Indian government has provided 100% Foreign Direct investment (FDI) under the automatic route in the automobile sector, subject to all the applicable regulations and laws given.
India has an extreme potential to grow in automobile sector. It has come to a conclusion of growing six million plus units annually by 2020.
Talking about tractors sales in the country, the expected growth rate is 8 to 9 percent in the next five years. This will leads to resulting increase of the India’s market potential for international brands. Two-wheeler production increase is also commendable which has grown from 8.5 million units to 15.9 million units annually In last seven years.
As the Indian market is highly composed of middle class population and keeps expanding, they remain the key demand drivers. Increasing opportunities are also seen in the rural areas.
Favourable government policies and highly net worth individuals makes it more attractive market to the investors. Along with better policies the excise duty has been reduces and automotive mission plans have been introduced.