India: why invest in the automotive industry

Octagona supports the business of Italian companies operating in the automotive industry sector

India, Asia's third-largest economy, after the slowdown experienced in recent years is returning to high growth rates, thanks also to the election of Narendra Modi last year and the reforms implemented by the Government.

One of the most promising sectors for Italian companies to enter is undoubtedly the automotive industry: the industry accounts for approximately 22.1% of the country’s total GDP and is one of the main sectors capable of creating jobs; furthermore, the Indian automotive market is set to become the third-largest globally by 2020, establishing itself as a major manufacturing hub.

Currently, local vehicle production, which averages around 17.5 million units per year, is dominated by the two-wheeler segment (approximately 13.5 million units sold in 2014), followed by commercial vehicles, passenger vehicles, and three-wheelers. To view the charts related to vehicle production and sales in India click here.

The automotive components sector is also experiencing a period of strong growth: the sector could triple in value by 2020, thus accounting for 3.5% of the national GDP; If we add to all these factors the “Make in India” campaign launched by the government last September (aimed at attracting manufacturing investments to India), it becomes clear that the business opportunities for Italian companies are enormous.

Octagona, which can boast over ten years of experience in business internationalization, particularly in the Indian market, with a direct office in New Delhi, is capable of assisting companies in the sector interested in selling in the subcontinent.

If you are interested in accessing one of the most important emerging markets in the world, capable of offering enormous growth potential, call us at 059.9770184 or send an email to [email protected]: you will meet with one of our consultants to build, together with you, the best internationalization path.

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