Going by how matters have been in the past year, there is little hope that India’s auto industry will grow beyond the single-digit mark in FY2013-14, even if macroeconomic indicators and economic sentiments improve substantially
This kind of brutal bloodbath was not witnessed even after the global financial meltdown of 2008 when it appeared as if Apocalypse and Armageddon had jointly invaded the global economy. From about 1.6 million domestic sales in 2007-08, passenger car sales fell marginally to about 1.55 million units in 2008-09. Not just that, the auto industry registered a spectacular turnaround almost immediately and kept growing at a very healthy pace. By 2011-12, passenger car sales had reached close to 2.68 million units. Something similar happened with sales of commercial vehicles that reflect even better the state of health of an economy. From about 490,000 units in 2007-08, sales crashed to about 384,000 units in 2008-09 in the aftermath of the global financial meltdown. But as with passenger cars, the recovery was swift and sure. By 2009-10, sales of commercial vehicles had recovered smartly to 532,000 units and crossed 800,000 units by 2011-12. The magic one million mark was looking very much within reach. And everybody was going ga ga over the brilliant prospects of the Indian auto industry. Some over optimistic souls even started predicting that the auto industry growth rates in India will keep outpacing that of China and that India could well emerge as one of the five largest auto markets in the world by 2020.
In 2010, the consultancy firm Ernst & Young conducted a study on behalf of Automotive Component Manufacturers Association of India. The E&Y study predicted that the Indian automobile market would clock the fastest growth rates between 2010 and 2020. Average annual growth rate for the Indian market between 2010 and 2020 was pegged at 14%. The average annual growth rate for the Chinese market was pegged at 8%; the forecast was 6% for other emerging markets and just about 4% for developed markets belonging to G-7 countries. According to the survey, domestic sales of cars and SUVs would jump to 5 million by 2015 and further double to 10 million by 2020.
This kind of brutal bloodbath was not witnessed even after the global financial meltdown of 2008 when it appeared as if Apocalypse and Armageddon had jointly invaded the global economy. From about 1.6 million domestic sales in 2007-08, passenger car sales fell marginally to about 1.55 million units in 2008-09. Not just that, the auto industry registered a spectacular turnaround almost immediately and kept growing at a very healthy pace. By 2011-12, passenger car sales had reached close to 2.68 million units. Something similar happened with sales of commercial vehicles that reflect even better the state of health of an economy. From about 490,000 units in 2007-08, sales crashed to about 384,000 units in 2008-09 in the aftermath of the global financial meltdown. But as with passenger cars, the recovery was swift and sure. By 2009-10, sales of commercial vehicles had recovered smartly to 532,000 units and crossed 800,000 units by 2011-12. The magic one million mark was looking very much within reach. And everybody was going ga ga over the brilliant prospects of the Indian auto industry. Some over optimistic souls even started predicting that the auto industry growth rates in India will keep outpacing that of China and that India could well emerge as one of the five largest auto markets in the world by 2020.
In 2010, the consultancy firm Ernst & Young conducted a study on behalf of Automotive Component Manufacturers Association of India. The E&Y study predicted that the Indian automobile market would clock the fastest growth rates between 2010 and 2020. Average annual growth rate for the Indian market between 2010 and 2020 was pegged at 14%. The average annual growth rate for the Chinese market was pegged at 8%; the forecast was 6% for other emerging markets and just about 4% for developed markets belonging to G-7 countries. According to the survey, domestic sales of cars and SUVs would jump to 5 million by 2015 and further double to 10 million by 2020.
For More IIPM Info, Visit below mentioned IIPM articles
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
| ExecutiveMBA |
