India to be third-biggest auto market by 2020: J D Power
14 Jun 2011
India surpassed France, the United Kingdom and Italy to become the sixth-largest automotive market in the world in 2010, and it is expected to become the third largest after China and the US by 2020, according to a report by US-based market research firm J D Power and Associates.
The report, India automotive 2020: the next giant from Asia, said the light vehicle market in India was expected to register sales of 11.9 million units by that year against 2.7 million units in 2010 and 700,000 in 2000.
China will top the table with sales of 35 million light vehicles, while the US will register sales of 17.4 million units.
John Humphrey, senior vice-president of global automotive operations at J D Power, said the growth momentum in India was primarily driven by an open market economy along with an empowered and less risk-averse workforce, a consumer driven culture and emphasis on small car production.
The report said emphasis on small cars should pay off as rising fuel prices will result in a greater demand for inexpensive and reliable means of transportation.
The country, however, will have to improve its infrastructure, as well as resolve component supply chain issues, in order to realise its huge potential.