Indian auto market to be third largest by 2020: Report

CHENNAI: The Indian automobile market is tipped to become the third largest in the world by 2020 according to estimates by JD Power and Ernst & Young. According to these estimates, quoted in the National Electric Mobility Mission Plan 2020, India's share of the global passenger vehicle market will jump from 4% in 2010-11 to 8% in 2020. "In 2010-11 the total global demand for passenger vehicles was 73 million units of which India was 2.4 million units," said the report. By 2020 the scenario will change dramatically. Global passenger vehicle demand is expected to hit 108 million units of which 50% or around 54 million units will come from the Asia, Pacific and Africa region. India's passenger vehicle market is expected to hit 10 million units by 2020. The demand spurt isn't going to restricted to passenger vehicles alone. "In 2020 market/production for commercial vehicles, tractors and two wheelers in India is expected to reach 2.7 million, 1 million and 34 million respectively making India the third largest market with a turnover of $162 billion and the component industry attaining a turnover of $113 billion," said the report. That's a significant jump from the 2010-11 levels when the total turnover of the automotive industry in India was $73 billion of which the vehicle industry was $53.1 billion with a 26% growth on year-to-year basis.The component industry clocked a $40 billion turnover in 2010-11 while export of vehicles and components earned $6 billion and $5 billion respectively in that fiscal. That year the contribution of the auto industry to the national GDP was 22% while its excise contribution was 21%. Passenger vehicle export has gone from 198452 units in 2006-07 to 507318 units in 2011-12 at a 5-year compound annual growth rate of nearly 21%. Commercial vehicle exports in the same period have gone from 49537 units to 92663 units at a 5-year CAGR of 13.34%.   Source: TOI