India: The Fastest Growing Car Producer in the World

(India/Rubber Asia) In 2004 India recorded the fastest growth among the top 15 passenger car producing countries in the world, according to the Paris-based International Organisation of Motor Vehicle Manufacturers (OICA). As per the OICA’s latest rankings, India’s car production grew 30 per cent in 2004. Brazil came second with 17 per cent growth. What’s more, India is just a step away from being one of the 10 largest automobile producers in the world. The country jumped up two places to 11th,

This time round India actually swapped places with Italy which has now dropped down to the 14th slot that India occupied in 2003. While Indian production totalled 1.18 million units, Italy’s was 0.83 million a 19 per cent decrease compared with the 2003 figure.

Significantly, although China’s growth rate was lower at 15 per cent, it still clung onto 7th position making 2.32 million cars in 2004. The year before (2003) the car output of the People’s Republic grew a whopping 83 per cent.

The top three passenger car producing nations maintained their rankings with Japan heading the pack with 8.72 million units (three per cent growth). Germany came second with 5.19 million, while the US remained third with 4.23 million units.

Some experts were not overenthusiastic about India’s performance. An AT Kearney consultant was quoted in local media as saying: “India is still a very lean market with 75 per cent of the cars sold being for less than $10,000. If India achieves a per capita GDP of $1,000, it could spark off mass motorisation”.

He also pointed out that though China’s growth is slowing down, its small-car market is bigger than the whole of India’s car market segments put together. However, top officials of both Toyota and Ford were positive about the Indian market, saying it is poised for even faster growth before the first decade of the century is out.