Indian Auto Market To Beat USA

By Denise Baptiste

Published: Friday, February 18, 2011, 16:36 [IST]

The highly competitive car market in global level is looking the US as the most potential while China is on the race on rapidity. But the assessment studied by Booz& Co, revealed that India cars may overtake both these countries in another 25 years. The projection is that by 2020, the volume will be double with 5 million units annually which may still rise to 6 million. This figure may make India to gain double the volume that the largest European market, Germany had in 2010.

The middle of this decade will witness India overtaking the US in terms of auto hub focusing on production. In another decade, the US sale volume may fall behind that of India"s amidst the industry revenue of 0 billion. The analyst"s firm said this could be the single largest shift in prosperity ever.

In the process, there might be an investment of billion in India for auto manufacture and supply of commodities for cars. The beneficiary will be the domestic market and export market such as South America, Africa and the Middle East. The Korean and Japanese markets will not require much from other makers, it said.

The study said by 2020 the volume of the global auto market will be in 205 million mark annually with the contribution from the Asian region to 65%. This will juxtapose the volume of 1980 including that of Asia when it was 7% of the net world car market. Hence the firm noted that the centre of gravity is shifting to some where else. The projection comes in the wake of increased household income to 000 making them to own and drive a car of their choice as much as China. The spending fashion for earners will be to own a house first and buy a car next.

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Article Published On: Friday, February 18, 2011, 16:10 [IST]

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