The car segment in the Indian auto industry is on the ever increasing pace. The segment is to cherish the moment of pride as
the new hallmark of the industry is on the cards- 3 million unit of the passenger car which is on the 3.5 million mark soon. The economic downfall had not affected the sale of cars in India and the auto industry analysts and observers see the growth to continue in coming years too. Almost all major car makers are on the increased capacity monger- Maruti is increasing its capacity to 4.75 millions per year, said its MD. The current year’s production may pass over 2.2 -2.3 million he added quoting 70% of domestic components.
The figures corresponding to the last year (2009-10) were 2,351,240 passenger vehicles which hit the growth with 28% from the previous year. Of this, 446,146 units were export units which also stood at the growth of 27% from the previous year. Maruti, which leads the Indian car market, is quite obvious to stand on top in increased capacity too, said its MD. Toyota, Renault and GM have already announced either new plants are increase in the capacity for the coming years. The MD of Ford expressed that the Indian passenger car segment has good potential as evident from the success formula with Figo [images]. He said that the small car has almost 70% share in the net car market and this makes India a prominent hub for the sector. The increased capacities of the car makers will boost the efficiency of the Indian car market, said the Chairman of Rane group which rules the component segment. The major factor which demands for the increased capacity is the export market
which heavily relies on the Indian products.
There will be a double-digit growth in the Indian passenger car industry and this will make India a highly competitive market for the global players. Everything depends on the component industry which is the major breeder for the makers. There may be hitches in Tier2 and Tier 3 suppliers, said MD of Maruti. This is due to insufficient infrastructure among the low end component suppliers and added power crisis. There is also a problem by way of necessary manpower both at skilled and at managerial levels, he added. Maruti is keen on settling the score on these aspects at Gurgaon-Manesar, Pune and Chennai facilities.