Its economic slowdown all over but Indian automobile industry seems to be on a roll. According to a market research conducted by JD Power and Associates, India in the next five years is likely to add a million new cars in the next five year.
India's automobile figure at the present scenario stands at 1.5 million, which is expected to reach 2.6 million by 2014. According to Mohit Arora, Senior director, JD powers, "After China, India is the fastest-growing market in the world and expanding much faster than other emerging economies such as Brazil and Russia." Arora further added that, while small cars like Nano will foster the Indian auto market, China will takeover US as the world's largest car market in the next seven years.
JD Power had previously predicted that Indian passenger car market would reach two million by the year 2010. However, according to the market research company, India's auto sell, which has grown by a mere 0.13 per cent in the last fiscal year will reach its two-million units by 2012.
According to the firm, India's auto market will be further consolidated with japenese company like Honda and Toyota and European's company like Volkswagen investing more in the country. The entry of France's second-largest car maker PeugeotCitroen could also intensify competition in the mid-car segment.
"We will see greater synergies as in the case of Tata-Fiat and Mahindra-Renault in near future. Some more Indian companies could partner foreign firms and form new alliances to market new cars in India," Arora added.
