Wednesday, March 13, 2013
By Anil Jangid
Indian Auto market to be three-fold by 2020
The Indian auto bazaar may have a tough time presently but analysts are highly bullish about it. JD Power has a strong belief that the size of the Indian automobile industry will be three fold in the next seven years. This projection for year 2020 is based on the present inputs regarding willingness of more and more car brands to invest and launch new cars in India. The basis of this assumption is that the people will India will have an increase in their disposable income and that will drive the demand. As per the estimate the Indian car market size will be that of 9.3 million cars in the projected year. Though this is not at all an unachievable target but looking at the present situation, it somehow seems like a distant figure.
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In addition to this, cars such as Maruti Alto 800, Mahindra XUV 5OO, Maruti Ertiga, Maruti Swift and Maruti Swift Dzire will be driving people to showrooms. Some of the upcoming cars such as Ford Ecosport will be able to spur demand further and this will help gain this target. Also, who knows the Datsun cars proposed by Nissan prove to be a game changer and the cars sell so well that this target could be achieved well before time. But all this depends on the market situation. This target could be pushed through few years if the demand continues to be slack while these get preponed if the demand suddenly takes charge due to improvement in market conditions. Again, the government has to interfere a lot in this and if it wants to really infuse some strength in the dilapidated car industry it need to take some worth decision. Not the ones that it took recently in the Union Budget.
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Market analysts say that India has a large potential but the current situation does not allow it to have some overwhelming demand for cars. The situation could improve in the near future and even oil prices could see a correction in the coming months, probably just before the Union elections. If that happens the growth will see a sudden boost and achieving this or any other target will be worth then. Presently the growth from 1.5 lakh car sales a month to almost triple seems difficult but in the coming years situation will improve and the entire automobile segment that also includes bikes and commercial vehicles could increase to 9.3 million units.