International trade - Essay Example

in 20 countries of the world, so far the company has not expanded into one of the most important emerging economies in the world in the world, India. Goldman Sachs, in its world famous BRICs report has predicted that within the year 2050 four emerging economies, Brazil, Russia, Indian and China would have a combined GDP more than the combined GDP’s of G6 countries or the biggest present six economies of the world in terms of US Dollar. Income levels would rise in these economies and as a result there would be huge demand for consumer goods including motorcycles.. The Indian economy is predicted to surpass the economies of Italy, France, Germany and Japan by the years 2015, 2020, 2025 and 2035 respectively.

The report also points out that the Indian economy shows the potential of accelerating the fastest for the period of next thirty to fifty years. (Dreaming with BRICs: The Path to 2050, 2003). This high rate of growth presents huge opportunities in front of local and multinational companies and this is the right time to invest in India. Moreover India is already one of the most important motorcycles and two-wheeler markets in the world. The domestic two-wheeler market size of Indian in the year 2007 was 7.

86 million units which were 4.2 million units in the year 2004 (Automotive Industry, October 2007). India is already the 2nd largest two wheeler producing country in the world and as of 2007 two wheelers constituted around 76.2% of the total automobile market in the country with CAGR of 14.5%. Moreover out of this huge two wheeler market, 83.3% is constituted of motorcycles. All these data signify how important India is or should be for any motorcycles manufacturer of the world. So it is crucial for Triumph motorcycles Ltd.

To venture into the Indian market seriously to leverage its present and future growth potential. On the other hand due to the subprime crisis which started in the US followed by the credit crisis, many economies including UK have suffered