Preview

Fdi in Automobile

Satisfactory Essays
Open Document
Open Document
836 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Fdi in Automobile
Foreign direct investment (FDI) is a direct investment into production or bus iness in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds.
Foreign direct investment has many forms. Broadly, foreign direct investment includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intracompany loans".[1] In a narrow sense, foreign direct investment refers just to building new facilities.
FDI Inflows to Automobile Industry have been at an increasing rate as India has witnessed a major economic liberalization over the years in terms of various industries. The automobile sector in India is growing by 18 percent per year.

-------------------------------------------------
The Automobile Sector in India-

The automobile sector in the Indian industry is one of the high performing sectors of the Indian economy. This has contributed largely in making India a prime destination for many international players in the automobile industry who wish to set up their businesses in India.

The automobile industry in India is growing by 18 percent per year. The automobile sector in India was opened up to foreign investments in the year 1991. 100% Foreign Direct Investment (FDI) is allowed in the automobile industry in India. The production level of the automobile sector has increased from 2 million in 1991 to 9.7 million in 2006 after the participation of global players in the sector.

FDI IN AUTOMOBILE
• The automobile industry in India is growing by 18 percent per year. The automobile sector in India was opened up to foreign investments in the year 1991.
• 100% Foreign Direct Investment (FDI) is allowed in the automobile industry in India.
• The

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Foreign Direct Investment. Imagine you are in charge of development for a developing country and were approached by a multinational corporation interested in locating in your country.…

    • 436 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The liberalization policies in 1991 opened up India to new import and export possibilities. To encourage investments, the government launched series of new policies in 1990s to help growing their economics. For vehicle industry, there was total population of 1.1 billion people in India which is an obvious potential opportunity for auto makers.…

    • 791 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Since liberalization, the Indian automotive industry has emerged as a ‘sunrise sector’. The automotive sector has shown a tremendous potential for growth in the past few years. This industry is actually passing through a defining phase. Due to motorization, increase in need of mobility and availability of competitive automotive manufacturing location on the global map, India is emerging as a growing market for passenger cars.…

    • 23189 Words
    • 93 Pages
    Good Essays
  • Powerful Essays

    Macroeconomic and Auto Sector Overview The economy of India is the tenth-largest in the world by nominal GDP and the third-largest by purchasing power parity (PPP). Its GDP is expected to grow at an average rate of 6% over the next 5 years. This combined with the fact that India has a bellowing working population, indicates that India’s automotive sector is well-positioned for growth servicing both domestic demand and, increasingly, export opportunities. Rising prosperity, easier access to finance and increasing affordability will also propel four-wheelers sale volumes. India’s passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units in 2011. In 2009, India also emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. With a Rs 12,000 crore capacity expansion in 2013 by major Auto players on developing new products and diesel engine manufacturing facilities, India is all set to become a global automobile super power. The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster…

    • 2858 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    The future communicator

    • 8977 Words
    • 36 Pages

    automaker by 2018. With a growth of 30% in the Indian automobile industry, India was to play an important role in…

    • 8977 Words
    • 36 Pages
    Powerful Essays
  • Satisfactory Essays

    hjiuh

    • 415 Words
    • 2 Pages

    The automobile industry is one of India’s major sectors; accounting for 22% of the country’s manufacturing GDP.…

    • 415 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Indian Automobile Industry: India currently has approximately 40 million vehicles. . In February 2009, monthly sales of passenger cars in India exceeded 100,000 units. Current low penetration, rising prosperity and the increasing affordability of private vehicles along with importance to exports offer a healthy prospectus for the Indian automobile industry. (Source: http://www.kpmg.de/docs/Auto_survey.pdf)…

    • 4852 Words
    • 20 Pages
    Best Essays
  • Powerful Essays

    Indian automobile industry currently contributes 5% to India’s current GDP of $1.4 trillion. The projected size in 2016 of the Indian automotive industry varies between $ 122 billion and $ 159 billion including USD 35 billion in exports. This translates into a contribution of 10% to 11% towards India’s GDP by 2016, which is more than double the current contribution. We can safely assume the passenger car market as a whole grows in the same phase if not more than mentioned above. Passenger cars have sub classifications with in them and they are as follows:…

    • 2565 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    years in the view of a reasonable surge in demand. The Indian automobile market is gearing towards international standards to meet the needs of the global automobile giants and become a global hub.…

    • 3291 Words
    • 14 Pages
    Powerful Essays
  • Satisfactory Essays

    Automobiles are categorized as luxury goods in India and the auto sector can be said to be cyclical. Thus, the auto sector, in a way, represents the economic condition of the country.…

    • 263 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The overall automobile exports grew by 2.03 per cent during April-August 2013. Furthermore, the production of passenger vehicles in India was recorded at 3.23 million in 2012-13 and is expected to grow at a compound annual growth rate (CAGR) of 13 per cent during 2012-2021, as per data published by Automotive Component Manufacturers' Association of India (ACMA).…

    • 2700 Words
    • 11 Pages
    Good Essays
  • Good Essays

    Renault Story in India

    • 690 Words
    • 3 Pages

    Since 2012 the Indian automobile industry is going through a tumultuous period. Worsening macro-economic conditions within the country, high interest rates and rising input costs are fast eroding the profitability of most of the car manufactures. Despite price cuts and other incentives, car sales in India remained sluggish. Analysts are pointing to a second straight year of declining sales in what was one of the world’s fastest growing auto markets.…

    • 690 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Automobile Industry in India

    • 2460 Words
    • 10 Pages

    The automotive industry in India is one of the larger markets in the world and had previously been one of the fastest growing globally, but is now seeing flat or negative growth rates. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units in 2011. According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil), grew 16 to 18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second (after China) fastest growing automobile market in the world in that year. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015. The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster consisting of Chennai is the biggest with 35% of the revenue share. The western hub near Mumbai and Pune contributes to 33% of the market and the northern cluster around the National Capital Region contributes 32%.…

    • 2460 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Bala

    • 493 Words
    • 2 Pages

    The automobile industry in India, the tenth largest in the world with an annual production of approximately 2 million units, is expected to become one of the major global automotive industries in the coming years. A number of domestic companies produce automobiles in India and the growing presence of multinational investment, too, has led to an increase in overall growth. Following the economic reforms of 1991 the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions…

    • 493 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The report of (FICCI-2007) specified the overview of automotive industry of India and explained the added advantages of automobile industry in India. According to this article India has high potential of automobile industry, which contributes 4%GDP in Indian economy. Indian automobile industry offers different types of automobiles such as cars, scooters, bikes, busses, trucks, jeeps, tractors and all types of two wheelers, three wheelers as well as four wheelers.…

    • 652 Words
    • 2 Pages
    Satisfactory Essays