Automobiles industry in India | Future,Trends & Statistics
India Automobile industry is experiencing the change stage. Political system, new rules and regulations, growing competition and rising customer desires will form the way auto manufacturers or providers do their business in India. The long prospect for the future standpoint stays positive for solid fundamental reasons, for example, high GDP development, sufficient financing accessibility, higher per capita GDP, diminishing unemployment, expanding dispensable incomes, great socioeconomics, and rising consumers desires. Currently India is the second fastest growing industry in the world after china. According to the estimation of Ernst and Young Indian Automobile industry will become the third largest in the world by 2020.
GOVERNMENT INITIATIVES
Make in India campaign is forming the shape of the future Indian Automobile industry. Despite of its amazing development rate, India has constantly fallen behind China as far as assembling potential because of the unpredictability of the Indian market and the insufficiency of past governments. To resolve this issue, Prime Minister Narendra Modi introduced 'Make in India' to enhance India's status as a worldwide manufacturing centre point. This incorporated the presentation of new government approaches that will help expand India's generation abilities and in this manner make new and various openings for job opportunities.
SWOT ANALYSIS
Strength
- Implementation of less complex tax structures, for example, GST.
- End of Life Policy' for vehicles that are old and prohibition on over-burdening - these are touchy issues and may not discover benefactors in the political club.
- Lack of development open doors for vehicle industry players have pulled in them to other sector.
Weakness
- Concerns about Transportation
- Shortage of integration with related assistance, like financing and insurance.
- Inappropriate interface to consult on Pricing with merchants.
- Unable to access accurate and finished product and estimating prices online.
- Unsuitable interface to negotiate on pricing with dealers.
Opportunities
- Make in India campaign is creating an ocean of opportunities in India.
- The automobile business has incredibly profit by these new changes as we see numerous remote organizations putting vigorously in India keeping in mind the end goal to set up enormous creation offices that are sufficiently huge to take into account Indian markets as well as to send out clusters to outside business sectors also.
Threats
- Monetary Threats come from unpredictability in business sectors and the insurance sector.
- Key dangers are identified with clients, contenders and investors.
- Operational dangers affect the procedures, frameworks, individuals and general esteem of a business.
CONCLUSION
Picking up from Government fiscal packages, more requests on lower financing costs on car credits the Indian vehicle industry saw an incredible development of 26.41 for each penny in the year 2009. Section wise automobiles posted a development of 25.10 percent and bikes deals developed by 26 percent. The year 2009 really ended up being extraordinary compared to other years in the historical backdrop of the car business in India. If the trend proceeds with a similar way then Indian will soon turn into the second quickest developing vehicle market in the world after china.