Car 1
Mumbai, India: Despite the automobile growth in India has been an average 5 percent sales growth, 45-50 percent capacity utilisation and profit margins under pressure in the previous fiscal. There is abiding faith in the industry with car makers, both domestic and foreign committing investments of almost $10 billion or nearly INR 60,000 crore over the next few years. The expansion renews hope in the Indian market's long-term prospects and the opportunity to use it as an exports market. According to an analyst, India can become the third largest sales market, and production will reach 6 million units a year by the end of the decade. There is Suzuki Motor creating more capacity in India, Honda looking to enter new segments. Renault, Nissan and Volkswagen are building more capacity for exports. Ford and Fiat have both the domestic and export market plans, ET reports. Katsumi Innoue, new president and CEO of Honda Cars India notes that a large population of youth in the country is the biggest sweet spot and opportunity for the future. India's utility vehicle and tractor major, Mahindra & Mahindra is preparing for a comeback. Chakan is a primary capacity expansion, and in Tamil Nadu, test track and new capacities will be created, says Pawan Goenka, ED. A partner, Grant Thornton said car makers are making India an export hub for markets such as Africa, Latin America and the Middle East. The auto sector went through a bad phase patch for a good part of the 2014-15, but the 8 percent growth incites hope.

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