India could be the latest automotive market set for exponential growth along the lines of the Chinese market, according to new analysis.

Leading industry figures in the country say that the Indian market is maturing quickly and predict that sales of new cars and utility vehicles in India will break the psychologically important one million barrier.

While this lies behind China's current rate of progress some observers believe that India has enormous potential, as Tata Sons executive director R. Gopalakrishnan told CNN.

The prospects for India's automotive industry are "very positive" he insisted, noting that with penetration still so low, the potential for increasing consumption is high.

AC Nielsen's managing director in Mumbai, Russell Farmery, agreed: "Urban disposable incomes have shot up. People are spending money on mobile phones, holidays, consumer durables, two-wheelers and cars.”

Indeed, with Suzuki this week detailing plans costing $90 million to open a new diesel plant in India and establish a second manufacturing plant, the market appears ripe for development.

Taking a long term perspective, some market analysts, such as consultants McKinsey, even believe that India could usurp China as the rising star in the automotive world, as a recent report indicated.

"In view of the greater competitive intensity in the market, India may be better positioned than China is to become a global low-cost auto manufacturing base," McKinsey concluded.

The firm says that with increased competition and a steady rise in car prices and productivity in the last ten years, the prospects are good.