Indian Automotive Industry | Survey 2014

“While there were 500 cars for every 1,000 people in Europe, the ratio was 100 cars in China and below 20 cars in India. The country has a huge potential for growth and the right fuel efficiency, right product and right price would propel growth.”

David Chaudat, Global Head of Automotive & Industry sector

India has one of the world's most competitive car markets in terms of costs. The country offers significant growth potential and could indeed become the third largest market by 2020 with 9,000,000 vehicles sold. However, India's automotive sector has stagnated over the past few years. The sector is on pause for now, but for how long? Is the formation of the new government  in May 2014, will  allow Automotive industry in India to rediscover a significant growth?

“After possibly the longest and most difficult period of slump in India’s automobile market, the Indian automotive industry has reasons to pin strong hopes on the new government.”

Arvind Walia, Partner and Automotive Sector Expert, Mazars India

Panel

The “Indian Automotive industry survey” has been structured into five main themes to provide a global vision on the evolution of this growing market. Key topics of the survey include:

• Growth Drivers
• Development strategies
• Profitability and Forecasts
• Challenges
• Consumer Trends

Key insights

• 88% expect the industry to record a double-digit growth rate over the ensuing 5 to 7 years
• 63% advocate that the improvement in infrastructure will drive the automotive industry to success
• 87% are adversely impacted by the current labour law situation
• 66% felt that the imports from China will have only a moderate impact on the component industry
• 50% expect over 20% of their revenue to come from new models