The German automotive industry is strengthening its presence in the dynamic growth market of India. Prospects look brighter, given that car sales alone rose by two-thirds in November 2009, and full-year growth remained close to seventeen percent.
 
“Exports of goods and services to India alone by German suppliers of automotive parts and accessories remained over €200 million in 2009, more than tripling the annual total within five years,” said Klaus Bräunig, Managing Director of the German Association of the Automotive Industry (VDA).
 
German manufacturers of cars and commercial vehicles are also steadily expanding their local presence. Bräunig emphasised: “Currently, VDA member companies have more than 65 production plants in India. At Auto Expo alone, more than 35 companies from Germany are exhibiting, from the major manufacturers to small and medium-sized suppliers.”

India is one of the fastest growing automotive markets in the world. Its competitive costs, high technological competence, well educated staff and a solid legal system promise enormous potential for success. Furthermore the government is planning an investment of half a billion US-dollars for the construction of six R&D centres for the automotive cluster in India.
 
An investment of 1.5 billion US-dollars in the automotive supplies industry is planned and numerous suppliers are intending to expand their involvement and investment in India in the next few years.