With over 2.57 million cars manufactured by India in 2016, the country has overtaken South Korea and stands fifth in the list of world’s largest car manufacturers. India now stands just behind of Germany, Japan, USA and China.
Last year, South Korea manufactured 4.55 million cars while India had produced 4.12 million. Reports from various agencies suggest that India could retain the fifth spot next year as well, due to strikes by the Hyundai-Kia labours who are demanding increment in their labour wages which has taken a toll on the vehicle production, increasing taxes have also affected the Korean auto industry. At this point of time the Korean automobile market is experiencing lack of demand in both domestic sales and as well as in the export sector.
India is one of the fastest growing economies and car markets around the world. Recently the Indian auto industry has seen a rapid growth, and this comes due to the increasing demand. Also the country is performing great, in terms of exporting cars in other countries as well. The 'Make In India' initiative by the Prime Minister Narendra Modi has also helped the Indian automotive industry to grow at very fast pace. It will also help to provide employment for a massive 2.5 crore citizens by the end of the year.
Mexico could further beat South Korea as Kia has set up its new manufacturing plants in Mexico. Additionally the South Korean auto giant Kia is preparing to set up its production plant in India. Tamil Nadu and Andhra Pradesh both have showed interest on the facility. Kia is planning to compete against India’s favourite Maruti Suzuki by entering India. Japanese giant Toyota is planning to launch its premium car brand Lexus and small car brand Daihatsu in India. So with these brands setting up their plants in India, the country can grow even faster.