The Indian automobile industry is currently experiencing an unprecedented boom in demand for all types of vehicles. This boom has been triggered primarily by two factors: * Increase in disposable incomes and standards of living of middle class Indian families estimated to be as many as four million in number; and * The Indian government's liberalization measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and banking liberalization that has fueled financing-driven purchases.
Industry observers predict that passenger vehicle sales will triple in five years to about 6 million, and as the market grows and customer's purchasing abilities rise, there will be greater demand for higher-end models which currently constitute only a tiny fraction of the market. These trends have encouraged many multinational automakers from Japan, U. S. A., and Europe to enter the Indian market mainly through joint ventures with Indian firms. This paper presents an introduction to the automotive scenario in India, the key players in the Indian automotive industry, a summary of the recent developments, an analysis of the opportunities and challenges facing the various players (Indian and multi-national assemblers and manufacturers) in the areas of, production, and sales, domestic consumption, exports and contribution to labor employment. It also aims to elucidate the challenges and threats faced by the automobile industry to India and thereby suggest the key areas of improvement and analyze the future of the Industry in India. Further it attempts to draw correlations between the domestic consumption of cars and domestic consumption of steel, aluminum, automobile tyres. Correlation between domestic consumption of cars and price of petrol and diesel is also drawn. There is correlation between domestic consumption of cars and length of roads as well.
| PAGE NO.
| LITERATURE REVIEW
| INDUSTRY BACKGROUND
| HISTORY AND EVOLUTION OF AUTOMOBILES IN INDIA
| EVOLUTION OF AUTOMOTIVE INDUSTRIES
| DOMESTIC SALES
| INDIAN AUTOMOTIVE CLUSTERS
| SWOT ANALYSIS
| INDIA ADVANTAGE
| MAJOR CHALLENGES
| GOVERNMENT POLICIES AND REGULATORY FRAMEWORK
| INDIA- EMERGING R&D DESTINATION
| INDIA AS MANUFACTURING HUB
| EMPLOYEMENT GENERATION POTENTIAL OF THE AUTOMOBILE INDUSTRY
| RESEARCH METHODOLOGY
| DATA ANALYSIS
| FINDINGS AND RECOMMENDATIONS
| FUTURE SCOPE
The automobile sector is a key player in the global and Indian economy. The global motor vehicle industry (four-wheelers) contributes 5 per cent directly to the total manufacturing employment, 12.9 per cent to the total manufacturing production value and 8.3 per cent to the total industrial investment. It also contributes US$560 billion to the public revenue of different countries, in terms of taxes on fuel, circulation, sales and registration. The annual turnover of the global auto industry is around US$5.09 trillion, which is equivalent to the sixth largest economy in the world (Organisation Internationale des Constructeurs d'Automobiles, 2006). In addition, the auto industry is linked with several other sectors in the economy and hence its indirect contribution is much higher than this. All over the world it has been treated as a leading economic sector because of its extensive economic linkages. A rapidly growing middle class, rising per capita incomes and relatively easier availability of finance have been driving the vehicle demand in India, which in turn, has prompted the government to invest at unprecedented levels...
Please join StudyMode to read the full document