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India's Auto Industry Growing Fast, Facing Challenges

India is expected to play a major role in the global automotive industry during the next decade, but the nation must overcome obstacles in several key areas in order to accomplish this, according to a study by IBM and the University of Michigan's Transportation Research Institute. While vehicles sales in India are expected to quadruple by 2015, the study indicates that infrastructure difficulties and an anticipated undersupply of qualified workers could negatively impact the Indian auto industry's ability to keep up with the demand. The study authors suggest that key action steps for the industry in India include the building of more vehicle-friendly roads, particularly in cities; raising the quality of the small car segment while keeping costs low; strengthening the nation's R&D expertise in design and manufacturing; and increasing port capacity to expand vehicle export capabilities.

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