The automobile, though invented in Europe, had a major impact on America. And the industry grows as the Americans had potential to buy car in those days. Now in America and in almost all the major developed countries the buying needs of the consumers decreased, as they already own one or two cars, so what they going to do by purchasing another one. So the automobile sector is shifting towards the developing countries.
India and china with largest population have enough potential to buy these cars. There are many reason to support this. It is a well known fact that automobiles form an integral part of every economy. Automobiles are very essential for the movement of men and material. In India, automobile industry has come up a long way. 25 years ago, only upper middle class people could afford to have a motor cycle and rich people could possibly have a car (only a few models existed however). Today, the scenario has changed and even middle class families own a car.
Now in Indian homes one can find the car easily, but one may find that most of these cars cost is very low, so the market for the big giants in India exists. When we talk about the rural area, there is a huge possibility of car markets, As Indian government already started building roads in rural areas so the people from rural areas are also started looking for the better living facilities.
This sector is going to grow as many of the foreign investors are keen to invest in automobile sector of India. Already Audi announced to setup a manufacturing plant in Aurangabad. Also other giants announced the same kind of things. So, I think this is the sector the investor must think on. In the coming years this sector will grow, as the developed economies are under recession and the giants are looking for new markets.
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