The global automotive spectrum might not be at its vibrant best currently, but the same cannot be said of the automotive industry in India. The Indian economy is expected to outpace the world in terms of economic growth rate and the automotive industry is following in the same footsteps. According to the predictions of automotive industry forecasting company IHS automotive and brokerage firms Credit Suisse and Nomura, the coming year will see India emerge as the star of the global auto industry. The passenger vehicle market in India expanded at 7.7% in 2015.
The sector will continue to make steady headway and break into double-digit growth rate in 2016. In 2015, India became the fifth-largest automaker in the world, replacing Brazil from that position. In fact, Nomura predicted in a recent report that it expects the Indian automotive industry to grow 15.6% in 2016, a growth rate that’s remarkably higher than the projected growth rate of the global automotive sector (3.2%) and also emerging markets (4.5%).
Credit Suisse’s estimates for the Indian automotive industry’s growth are even higher, at nearly 20%. If this rate holds true, India will outshine China, where the automotive sector is expected to log a 15% growth thanks largely to tax-related incentives.
IHS Automotive’s findings, too, paint a bright picture of the Indian auto sector. The firm expects that the production of light passenger vehicles in India will increase 9% whereas domestic sales will jump 11%. In 2015, 2.77 million passenger vehicles were sold in India.
While a handful of leading companies managed to achieve high vehicle sales, experts forecast that growth will be noticeably more inclusive in the coming year as companies compete neck to neck with attractive discounts and new models. The falling fuel rates will have a positive effect on the growth of the Indian automotive sector, too.
The sector will continue to make steady headway and break into double-digit growth rate in 2016. In 2015, India became the fifth-largest automaker in the world, replacing Brazil from that position. In fact, Nomura predicted in a recent report that it expects the Indian automotive industry to grow 15.6% in 2016, a growth rate that’s remarkably higher than the projected growth rate of the global automotive sector (3.2%) and also emerging markets (4.5%).
Credit Suisse’s estimates for the Indian automotive industry’s growth are even higher, at nearly 20%. If this rate holds true, India will outshine China, where the automotive sector is expected to log a 15% growth thanks largely to tax-related incentives.
IHS Automotive’s findings, too, paint a bright picture of the Indian auto sector. The firm expects that the production of light passenger vehicles in India will increase 9% whereas domestic sales will jump 11%. In 2015, 2.77 million passenger vehicles were sold in India.
While a handful of leading companies managed to achieve high vehicle sales, experts forecast that growth will be noticeably more inclusive in the coming year as companies compete neck to neck with attractive discounts and new models. The falling fuel rates will have a positive effect on the growth of the Indian automotive sector, too.
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