2.2. Current Indian Automotive Industry A. Automotive Industry is growing at a rapid pace fairing among top ten in the world. Two wheeler in 2nd position; passenger cars in third position and commercial vehicles in 5th position. B. India has become a major hub for automobiles: i.
The automobile industry is one of the fastest growing industries in India. It also one of the largest in the world. It is the sixth largest in the world in terms of passenger car and commercial vehicle manufacturing. This industry also helps to raise foreign currency by exports averagely 1.5 million vehicles every year. The increasing
Almost all global majors have set up their facilities in India. The automobile sector has been contributing its share to the shining economic performance of India in the recent years. With Indian middle class earning higher per capita income, more people are ready to own private vehicles including cars. To emerge as the world’s destination of choice for design and manufacture of automobiles and auto components, output is expected to reach a level of USD 145 Billion. It accounts for more than 10% of the GDP and it will provide an additional employment to 25 Million people by 2016.
Industry profile Automobile industry in India Indian automobile industry is one of the largest markets for automobiles in the World with the yearly production of 17.5 million vehicles. Out of which, 2.3 million vehicles are exported abroad. Automobile industry comprises of two-wheeler vehicles, three-wheeler vehicles, passenger cars and commercial vehicles. In the World, Indian automobile industry is largest three-wheeler market, second largest two wheeler market, fourth largest tractor market, fifth largest commercial vehicle market, fifth largest bus and truck market and tenth largest passenger car market. After the economic liberalization, the companies like Maruthi Suzuki, Tata Motors and Mahindra and Mahindra expanded the production and
Global auto majors like Ford, GM (GM) and Volkswagen (VLKAY) are investing heavily in the country. However, these carmakers aren't up to the mark in the Indian market so they are focusing more on exports. For instance, Ford’s domestic sales have been flat at best this year. In fact, Ford saw a decline of 8% in domestic sales in the month of February in India. The Blue Oval sold 5,483 units last month in India compared to 5,959 units last year.
INDIAN AUTOMOBILE INDUSTRY History of Indian automobile industry shows that it has grown with leaps and bounds since 1898, a time when a car had touched the Indian streets for the first time. But now India is in verge to rewrite history in different conditions as it is home to 40 million passenger vehicles and Indian manufactured cars and other automobile products are touching other nation roads. Presently Indian automobile industry is regarded as largest and second fastest growing industry after China in the world with annual production of over 3.9 million units. Its passenger cars and commercial vehicle manufacturing industry ranked sixth largest in the world. One of the best things happen for the Indian automobile market in the recent years was its improvement in the export sector.
With India emerging as a global automotive hub, domestic tyre companies are expanding their operations and global tyre majors are increasing their presence in the Indian tyre market. The new technological frontiers of the tyre industry in India are radialisation in the truck and bus segments and a shift to high-performance tubeless passenger car radials. Market Segmentation Replacement is the biggest market segment and accounts for about 54% of the overall revenues. The OEM and export segments account for 32% and 14% respectively. Some of the major players in the market are Apollo, JK Tyre, MRF, CEAT, Goodyear among others.
3 Automobile Growths and Changing Vehicular Composition in India Automobile sector in India is growing fast and the growth pattern seems to have a clear correlation with the reforms related policies those influenced both domestic demand pattern as well as trade. India is a global major in the two-wheeler industry producing motorcycles, scooters and mopeds principally of engine capacities below 200 cc. The two-wheeler industry in India has grown at a compounded annual growth rate of more than 10 per cent during the last five years and Indian two-wheelers comply with some of the most stringent emission and fuel efficiency standards maintained worldwide. In two-wheelers India is the second largest producer in the world and the world’s number one
The Indian market was not equally lucrative to all British exporters; to the staple industry, cotton textile manufacturers, and producers of engineering products, however, the Indian market was of immense importance. British heavy industry also exported products in high quantity, even if not as high as by the cotton industry, to the Indian subcontinent. The British-led industrialisation of India created a demand for rails, galvanized sheets, tinplate and other steel products. However, approximately 30% of all steel imports were Belgian. Furthermore, the Indian
India shares borders with Afganistan,Bangladesh,Bhutan,china,Burma,Nepal and Pakistan by land and Indonesia ,Maldives,Thailand,srilankha by sea, During last five years the exports of India have increased at an annualized rate of 6.6% ,from $210B in 2008 to $290B in 2013.The most recent exports are led by Refined petroleum which represents 19.6% of the total exports of India ,followed by Packaged medicaments, which account for 4.07%. The product space is a network connecting products that are likely to be co-exported and can be used to predict the evolution of a country’s export structure. The economy of India has an ECONOMIC complexity Index (ECI) of 0.262 making it the 50th most complex country. India exports 406 products with revealed comparative advantage. Below is the demonstration of India’s export market.