Indian car market: A Future Perspective

Abstract

In the long term, India is expected to become one of the most important car markets in the world. The objective of this project is to analyse the current Indian automotive market with its different segments and estimate the potential market in the coming decade. Such an analysis could be utilized to identify the demographic groups with automotive purchasing power. Similar analysis as done in the European market (specifically France market) would help in drawing parallels. Consequently, the scope of entry of European players would be examined and a feasibility study would be done. We will focus on two aspects in our project: ? Macro-economic aspect, with demographics by income level: Based on the assumption that the population with sufficient purchasing power is the potential market for the automotive industry, the first step of the project accommodates some research to analyse the effective population and the economic growth in India. The changes in such demographic groups and income levels examine and become the basis of an estimation of the future market. ? Analysis of factors affecting specifically the automotive market: Factors that could specifically affect the automotive industry would also be identified. For instance, regional aspects may have to be considered, along with others including infrastructure, rural/urban environment and social factors. Some other factors such as recent developments in the automobile sector and changes in Government policies would be a part of study as well. These factors will be taken into account and used to make adjustments to our estimates. While dealing with the automotive industry, lateral factors (e.g. growth and development of infrastructure in the Indian economy) would form an important part of our analysis. Paradigm shift in automotive sector, if any, pertaining to internal and global factors would also be identified. With the culmination of this two-phased analysis of Indian automotive market, we would be in a position to highlight the structure of the automotive market in the future. Ideally we would focus on the future horizon as two to three years. Our study would elicit the segmented Indian automotive market with consumer preferences and market share.