India will be 3rd largest automotive market by '16

On the sidelines of IHS Day 2013 APAC Summit, IHS - the leading source of information, insight and analytics in critical areas that shape today’s business landscape announced that India will be the third largest automotive market by 2016. The country’s automotive sales outlook is very strong due to the ongoing economic development and economic recovery. The implications for auto demand are huge in India and the country has been moving along the penetration path. Commenting on this, Charles Chesbrough, Senior Principal Economist, IHS said, “The industry is being shaped by the rise of the developing markets, e-mobility and the changing urban environment. With demand for vehicles declining in most mature markets in the face of the global recession, high fuel costs and urban driving restrictions, the industry is turning its attention more strongly towards the expanding middle classes in the new powerhouse of China, India, Brazil, Russia and other growing nations”. “The favorable Indian market conditions are acting as a catalyst for luxury and premium carmakers, which are receiving impetus from new launches. The top-end carmakers have posted double-digit growth for the quarter ended June 30, 2013”, said James Chao, Director, Asia Pacific, IHS Automotive. Global and Indian manufacturers are focusing their efforts to develop innovative products, technologies and supply chains in the industry. Car makers are launching a slew of car models such as Ford “EcoSport” and Nissan Datsun “Go” to name a few.