Car makers expanding capacity with rising demand

As the Auto industry in India is registering heavy sales, the major car makers including Maruti Suzuki, Hyundai, Tata Motors, Honda and Toyota are now aggressively expanding their operations in the country. Where some car makers are searching for sites to built their manufacturing capacity, some are looking to expand their existing facilities.

SIAM (Socity of Indian Automobile Manufacturers) has projected that the car sales in India will touch the mark of 6 million units per year by 2015 as against existing sales figure of 2 million units per year. While on the other hand the two wheeler market is expected to grow to 16 million units per year as against existing 9 million per year.

In car penetration India is far behind China, where India has 14 car owners per 1000 individuals, its neighbour has 80 cars per 1000 individuals. According to Mr Abdul Majeed, auto practice leader, PwC, “The demand is sustainable as the penetration levels are very low in India.

Where Maruti India, the largest car maker of the country, is enhancing capacity at its Manesar based facility, the BMW India is aggressively expanding its dealership base, here. On the other hand in two-wheeler segment, Bajaj Auto, the country’s second-largest two-wheeler maker, is planning to enhance its capacity to 4.6 million units from April following the success of its Pulsar and Discovery motorcycle brands. Major car makers including General Motors, Volkswagen, Mahindra, Renault-Nissan have announced their plans to open new facilities in coming years.

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