India’s low car penetration levels makes it one of the most attractive opportunities for the global automobile industry, Nissan Renault global boss Carlos Ghosn told the Times of India.
Launching Datsun and announcing the new CMF-A India-engineered and produced low cost platform in Chennai, Ghosn said India’s current average of just 15 cars per 1,000 people is among the lowest in the world.
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“In China the average is 60 per 1,000, in Brazil it is 200 and in the US it is 800 per 1,000 – the comparison is obvious,” he said. “India has a 200m strong middle class and there’s no way anyone can be bearish on India.
“We are testing a lot of products in India and we know if it is successful in India it will be successful in other high growth markets as well,” said Ghosn. “Our estimate is that the Indian car industry should hit 4m units by 2016,” he said.
India’s potential is also the reason why the ultra low cost concept is a good fit for it. “We still think the ULC is a great idea not only for India but for all high growth markets,” said Ghosn.
As for the car industry’s current travails, he said, it’s a correction given the fundamentals of high growth markets. “We are very bullish on India, China, Brazil given the infrastructure investments, motorisation of the people – all the factors point towards growth,” said Ghosn.
But the scenario in Europe is diametrically opposite, Ghosn told the paper.
“Europe will continue to be tough in 2013-14 and we foresee no recovery before 2015. Right now the sales levels are akin to what Europe used to be in 1992-93. This year Europe will comprise less than 15% of the total global market,” said Ghosn.
