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 Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.