Automobile Industry in India

Topics: Maruti Suzuki, Suzuki, Automobile Pages: 2 (474 words) Published: June 20, 2013
Automobile Industry

Chennai accounts for 60% of the country's automotive exports

In tune with international standards to reduce vehicular pollution, the central government unveiled the standards titled 'India 2000' in 2000 with later upgraded guidelines as 'Bharat Stage'. These standards are quite similar to the more stringent European standards and have been traditionally implemented in a phased manner, with the latest upgrade getting implemented in 13 cities and later, in the rest of the nation

The Automotive Industry has flourished in Pune Region in Maharashtra, What were the special conditions were there for this development.

Still Indian cars are not considered as a class in itself compared to European cars.

India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies like Hyundai, Nissan, Toyota, Volkswagen and Maruti Suzuki

In recent years, India has emerged as a leading center for the manufacture of small cars.

Indian brands: AMW(Asian motor works- Commersial vehicles), Eicher Motors(tractors, Buses, components), Force(Bajaj Tempo), Hindustan motors(Birla, Ambassador car, Joint venture with Mitsubishi), Premier(Padmini, Moved from Mumbai to Pune), Tata, Mahindra, BharatBenz

 Per capita penetration at around nine cars per thousand people is among the lowest in the world

While the industry is highly capital intensive in nature in case of four-wheelers, capital intensity is a lot less for two-wheelers. Though three-wheelers and tractors have low barriers to entry in terms of technology, four wheelers is technology intensive. Costs involved in branding, distribution network and spare parts availability increase entry barriers. With the Indian market moving towards complying with global standards, capital expenditure will rise to take into account future safety regulations. 

Automobile majors increase...
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