Tuesday, June 14, 2011
By Pranjal Gera
India to be 3rd largest light vehicles market by 2020
If you are to believe a recent research conducted by the market research firm JD POWER ASIA PACIFIC, India is set to become the 3rd largest car market in the world for light vehicles behind China and USA by 2020. Light vehicles include passenger cars and light commercial vehicles.
The major issues that may fail the aforesaid projection will be the non-improvement of infrastructure and non-resolution of the component chain supply issues by them.
In their report 'India Automotive 2020- The Next Giant From Asia’, the firm says that India would take a leap from it's current 6th place to the 3rd place behind China and USA.
JD Power Asia Pacific's Executive Director Mohit Arora was qouted as - "Our forecast is that by 2020, India will become the third biggest market for light vehicles, that includes passenger cars and LCVs, with total sales of nearly 12 million units,"
According to the report the Indian market will see sales of approximately 12 million light vehicles. The Chinese and the US market on the other hand would be of 35 million and 17.4 million respectively.
As compared to the sales of just 70000 units in 2000, Indian car market has rocketed to 2.7 million in 2010. He also added that some drastic steps should be taken to improve the country's auto component supply chain both in terms of volume and quality, in order to come to the ranks of the global standards.
The report is based on the assumption that the average income of the Indians will remain moderate even in 2020, Passenger cars are expected to be a major part of the sales, approximating to 9.28 million units of the 11.9 million units expected light vehicle sales in India in 2020 and the rest 2.69 million units comprising of the light commercial vehicles (LCV)