Why India should be your destination
The automobile sector in India reflects two realities that bring in a lot of cheer in these recessionary times. First, the rise of this sector in terms of manufacturing is a pointer to India's capabilities as a small car manufacturing hub. Global car biggies, including Toyota, Honda, Volkswagen and Ford see that, and so are here to stay.
Second, and more importantly what's uplifting is domestic demand for cars. Indians have unleashed an appetite for products and services like never before. Car sales hit a record high last month with demand coming in from rural areas too. According to the Society of Indian Automobile Manufacturers, Indian domestic car sales rose 38 per cent to 158,764 in July, compared with 115,084 in the same period last year. The growing demand for passenger vehicles in India is a contrast to China, where car sales rose at their slowest pace in 15 months in July, the latest sign that Asia’s biggest economy is losing momentum.
The lesson in all this is plain and clear. Wanna manufacture, set up in India. Wanna sell, be in India.