“Indian passenger car market is on a path of growth”, said Klaus Braunig, Managing Director, German Association of the Automotive Industry (VDA) addressing a Press Conference along with the German Ambassador Dr. Martin Ney, held today at the German Pavilion at Auto Expo 2018 Components.
VDA is representing the official participation of suppliers, promoted by the German Government under the slogan “Made in Germany.”
This is the seventh time that the VDA has initiated a German pavilion here at the Auto Expo in New Delhi with the slogan “Made in Germany”. The pavilion is supported through the official foreign trade show program by the German Federal Ministry for Economic Affairs and Energy and AUMA, the Association of the German Trade Fair Industry. It is being realized by the trade show organizer IMAG.
“India is on a path of growth. With the growing GDP and industrial production combined with falling inflation rate, there is a considerable potential in this large country with just over 1.3 billion people. The population is young – more than half of all Indian citizens (54 percent) are under 30, and only 6 percent are over the age of 64. The per capita gross domestic product has also shown a positive trend during recent years, with annual increases of between 6 and 7 percent,” said Braunig.
“In 2018 the Indian passenger car market will overtake the German market in terms of volume for the first time. In the period from 2014 to 2017 this market grew by a good quarter (+26 percent) to 3.2 million new cars. In our forecast we assume that in the current year the Indian passenger car market will expand by 10 percent – to a volume of almost 3.6 million units. This means that for the first time the India passenger car market will overtake the German car market in terms of volume. And the potential has not yet been exhausted – not by a long way. The number of passenger cars here is still low by international comparison. At present India has 24 passenger cars for every 1,000 inhabitants, while Germany has 560 passenger cars for every 1,000 inhabitants,” he added.
A strong representation of the German automotive industry with major suppliers along with newcomers can be seen at the Expo which is supported by the Federal Government and the IGCC (Indo-German Chamber of Commerce). The ACMA, the Automotive Component Manufacturers Association of India, will again have an Indian pavilion at the IAA Commercial Vehicles in Hannover in September.
On the official German pavilion – which is promoted by the German Government – India has 10 suppliers. Then there are also about 20 more German suppliers here, some of whom are exhibiting at the Auto Expo with their Indian subsidiaries and partners. German passenger car makers are also exhibiting at the “Auto Expo 2018 – The Motor Show” that is taking place almost simultaneously in Noida.
The German car makers have their own production facilities in India. For example, Audi builds its A3, A4, A6, Q3, Q5 and Q7 models at its plant in Aurangabad. The VW Passat, the VW Tiguan and Skoda’s Octavia, Superb and Kodiaq models are also produced there. Since 2007, the BMW Group has had its own plant in Chennai on India’s south-east coast, where it builds its 3, 5, 6 and 7-Series, and the SUV models X1, X3 and X5 from CKD kits.
Daimler has a passenger car factory in Pune making the C, CLA, E and S-Classes, along with the SUV models GLA, GLC, GLE and GLS. In the same region, the Volkswagen plant in Chakan near Pune builds VW’s Ameo and Polo models and the Skoda Rapid.
VDA is organizing a range of activities to support the presence of the German automotive industry in India. One important activity is the meeting of our “Indo-German Working Group on Automotive” this week. It comprises representatives of the Indian and German Governments, important automotive institutions, and the trade associations ACMA, SIAM and VDA.
It covers topics that are key to mobility and the automotive sectors in both countries, such as the environment, safety and alternative powertrains, all the way to the regulatory conditions for bilateral trade. The Indo-German Working Group was formed in 2007. Its next meeting will take place in Greater Noida on February 9, 2018.