India As a Preferred Auto Destination

Most of the Auto companies realize Auto Expo as a gateway to the Indian auto market since it helps understand the psychology and priority of Indian consumers. Immense interest is being shown by global automobile and auto component manufacturers to outsource components from Indian manufacturers.



India is bound to emerge the modern and multi-national major hub for vehicle and auto-component production, though the Indian car industry is still very new.
There is no exaggeration that Indian car markets has never been significant to the global car makers. But owing to emerging economy, global automobile companies re-formulate their strategies in order to tap into the burgeoning market, which is why key companies such as Toyota, Audi, BMW, Mercedes, Honda and Suzuki have chosen the New Delhi Expo to display some new, compact, and economical car concepts.



India has turned important to the whole world and this is becoming like an export hub for specially small cars globally. Never before Auto majors have launched cars specifically for Indian consumers but now they appear to be casting immense importance to market here. India has become a very large and stable market so every company wants to enter the Indian market.

The last year bail out package has done wonders to car industry as Maruti sold 1 lakh cars in a single month in Dec'09. But dimension of the market is still not big.

Owning a car in India is generally aspired by every household, with low penetration, growing income levels and return of buoyancy in the economy, so the opportunity in the passenger vehicle market is enormous. At present, around 30 out of every 1,000 households in India own a car. Even if the households which can afford owning a car are considered.

Global auto giants want to have this local market as well as use this as an export base. After current Delhi Auto show, even Detroit show will be an opportunity for them but this has become more important and prestigious. Volkswagen has gone a mile away and announced that they want nearly 10 per cent of the market share in India in next 2 to 3 years, at present Maruti is market leader with more than 50 per cent market share followed by Hyundai and Tata Motors. So India is on the brink of becoming global auto export base and will be playing a pivotal role in making the industry grow world wide.