India, the second most populated country in the world, has now more than 40 million vehicles plying on roads. The Indian automotive industry has the proven potential to survive crises of any magnitude. This was clearly evidenced in the growing vehicle sales volume even during the worst-ever world recession of 2008 and in the following two years when the industry in other countries, both developed and developing, reported stagnant or falling sales. Since it has a strong domestic market with its inherent power to bounce back from the current slump, the growth in demand for vehicles in India is expected to be extremely sustainable though the current per capita consumption of vehicles is the lowest among the world’s top 10 auto markets.
Interestingly, Indian commercial vehicles is among the most attractive segments by becoming a focal point of attention for almost all foreign vehicle manufacturers. They have set up shop in India not merely to produce different types of vehicles but to keep expanding operations, both production and market-wise. Litterally overcrowded with the growing presence of vehicle manufacturers in the field, competition is hotting up with the alien manufacturers fully equipped with advanced technology and sophisticated production system virtually displacing the domestic ones from their traditional strongholds.
Obviously, India is also emerging as one of the most popular destinations for producers of all categories of vehicles, with several international players of world repute having already had their large presence in the country and new OEMs waiting in their wings to enter the scene. As such, the local industry registered an unprecedented growth with the domestic production volume achieving a CAGR of 12.2 per cent between 2005 and 2013. It is also heartening to learn that India’s exports of locally built automobiles have moved up by 2.03 per cent since last few months. With the rising per capita income, the Indian industry remains steadfast on utilising its outstanding power and potential to strengthen the domestic brands jointly with the international firms that offer world class solutions. Moreover, with a slew of new initiatives already announced by the Modi Government for overall industrial growth, the auto sector hopefully expects to make bigger strides in the days ahead.