India Automotive Market to surpass that of Europe and to become the 4th largest globally by 2015

One of the leading management consultancies in the world Booz Co. conducted a research on the automotive industry. According to the study, India will stand at the 4th position in the global market by 2015 and will surpass the European Nations. India is believed to be a key pillar in the global automotive market.

Vikas Sehgal, Partner, Booz Company, India said that the way the automotive industry in India is expanding, it seems that it will generate sales upto 6+ milions units annually by 2020. Not only this but it is expected to surpass the European nations by 2015. Asia is likely to capture 65% of the total market size by 2020 with China and India ramping up in parallel directions.

One of the major reason India is emerging as a strong nation in the global car market is the strong economy. India's role has been significant in the global automotive market during the economic downturn. Global OEMs are revisiting their respective India plans,proving this is the steadily growing volume of sales in India. The Indian car market is likely to reach 6 million units annually by 2020. In comparison to the European nations the vehicle sales in the last 10 years can be termed as aggressive.

Indian automotive industry is one of the leading industries for FDI and the U.S automakers started making investments in this market back in the early-1990s. The small car segment has been a boost for the automotive industry specially with growth of the middle class population. Projections have been made that the Indian car market will soon emerge as one of biggest car market in the coming time. The Indian market is expected to generate $150 to $200 billions by 2030. The FDI in the auto sector is expected to exceed that in most other sectors.

India and China will emerge as the major players in the automotive industry. Asia might capture the 50 per cent of the global economic market by 2020 with India and China emerging as the global economic pillars. OEMs will continue to shift more of their production to be closer to their biggest source of new customers, India and China being the major players.

U.S, China, Japan and other European markets look at India as a potential market for lucrative.India’s automotive market has experienced a continued high level of growth in recent years with projected light passenger vehicle sales being 10-13 million units by 2030. Topping the chart is China with a projected figure of 35-45 million units followed by U.S with 15-20 million units.

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