In 2005, Indian consumers bought 1.2 million cars and light trucks. This figure is perhaps nothing compared to USA where 17 million cars were sold but the Indian market is becoming very attractive for the foreign automakers. It is expected that the Indian car industry will grow at an annual rate of 9% for the next 5 years and the Indian government taken an initiative to construct 31,000 miles of roads and highways by 2012. In India, for 1000 persons there are only 9 cars and for the western countries (Northern Europe and North America) there are 500 cars for 1000 persons.
So, foreign automakers are now trying to produce more cars in India to get a bigger market share. Chennai seems to be the most attractive place for many foreign car makers because of the fact that it has a large sea port in the Bay of Bengal and many skilled and educated workers. Ford 24,000 vehicles and this year in the first 3 months Ford has already sold 14,000 vehicles. In 2002, Ford could sell 15,000 cars in India. From this statistics, we can easily touch the growing market of cars in India.
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Do you see India competing with China in car production?
Posted by: China Law Blog | May 15, 2006 5:21 PM | Permalink to Comment