Pundits have been predicting for years that India's clichéd "rise of the middle class" will lead to a large demand for the horseless carriage. Now, with total new-car sales in India expected to increase from 1.2 million cars per year to 1.7 million by 2010, the car companies are jostling for pole position. GM., Ford, BMW, DaimlerChrysler, Honda and Hyundai – an impressive list - are all starting or expanding production in India. Lamborghini and Volvo are zooming into town for the first time to sell their wares, while Mercedes-Benz is to add the swank S-class 350 to its factory list in Pune in a smart move to avoid import costs. At the other end of the market, Honda has launched its Civic and has announced it will pump US$650 million into its Indian business over the next ten years.
Petrol is 47.49 rupees ($1.04) a liter and rising, and the India market is still dwarfed by that of the US, but unlike those of America, Indian sales are driving in the right direction for companies. And the Indian government is literally paving the way: they're spending US$45 billion on 31,000 miles (49,900 kilometers) of road over the next six years.
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