Indian Car Market Repelling New Entrants– Many Brands Shelved India Plans

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The automobile industry is the largest and previously one of the fastest growing industries in India. As per some current researches and reports we came to know that it is going flat and showing off negative growth rates but then it is business and commerce has all the wings to go up and fly it down too.  As per aired news for the auto mart defines that a big lineage or caravan of big auto majors like Proton, PSA Citroen, Kia, Geely, and Chery has moved out the Indian plan sheet from their papers. In other words we can say that these auto majors are not coming to India for the commencing commerce. The auto majors have targeted China and Brazil for the commerce as they are the emerging hot auto mart.

It was in the mind of Citroen to base a camp for production in India, Sanand, Gujarat at around an investment of 4,500 crore project. Any how the auto major has moved his future manufacturing plants vision towards Buenos Aires in Argentina and Kaluga in Russia. Other auto majors like Kia, Geely, Proton, PSA and Chery were also going to follow the same trend and looking forward for new destinations. This is might be because of the auto majors have lack of such vehicles which can compete in Monterey sensitive auto mart in India. On the contrary if the auto majors still make any model as per the auto demands of Indian wheel world then it will be affecting the auto major’s budget and this would not be possible for the auto majors to take such a big hit.

BVR Subbu, a former director of Proton said that “Proton, which had negotiations with Delhi-based Hero Group for a possible joint venture, too is facing tough times in its primary market. India was very much on the radar, but it came after China and Iran”. VG Ramakrishna, MD of consulting firm Frost and Sullivan said that “The Indian car market is getting competitive with too many brands, and getting a reasonable market share will be tough for any new entrant”.

Anyhow but then records also says that the Chennai is home of moto maniacs and reports shows that 35 to 40% of total auto industry is set up in Chennai and hence it is largely known as the Detroit of Asia. It is on its way to become the world’s largest auto connect or hub by the approaching year 2016. The Chennai connect will be predictably going to carry the capacity of at around over 3 million cars per year.

via- ET

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