Automotive industry has been one of the incredible sources of income and revenue to many Indians and the government in general. Automakers in India are increasing their shares by adapting to new means of operation and cost leadership strategy frequently. The macro and micro environment for the Indian automotive industry has changed substantially over the last few decades. This has been possible due to matchless expansion of the industry in the new and emerging markets. Most of the automakers have noticed these rapid changes in the industry and many have invested cautiously in the markets.
India automotive industry is one of the largest and rapidly growing in the world. It is known to have reached more than 3.9 million units in 2011 and it has grown throughout the course of 2011 and 2012 by 16 to 18%. In 2009, India became the third largest exporter of passengers’ car in the world. India is the home to 40 million passenger vehicles and the number is likely to shoot up in the coming years. The India’s automotive industry is based on the southern cluster made up of Chennai with a 35% revenue share, the western hub covering 33% of the market and the northern cluster making up 32% of revenue share.
The success of the Indian automotive industry is attributed to introduction of new models and variants that easily boost sales especially when the demand is high when festive seasons are approaching. Both domestic and international automakers have planned launches in hope of sale revival. The Indian government has also planned to unveil the road map for development of the domestic electric and hybrid vehicles in the country. Most advanced designs are on the way thanks to the ever-advancing automotive technology.
Liberalization has made it easy for other foreign countries to easily invest in Indian automotive industry. Multinational automakers like Suzuki, Toyota of Japan and Hyundai of South Korea have all been allowed to invest in the competitive market. Maruti Suzuki is one of the brands that have been quite successful in India. This has over time led to an increase in foreign revenue and increase in income due to easy to access employment.
Unfortunately, due to economic impacts like the 2007-2008 recessions, automobile sales have also decrease. Sales of small numbers of vehicles to tertiary markets and countries surrounding china has reduced with time. Global economic crisis, have pushed brands such as Kia, Dodge, Chrysler, Mazda and Proton Holdings to shelve their plans to invest in Indian automotive industry. Emission mores has also impacted the India automobile industry greatly. Governments have worked hard day to day to reduce vehicular pollution.
Evidently, the Indian automakers have worked hard to make sure able to meet international standards on emission ethics. In order to be able to compete extensively with its competitors, India’ automotive industry has worked hard to how to easily satisfy its wide clientele interests and still be able to conserve the environment. Indian automakers are not going anywhere soon. The ever-changing trends in the automotive industry present old and new opportunities for all those interested investors to partake.
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