China and India become savior of the World Auto Market
China and India become savior of the World Auto Market
Indian and Chinese auto markets are emerging as a savior of the auto industry globally. The sales and growth made by the Asian markets, is expected to put the world market back on track. Dave McCurdy, OICA head said that, India and China are porter of strength for the world automobile market. China and India together will sell record wheelers which is expected to balance the global auto industry. China is predicted to have a growth of 24 per cent in 2010, to whooping 17 million bus, truck and Cars. India landing on the second spot, is expected to manufacture 3 million vehicles, thus registering a growth of 22 per cent which over the stats of 2009. The first half of 2010, has shown a growth of 42 per cent in the world auto market due to a surge in demand from China and India and growth in markets like other North Korea and Brazil. The International Organisation of Motor Vehicle Manufacturers (OICA), the world automotive body, which keeps a track for the commercial and passenger wheelers says that, it is predicted that the production of vehicles will cross the expected 15 million in China. However, India will surpass the 3 million production mark which will clear the path for global auto market and bring stability. As per the calculations of the OICA, 2010 will have record manufacturing of 74 million commercial wheeler and cars. Pawan Goneka, the president of Society of Indian Automobile manufacturers says that, Chinese market are booming but India is also seeing a growth which is helping the global market to fill the gap in world auto market. India has a marked growth in buses and trucks but because of the constraints in supply, it is not able to match the Chinese market. With the global economy facing crisis, auto market was hit dastardly. In 2008, the world market slipped to 4 per cent which was 70.5 million cars production and 2009 worsen the situation by going down to 12.5 per cent which counts to 61.7 million units. US auto market fell by 34 per cent and Japan lowered by 31 per cent in the year 2008. India and China are seen as rescuers for the global auto markets. Indian auto market showing a massive growth has attracted the top car manufacturers like Volkswagen AG, BMW, Man Motors, American Navistar International and Audi that are spreading its wings across the country to take the benefit of the maturing market. As per VO Dong Yang, the executive from China Association of Automotive Manufacturer, China will see a rise of 15 per cent in 2011 and it is anticipated that the growth will continue for the coming years. China is making its best effort to touch the 20 million production mark by seeing the rising demand from the market.