India is the 7th largest global country with 3.3 million square kilometers and the 2nd as population with 1.2 billion people. In spite in recent years the country lived a strong economic development it is too early to consider the country "developed". Indeed inside India there are thousand different realities. The level of urbanization is still low (30%), while the India Metropolis are among the largest and more dynamics in the world.
National GDP in the period 1998-2008 grew by 7% in average and in spite negative impact of 2008 global financial crisis, India continued to growth. In 2011 the Total GDP was $ 1.843 trillion, 7.8% up on previous year. However the pro capite income remains very low, at $3.700 (at purchasing power parity). However persistent high inflation rate (6.8% in 2011, 12.0 in 2010), high bureaucracy and petrol price increase have increased the level of Government's fuel subsidy expenditures increasing National Deficit (5% in 2011).
Widespread poverty, inadequate infrastructure, limited employment opportunities are the key issue to face in the country want to really become a Global Leading player.
Car industry overview
India automotive industry is the 2nd globally as two wheels, with around 80% of vehicles on the roads that are two wheelers. This will not change in the next decade, considering the infrastructure development is very slow as the pro capita income growth.
As car manufacturer India is growing with an exceptional speed. In 2003 national production for the first time exceeded the 1 million yearly production. In 2006 it exceeded the 2 million, and in 2010 the 3 million. In 2011 with 3.9 million vehicles, India was the 6th largest global car manufacturer. In last four years, India production increased by 68%, second only to China.
Domestic light passenger market at 2.571.000 units was the world's 8th in the 2011.
In April, Indian car market negative momentum went on with a decline of 8.6% and a cumulate loss of 11.3%. In addition, the market was hit by an increase of 10% of the already huge excise duty on SUV models.
Surprising many observers, Indian car market recently started to fall down, month after month, with March 2013, traditionally strong for ending of Indian fiscal year, posting a double digit drop. The year will remain challenging, in spite of new models arrival.
Posting the 4th year-on-year decline in a row, India car market in March dropped 13.5% from last year, with the first quarter sales down 12.0%. Toyota and Honda improved sales and share, while Tata confirmed the deep crisis.
Hit by increasing fuel price and high interest rate, the Indian car market dropped 17.3% in February 2013 with year-to date performance down 11.2% from last year. Maruti confirmed its momentum and Renault grew with Duster in 11th place.
The start of new calendar year was not positive in January, with market slipping 4.7% from last year. A really good start was posted by the market dominator, the Maruti Suzuki able to gain 44% of market share. Tata dropped in 4th with a share 4 points down from last year.
In spite of slight decline posted in December, when the market was down 2.8% from last year, the Indian car market ended the 2012 with a robust 9.6% increase, fixing the new all-time record. Last generation of Maruti Alto, launched in October achieved the 13.4% of share.
Following the booming sales reported in October, the Indian car market was slightly positive in November, with year-to-date sales up 10.8% from last year. Hyundai posted the best share of the year, while Honda and Toyota the worst.
Fully recovering from the August, shortfall, the Indian light passengers vehicle market boomed 32.7% in October, joining the "festival period" pushed by high demand for the new models. Year-to-date October sales were 11.6% up from last year.
In September 2012, the car market in India posted 217.956, up 4.1% from last year, slightly recovering after that riots at Maruti plant shocked the August market. Year-to-date September sales were 2.022.000, up 9.6% with Renault gaining the 8th position.
In August, the car market in India posted 174.694 sales, down 4.7% from last year, breaking the row of 7th growing months, due to the market leader drop. YTD August sales were 1.804.000, up 10.3% from 2011. Renault jumped in 9th position thanks to new Duster success.
India's light vehicles sales were 195.426 in July 2012, posting the seventh consecutive monthly increase, up 11.1% from last year. Year to date sales in July were 1.629.000, up 12.2% from 2011. The market leader, Maruti, struggled losing 5 points of share.
India's car sales were 200.551 in June 2012, posting the sixth consecutive monthly increase, up 9.8% from last year. Year to date sales in June were 1.433.700, up 12.3% from 2011. Audi was fast growing with over 500 new Q3 orders in 5 days!
India's car sales were 215.804 in May 2012, posting a 7.6% increase from last year, with the fifth positive month in a string. Year to date 2012 sales at 1.233.209 were up 12.7% from 2011. BMW confirmed its leadership in the luxury segment.
In April the car industry in India posted a +12.9% over last year, the 5th consecutive growing month., now projecting a full year volume close to 2.8 millions. The over 225.000 units sold in the month should allow the country to stand in world's 5th position in year to date April ranking, two position up on full year 2011.