As per industry forecasts, by 2016 India is expected to be the world’s seventh largest automobile market and third largest by 2030, just behind China and the US. A majority of the future growth is expected in the emerging markets with India and China likely to account for a large share of this growth.
Some of the achievements of Indian Automotive Industry in FY10:
- Annual market size of 2 million for passenger vehicles and 10 million for two-wheelers
- Growth witnessed in 2009 was one of the highest in last 10 years for the vehicle manufacturing industry
- India is world’s fourth-largest commercial vehicle market and second largest two-wheeler market
- Maruti Suzuki has joined the league of car manufacturers producing one million cars every year
- Hero Honda is the world’s largest two-wheeler company
India is fast getting to the center of the automotive canvas, and is becoming a manufacturing hub for small cars. In 2009, it surpassed China in exports of commercial and passenger vehicles. There has been a marked improvement in quality standards by the component suppliers over the years and now they need to focus on building R&D capability as the industry scales at 10%-15% CAGR.
Sales momentum in India which picked up towards the middle of 2009 is expected to continue in the next three to four years. This growth, however, is not without challenges– commodity price increase, emission norm change, regulatory reforms, research & capability building – are some of the impediments to growth.
How WAHI & COMPANY can help?
In India, WAHI & COMPANY ’s automotive practice consists of professional with a rich experience from diverse fields providing assurance, tax, transaction and advisory services. Our client coverage spans across the value chain including component suppliers, vehicle manufacturers, captive finance companies, automotive dealerships and industry associations. We work with the country’s leading automotive businesses in tackling the key strategic and operational challenges and positioning them to tap in to opportunities available.
Through research, thought leadership and events our team engages with industry stakeholders to develop insights and services that can meet industry’s evolving requirements. We can help you build the capabilities you need to compete profitably in your markets and help your organization achieve its business potential.
