It is a reason to cheer as India will become the world’s third largest market after China and the US for light vehicles, including passenger cars and light commercial vehicles (LCVs), by 2020, according to market research firm JD Power Asia Pacific. However for that to happen we need to wait till 2020 and need to address a concern expressed by Ratan Tata, Chairman, Tata Group.
The country, however, will have to improve its infrastructure as well as resolve component supply chain issues in order to realise its huge potential. “Our forecast is that by 2020, India will become the third biggest market for light vehicles, that includes passenger cars and LCVs, with total sales of nearly 12 million units,” JD Power Asia Pacific Executive Director Mohit Arora told PTI. The report is titled 'India Automotive 2020: The Next Giant from Asia'.
However before we rejoice do have a look at the statement by Ratan Tata, Chairman, Tata Group and we quote "I think that the very high rates of import duty should be reduced. They're unrealistic and create an artificial barrier to protect the manufacturers in India...Only Mahindra and Tata Motors actually manufacture and develop vehicles in India. We really don't have an Indian automobile industry, we have only assemblers of foreign brands."
Thus we need to get our act together and give a thought to the perceptions of the Ratan Tata and work towards becoming a true global automotive. If you like our post than do not forget to refer our share market intraday free tips website to your friends and colleagues.
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