Published on : Jun 11, 2015
India is expected to witness a robust growth story in the automobile sector. Even though the previous financial year registered a poor auto sales growth of 4-5%, both domestic and foreign manufacturers are lining up investments worth US$10 billion over the span of next couple of years. This boosts the future growth prospects of the Indian automotive sector as well as its potential as an exports market.
According to industry analysts, India is expected to emerge as the third-largest sales market during the next ten years, with production reaching up to 6 million units per year. Major auto manufacturers such as Suzuki Motor, Honda, Nissan, Volkswagen, Renault, Fiat, and Ford are focussing on building new capacity for exports while catering to the domestic market in India.
According to PwC, in the last one year, around 10 car manufacturing companies have invested about Rs 31,570 crore; two-wheeler companies have invested around Rs 8,555 crore; whereas tyre companies have put nearly Rs 7,350 crore. Further, Suzuki Motor is building Suzuki Gujarat, a wholly-owned subsidiary to increase its capacity, and Japanese automotive firm Honda is building its production capacity for two-wheelers and car businesses. Make in India initiative has raised the hopes of the auto manufacturers who are positive that within the next couple of years, the economy will pick pace and the demand for vehicles will increase. The car makers are also looking at India as the potential export hub to cater to the markets in Latin America, Middle East, and Africa.