Crm in Indian Automobile Industry

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India is the second-biggest market for small cars after Japan. It accounts for 60% of the domestic market.

Current Scenario

• India represents one of the largest two-wheeler markets in the world, with an estimated size of 5.4 million units a year.

• India is the two-wheeler capital of Asia with an average of 27 two-wheelers per thousand people, compared to China's 8 two-wheelers per thousand people.

• India became the fastest growing car market in the world in 2004, growth rate of 20%.



• India is being recognized as potential emerging auto market.

• Foreign players are adding to their investments in Indian auto industry.

• Passenger vehicles sales crossed the mark of 1 million in 2004-05.

• Automobile industry expert predicts that by 2050 every sixth car in the world will be for Indians.

• 2/3rd of auto component production is consumed directly by OEMs.

Facts & Figures

It seems that India has finally arrived in the big league of Asian car markets. Steady and impressive annual growth rate, presence of international automakers, relaxation of foreign exchange and equity regulations, reduction of tariffs on imports and few others are the components of its booming auto market. The country has now come to be recognized as a potential emerging auto market. The perception of foreign investors has changed, everybody wanting to be here.

For the first time, in the financial year end in 2005, the total sales of passenger vehicles - cars, utility vehicles and multi-utility vehicles - crossed the one-million mark to touch 1.06 million, with exports of 166,000 vehicles. Study says that by 2010 India will take over Germany in sales volumes and Japan by 2012. And by 2050, Indians will buy every sixth car produced in the world.

Apart from serving the domestic market, the auto sector has turned as a sourcing base for the global auto majors. The auto component market is also in its full swing. As per the research of RNCOS, one of the leading industry firm, the Indian automobile component industry is estimated to triple from USD 63 billion to USD 190 billion within a span of six years by 2012.

Indian Automobile Industry Estimation

Estimated turnover USD 12 billion, plus components revenue USD 3 billion, this is the vastness of Indian automobile industry. Industry analysts predict this industry to touch USD 13000 million mark by 2010, a cumulative growth of 9.5% annually. It is said that for every Re 1 spent, the auto sector returns Rs. 2.24 to the Indian economy.

Cars by Price Range

Under Rs. 3 Lakhs

• Maruti 800,

• Alto,

• Omni

• Reva

Rs. 3-5 Lakhs

• Ambassador

• Fiat Palio

• Hyundai Santro, Getz

• Chevrolet Opel Corsa

• Maruti Zen, Wagon R, Versa, Esteem, Gypsy

• Ford Icon & Fiesta

• Tata Indica, Indigo

• Mahindra Bolero

Rs. 5-10 Lakhs

• Chevrolet Swing,

• Optra,

• Tavera

• Hyundai Accent, Elantra

• Mahindra Scorpio

• Maruti Baleno

• Toyota Corolla, Innova

• Tata Safari

• Mitsubishi Lancer, Lancer Cedia

• Honda City

Rs. 10-15 Lakhs

• Ford Mondeo & Endeavour

• Chevrolet Forester

• Skoda Octavia Classic & Combi

• Honda Civic & CR-V

Rs. 15-30 Lakh

• Maruti Suzuki Grand Vitara

• Hyundai Sonata Embera, Terracan & Tucson

• Mitsubishi Pajero

• Audi A4

• Opel Vectra

• Honda Accord

• Mercedes C Class

• Toyota Camry

Rs. 30-90 Lakhs

• Audi A6, A8 & TT

• BMW X5, 5 Series & 7 Series

• Mercedes E Class, S Class, SLK, SL & CLS-Class

• Porsche Boxster, Cayenne, 911 Carrera & Cayman S

• Toyota Prado

Above Rs. 1 Crore

• Bentley Arnage, Continental GT & Flying Spur

• Rolls Royce Phantom

• Maybach


Automobile History: The first auto vehicle rolled out in India at...
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