"India is already moving towards becoming an export hub for small cars and is the 4th largest car market in Asia. Interestingly, India has the lowest car penetration rate of 8.5 (per 1000 population) when compared to select developing countries such as Malaysia, Mexico, Brazil, Thailand, China, Sri Lanka, Indonesia and the Philippines, demonstrating the high potential that the Indian market has to offer", says Anand Rangachary, Managing Director, South Asia and Middle East, Frost and Sullivan.
Currently, A2 and A3 segments represent 70percent of the entire market pie. Companies like Maruti Udyog Limited (41.4 percent), Tata Motors (16.2 percent) and Hyundai (12.9 percent) clearly dominate and account for 71 percent of the Indian passenger cars market. They along with GM, Mahindra, Renault and Volkswagen would largely contribute to expansion in capacity as well. Frost & Sullivan anticipates total industry capacity to grow from 1.6 million units in 2006 to 2.9 million in 2010.
Frost & Sullivan analysis also indicated that if the pace of economy continues to be as robust as it is at present, the commercial vehicles market is expected to grow at a CAGR of 27 percent with volumes expected to touch approximately 900,000 units by 2010. Two wheelers market on the other hand is expected to record 10.1 million by 2010 with motorcycles continuing to account for 80-85 percent of the demand.
Speaking on the Indian Auto components production scenario, V.G. Ramakrishnan, Director, Automotive and Transportation Practice, Frost & Sullivan, said, "The auto components industry production has the potential to grow at a CAGR of 17.3 percent over 2006-2010 and reach $23.2 billion by 2010. This growth will be due to strong Original Equipment and aftermarket demand in India and increased growth of embedded components in vehicle and direct exports. Global companies are not only increasing their component sourcing from India; they are also keen to take part in the Indian software industry through direct development. Frost & Sullivan analysis suggests that exports of auto components is estimated to reach $5.8 billion by 2010 and would account for 25 percent of the total production in 2010 compared to 17.4 percent in 2005 -06."
The new vehicle market besides, moving to a higher level with growing numbers is also witnessing significantly improved build quality and increased usage of technology. In-vehicle networking technology usage will be common in all vehicles produced by 2010 as the electronics content is increasing. As India produces global models that are exported many features like Anti-lock braking system, electric power steering, air bags could become standard fitment in many vehicles along with advanced fuel management systems.
The sample size of 5,100 vehicle owners then evaluated the industry participants performance metrics in these two segments individually to provide ratings on a 7 point scale, with 7 indicating the maximum score reflecting "highly satisfied" with the product or service and 1 indicating the least score reflecting "highly dissatisfied" with their experience.
Ratings from the sample were analysed and the top achiever was selected on the basis of maximum score obtained on each of the parameters with corresponding weightage given to overall performance. The award recipient was chosen from those companies that had an active portfolio in the market.
