Loading Ticker...
You Are Here: Home » Auto

India’s Carmakers Aim To Produce 6 Million Cars Annually

In the race for sales, India’s car manufacturers may need to slow down their pace in order to avert a catastrophe in the enveloping capacity glut.

Attracted by the 30% sales growth over the past two fiscal years, car manufacturers have committed $6 billion to produce over 6 million cars annually, nearly doubling India’s annual car production. However, current sales growth has come to a near halt, with production capacity meeting the demand by over 40%.

These developments come in the wake of Maruti Suzuki’s (the industry’s biggest player) announcement in September 2010, to invest $390 million to expand its capacity by 250,000 cars a year. This investment proved fruitful as Indians bought 2.5 millions cars in the following fiscal year, an increase in sales of 63%. Global car manufacturers like Toyota, General Motors and Peugeot soon followed.

However, car sales will likely drop by 11% in the current financial year, says. R.C. Bhargava, Maruti’s chairman. As more players come into the market, the whole industry will have to work with thinner margins.

via


Share this post

Subscribe to our updates via e-mail or get our  RSS Feed
Enter your email address:


Other Related Stories: