“India, China Will Have Similar Auto Markets by 2030”
In the February 10, 2011 issue of The Economic Times, Booz & Company Partner Vikas Sehgal (India/North America) said that automobile sales in India will likely overtake the U.S. market by 2030. “In the next 20 years, India will be part of the global automotive triumvirate, the other two being China and the US,” said Sehgal. “The center of gravity has been shifting from the North America to now Asia.” According to the Booz & Company Study, India Auto Market 2020, India in 2010 was one of the largest car markets in the world logging 30 percent plus growth with 2.3 million cars being sold during the year—a dream run that will continue, making India the fourth-largest global car market by 2015. Today, Sehgal said, the car markets in India and China are different markets, but by 2030, they’ll be similar. Today, an average car sold in the U.S. costs $30,000; in China, it is less than $16,000, while in India, it is under $8,000. “The average transaction price in India is going up and in China it is holding up or going down,” Sehgal added.