The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 11 million vehicles (including 2 wheeled and 4 wheeled) and exports about 1.5 million every year. Indian Automotive Industry booming with a growth rate of around 15% annually in the past five years. The automotive sector is one of the core industries of the Indian economy, whose prospect is reflective of the economic resilience of the country. Continuous economic liberalization over the years by the government of India has resulted in making India as one of the prime business destinations for many global automotive players.
The Indian automotive industry comprising of the automobile and the auto component sectors, has recorded considerable growth following the delicensing and opening up of the sector to FDI in 1993.The unbundling of the industry from restrictive equipment has helped it to absorb new technologies, restrictive align itself to the global development and realize its potential with significant, increase in industry’s contribution overall economic growth in the country.
INDIAN AUTOMOBILE INDUSTRY CLASSIFICATION:
Indian automobile industry can be broadly classified as under:
1. Commercial Vehicles: A commercial vehicle is a type of vehicle that is used for carrying goods or passengers.
2. Passenger Vehicles: It is a type of Vehicle designed primarily for the carriage of the people.
3. Two wheelers & three wheelers: A two/ three wheelers refer to vehicles that run on two/ three wheels. Such as Scooters/ Mopeds/ Motorcycles and Auto rickshaws.
INDIAN AUTO COMPONENT INDUSTRY CLASSIFICATION:
1. Fuel in injection systems and carburetors: includes components like fuel pumps, filters, carburetors, delivery valve and nozzles.
2. Piston and piston parts: include parts like pistons, piston rings, and pins.
3. Cooling system and parts: includes parts like radiators, water pumps assembly, fan assembly and water thermostat.
4. Suspension system and components: include parts like shock absorbers and leaf spring.
5. Brakes and components: brake assembly and brake linings.
6. Sheet metal parts: body parts from the bulk of the output that goes to the original equipment. This includes parts like mufflers and exhaust systems.
The year wise investment required to be made in the public/private sectors during the period 2007-12, keeping in view funds required for up-gradation of technologies for achieving international competitiveness, in-house R&D and new products required for meeting the demand-supply gap in the long run. The automotive Industry offers huge growth potential in terms of sales volume and also immense employment opportunities. The employment opportunities would be in production for both skilled and unskilled laborers.
ATTRACTIVENESS OF THE INDIAN AUTOMOTIVE INDUSTRY:
OPPORTUNITIES IN THE INDIAN AUTOMOTIVE SECTOR:
PLAYERS: INDIAN AUTO INDUSTRY
AUTOMOTIVE MISSION PLAN 2016:
The bumper-to-bumper traffic of global automobile biggies on the passage to India has finally made government sit up and take notice. In a bid to drive greater investment into the sector, ministry of heavy industries has decided to put together a 10-year mission plan to make India a global hub for automotive industry.
“The Ten year mission plan will also set the roadmap for budgetary fiscal incentives”
The Government of India is drawing up an Automotive Mission Plan 2016 that aims to make India a global automotive hub. The idea is to draw an innovative plan of action with full participation of the stakeholders and to implement it in mission mode to meet the challenges coming in the way of growth of industry. Through this...
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