Automobile Industry in India Accounts to 7.1 Percent of the Country's GDP by Volume, Reports Research and Markets
FREMONT, CA: Research and Markets in its report ‘Automobile Industry in India - Analysis of Growth, Trends and Forecast (2015 - 2020)’ states that India is the 7th largest producer of Automobiles in the world with an average annual production of 23.36 Million vehicles. The country is expected to become 3rd largest automotive market by volume, by 2016 with more than six million vehicles being sold annually by 2020. The Indian automobile industry is expected to grow at aCAGR of 20.20 percent till 2020.
With the increasing rate of working population and the expansion of middle class the Indian automobile industry accounts to 7.1 percent of the country’s GDP by volume. India is one of the most recognized automobile manufacturing hubs in the world because of its low cost production, cheap and easily available labour, low cost of raw materials and weak currency. Also trade shows in India supports automobile companies to showcase their new models and create awareness among customers.
International manufacturers like BMW, Chevrolet, Fiat, Ford, Honda, Hyundai, Mercedes-Benz, San, Suzuki, Toyota and others have started manufacturing plants in India, gaining a significant amount of market share. The ‘Make in India’ initiative has boosted the Automobile manufacturing industry in India, leading the automobile component industry to reach US$ 110.7 billion by 2020.