India: the automotive boom does not stop

Great news from India: the automotive boom continues. According to reports from research conducted by PricewaterhouseCoopers, India by 2018 will become the world's third-largest auto producer after the United States and China; the Asian country, which at the end of last year ranked fifth after South Korea, Germany, Japan and China, will achieve this result thanks to strong growth in the domestic market, a shift in production by emerging economies and a shrinking European auto market.

As a testament to the potential of the Indian market, suffice it to say that although the crisis in European markets is negatively affecting the exports of the world's major automakers that produce in India (Renault-Nissan and Hyundai export about half of India's production to Europe), growth in the domestic market is still able to offset export problems.

Also according to PwC, increased car sales will occur not only in India but in all BRIC countries, and it is these countries that will lift the fortunes of the industry globally: car production capacity by 2018, driven by emerging powers, will be around 100 million units.

The data for the first quarter of 2012 confirms the automotive boom in India, in fact it was within those countries that there was the greatest increase in production to the tune of +2.69%; this was followed by Japan (+1.45%) and North America (+0.86%) while Europe recorded a worrying -0.59%.

ALSO READ:

The success of Italian companies in India

Internationalizing your business abroad: strategic choice or opportunity?

Digital export manager (DEM): internationalization in a digital context