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Inside India: Indians View Their Automotive Future

July 31, 2007

New report explores Indian automotive industry

IBM and UMTRI recently released the report Inside India: Indians View Their Automotive Future. Researchers found that India needs to overcome challenges in infrastructure, product quality, and labor and tax regulations to meet the demands of the global automotive industry.

India is expected to be one of the top 10 countries in terms of vehicle sales by 2015. Its road to success requires an even stronger partnership between industry and government.

Study findings include:

  • The small car (especially the inexpensive "1 lakh car" at about $2,500) is a key growth strategy.
  • Infrastructure is the most urgent challenge to the auto industry. Acceleration of road construction and traffic law enforcement are key areas for improvement.
  • India needs to strengthen its research and development capability to be a global player.

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