity of nearly 1million cars annually is also slated to generate an employment for nearly 2500 people.
As per the research report Indian Automobile industry: An Analysis (2005-2010), by a leading industry research firm RNCOS - the Indian automobile component industry is estimated to triple from USD 63 billion to USD 190 billion within a span of six years by 2012. The report has done an extensive analysis of the industry using the Michael Porter’s Five Forces Model and has covered detailed profiles of the key players in the industry.
The Indian auto industry with an estimated turnover of about USD 12 billion along with the auto components industry with revenue of USD 3 billion provides vast opportunities to foreign investors for FDI (foreign Direct Investment). The country is at last also getting all the variety and attention that were so far reserved for mature car markets and is likely to become a sourcing base for global automotive companies.
Industry experts predict the Indian Automobile Industry sales to grow at a CAGR (cumulative annual growth rate) of 9.5% to an estimated USD13000 million by 2010.
The booming Indian Auto Industry has helped it to position itself as one of the main contenders for promoting growth of the Indian economy. For every Re 1 spent, the auto sector returns Rs. 2.24 to the Indian economy.
To purchase your copy: http://www.marketsmonitor.com/category/IM028.html
For more information about the report please visit www.marketsmonitor.com
Next year the Indian Auto Industry is slated to post a growth of nearly 7%. The flourishing economy has pushed up the living standards of the middle class. Those who were previously riding scooters or motorcycles are now able to afford four wheelers due to the easy availability of auto finance. Over 80 percent of the cars sold in the country now are financed, thanks to the continuously sliding interest rates for the past five years. With the increase in the number of double-income families and their changing lifestyles with greater need for mobility and pleasure making, cars have become an absolute must-have.
At the recently concluded Auto Expo Asia 2006, Maruti Udyog Limited one of the leading players in the Indian Auto Industry announced its decision to invest Rs 3000 crores towards the introduction of new models, R&D, and up gradation of models by 2008. They plan to roll out a new model almost every year from their factory.
The top German auto manufacturer, Volkswagen has shown their interest in investing to the tune of Rs 1,500 crores in setting up a manufacturing plant in the state of Haryana in India. This plant with a production capacity of nearly 1million cars annually is also slated to generate an employment for nearly 2500 people.
As per the research report Indian Automobile industry: An Analysis (2005-2010), by a leading industry research firm RNCOS - the Indian automobile component industry is estimated to triple from USD 63 billion to USD 190 billion within a span of six years by 2012. The report has done an extensive analysis of the industry using the Michael Porter’s Five Forces Model and has covered detailed profiles of the key players in the industry.
The Indian auto industry with an estimated turnover of about USD 12 billion along with the auto components industry with revenue of USD 3 billion provides vast opportunities to foreign investors for FDI (foreign Direct Investment). The country is at last also getting all the variety and attention that were so far reserved for mature car markets and is likely to become a sourcing base for global automotive companies.
Industry experts predict the Indian Automobile Industry sales to grow at a CAGR (cumulative annual growth rate) of 9.5% to an estimated USD13000 million by 2010.
The booming Indian Auto Industry has helped it to position itself as one of the main contenders for promoting growth of the Indian economy. For every Re 1 spent, the auto sector returns Rs. 2.24 to the Indian economy.
To purchase your copy: http://www.marketsmonitor.com/category/IM028.html
For more information about the report please visit www.marketsmonitor.com
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