India’s automotive market will be the fourth largest by 2015, according to a study by management consultancy Booz & Company.
“India will generate sales of 6m plus car units annually by 2020. Markets in India and China are rising vertically; Asia will likely corner 65% of the total automotive market by 2020,” Vikas Sehgal, partner, Booz & Company, told just-auto.
The study said global OEMs regularly revisiting their India plans from time to time to capture share. The automotive sector here remains the leader in attracting foreign direct investment (FDI) and US automakers have been the biggest investors since the early 1990s.
The auto sector is expected to attract further FDI of US$25-35bn in the next decade. The study said rising income would lead Indians to buy larger cars in the future. Revenues from the automobile sector would likely reach US$150-$200bn by 2030.
The study also noted that OEMs would continue to shift production near to major markets and Asia should account for over half of global automotive production by 2020.
India has experienced a continued high level of growth in recent years with projected light passenger vehicle sales now 10-13m units by 2030. Topping the chart is China with a projected figure of 35-45m units followed by the US with 15-20m units.