Introduction:
During the early 60’s and 70’s are essentially two cars.
In scooters, you had a Lambretta or Vespa.
In motorcycles, you had a ball, or Java.
In cars, you had to choose between an Ambassador and a Fiat.
In trucks, it was Ashok Leyland and Tata is one.
In tractors, it was between one and Mahindra Swaraj.
This reflects the years, India yesterday. The economic reforms and deregulation have transformed the scene. The automotive industry has written a new story of inspiration. It is a story of several exciting, unprecedented growth and the consumer fun – all in a few years ago. India has already become one of the fastest growing automotive markets in the world. It is a tribute to the leaders and managers in industry and policy makers. The automotive industry has the opportunity to go on this remarkable achievement. He stands on the threshold of a quantum leap is possible.
The Indian automobile industry by technological change, in which each company is active in the development of processes and technologies to gain a competitive advantage and provide customers with optimal products and services. From the two-wheeler, trucks, tractors and utility vehicles multi utility vehicles and luxury vehicles, reached the Indian automobile industry has great power in recent years.
“The opportunity is to see in your face. It comes only once. If you fail, you can not again”
On the canvas of the Indian economy plays the automotive industry, a top-flight. With his deep attachment to the front and back, with several key segments of the economy, the automotive industry with a strong multiplier effect and is able to drive economic growth. A sound transportation system plays an important role in the rapid economic development and industry. The well-developed Indian automotive industry skillfully fills the role of catalyst in the production of a wide variety of vehicles: cars, light, medium and heavy commercial vehicles, multi-utility vehicles such as jeeps, scooters, motorcycles, mopeds, tricycles, tractors etc..
The automotive industry is one of the basic industries of the Indian economy, whose outlook is a reflection of the resilience of the economy. Continuous economic liberalization over the years by the Indian government to make India as one of the top business destinations of choice for many global automotive players led. The automotive sector in India to grow around 18 percent per year.
“The automotive industry is only one dimension, a driver for employment, investment and technology”
The Indian automotive industry started its journey in 1991 with the abolition of the licensing industry and after the opening of the 100 percent of foreign direct investment in automatic route calculation. Since then almost all the global majors have set up their facilities in India in the production of two million vehicles in 1991 to 9.7 million in 2006 (almost 7 percent of global automotive production and 2.4 percent of the production of four wheels).
The cumulative annual growth rate of production of the automotive industry for the year 2000-2001 to 2005-2006 by 17 percent. The cumulative annual growth rate of exports during the period 2000-01 to 2005-06 was 32.92 percent. Production should reach the automotive industry with a growth rate of over 20 percent in 2006-07 and around 15 percent in 2007-08. The export during the same period is expected to grow by over 20 percent.
The automotive industry has contributed its share of the brilliant economic performance of India in recent years. With the Indian middle class earning higher incomes per capita, more people are willing to have their own private vehicles, including cars and motorcycles. Transportation products and inhabited in the sale of small businesses and commercial vehicles for passengers and cargo stimulated.
In addition to vehicle sales of fresh growth, the auto parts industry has grown up. The domestic consumption of auto parts has Rs 9000 crore and an export share of the size of half that number exceeded.
Catchy FDI destination – INDIA!
India is on the crest of the wave of foreign direct investment. FDI flows to India from $ 6000000000 in 2004-05 to 19 billion U.S. dollars tripled in the years 2006-07 and is expected to quadruple to 25 billion U.S. dollars in 2007-08. In the AT Kearney FDI Confidence Index 2006, India is the second largest crowd attractive destination for foreign direct investment to China, the U.S. ranks third. It is generally accepted that soon catch up, India, China. This can also happen that China’s economy to cool and their protectionist measures, which tries to shade the attractiveness of the United East. With rising wages and high land prices in the eastern regions, China may lose its advantage as a production center at low cost. India seems to be the natural choice.
India stands at the door and a major manufacturer, especially electrical and electronic equipment, automobiles and auto parts. In the period 2000-2005, total FDI inflows, electrical and electronic equipment (including software) and cars accounted for 13.7 percent and 8.4 percent.
In the services sector are the main players in the United States, Singapore and the United Kingdom. In the period 2000-2005, total investment in these three countries about 40 percent of foreign direct investment accounted for in the service sector. In the automotive industry is the actor Japan. In the period 2000-2005, Japan accounted for about 41 percent of total foreign direct investment in the automotive, surpassed all its competitors far behind.
India huge domestic market and the large pool of skilled labor were technically magnetism to foreign investors. Previously known for knowledge-based industries, India is a rising power of the conventional manufacturing. The production index of industrial production grew at an annual rate of over 9 percent in the last three years.
Korean car manufacturer, that India is a better target than China. Although China is a larger car market, India offers the potential for higher growth. Obviously made manufacturing and services growth driven and growing consumer concerns India is one of the most important destinations for foreign direct investment.
Automotive Mission Plan 2016
managed the traffic bumper to bumper on the global car market biggies Gateway of India, the government has finally sit and take note. To drive increased investment in the sector, the Ministry of Heavy Industry has decided to make a mission plan from 10 years to develop India a global hub for the automotive industry.
“The ten-year plan of the mission is also the roadmap for tax incentives”
The government of India is to develop a plan for Automotive Mission 2016, to make India a global center of automotive goals. The idea is an innovative action plan with the full participation of concerned stakeholders and implemented in mission mode to meet the challenges of the future in the way of growth of the industry’s needs. With this plan, Automotive Mission, the Government is also expected level playing field for the industry and a direction for future growth, so that producers in order to make an informed investment decision.
» Read more: Automobile Sector – The Indian Scenario!
