With the increasing growth in demand on back of rising income, expanding middle class and young population base, in addition to a large pool of skilled manpower and growing technology, will propel India to be among the world's top five auto-producers by 2015.
India is also one of the key markets for hybrid and electric medium-heavy-duty trucks and buses.
India is an extremely important market for Hyundai. The Indian automobile sector is poised for steady and strong growth in the future. The Indian automobile industry holds good growth potential for the mid-term and long term horizon, as per Mr Bo Shin Seo, MD and CEO, Hyundai Motor India Ltd (HMIL).
Moreover, Ford Motor Co plans to convert India into global production centre for compact cars, once its Sanand plant in Gujarat comes on stream in 2014, under a project codenamed B562 that may induce three different compact cars from the same platform.
The Indian automobile industry produced a total 1.69 million vehicles including passenger vehicles, commercial vehicles, three wheelers and two wheelers in August 2013 as against 1.56 million in August 2012, registering a growth of 8.18 percent over the same month last year.
The cumulative foreign direct investment (FDI) inflow into the Indian automobile industry during April 2000 to July 2013 was recorded at US$ 8,932 million, amounting to 4.5 per cent of the total FDI inflows (in terms of US$), as per data published by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce.
The overall automobile exports grew by 2.03 per cent during April-August 2013. Furthermore, the production of passenger vehicles in India was recorded at 3.23 million in 2012-13 and is expected to grow at a compound annual growth rate (CAGR) of 13 per cent during 2012-2021, as per data published by Automotive Component Manufacturers' Association of India (ACMA).