Hp Lu

Within the global automotive industry, the markets group into

two broad categories: the established, mature markets of North

America, Western Europe and Japan (often called the “Triad”)

and the emerging markets, within which the largest are often

grouped together as the ”BRIC” countries (Brazil, Russia, India

and China).

The impact of the economic downturn on the

global automotive industry

The current global crisis has reshuffled the positions of the

players on the global canvas. The giants of the industry are

facing problems such as bankruptcies, and others are being

forced to reduce their global output by more than one-third.

As a consequence, there is going to be a reduction in capital

expenditure by foreign car makers in emerging markets. Under

various stimulus packages, governments around the globe have

laid stressed upon environment-friendly vehicle incentivizing

for both customers and manufacturers. While there has been a

correction in nearly all markets, emerging automotive markets

are expected to be more resilient and continue to gain more

importance on the global stage.

India’s position in the global car industry, as a

market and as a producer

Only a very few players will continue to produce over 10 million

cars per year: China, Japan and the United States. The US is to

become a significant net importer of cars, owing to the higher

cost of domestically manufactured products. Beneath this is a

second layer of significant producers, with outputs of 4 million

to 7 million units per year: Germany, India and South Korea. Of

these, only India is forecast to continue to grow significantly.

India’s strength in CV and two-wheelers

In CVs, India is the fourth-largest global market. Tata Motors,

M&M, Ashok Leyland and Eicher Motors are the major players,

sharing 90% of the total market between them. International

players like Volvo are also planning to enter the market by

forming JVs with suitable local players to cater to the...