Wednesday, October 17, 2007

Automotive industry is set to have a major impact on India’s future economic growth

Increased dieselisation in cars

What is the most significant trend in the Indian passenger car segment? The increased adoption of diesel, says Mr Sanjay Sondhi , Managing Director, Honeywell Turbo Technologies.
“In Europe, more than 50 per cent of passenger cars are diesel, and all indications show that India is following this trend,” he adds, in a recent e-mail interaction with Business Line. Mr Sondhi estimates the penetration of diesel vehicles in India to increase from 37 per cent today to 42-45 per cent over the next 5 years.
Two other major trends that he sees are:
The increasing popularity of small-sized diesel engines, driving both Indian and global OEMs (original equipment manufacturers) to develop low-cost cars to bridge the price gap between the two-wheeler and the current range of small cars available in the market; and
A significant share of the three-wheeler commercial vehicles being upgraded to four wheelers such as the Tata ACE, driven by tightening emissions and safety regulations.

Excerpts from the interview.

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