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M&M and Honda also reported the highest improvement in ROCE, attributed to growth in their sales and margins. However, given a increase in capex requirements, we expect these companies to report lower ROCE in near future.
The Indian passenger vehicle market is expected to reach 2 mn units p.a by 2010. In anticipation of this demand, auto majors in the industry are on track for expansion of their capacities. Hyundai is expected to double the capacity by 2007 end and has already launched i10 small car, first in India worldwide, an indication of the growing importance of Indian auto market. Maruti has also lined up new products to replace its existing products in 2008 and 2009...
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