Auto Market of India: The Next Big Thing.

Neil · Post by **Neil** » Mon Mar 20, 2006 10:52 am

The domestic component industry increased its output from a level of $6.7 billion to $8.7 billion, a 30 per cent jump.Exports shot up from $1 billion in 2003-04 to $1.4 billion in 2004-05, showing a 40 per cent growth.This will not only give them access to new technologies and client base, but also put them on track to reach the targeted $20 billion worth of exports by 2015, from the $1.4 billion now.

This year, India also became the only country after Japan in Asia to have a testing and R&D development facility. The government gave its nod to the Rs 1,718 crore (Rs 17.18 billion) National Automotive Testing and Research and Development Infrastructure Project. The facility being set up in Rae Bareli, Uttar Pradesh will mainly benefit original equipment manufacturers, insurance companies and road-building agencies among others.

The facility would comprise a test track spread over 4,000 acre, a crash test laboratory, an environmental lab and an electro-magnetic compatibility lab -- all the jing bang that will put the industry's growth on a faster track. It will be comparable to the best in the world and will be invaluable in India's quest to be a small car hub.

The industry witnessed a lot of fresh foreign direct investment flowing into the country in the shape of BMW, DaimlerChrysler, Toyota, Honda, Hyundai and Ford during 2005.

BMW followed the footsteps of rival DaimlerChrysler to announce a manufacturing plant near Chennai with an initial investment totalling 20 million euros (approximately Rs 110 crore). The company's plant will be commissioned in 2007 and will roll out the BMW 3 Series and 5 Series saloons.
A newly released white paper by Keystone India, The World's Top Auto Markets by 2030, projects that over the next quarter century, emerging markets will replace the mature markets of America, Europe and Japan as the primary driver of sales growth and will account for a staggering 69 per cent of industry sales and 87 per cent of vehicle registrations within a quarter of a century.

China and India will dominate this transition, as their combined shares of motor vehicle registrations will rise seven-fold from 5.3 to 37 per cent by 2030. While China is likely to become the world's largest motor vehicle market by 2017, India, due to its late start, is projected to come on strong, surpassing Japan within a decade, placing it third in sales.Fuelled by rapid growth in population and per capita income, by 2030, India's auto market will almost match the United States in size.

Source: Ford's Corporate Bullitin.

Post by **arnab** » Mon Mar 20, 2006 12:34 pm

Great info, I thought BMW wanted to make a plant in Kerala and then it got scrapped because of political issues. Guess hey went a bit north then

sakin_uttara · Post by **sakin_uttara** » Tue Mar 21, 2006 2:18 am

i hate this newz.......

Abdul · Post by **Abdul** » Sun Jul 02, 2006 10:35 pm

No arnab according BMWasia.com Bmw will put assembly line in India in the town of Chennai, will produce 5 series , 3 series

Post by **arnab** » Sun Jul 02, 2006 10:43 pm

Abdul wrote:No arnab according BMWasia.com Bmw will put assembly line in India in the town of Chennai, will produce 5 series , 3 series

Thats what I said, Chennai is north of Kerala

sakin_uttara · Post by **sakin_uttara** » Mon Jul 03, 2006 12:48 am

ahy... this will lose the quality of bimmers now.. bt price will be same... isn't it?

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