Blog: Dave LeggettIndia expanding rapidly

Dave Leggett | 17 August 2007

China’s automotive market and industry may be expanding  rapidly, but so is India’s.

India is developing as a global small car manufacturing hub for a number of makers and, as a reader of Autocar India, I can see for myself that many new models are being introduced to the market.

There’s also the emergence of India’s key role in the development of VCVs (Very Cheap Vehicles) and especially the mounting excitement over Tata’s 1-lakh (100,000 rupees; about EUR2,000) car that is supposed to fill the considerable void in between 2-wheelers and current entry-level cars such as the Maruti 800. It’s an audacious project, to be sure.

But India’s automotive component industry is also developing very rapidly. It’s moving up the engineering/product capability curve and becoming more attractive for systems outsourcing by global Tier 1s.

And eyebrows were certainly raised when Tata Steel took over Corus in Europe, earlier this year. It was a sign that big corporations in India are increasingly looking to the world stage and there could be more of that to come in the automotive sector.

India is ambitious and looking outwards. Its presence will increasingly be felt in the global auto industry and its quietly growing influence may yet turn out to be very different to China’s and perhaps more durable and less ‘abrasive’.


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