Indian manufacturing costs are extremely competitive and among the lowest in the world said GM's CEO Rick Wagoner, at a conference on April 17 held in New Delhi. Wagoner said that over the next ten years, emerging markets within the Asia Pacific region alone are expected to account for nearly 70% of global sales growth according to a statement released by the Confederation of Indian Industry, the organizer of the event. Other organizers of the event are the Society of Indian Automobile Manufacturers (SIAM), Automotive Components Manufacturer's Association (ACMA) and the American Chamber of Commerce (AMCHAM.)
Wagoner predicted that India is expected to be the second largest growing auto market in less than the projected ten years. The growth will be driven by overall economic growth, rising disposable income and a rapidly expanding middle class, he added.
India has a specific plan for the automotive industry called the Automotive Mission Plan 2006 - 2016. The plan identifies the areas of intervention by government, industry and academia, said Sontosh Mohan Dev, Minister for Heavy Industries and Public Enterprises. The policy objectives include making India an international hub for manufacturing passenger cars, tractors and two-wheelers in the world, said the Minister. He also said that the policy underlines the crucial need for setting up world class automotive testing facilities and implementation of emission roadmap.
India has also opened up the domestic market to all global OEMs, said Dev.