Automobile Sector in India Essay

The Automobile labor in India is one of the largest in the orbit and one of the fastest growing glob entirelyy. India manufactures over 17. 5 million fomites (including 2 wheeled and 4 wheeled) and exports about 2. 33 million invariablyy course. It is the mans second largest manufacturer of motorcycles, with annual sales exceeding 8. 5 million in 2009. Indias rider auto and commercial vehicle manufacturing effort is the seventh, with an annual production of more than 3. 7 million units in 2010.According to recent reports, India is pay back to overtake Brazil to become the sixth largest passenger vehicle producer in the adult male, growing 16-18 per cent to substitute around three million units in the course of 2011-12. In 2009, India emerged as Asias fourth largest exporter of passenger machines, behind Japan, South Korea, and Thailand. We be exclusively well awargon of the fact that, for decades the Indian gondola industry was government agency behind some of the m ore or less influential economies in the world wish USA and Japan. The Indian motor car industry, though in its nascent stage, is pass judgment to set the ball rolling in the Indian Economy as well.Coming to the automotive tr wind ups, today, the Indian simple machine industry is one of the most vibrant, modern and upbeat locomote grocery stores in the world. It is withal the second largest two-wheeler securities industry in the global map. With the emergence of the financially sound middle class, the four-wheeled surgical incision is set for tremendous growing and one can expect of more impetus to the economy from this sector. No wonder then that this industry has become the centre of attraction for most of the global automotive giants the world over.The factors playing a key role in the Indian go industry bring downs are as follows Government Unlike in the past, the Indian Government has gone through a total role about-face by be advent the enabler rather than the controller. In the recent past it has started providing get out infrastructure and a conducive atmosphere to attract enthronements and implementing branch orient economic policies. Competition With the coming of the multinationals, an immense pressure has grown on the Indian companies.As a result, a lot of joint ventures gather in taken place, some others induce invested heavily on R&D to build their own empires and the rest let perished. Customer Armed with blue buying power and an ever accession expectation from products and services, the customer is undoubtedly the king and has propelled a fierce competition among the major players in the securities industry. defilement and Safety Norms cars as well as two-wheelers have met the most taut multinational norms of pollution. Euro II vehicles have become the norm of the day all over India.Unfortunately, in the Indian context, safety in motor vehicles is a relatively neglected area. Bad roads coupled with the absence of decent safety features in the vehicles such as airbag and crumple zone of necessity immediate attention. But awareness is on the augment and the use of lav belts while driving has been made mandatory. Bikes Keeping apace with the global trends the two-wheeler segment has witnessed tremendous teaching both qualitatively and quantitatively. Bikes with higher engine capacities have done commendably well on the Indian roads. Bike styling and fuel force has alike seen major developments.In short, the Indian automotive industry is set for exponential growth in the future. Consistent growth and dedication have made the Indian automobile industry the second- largest tractor and two-wheeler manufacturer in the world. It is besides the fifth-largest commercial vehicle manufacturer in the world. The Indian automobile market is among the largest in Asia. The key players like Hindustan gos, Maruti Udyog, Fiat India Private Ltd, Tata Motors, Bajaj Motors, Hero Motors, Ashok Leyland, Mahi ndra & Mahindra have been dominating the vehicle industry.A few of the inappropriate players like Toyota Kirloskar Motor Ltd. , Skoda India Private Ltd. , Honda Siel Cars India Ltd. have also entered the market and have catered to the customers needs to a large extent. Not only the Indian companies precisely also the international car manufacturing companies are guidance on compact cars to be delivered in the Indian market at a much smaller price. Moreover, the automobile companies are coming up with financial schemes such as faint EMI repayment systems to boost sales. There have been exhibitions like Auto-expo at Pragati Maidan, cutting Delhi to share the technological advancements.Besides, in that location are many bran-new projects coming up in the automobile industry leading to the growth of the sector. year All Vehicles (in 000) Two Wheelers (in 000) Cars, Jeeps and Taxis (in 000) Buses (in 000) Goods Vehicles (in 000) Other Vehicles (in 000) 200154,99138,5567,0586342,9 485,795 200258,92441,5817,6136352,9746,121 200367,00747,5198,5997213,4926,676 200472,71851,9229,4517683,7496,828 200580,04557,41710,4608224,0537,337 200688,06863,48711,5718794,3457,891 200796,80870,14112,8109364,6528,464 2008106,59177,58814,2221,0035,0189,065.Total Number of Vehicle Registrations in India from 2001 to 2008 Investment in Automobile Sector Nearly every automobile company is investing at a higher dictate than ever before to achieve a high growth trajectory. The overall investiture in the sector has been increasing quite rapidly. It is expected that by the end of 2010 Indian automobile sector will be investing a huge amount as Rs. 30,000 crores. Top ten players in the Indian automobile sector- The municipal players as well as the foreign players dominate the Indian automobile sector.The key players contributing to the growth of the sector are discussed below. The key players in Indian automobile industry are 1) Maruti Udyog Limited 2) Hero Motors Limited 3) Tata mee ting 4) Bajaj Auto Limited 5) Mahindra Group 6) Ashok Leyland 7) Yamaha Motor India 8) Hyundai Motors India Limited 9) Toyota Kirloskar Motor Private Limited 10) Honda Siel Cars India Limited return in the Sector At present the industry is enjoying a growth rate of 14-17% per annum, with domestic sales growth at 12. 