Indian auto makers poised to dominate export market in 5 years
New Delhi: Indian auto manufacturers are well poised to become "winners" in terms of global market share in the next five years to join the ranks of established players like Hyundai, Toyota, Honda and Volkswagen, a survey says.
According to the survey by leading consultancy firm KPMG, global automotive market share winners over the next five years would include various new Chinese and Indian vehicle manufacturers, along with leaders like Kia/Hyundai, Toyota, Honda and Volkswagen.
When 200 senior executives were asked to predict firms that will have a major chunk of the export market over the next five years, they identified "various new Chinese and Indian vehicle manufacturers, as well as the existing global players Kia/Hyundai, Toyota, Honda and Volkswagen as leaders again this year," KPMG said.
Among firms that remained on the low rung of market share expectations were General Motors and Chrysler.
"The respondents believe the winners will be those companies able to gain market share in an uncertain economic environment while also leveraging global products and supply chains," KPMG LLP National Automotive Industry leader Gary Silberg said.
The survey said the auto industry is stabilising over the next five years with new investment and growth on the horizon.
The global auto industry is still facing "economic headwinds" like high un-employment rates, constraint in credit markets and lack of clarity in government regulations and stimulus programme.
Profitability would continue to be a major issue this year, as just 25 per cent of respondents expect vehicle maker profits to increase, 40 per cent see it stabilising and 33 percent feel profits would decline, the survey said.
The global auto industry is likely to see consolidation as nearly three-quarters of the survey respondents believe that the number of alliances, mergers and acquisitions during the next five years will increase for vehicle manufacturers.
Regarding capacity Silberg said, "The executives are saying that while they`ve come a long way in the past year, they still have further to go in `right-sizing` the supply-and-demand equation."
The sale of hybrid fuel vehicles followed by other alternative fuel vehicles and low cost or introduction cars could help the auto industry get back on its feet, KPMG said.
The survey, was conducted during late September through early November 2009, and covered vehicle makers and suppliers in the US, Canada, Mexico, UK, France, Germany, Sweden, India, China, South Korea, Japan, Thailand, Brazil, Spain, Poland, Slovakia, Russia, Czech Republic, Italy, Switzerland, South Africa and Australia.
More from India
More from World
More from Sports
More from Entertaiment
- Dadri lynching: Is Kejriwal spreading poison between Hindus and Muslims?
- Lalu Prasad calls beef eating people uncultured
- Why did Indrani Mukerjea attempt suicide?
- Muslims asked to sprinkle cow urine on body in order to be part of Garba festivities
- Dadri lynching: Locals stop Arvind Kejriwal from entering Bisara village
- Sonia begins Bihar polls campaining; accuses PM Modi of 'narrow-mindedness'
- Indrani Mukerjea's FSL report rules out drug overdose, says no chemicals found in stomach wash
- Lynching case in Dadri: Rahul meets victim Iqlakh's family, says touched by people's desire to maintain harmony
- Muslims banned from Garba in Gujarat's Mandvi; Hindus asked to sprinkle cow urine on themselves
- 1st T20: India vs South Africa - Statistical highlights