Tuesday, November 01, 2011
By Pranjal Gera
International report is out; India tops the list of fastest growing auto markets globally
A report published by Business Monitor International (BMI) states that Indian auto industry is growing by leaps and bounds, thus making it the fastest developing car market worldwide.
Currently the auto market is witnessing a dim phase as the sales are all time low; thanks to rise in interest rates and ever increasing fuel costs, but still the encouraging fact revealed cannot be turned down.
The London based global emerging market analysis firm which was founded in the year 1984, reports that India and China will prosper rapidly in coming times as chief auto divisions. The report further reads that by looking at the volumes of existing passenger car sales, it will assist India leave behind its neighbour China.
The first three months this year from April to June reflects that car sales were at 15.14 percent; lesser in comparison to 2010 in the same period, informed Society of Indian Automobile Manufacturers (SIAM). During the month of June this year the demand for passenger vehicle has registered it’s lowest at 1.6 percent, stated SIAM.
The auto majors in India see no worry with inflation; in contrast they choose to cruise along by announcing the increase in their investment and enhancing capacity of units in their manufacturing plants. This approach by car makers itself speaks about the potential India holds in near future.
For instance, Japanese auto giant Toyota in India has declared to invest INR 8.98 billion to increase in capacity of manufacturing units to 3.10 Lakhs by the year 2013. The firm retails sedan Etios, hatchback Etios Liva and SUV Fortuner in the nation.
Also, US based multinational Ford Motors plans to establish some new automobile and power-train plants in India with an investment of One billion US dollars, which will help them to produce twofold of the existing production. Ford sells Figo, Fiesta and Endeavour in the country.