By
Sharmistha Mukherjee
&
Ketan Thakkar
MUMBAI | NEW DELHI: Automakers are expected to invest $8-10 billion (Rs 51,600-64,500 crore) in India over the next three-four years to set up factories and expand production in a market that is set to become the third-largest for passenger vehicles by the turn of the decade.
The investment will boost production of cars, utility vehicles and vans in India by 1.3-1.5 million units a year and generate employment for 20,000-25,000 people, said industry insiders and experts.
India market leader Maruti Suzuki and parent Suzuki, Korea-based Hyundai Motor and unit Kia Motors, Chinese manufactures SAIC, Changan and Beiqi Foton, as well as Italy’s Fiat are among companies that are expected to drive the investment. These will be in addition to more than Rs 1 lakh crore that automakers are set to spend on upgrading vehicles to meet new safety and emission standards. Annual passenger vehicle sales in India, currently the fifth-largest market, topped the three-million mark for the first time in fiscal year ended March 31, growing in the double digits.
With a fast expanding economy, rising disposable income and increasing need for mobility, India is forecast to post annual passenger vehicles sales of more than five million by the end of the decade.
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