India taking the market share in the auto industry:
India is expected to grow its auto industry, faster than China, within the next 5 years. As we know, China’s auto industry has too expanded at a exponential rate, but India is just taking the lead due to its increasing population.
In retrospect, when China’s economy started expanding (still is), many auto manufacturers shifted towards to China to capture the market. This all caused many companies to dive in, in the hopes of making the soaring profits. Well, as India’s auto market expands, there are just countless opportunities for one to expand not only locally, but nationally, even globally. Many auto manufacturers such General Motors Corp., Honda Motor Co., Volkswagen AG and half a dozen other companies are planning to spend at least $6.6 billion on new factories to capture the market.
With the current population of 1.1 billion, and still increasing, the demand for cars is just going to increase. Maruti Udyog Ltd is one of the well known companies in India, who dominates the auto market. It supplies nearly half of the vehicles, on India’s streets. Also, in the year ended on March 31, passenger car sales climbed up nearly 21 percent. However, within the next 8 years, sales are expected to climb nearly 50 percent.
Statistics on the Auto Market-
- It costs about $7500 a year to hire a factory worker in India. In comparison, it costs GM around $57,000 to hire that same worker. Now, you wonder why they all outsource.
-Maruti, which is 54 percent owned by Japan’s Suzuki Motor Corp.,
- Maruti expects to sell nearly 250,000 cars globally by 2009.
Investing tips
Well, a really good investment right now in the global market would be India, and China. Also, not only the India’s economy is getting more stronger, and dominating, but the value of rupee has appreciated relative to the dollar. The rupee is getting stronger in the foreign exchange market. Investing in India’s auto industry can be really rewarding. Expansion is where the domination begins.
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