We can be reasonably optimistic about the car boom in India. The Indian middle class has grown to 250 million in the past decade or so. We are finally beginning to see descent roads in India. If 10 % of consumer base steps in to buy cars we will see healthy growth in the motor vehicle industry. Indian value systems are changing to more individualism and nuclear families. However according to NY Times today there are only eight million passenger vehicles on Indian roads, in a country of more than one billion people. By the late 1920’s, in comparison, the United States had 23 million registered car owners.
How soon can Chennai beat Detroit??
The American Big Three in Detroit are working hard to get their stake back with Toyota and other manufacturers who have started eating into the US markets. They are making strategic plans to improve the quality and attractiveness and to overcome their increased burdens on pension and health-care costs that increase their manufacturing cost to $1,200 per vehicle. Are the prophetic words of Preston Tucker finally coming true??
