At least one Indian company will be among the top six carmakers that would dominate the global auto industry by 2020, a study by global consultancy firm Deloitte said.
Releasing a study 'A New Era: Accelerating toward 2020 -- An Automotive Industry Transformed', the firm said the car industry would see a massive capacity building in low-cost locations like India and China as manufacturers shift base from developed regions.
"Maybe six original equipment manufacturers (OEMs) would dominate the market and control 90 per cent of the structure by 2020, of which one may be from India and another one or two from China," Touche Tohmastu India Senior Director Kumar Kandaswami said.
He, however, did not name any specific company which could be in the global top six list and said it could be an entity following mergers or acquisitions in the future.
Homegrown automakers like Tata Motors and Mahindra & Mahindra have already made their global aspirations public.
Supplier networks would also follow the trend, he added. "Cost is a big factor, as well as in the consolidation of the industry. Besides the emerging economies have huge pool of trained manpower," Kandaswami said.
In India, there would be more focus on low-cost cars, while, at the same time more and more middle class consumers would go for luxury segment four-wheelers.
"As a significant and growing market, it is interesting to see that India will be distinct in terms of some of the global themes on account of the demographic and customer profiles," he added.
According to the study, Indian consumers are becoming more conscious about alternative fuels and green technologies, although not everybody is as yet ready to pay for it.
India is likely to become a hub for small and compact cars due to various factors including growing domestic demand, low labour cost and sound supplier network.
According to Deloitte, the consumer trend in India would be guided by factors such as price, fuel economy and life-cycle of vehicles.
However, a distinct luxury segment would evolve only after the car ownership rate in India reaches 20-25 care per thousand people, from 10-11 cars per thousand people now, the study said.
By 2020, green technologies would come to dominate the car industry worldwide, with 20 per cent of the cars likely to be 'green cars' by that time, it added