Why are the world’s biggest car manufacturers betting big on India?
The automobile growth story in India is double-layered: on the face of it, a mere 4-5% sales growth, 45-50% capacity utilisation and profit margins under pressure in the previous fiscal.
The auto sector went through a rough patch for a good part of the previous year (2014-15), but the overall numbers and an 8% growth indicate hope, says Sridhar. A lot more priming is needed to achieve the growth rate for 2015 (6% for passenger vehicles and light commercial vehicles and 12% for medium and heavy commercial vehicles), he adds. “With growing optimism, companies are expected to look at ways for growth and M&A, and PE activism in this sector can only look up from here.”
Read more at: