Indian Automotive Industry | Expectation survey 2014
Since its economic liberalisation, India has experienced record growth. Mazars conducted a survey to provide a forward-looking vision on the evolution of this market by collecting the opinions of Executives in the automotive industry.
“While there were 500 cars for every 1,000 people in Europe, the ratio was 100 cars in China and below 20 cars in India. The country has a huge potential for growth and the right fuel efficiency, right product and right price would propel growth.”
David Chaudat, Global Head of Automotive & Industry sector
India has one of the world's most competitive car markets in terms of costs. The country offers significant growth potential and could indeed become the third largest market by 2020 with 9,000,000 vehicles sold. However, India's automotive sector has stagnated over the past few years. The sector is on pause for now, but for how long? Is the formation of the new government in May 2014, will allow Automotive industry in India to rediscover a significant growth?
“After possibly the longest and most difficult period of slump in India’s automobile market, the Indian automotive industry has reasons to pin strong hopes on the new government.”
Arvind Walia, Partner and Automotive Sector Expert, Mazars India
Panel & Methodology
Based on a questionnaire sent out to 300 companies from the Automotive industry in India, The “Indian Automotive industry survey” has been structured into five main themes to provide a global vision on the evolution of this growing market. Key topics of the survey include: Growth Drivers, Development strategies, Profitability and Forecasts, Challenges and Consumer Trends.
Responses from industry experts and professionals, including business leaders, managers and other key stakeholders, have been analysed and collated to provide an exhaustive account of the automotive industry in India.
Key insights :
- 88% expect the industry to record a double-digit growth rate over the ensuing 5 to 7 years.
- A majority of the respondents have planned for a maximum of up to 4% growth for the year 2014-15 for all four-wheelers.
- 63% advocate that the improvement in infrastructure will drive the automotive industry to success.
- 87% are adversely impacted by the current labour law situation.
- 69% believe that India has adequate capacities for the next 3 years.
- 66% felt that the imports from China will have only a moderate impact on the component industry.
- 50% expect over 20% of their revenue to come from new models
- Fuel efficiency is currently the most important criteria for buying vehicles in India.
Plus d’infos ?
The worldwide automotive market is at its height and is experiencing steady growth. However, this growing industry is changing at two paces: In western countries, the automotive industry is dealing with a mature market, impacted by a complex and turbulent economic environment, where growth is driven by vehicle replacement. And in emerging countries, the market offers many growth opportunities, fueled by a fast-growing middle class and the development of road infrastructures. Acting in this dual environment, the automotive market players are looking for new industrial organization models in order to optimize and reduce the cost of their current production structures. In the meantime, it is necessary that they to develop technical innovation to strengthen and ensure their competitiveness on the market.