When Tata Motors’ low-priced small car – hopefully made in its yet-to-come-up Singur plant – becomes available to own, it will explode the car market. This is the picture that emerges from an NCAER-survey done for Maruti Udyog, as reported in Nov 13 ET.
The survey says that about 1.13 lakh 2-wheeler owners are ready to switch over to owning a car (mostly small car) in the next 3 months, and there is every reason to believe that this projection will only rapidly increase in future. What is interesting is that the urge to buy a first-time car is almost evenly spread among urban and rural households across India.
If there are so many cars, where is the road space to hold them? The central government has an eye on this factor, and so apart from golden quadrilaterals and suchlike, it plans to spend massively on road infrastructure in the states as part of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) (..more).
When the 2, that is availability of cheap yet technologically-superior small car and sufficient road space, proceed in tandem, one can easily foresee a sustained boom occurring in India’s auto market. No wonder, leading equity analysts strongly suggest investing in auto companies’ shares for long-term holding.
There is no doubt all these have been suitably explained by Tata Motors’ executives to the group of West Bengal MLAs led by Sudip Bandopadhyay when they came calling at their Pune plant. The MLAs are very impressed, going by newspaper reports, and this may well be another milestone on the way to having Tata’s car factory in Singur.
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