“India to Be World’s 4th Largest Passenger Vehicle Market in 3 Years”
On January 5, 2011 in The Press Trust of India, Booz & Company Partner Vikas Sehgal (India & North America) said within the next three years that India will become the world’s fourth-largest passenger vehicle (PV) market, triggered by annual growth rate of 15 to 20 percent. His comments are based on Booz & Company analysis that determined the industry will require an investment of about (U.S.) $20 billion for six to nine new plants to meet the demand. That will enable the Indian PV market will touch 3.5 million units by 2013 and become the fourth largest market in the world behind only the U.S., China and Japan; currently, India’s domestic PV market is the world’s seventh largest market. To meet the demand, Indian auto makers will not only have to add capacities, Sehgal added, but will have to expand distribution network, strengthen component sourcing chain and enhance R&D capabilities. According to Society of Indian Automobile Manufacturers, the PV market stood at about 2 million units in 2009-10 and is expected to reach 2.4 million units in FY 2011.