Auto Industry in 2020

India to be world's 3rd largest light vehicles market by 2020 |

|

Press Trust of India / New Delhi June 13, 2011, 14:09 IST |

|

India will become the third largest market in the world after China and the US for light vehicles, including passenger cars and light commercial vehicles (LCVs), by 2020, according to market research firm JD Power Asia Pacific.

The country, however, will have to improve its infrastructure, as well as resolve component supply chain issues, in order to realise its huge potential.

 Click here to visit SME Buzz  |

|

|

|

  |

  | | Also Read |

|

  | | Related Stories | |

| | News Now | |

|

|

|

- | Extension to HAL, AI to meet I-League licensing criteria |

- | Appoint administrator with full powers in AI: IATA |

- | Travel misery as ash grounds Australia flights |

- | Rupee opens 15 paise lower vs dollar |

- | India's potash import faces price hurdle |

- | Ramdev's fast a drama, no need for talks: Digvijay |

|

|

|

|

"Our forecast is that by 2020, India will become the third biggest market for light vehicles, that includes passenger cars and LCVs, with total sales of nearly 12 million units," JD Power Asia Pacific Executive Director Mohit Arora told PTI.

In a report -- 'India Automotive 2020: The Next Giant from Asia' -- the firm said India would have jumped from sixth place at present to be slotted after China and the US by 2020, with total sales of 11.9 million light vehicles.

In 2010, 2.7 million light vehicles were sold in India, up from just 700,000 light vehicles in 2000, it added.

By 2020, China's light vehicles market is expected to reach 35 million units, while that of the US will rise to 17.4 million units, the report said.

"There is a huge potential in the Indian market, but the key challenges lie in infrastructure growth to support the automotive industry," Arora said.

Also, the auto component supply chain in the country needs to scale up, not only in terms of...