Mexican Media Brands
Carmakers Bet on India Despite Sluggish Sales Growth
Car sales are growing slowly in India, and current capacity is being used at only about 50%. Yet carmakers continue to invest to prepare for an expected surge in demand over the next several years, The Economic Times reports.
#economics
Share
Car sales are growing slowly in India, and current capacity is being used at only about 50%. Yet carmakers continue to invest to prepare for an expected surge in demand over the next several years, The Economic Times reports.
Market researchers IHS Automotive expect India to become the world's third-largest auto market with annual local production growing to 6 million units by 2020.
The ET says 10 carmakers have invested 316 billion rupees ($4.9 billion) within the past 12 months to boost capacity in India. Several are planning new investments in the next year or two.
The newspaper figures India's car market must grow at least 10% annually to absorb already-committed new production capacity. The risk for carmakers is continued overcapacity. But the ET says manufacturers clearly are eager to avoid being caught short as they were in 2009-2010, when surging demand overwhelmed them.
RELATED CONTENT
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.