India to be 4th largest passenger vehicle market in 3 yrs

In coming three years, Indian Auto market is expected to become a hot destination for passenger vehicle manufacturers as it is to turn as world's 4th largest passenger vehicle market. To achieve the mentioned height the market needs an investment of USD 20 billion which will help manufacture sufficient units against the upcoming huge demand. The figures are claimed by Booz&Co., a global consultant.

The passenger vehicle segment in the Indian Auto market is speculated to touch 3.5 million unit mark within a period of coming three years. As per the statements made by Booz&Co Partner Vikas Sehgal three countries will stay ahead of India- United Stated, China and Japan.

For now passenger segment of domestic market stands at the seventh position globally and is expected to face a growth of 15 to 20 per cent till 2013.

As per the claim made by Society of Indian Automobile Manufacturers, the PV segment of domestic market id to face 2.4 million units in the present fiscal year and then it will pass over Japan by marking sales of 5 million PV's by 2017 to 2018. In order to meet this exponential demand in coming future, the manufacturers have to pull their sleeves up and have to enhance the production capacity at large scale. The expected figures says that the demand will be met by near 6 to 9 new plants on Indian grounds holding an average capacity of 1.5 lakh units annually. To achieve the target, the Indian Auto segment will demand an investment of nothing less that 15 to 20 billion investment.

Mr. Suggested that the companies not just have to focus on enhancing the production capacity but have to strengthen their distribution network as well along with decent investment on the R&D sector.

As per the claims made by Fitch, the rating agency, PV segment of domestic market will take a low dip of 15 per cent in current year and owing to inflatory pressure, the profits will be nominal.

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