8%. The growth rate is predicted to double by 2015.As it is seen, the total sales of passenger vehicles cars, utility vehicles and multi-utility vehicles in the year 2005 reached the mark of 1. 06 million. The current growth rate indicates that by 2012 India will overtake Germany and Japan in sales volumes. backing schemes have become an important factor in the growth of automobile sales. More and more financial schemes are coming up with effortless installment plans to lure the customers. Apart from domestic production, the industry is consistently focusing on the automobile exports. The auto component segment is contributing a lot in the export arena.The liberaliz ed policies of the government are now make the companies go for more and more exports. The automobile exports are increasing year by year. According to the Society of Indian Automobile Manufactures (SIAM) automobile exports in the last five years are as follows- Export trend over the last five years List of predictions for this year by looking at what the bygone year had given us. The Indian automobile industry is way out through a phase of rapid change and high growth. With new projects coming up on a unremitting basis, the industry is undergoing technological change.The major players are expanding their plants and focusing on bus customization, mass production, etc. Domestic Sales Volumes Will Rise but Growth Could Come Down The 2010 calendar year was great for the Indian automobile industry, and sales of vehicles are expected to continue upward tour in 2011. However, the industry may not be able to replicate the growth order registered in the last two years. In the protot ypical one-half of 2010, the industry witnessed a steep 32% average periodical sales growth, which came down to 25% in the latter half.In addition, the year-on-year growth in sales is expected to be higher during the latter half of 2011 as compared to the growth in the first half of the year. Along with the high base effect of 2010, the awaited firm up of interest rank could also bring about the reduction in growth rates this year. Exports to Increase in 2011 Almost 65% of total automobile exports from India are two-wheelers, and as a result, performance of this segment has a major act on overall auto export volumes. And after experiencing over 30% jump in exports in 2010, the industry is expected to register correspond growths in two-wheeler exports in 2011.Nonetheless, a competitive and aggressive approach from the real equipment manufacturers vehicle categories (commercial vehicles, passenger vehicles and two & three wheelers) would help bring an increase in overall export o f vehicles from the Indian market in 2011. Additionally, there are many companies that want to make India their export hub, thereby increasing the chances of increasing exports. respectable Economic Growth to Uplift Sales Healthy growth of the economy would drive the automobile sales in the domestic market.The chief growth drivers of the automobile industry in the Indian market would be stable economic environment, healthy IIP growth, favourable liquidity and approachability of finance. Other things that would positively affect the Indian automobile industry accommodate road meshing development activities, strong growth in social organization activities and the expected healthy performance of the industrial sector. When it comes to personal transport vehicles, increase in disposable income and a strong line up of approaching new launches is expected to boost demand and sales.The passenger vehicle industry (cars + utility vehicles) is expected to witness launch of as many as 30 new models/variants in 2011. Much in with 2010, 2011 will also see a lot of action in the small car segment. Sales of luxury cars is also going to grow at a fast pace. Sports utility vehicles (SUV), which have a relatively smaller market share in the Indian passenger vehicle market is also going to grow up tremendously as manufacturers have lie up 10 new model launches for the coming year.Indian car manufacturers are also doubling up their efforts to push their passenger vehicles into the untaught and semi-urban markets, which would greatly enhance sales. Profit margins to improve marginally The Indian automobile is expected to record growth in revenues supported by in the domestic as well as export market. Nevertheless, as the goodness prices are expected to remain constant, the pressure on margins would increase largely. Besides, the entrance of several other OEMs that have lined up elaborate investment plans is also going to benefit the industry in the domestic market.The new car launches that have been lined up for this year are going to increase expenditure on advertising and promotional activities. But that is no cause for the buyers as these companies are likely to transfer only a small part of the cost burden by increasing the car prices. Strategies that manufacturers are likely to adopt are 1 Commercial vehicles 2 tender model launches 3 Product innovation would take prime importance to cook new market segments 4 Launch new cars for the international market 5 on the loose(p) car finance options for potential customers 6 Competitive pricing Key victory Factors.The Key Success factors in the Motor Vehicle Manufacturing industry are Efficiency factor Improve labour productivity, labour flexibility, and capital cleverness Resource Availability Quality manpower availability, infrastructure improvements, and raw real(a) availability Effective cost controls Close relationship with supplies and goods distribution channels. origination of export markets Growth of export markets Having an extensive distribution/collection network Goods distribution channels.Successful industrial relations policy Ethical and tactical industrial relations Access to the latest available and most in effect(p) technology and techniques The degree of investment in technological improvements and product development Optimum capacity utilisation The level of plant utilisation charge of high quality assets portfolio Understanding implications from Government policies References- Wikipedia Rcnos. com Managementparadise. com www. carazoo. com siamindia. com automobileindia. com.