Why are the world’s biggest car manufacturers betting big on India? – 2017

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:

http://economictimes.indiatimes.com/articleshow/47621633.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Related posts:

Leave a Reply