Foreign cars to flood Indian Market

Spotting an Audi, a BMW or a Volkswagen is no longer limited to the silver screen. The Indian roads are now flooded with these exquisite high-end cars and India is slowly becoming the favoured destination for foreign sedans and SUVs.
It is the seventh largest vehicle producing country and the fourth largest exporter of automobiles in the world. The indian automobile sector is also one of the fastest growing sectors globally and it has achieved these milestones six years before its set target. Auto sector analysts say that with the growing economy and increased purchasing power, India’s appetite for luxury cars has grown tremendously. By the ear 2050, India will have a whooping 611 million cars.

Dr John Chacko, Volkswagen Group Chief Representative (India), President and Managing Director, Volkswagen India Private Limited, said, “India is a goldmine for selling cars as the Indian middle class has become more affluent and is able to purchase these cars. The IT boom, growing MNCs and increased income are the reasons.”

The automobile sector in India expanded post liberalization as the restrictions on exports and imports were drastically reduced. Moreover, increased competition from other manufactures brought out the best models and technology to Indian roads.
If we go back a little, in the 1940s, the automobile sector was just beginning to take shape and it was only in 1953, with the opening of a manufacturing unit for automotive components that this sector began to grow. The real turning point was in the 70s when Japan-manufactured vehicles made their first appearance in India. This paved the way for German, Dutch and other makers to explore the Indian market.
"India is one of the markets of the future," said Paul Blokland, Managing Director of Segment Y Automotive Intelligence, an automotive-consulting firm based in Goa. "Manufacturers are looking for new growth markets. They're not going to find that in Europe, the U.S. or Japan," He added.
Foreign manufactures are keen on exploring the Indian market as it is just entering the phase of motorization and only one percent of the billion plus population owns a car. Thus, with effective marketing, attractive pricing and technology carefully designed for Indian roads, these cars can create an effective impact.
In order to be successful in India, foreign-car manufacturers have had to tailor their product to Indian tastes and conditions. When General Motors launched a new small car called the Chevy Beat, the company "Indianized it," said Karl Slym, President and Managing Director of General Motors India. Even though General Motors (GM) is undergoing a crisis in the western countries and shutting down its plants, it has been able to increase its sales in India.
According to Nigel E Wark, Executive Director, marketing, sales and service (India), Ford, “Western roads are already overflowing with cars, moreover, it’s difficult to launch cars and expect sales in recession-hit western counties. Thus, India offers a safe market.”
“Though high-end business in India is still only 0.5% of the overall car market, brands like BMW and AUDI are already selling more cars here than in smaller countries like Malaysia and Thailand, where BMW and Mercedes have been active for 50 years,” said Peter Kronschnabl, President, BMW (India).