INDIAN AUTOMOBILE INDUSTRY-NO NEED FOR EXPANSION

India has a population of 120 crores. The number of households will be about 25 crore. As of now, India produces about 25 lakh cars annually. Assuming that cars have a life of about 10 years, there will be about 2.5 crore cars in working condition in the country shortly.

The annual production of two-wheelers in the country is about 1.4 crores. Here also it can be assumed that the life of a two- wheeler is about 10 years. This means that there will be about 14 crore two-wheelers in the country shortly.

Besides cars and two-wheelers there are three wheelers, commercial vehicles etc. There are also bicycles, battery cycles etc.

As in Japan, India should also recondition vehicles on a large scale so that the vehicle life can be extended.

Taking all vehicles into account there will be one vehicle per family shortly. Considering the acute fuel shortage, traffic jams, shortage of parking space etc in the country, government and the banks should discourage people from owning more vehicles.

Considering all the above, the existing capacity for automobiles appear to be sufficient. Vehicle manufacturers should devote attention on improving the quality and performance of the vehicles rather than on expanding the capacity.

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One Response to INDIAN AUTOMOBILE INDUSTRY-NO NEED FOR EXPANSION

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