Indian automobile market to surpass US auto market and equal China's by 2030

The Indian automobile industry has accelerated in the last few years, the height this industry has reached in such a short span of time is commendable. While most of the industries witnessed a downfall in the last few years because of recession this industry has flourished. In the last fiscal year the industry registered a record growth of 30%.

The auto industry of the sub-continent is tempting all the major auto industries across the globe to create a niche for themselves in the rapidly growing market. It is being expected that the Indian auto industry will be the fourth largest auto industry in the world come 2015. The report released by Booz & Company reveals that by 2030, India's automotive sales might surpass US market. Not only this but it is being expected that the Indian auto industry will become as huge as China's by 2030. The report suggests that the Indian auto industry is likely to generate an expected revenue of $150-200 billion with 1107 million light passengers vehicles being sold. As per the reports the Indian automobile sector is expected to attract FDI of $25-35 billion in the next 10 years.

Vikas Sehgal, partner, Booz & Company , India stated that Indian auto market will have a phenomenal impact on global auto landscape. He further added that Indian auto industry will be big in the coming 20 years and will be counted among the US and China market.

Asia has become the center of attraction, back in 1980 the market size was 60 million units with Europe being the highest contributor. North America followed after Europe , however Asia and Japan had the lowest contribution. By 2009 the market size had grown to 102 million units with Asia and Japan being the highest contributor. On the contrary the growth of Europe and North America market has shrunken. The market size is expected to reach to whooping 205 million units with Asia and Japan contributing 65 percent, Europe 20 percent and North America at the bottom with 15 percent.

Providing reasoning to the predictions made for the Indian auto Industry Sehgal further added that looking at the current market trend , China and India will share a lot of similarities by 2030. Today, if you look at US, China and India, an average car sold in the US costs $30,000. In China, it is less than $16,000. In India, it is under $8,000. Average transaction price in India is going up and in China it is holding up or going down.

Talking about the China auto market he said that it has reached the number one position and has also overtaken the SU. He also mentioned that small cars will be sold as well as new car plants for small cars are being set up in China. Home grown companies like Chery, Geely (it recently acquired Volvo) will play a vital role. It is expected that almost all car majors will bring their small car versions to China. He further explained that at present two-third of the china car market is comprised of B & C segment and the remaining is C plus. In future the A, B and C will comprise 80 percent of the auto market and A will continue to grow.

He said that the India has a very feeble eco system and if it did not pay attention to the infrastructure , consumers will have to pay the penalty with high prices. However it will not effect the OEM's plans much. But it is the auto vendors who are producing shippable parts who will find it difficult if OEMs find it easier and cheaper to import rather than source it within India.

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