Swot Analysis Of Automotive Industry

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. 15 manufacturers of passenger cars and multi-utility vehicles, ii. 9 manufacturers of commercial vehicles, iii. 16 manufacturers two/ three wheelers, iv. 14 manufacturers tractors,

v. 5 manufacturers of engines.

2.3. Competition in industry

Success of the Indian auto components industry has attracted worldwide attention. The industry has evolved from being strictly regulated to being an important global outsourcing destination. D&B Industry Research Service’s report

Profound in their nature and implications, these changes will play out differently according to the dichotomy between mature and emerging markets. Customers will fragment into distinctly different segments by 2020. Attitudes altered by the recession will continue to evolve in mature markets, while a shift from economy cars to luxury segments will occur in emerging markets. Advancements in alternative technologies will also transform consumer mobility. OEMs will struggle to make required investments and develop the capabilities to deal with these trends. The winners will be the ones that profitably and flexibly meet regional customer requirements. “To be successful, car marketers must use the internet to develop virtual showrooms that can be easily navigated by customers.”— RC Bhargava, Chairman, Maruti Suzuki India

The automotive industry is confronting a number of trends that create new challenges while also providing opportunities for growth. These trends include geopolitical and demographic changes, a need for sustainability, and the demands of operating in a “connected” world. Other changes in the market include increasingly responsive supply networks, new mobility-based business models, more complex development cycles, and more savvy customers. - SAP

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. - shodhganga