Dec 27, 2005

The Indian auto industry

Roland Berger Partner at Munich and automotive expert Dr. Thomas Sedran tells global auto majors not to ignore the Indian auto market.

European carmakers and suppliers would be wise to keep at least one eye pinned on India. They should also keep in mind that India's automotive market is not a cookie-cutter mold of China's car sector. The structure of India's auto industry is unique when compared to other developed economies.
Unlike in China where a joint venture is required for domestic production, India's auto foreign direct investment policy allows global OEMs to have 100 percent ownership, which has created a healthy industry from the start.
India potentially is the next red-hot market. OEMs that have their finger on the local pulse and manage to globally integrate their Indian operations have good chances of seeing a profitable and sustainable operation develop.