India becomes 5th largest car maker in the world as the domestic market produced 2.57 million cars between January and July 2016
India becomes the 5th largest car maker in the world beating South Korea. In between January and July 2016, India has produced 2.57 million cars. In the same period, South Korea produced 2.55 million cars, reveals the Korea Automobile Manufacturers Association (KAMA).
India is one of the fastest growing car markets across the globe. In recent past auto industry in the country has seen a rapid growth, and this comes due to the increasing demand. Also the country is at the forefront, in terms of exporting as well.
KAMA reveals that, Indian market’s demand for cars are increasing steadily, which is becoming possible due to the stable economic growth in the country. The Korean market however is experiencing lack of demand in both domestic and export sector. Also the worker strikes and increasing taxes have taken toll on Korean auto industry.
Indian market is expected to grow further in near future, as automakers like Kia and few more are expected to set up plant in the country. On the other hand, Korea could lose another spot to Mexico, as South Korean automaker Kia is setting up production plant in Mexico soon. In world’s top car makers list China is leading, the other countries are US, Japan and Germany, and now India is at the 5th position.
South Korean automaker Kia is preparing to set up its production plant in India. Tamil Nadu and Andhra Pradesh both have showed interest on the facility. By entering Indian market, Kia plans to take on India’s largest automaker Maruti Suzuki in the compact and small car segments. On the other hand, Japanese automaker Toyota is mulling over the launch its premium car brand Lexus and small car brand Daihatsu. With all these brand setting up production plants in India, the auto industry is about grow even faster.