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India - World's No. 2 in Fastest Automobile Market
Apr 25, 2007

A scenario in Indian car market is changing.  The country is now expected to emerge as the second fastest growing automobile market in the world.

In the news published by Inhome, the world's biggest carmaker, General Motors, expects India to emerge as the second fastest growing automobile market worldwide in the next ten years and hence, desires to consolidate its presence in the country.

GM chairman Rick Wagoner stated that the vision of Prime Minister Manmohan Singh for the Indian economy, political system, and the automobile sector are commendable.

High-end cars with inexpensive parts will be introduced by GM as per a strategy formulated by it. Most Indians choose compact, trendy and reasonably priced cars and most car manufacturers in India including Hyundai and Honda are working towards achieving this goal. Therefore, GM has realized that it has to fulfill these criteria and make an impact to seize 10% of the Indian market.

Finance Minister P Chidambaram, on the inauguration of the 32nd annual conference of the International Organization of Securities Commissions (IOSCO), spoke about the growth in the Indian economy in the past three years (2004 to 2006) on an average rate of 8.6%.  He added that it is the second fastest growing nation with a foreign exchange reserve of $200 Billion.

India’s domestic passenger car sales have increased by 22.01%, up from 882,208 in 2006 to 1,076,408 units in 2007. Overall, the automobile industry posted a 13.50% growth.

Global Automotive Financial Review forecasts the Indian passenger car market sales will rise up to19 lakh cars by the end of 2010 leading to a growth of above 50% and there will be more than 2 million cars in the Indian car market.

The passenger car segment has seen an impressive growth in the Indian automobile market because of the change in standard of living, their high-end incomes, easy monthly installment (EMIs) and loan schemes offered by banks and financial institutions to buy cars. Indian car market has received a major boost due to these reasons and now foreign players are moving in to capture a market share. Until recently, the market was dominated by domestic players like Tata and Mahindra, said a research analyst at
RNCOS.

Related Market Research Reports:
Indian Automobile Sector - A Booming Market
Indian Auto Industry Market Overview
Asian Automotive Industry Outlook (2007-2011)