Global automobile majors are not looking at setting up base in India for nothing. In the first 11 months of this year, over 10 million vehicles were produced in India â€“ a record. This represents 16.8% growth compared to the same period in 2005.
Total vehicle production was 10,031,886 compared to 8,587,131 vehicles last year, according to data released by the Society of Indian Automobile Manufacturers.
An analyst pointed out that the 10 million mark is just a benchmark figure. It will put India to an advantage on a global scale. Growth in the domestic market represents the buying power of people, which will attract more investments in the sector.
Reaching the 10 million mark also plays an important role in the Centerâ€™s automotive mission plan to make India an automotive hub.
Two-wheelers continued to dominate with over 77% share, but grew slower than the automobile sector at 15.8%. Motorcycles and Stepâ€“throughs led the growth in the two wheeler segment with a 20% increase. Passenger car production crossed the one million mark in the 11 month period with 1,100,799 units, a 18.6% growth over last year.
Experts said this segment would continue to witness a robust growth for the next 3-4 years with car manufacturers setting up new capacities which will come on stream by 2007-08.
While growth rtes in the commercial vehicle segment are the largest â€“ around 30% — it still contributes only around 4.4%. The sector is expected to expand in 2007 with the entry of new players like MAN, International Truck & Engine Corporation and Scania.
Vehicle exports have scaled 24% during the period. While exports of light commercial vehicle more than doubled, exports of motorcycles and three-wheelers increased 40% and 65% respectively.
Other segments, including passenger vehicles , commercial vehicles and three wheelers have also demonstrated significant growth in the January â€“ November period compared to the corresponding period last year, it added.
Passenger car production also crossed the 1 million mark in the 11 month period with a production of 1,100,799 passenger cars at a growth of 18.59%, while multi-purpose vehicles grew by 9.24%.
So it is Automobiles & Vehicles leading to India the Global Automobile Hub. Already world manufacturers are setting up critical component manufacturing like engines, power train, and fuel injectors and alike to be catered to their plants in the other parts of the globe from India. This is due to technological, geographical, location and finally cist advantage.