With the contribution of 22% to the country's production GDP, the car industry has emerged as one among India's major areas. India has become a hub for many global players. Currently American indian automobile sector comprises of 15 manufacturers of passenger cars and multi-utility cars, 9 manufacturers of commercial cars, 16 producers of two / three wheelers, 13 manufacturers of tractors, a few manufacturers of engines. The Indian auto industry, including passenger cars, two wheelers and commercial vehicles is the 7th largest on the globe with a production of 17. five million automobiles, of which installment payments on your 3 mil are exported. Two-wheelers rule the American indian market; more than 75% of vehicles distributed are two-wheelers. In 2009-10, Indian traveler car market was are actually markets worldwide that evaded the recessionary trend and it has been witnessing steady development over the past number of years. The industry's growth is definitely driven simply by various factors such as the economic growth of the region, rising non reusable income, relatively low car penetration and availability of financing options. The sector's potential has drawn various international OEMs to India and has also led many founded domestic and foreign car players to consider capacity expansion strategies. A large number of established overseas players in India, are also positioning themselves as essential contenders to offer low-cost car manufacturing capacities. However , the industry is usually struggling with numerous challenges including of rising commodity prices, labour costs, interest rates and increased competition. �
Based on the survey made by IBEF (Indian Brand Collateral Foundation) by simply 2020, India's share in global voyager vehicle marketplace will reach 8% that was 4% during 2010-11. The passenger vehicle sales is expected to enhance from several. 2 mil in FY2013to 9 mil in FY2020E. There are so many factors favouring this growth. Some of them are mentioned below.
Solid growth in demand due to increasing income, middle class, plus the young population is likely to catapult India among the world's five auto producers by 2015. Growth in export require is also going accelerate.
Fresh players in ultra-low-cost car segment
Advancement is likely to heighten among engine technology and alternative fuels.
Significant expense advantages; vehicle firms save 10 to 25 percent on procedure compared with The european union or Latina America Huge pool of skilled gentleman power and growing technology base.
Insurance plan Support
Government aims to develop India while global making as well as R& D link. There has been wide range of plan support in type of sops fees and FDI encouragement.
Growing Family cash flow
Favourable Duty Structure
Poor Public Transport System
Low Car Transmission
Exchange of Autos
Changing Life Style
The Automobile market is split up into four sections
The performance of every segment is given below
(Source: SIAM, Aranca Research)
In the graph it is usually evidently seen that creation of automobiles increased for a CAGR of doze. 2 % over FY05-13. Also it is very clear that traveler vehicles was your fastest growing segment, symbolizing a CAGR of 12-15. 4%.
A few focus to passenger car industry. Passenger vehicles are projected to grow 5-7 per cent in FY14. Voyager car part is predicted to increase 3-5 percent. SUVs happen to be projected to improve at 11-13 per cent. Of india luxury car market extended at a CAGR of 30 per cent, with twenty three, 000 devices in 2011 (about 1 % of traveling car industry in India). The market can be dominated by simply players such as BMW, Mercedes, Audi, and Jaguar. India has world's 12th most significant HNI (High Net-worth Individual) population, having a growth rate of twenty. 8 per cent (highest among top 12 countries), with expansion in education and realty areas, and...