Automobile Industry, India Automobile Industry Essay

Following Indias growing openness, the arrival of new and existing models, easy availability of pay at relatively low tell of interest and price discounts offered by the dealers and manufacturers on the whole have stirred the demand for vehicles and a strong product of the Indian automobile persistence. The data obtained from ministry of commerce and industry, shows high harvest obtained since 2001- 02 in automobile production continuing in the first triple canton of the 2004-05. Annual branch was 16.0 per cent in April-December, 2004 the growth rate in 2003-04 was 15. 1 per cent The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent in the midst of 1992 and 1997. With investiture exceeding Rs. 50,000 crore, the turnover rate of the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector, the automotive industrys turnover, which was above Rs. 84,000 crore in 2002-03, is estimated to have excee ded Rs. 1,00,000 crore ( USD 22. 74 billion) in 2003-04.Automobile Dealers Network in India In terms of cable car dealer networks and authorized service stations, Maruti leads the pack with Dealer networks and workshops across the country. The separate leading automobile manufactures are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. Dealers offer varying kind of discount of finances who in tern pass it on to the customers in the form of reduced interest rates. major(ip) Manufacturers in Automobile Industry Maruti Udyog Ltd.General Motors India Ford India Ltd. Eicher Motors Bajaj Auto Daewoo Motors India gunslinger Motors Hindustan Motors Hyundai Motor India Ltd. Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Ltd Government has liberalized the norms for foreign investment and import of technology and that appears to have benefited the automobile sector. The production of total ve hicles change magnitude from 4. 2 million in 1998- 99 to 7. 3 million in 2003-04. It is likely that the production of such vehicles will exceed 10 million in the next couple of years.The industry has adopted the global standards and this was manifested in the increasing exports of the sector. After a temporary slump during 1998- 99 and 1999-00, such exports registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and- a-half multiplication the export type for 2001-02. Automobile Export Numbers Category1998-991998-99Passenger Car25468121478Multi Utility Vehicles26543892Commercial Vehicles1010819931Two Wheelers100002256765Three Wheelers2113851535Percentage Growth-16.632. 8 THE KEY FACTORS lavatory THIS UPSWING Sales incentives, introduction of new models as well as variants mate with easy availability of low cost finance with comfortable quittance options continued to drive demand and sales of automobiles during the first two canton of the true year. The risk of an increase in the interest rates, the impact of hold up monsoons on rural demand, and increase in the cost of inputs such as steel are the key concerns for the players in the industry.As the players continue to confront new models and variants, the competition may intensify further. The ability of the players to contain costs and focus on exports will be critical for the performance of their single companies. The auto component sector has also posted significant growth of 20 per cent in 2003-04, to achieve a sales turnover of Rs. 30,640 crore (US$ 6. 7 billion). Further, thither is a potential for higher growth collectable to step to the foresourcing activities by global automobiles giants.Today, this sector has emerged as another sunrise sector. as yet GROWTH Opposing the belief that the growth in automobile industry has catered only to the top income-stratum of society, Growth of exports of 32. 8 % in the first three quarters of 2004-05, the fast est growth in volumes has come from commercial vehicles as against passenger cars. Between 1998-99 and 2003-04, output of commercial vehicles has grown 2. 8 times compared to the 2. 2 times increase in passenger cars.Furthermore, two-wheeler output continues to overlook the volume statistics of the sector. In 2003-04, for every passenger car turned out by the sector, there were 7 two-wheelers produced. In the two wheeler segment, there is a greater preference for motorcycles followed by scooters, with both production and interior(prenominal) sales of motorcycles increasing at faster rates than for scooters in the current and previous years. However, mopeds have registered low or negative growth. Export growth rates have been high both for motorcycles and scooters.