AUTOMOTIVE
THE INDIAN AUTOMOTIVE INDUSTRY
EVOLVING DYNAMICS
Table of contents
· Executive summery
· Introduction
· Indian auto sector-medium term
1. Growth
2. Consolidation
·
· Indian auto sector-long term
1. Green revolution
2. Mobility revolution
· Conclusion
Executive summery
demographically and economically,india’s automotive industry is well-positioned for growth, servicing both domestic demand and increasingly export opportunities’ predicated increase in India’s working-age population is likely to help simulate the burgeoning market for private vechiles.rising prosperity easier access to finance and increasing affordability expected to see four-wheelers gaining volumes, although two wheelers will remain the primary choice for the majority of purchaces,buoyed by greater appetite rural areas the youth market and women
domestically some consolidation or alliances might be expected driven by the need for access to better technology ,manufacturing facilities service and distribution networks. the components sector is in a strong position to cash- in on India’s cost-effectiveness ,profitability and globally – recognized engineering capabilities .as the benefits of collaborations become more apparent , super-specialists may emerge in which the automobile is treated as a system ,with each specialist focusing on a sub – system ,akin to the it industry .though this approach is radical, it standardization and meeting customer demands .
manufactures are already planning for the future :early advocates of technological and distribution alliances have yielded generally positive result,enablitg domestic oems to access global technology an experience , and permitting them to grow their ranges with fewer financial risks .
Introduction
India is home to a vibrant automobile of more than 40 million vehicles. it has been one of the few worldwide which saw growing passenger car sales during the recession of the past two years .in fact ,in 2009 -10 it has recorded its highest volume ever . it is believed this upward trend will be sustained in the foreseeable future due to a strong domestic market and increased thrust on export.
the Indian economy has growth at an average rate of around 9 percent over the past five years and is expected to continue this growth in medium term. this is predicted to drive an increase in the percentage of the Indian population able to afford vehicles. Indian’s car per capita ratio is currently among the lowest in the world’s top 10 auto markets
the twin phenomena of low car penetration and rising incomes, when combined with increasing affordability of cars, are expected to contribute to an increase in India’s automobile demand.
Indian auto sector-medium term
the Indian automotive industry has seen interesting dynamics in recent times with the effect of the global downturn, followed by recovery in domestic demand. the future of the industry in the medium term based on current trends, in analyzed here along to browed terms in the global automobile industry.
· growth
· consolidation
·
growth
India’s automobile market has grown sterility over the last seven to eight years, with the exception of the previous two years where the effects global downturn were Left,Primarly insole of commercial Vechiles.However even during the downturn, the two wheeler and three wheeler segments which where until then experiencing low growth or losing volumes bucked the trend
Affordability
while quite a few new vehicles launched in the Indian market have been developed locally vehicle affordability remains a significant concern as a seen in figure 6. although the price of an average motorcycle in lndia (about usd900) in comparable to the average percapita income, the price of passenger cars have a long way to go. although the entry level car(nano) is priced at around usd2500 the passenger car market could grow multi-fold if there is a breakthrough of another price level in the years to come.
fuel economy
the volume leaders across two wheelers and four wheelers and four wheelers in India are companies which have been able to offer products with the globally acknowledge best in class fuel economy rates, as well as affordable total cost ownership.
Alternative fuels
vehicle based on alternative fuels remain another area of interest for both companies and consumers. although both commercial vehicle and passenger vehicle on cng are gaining popularity among transport service providers and consumers due to their lower cost of operation. much more needs to be done to improve the fuelling infrastructure before cng vehicle before mainstream. this report explores this theme in detail in the section on green revolution.
indian auto sector-long term
the nature of long term state of the Indian automobile industry appears fluid, given that globally evolving phenomena such as the rise of greener, hybrid vehicles are yet to take off in India. however, the Indian automotive industry has scripted a different story in the development of greener vehicle with the rise of cng as a popular option among consumers. in this contest we discuss the following trends
Ø green revolution
green revolution
in july2010, TOYOTA announced the sale of its200, 000th prius in Europe as well as the tenth anniversary of its launch of the prius .it expected that Toyota will sell 2 million prius cars worldwide soon. the milestone is all the more remarkable given that Toyota sold its 100,000th prius in Europe only about two years ago ,under scoring the growing importance of electric vehicle in the green sector.
many manufactures and models despite being relative latecomers to the green sector, have tried their best to catch up with Toyota and Honda. not everyone has taken the plug-in hybrid route. even niche manufactures such as California –based tesla
Conclusion
indias automobile industry is poised at the start of an excising phase of growth, not all of which may derive from ma unfaltering conventional fuel-based vehicles. in order to capitalize on the emerging scenarios in the future, the following are a few key action points for each of the industry’s key stakeholders:
policy makers
India has as no duty benefits for even hybrid cars, which need to be imported due to low volumes.
while global companies are pursuing innovations in third and fourth generation befouls, India is yet to decide on a purchase price for the fuel.
demand for nascent technologies and fuel efficient cars needs to be encouraged by offering consumers incentives to adopt these products, such as an expansion of the policy of little or no duty being payable on electric vehicle parts
increases dialogue with manufactures and oilm marketing companies to establish a better infrastructure for greener vehicles.
the government should stimulate debate on how the public and private sectors can collaborate on the establishment of urban mass mobility.
industry participants
The market for greener vehicles opens up a whole new world of possibilities for Indian companies, even outside the automobile sector, to make a global foray.
a great focus on export opportunities could tap into a worldwide market hungry for green technology, which India can provide cost-effectively and to global standards.
Collaboration is likely to be the theme for the next decade as new markets and products are created by companies forging previously unimagined partnership.
Manufactures should from a greater consensus than exists at present on the most appropriate focus for emerging green technologies………
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