A new Automotive World report looks at the prospects for the light vehicle (LV, <3.5t) and heavy commercial vehicle (HV, >3.5t) sectors in India in 2019 and through to 2023.
‘India’s new vehicle market: prospects to 2023’ anticipates slow but steady growth in a highly competitive market that could prove as challenging for newcomers as for incumbent automakers.
Convinced of sure-fire success, given its seemingly vast potential, global automakers have in recent years been lured to the Indian market. “The underlying rationale for numerous automotive investments in India over the past two decades has been that the region’s vehicle market, although already sizeable, is full of potential for further growth as per capita wealth and income levels increase,” notes Jonathan Storey, author of the Automotive World market outlook report.
However, India has proven far harder to crack than many automakers initially anticipated, with early expectations and market penetration forecasts missed by some considerable distance. Indeed, adds Storey, “Where foreign vehicle makers are concerned, India has seen more losers than winners.” Most foreign automakers’ local operations have been a waste of resources for most of the past two decades, losing money or, at best, making an insignificant contribution to global profit, he states. While Suzuki and Hyundai are the main exceptions to this comment, the withdrawal of Chevrolet, Fiat and MAN only serve to confirm it.
This Automotive World report details a market which, despite ongoing and intense competition, will continue to deliver thin profits for most stakeholders unless market volumes increase substantially. “Unfortunately, our forecast anticipates a steady, not meteoric, rise in demand from 4.5 million units in 2018 to 5 million in 2023,” says Storey.
India is the latest market to be covered in the ongoing Automotive World five-year market outlook series.
Table of contents
- Executive summary
- Chapter 1: Recent light vehicle (LV) demand
- Chapter 2: Market characteristics
- Chapter 3: Market shares
- Chapter 4: Economic outlook
- Chapter 5: Outlook for LV demand
- Chapter 6: Recent HV demand & market characteristics
- Chapter 7: HV market shares
- Chapter 8: Outlook for HV demand
- Appendix (Excel)
- Historic vehicle sales by OEM group and brand (2014-2018)
- Vehicle sales forecasts by OEM group and brand (2019-2023)
Automotive World subscribers can access the report by following this link: https://www.automotiveworld.com/research/indias-new-vehicle-market-prospects-to-2023/
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