The auto sector accounts for 4 per cent of the total FDI Inflows (in terms of US $) in India. According to the recent data released by Society of Indian Automobiles Manufacturers (SIAM) India’s scooter and motorcycle manufacturers have registered 4 per cent growth during April-November, 2012. The Global and Indian manufacturers are focusing their efforts to develop innovative products, technologies and supply chains. India is one of the key markets for Global Manufacturers for hybrid and electronic vehicles, which is the new development in automobile sector. With a turnover of almost $59 Million US Dollars, Automobile industry Provides employment to 13 million people in the India Work-class.
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.
Skoda has begun exports from India to Bangladesh, Nepal, Sri Lanka, according to Lukas Folc, Managing Director of Skoda Auto India Private Limited. This was in an effort to make India the export hub for cars in South Asia. Skoda’s pan-India plan indicates that the company has exported 15,000 cars in 2005, reaching an earning of Rs. 350 crores. The company had finalized its schedule of production –5000 cars in 2001, 10,000 cars in 2002, 12,500 cars in 2003 and 15,000 cars by 2005.
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.
One of the best things happen for the Indian automobile market in the recent years was its improvement in the export sector. In the year 2003-04 for the first time in Indian history vehicle worth more than 1 billion USD were exported with the growth rate of 56%. In the year 2009 India emerged fourth largest exporter of passenger cars, in 2010 with the production of more than 3.7 million automotive vehicles with an increase of 33.9% India became third largest exporter of passenger cars. It contributes 4% of the national GDP and accounts for 5% of the Indian industrial output. With employing 13 million people directly or indirectly it has become one of the major employment generators in the country, with the present growth trend it is expected that employment will double by
INDUSTRY ANALYSIS The automotive industry in India is one of the largest automotive markets in the world. It was previously one of the fastest growing markets globally, but it is currently experiencing flat or negative growth rates. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand, overtaking Thailand to become third in 2010. As of 2010, India was home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making India the second fastest growing automobile market in the world (after China).
The destinations of exports from Honda comprises of North America, United States, Europe, Asia but the biggest export is to Asia. Also, Japan has a quiet big influence to the world. In accordant with the data that the writer took from World Integrated Trade Solution website, Vietnam is a country that imports more than export. Vietnam has more than 100 import partners of machinery and transport equipment. The top partner countries that Vietnam imports include China, Republic of Korea, Japan, and the United States.
It procures domestically from NMDC whose prices are uncompetitive w.r.t the international prices. JSW imports almost half of its iron ore requirement. Opportunities: • Expected Rise in Domestic Steel consumption: With a stable government at the centre and a focussed approach on programs like “Make in India”, the domestic steel demand is slated to rise at a healthy pace across all sector. JSW steel is favourable poised to take advantage of India’s next growth cycle with a wide variety of products, technology and flexibility. • Growing Global Automotive Manufacturing Industry: The automotive industry which had gone into a slowdown is on the up again.
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
Tata Motors Limited (TML), headquartered in Mumbai, is the largest automobile manufacturing company in India. It tops in the commercial vehicles across all segments. It has also introduced award winning products in compact, midsize and utility segment of vehicles. The models of Tata Pick Up trucks include Xenon Single Cabin and Xenon Crew Cabin. The variants of Xenon Single Cabin include Xenon Pick Up and Xenon Dicor Pick Up.