At one point, Japan was among the world’s leading auto markets but the country has yet to regain its stride after last year’s devastating earthquake and tsunami. Japanese auto sales dropped to half the peak rate and a recovery has yet to take hold.
Global information company IHS Automotive conducted a study that shows sales in India will reach 4.88 million by 2016, taking the emerging nation ahead of Japan’s projected 4.51 million units in sales for that year. What’s more, IHS believes sales in Japan would taper off to 4.25 million by 2020.
At one point, Japan was ranked as one of the world’s top three largest regional markets, behind the United States and Europe. China has since rocketed past the rest of the world, claiming the global top ranking several years ago. Reports reveal that Chinese consumers have purchased 17.66 million vehicles for 2011. IHS predicts that China sales could even pass 30 million by the decade’s end.
The organization believes that India is positioned to be the next country to experience a big automotive boom, linking to a prediction that India’s population will sustain rapid growth in the coming decades.
That said, India’s economy is not as strong as China’s and it will also take a while for India to develop infrastructure that could handle a rapid spike in vehicles on the road. Some villages can only be reached by mules and donkeys and big cities suffer incredible traffic congestion due to the lack of major roadways.
Nonetheless, demand for automobiles in India is surging and may become the next focus market for global automakers.
[Source: Detroit Bureau]