The potential for India's automotive industry (and aftermarket!) is high and here is a summary of the key figures.
A rapidly growing economy
India is one of the fastest growing economies in the world. According to data from the World Bank, the country is now the seventh largest economy in the world, while in 2000 it was still in 14th place. The automotive sector currently accounts for more than seven per cent of the gross domestic product. However, the so-called “Automotive Mission Plan 2016-26” – a joint vision by the Indian government and the Indian automotive industry – aims to achieve a contribution of 12 per cent.
The chances that this goal will be achieved are good. This is because urbanisation means that by 2030 more than 500 million people will be living in India’s cities – one and a half times the total population of the USA. Rising incomes will also play an important role, and by 2025 around 60 million households will have entered the so-called “consumption class” with an annual income of at least 7,000 euros. In addition, more people, particularly women and young people, will enter the labour market and increase the demand for mobility.
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