As per the universal rank, India is listed on sixth position in the largest automotive market’s list. Following the moves, India seems to jump 3 steps ahead by coming years. According to a study carried out by JD Power and Associates, India is likely to sit on third position in the world list by 2020.
The report clearly mentioned the title as “India Automotive 2020: The Next Giant from Asia”. In fact, the report has also highlighted that India has imported more than 2.7 million light vehicles in the year 2010 whereas, just 700,000 vehicles were sold to India in 2000.
With the mounting economic activity as well as increasing number of population, this number might fade, bringing new figure on the list stating 11 million vehicles by 2020. If such things happen, then India will be considered as the third largest automotive market Following China who will more likely to reach at 35 million in 2020, and the USA at 17.4 million.
The report has also disclosed the fact that the Indian government is supporting the automotive industry’s development and so pushed up policies that include a reduction on small cars’ sales tax and financial incentives for the manufactures to produce and export vehicles abroad. In this context, most of the manufacturers have planned to focus on production processes in India and thereby create designed vehicles exclusively for the Indian market.
The senior vice president of global automotive operations at J.D. Power and Associates, John Humphrey said that India has quickly become one of the largest and fastest-growing automotive markets in the world. He has also added that this momentum has been driven by a more open and market-driven economy, an empowered and less risk-averse work force, a more consumer-driven culture and an emphasis on small car production.
Unfortunately, India does possess three deficits:
1. International trade deficits.
2. Chronic government budget deficits.
3. An underdeveloped power generation and distribution infrastructure.
John Humphrey believes that the growth will be based on creating a successful infrastructure that could support the economy. Significant improvements are required to be created for the components industry so that India could build large volumes of high quality vehicles, especially for export purposes.
By Sunita Mandal