India: Japanese OEMs to boost capacity in anticipation of long-term growth
With a sales slump in India, automakers focus on exports
India's auto market has been stagnant due to economic slowdown and high interest rates of loans since the end of 2012. In anticipation of its long-term growth, however, a number of OEMs are planning to launch new models, increase locally produced vehicles, and expand their production capabilities in the country.
In August 2013, LMC Automotive forecasts India's light vehicle sales for 2013 to fall by 12% to 2.88 million units. In this time of economic gloom, with higher costs of financing and depleting discretionary income, India's vast middle class is holding back on the purchase of vehicles. In spite of the current slowdown, LMC Automotive still thinks that India's light vehicle sales would expand at a double digit CAGR in the longer term. The market is projected to have a size of 4.46 million units by 2016.
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