Four Wheeler Industry in India
ABSTRACT
The Indian automobile industry is currently experiencing an unprecedented boom in demand for all types of vehicles. This boom has been triggered primarily by two factors: * Increase in disposable incomes and standards of living of middle class Indian families estimated to be as many as four million in number; and * The Indian government's liberalization measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and banking liberalization that has fueled financing-driven purchases.
Industry observers predict that passenger vehicle sales will triple in five years to about 6 million, and as the market grows and customer's purchasing abilities rise, there will be greater demand for higher-end models which currently constitute only a tiny fraction of the market. These trends have encouraged many multinational automakers from Japan, U. S. A., and Europe to enter the Indian market mainly through joint ventures with Indian firms.
This paper presents an introduction to the automotive scenario in India, the key players in the Indian automotive industry, a summary of the recent developments, an analysis of the opportunities and challenges facing the various players (Indian and multi-national assemblers and manufacturers) in the areas of, production, and sales, domestic consumption, exports and contribution to labor employment. It also aims to elucidate the challenges and threats faced by the automobile industry to India and thereby suggest the key areas of improvement and analyze the future of the Industry in India.
Further it attempts to draw correlations between the domestic consumption of cars and domestic consumption of steel, aluminum, automobile tyres. Correlation between domestic consumption of cars and price of petrol and diesel is also drawn. There is correlation between domestic consumption of cars and length of roads as well.
NO. | CONTENTS | PAGE NO. | 1 | INTRODUCTION | 6 | 2 | LITERATURE
The Indian automobile industry is currently experiencing an unprecedented boom in demand for all types of vehicles. This boom has been triggered primarily by two factors: * Increase in disposable incomes and standards of living of middle class Indian families estimated to be as many as four million in number; and * The Indian government's liberalization measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and banking liberalization that has fueled financing-driven purchases.
Industry observers predict that passenger vehicle sales will triple in five years to about 6 million, and as the market grows and customer's purchasing abilities rise, there will be greater demand for higher-end models which currently constitute only a tiny fraction of the market. These trends have encouraged many multinational automakers from Japan, U. S. A., and Europe to enter the Indian market mainly through joint ventures with Indian firms.
This paper presents an introduction to the automotive scenario in India, the key players in the Indian automotive industry, a summary of the recent developments, an analysis of the opportunities and challenges facing the various players (Indian and multi-national assemblers and manufacturers) in the areas of, production, and sales, domestic consumption, exports and contribution to labor employment. It also aims to elucidate the challenges and threats faced by the automobile industry to India and thereby suggest the key areas of improvement and analyze the future of the Industry in India.
Further it attempts to draw correlations between the domestic consumption of cars and domestic consumption of steel, aluminum, automobile tyres. Correlation between domestic consumption of cars and price of petrol and diesel is also drawn. There is correlation between domestic consumption of cars and length of roads as well.
NO. | CONTENTS | PAGE NO. | 1 | INTRODUCTION | 6 | 2 | LITERATURE