Kolkata, April 3 (IANS) Tamil Nadu and Rajasthan have the highest growth potential for the automobile industry for adding new and first time customers, an Assocham study said Wednesday.
According to the study, titled “Automobile Industry in India: Saturated and Potential States”, both Tamil Nadu and Rajasthan have registered a high growth in employment generation, per capita income and monthly per capita consumption expenditure share in durable goods and are ahead of the national growth in the three key indicators.
“Tamil Nadu’s gross domestic product (GDP) and motor vehicles registration growth are also more than the national level growth,” said D.S. Rawat, national secretary general of industry panel Assocham (Associated Chambers of Commerce and Industry of India) while releasing the findings of the study.
Andhra Pradesh, West Bengal and Gujarat have been identified as possible opportunity states as they have performed better than national average and also have a high share of untapped growth, according to a release here.
Lack of infrastructure, geographical challenges and population density were certain constraints faced by automotive companies to expand their presence in rural markets, the study said.