Indian Automotive industry: a unique case of rational national development plan


photo credit: Christian Haugen

The Indian automotive industry development (including vehicles at 2, 3 and 4 wheels) continue to deserve performance in line with Government mission fixed in 2006 for the future decade.
The objectives of the Indian Government were to expand the industry by boosting production, domestic market and export sales. The desire is to have an industry contribution at 10% Indian PNL (compared with 5 pct. In 2005), with over 25 million employments (double than in 2005). But the vision was further more ambitious, foreseen the opportunity for India to become a key export market, not only a huge domestic market. The development of motorcycles was expected as primary and fundamental in this phase of GDP growth and fast urbanization process. The car passengers and commercial market development where seen dependent by fast creation of infrastructure and services, still scarce in 2005.

Now, at half way of the 2016 Plan, the 2010 data indicates the path is right and the industry high speed growth is in line with Indian Government Plan.

Total automotive industry in 2010 achieved 12, 3 millions domestic sales, +80% over 2005 with a CAGR of 16 pct. The Two Wheels market (scooter plus motorcycle) achieved 9,4 millions, 74 pct. Over 2005 with a CAGR of 16%, while the Three Wheels market (a typical Indian segment) grew at 440.000 units, 22 pct. over 2005 and CAGR at 4 pct.

The car passenger industry achieved 1.949.000 units, 83 pct. above 2005 with a CAGR of 17 pct, while LCV market was at 531.000 units, 51 pct. above 2005 with a CAGR of 10 pct.

For the 2011 the Society of Indian Automotive Manufacturers forecast a further growth of 25%, with a total industry above 15 millions, with motorbikes (2 & 3 wheels) at 12,25 millions, car passengers at 2,5 millions, LCV at 650.000.

In the car passenger industry Indian market will become the 5th biggest in the world while in the motorcycles it will consolidate its 2nd place.

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