The Indian automotive industry is among one of the fastest growing in the world. Between 1993 and 2002, average growth rates of 15% and 16% per annum were recorded for 4- and 2-wheelers respectively, and in 2004, the total 4- wheeler production exceeded 1 million units. With India skilled labour force and potentially large consumer market, it is no wonder that global automotive OEMs have set up production facilities in India, and both local and foreign manufacturers are anticipated to continue growing at over 8% per annum in the foreseeable future.

As the middle and upper income segments of the population expand, sales into both the 4- and 2- wheeler markets are expected to grow well in excess of the population growth rates. At the same time, the tastes of these consumers continue to become more sophisticated, placing greater demands on OEMs to produce more comfortable vehicles with enhanced functionalities. Yet, prices remain extremely competitive with greater choice not only among brands, but also in the range of models on offer within any given class of vehicle. OEMs and their suppliers thus have to be ever more creative in meeting the cost and quality expectations of their customers, and at BASF, we believe that we are wellplaced to be the PU systems supplier and partner of choice for the Indian Automotive industry.