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, is returning to growth at high rates after the slowdown experienced in recent years, thanks in part to the election of Narendra Modi last year and the reforms implemented by the government.

Among the most interesting sectors in which to set up business activities for Italian companies is undoubtedly the automotive industry: the industry accounts for about 22% of the entire national GDP and constitutes itself as one of the main sectors capable of creating jobs; in addition, the Indian automotive market will become the third largest globally by 2020, shaping itself as one of the main production hubs.

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

The auto components sector is also going through a phase of strong expansion: the sector could triple in value by 2020, thus accounting for 3.5% of the national GDP; if to all these elements we also add the campaign inaugurated by the government last September “Make in India” (aimed at attracting manufacturing investment to India), it is easy to understand how the business opportunities for Italian companies are enormous.

Octagona, which can boast more than a decade of experience in business internationalization and especially in the Indian market, having a direct office in New Delhi, is able to assist companies in the sector interested in selling in the Subcontinent.

If you are interested in gaining access to one of the world's most important emerging markets, which can offer great growth potential, please call us at 059.9770184 or email us at [email protected]: you will meet with one of our consultants to build, together with you, the best internationalization path.

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