Automobile Industry, India Automobile Industry Essay Example for Free

Automobile industriousness, India Automobile Industry EssayFollowing Indias growing openness, the arrival of rude(a) and existing models, easy availability of finance at relatively low step of interest and charge discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong addition of the Indian gondola industry. The data obtained from ministry of commerce and industry, shows high growth obtained since 2001- 02 in automobile production continuing in the runner three quarters of the 2004-05. Annual growth 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 between 1992 and 1997. With investment reaching Rs. 50,000 crore, the dollar volume 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 exceeded Rs. 1,00,000 crore ( USD 22. 74 billion) in 2003-04.Automobile Dealers Network in India In terms of Car dealer networks and authorized service move, Maruti leads the pack with Dealer networks and workshops across the country. The other lead-in 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 Manufacturers in Automobile Industry Maruti Udyog Ltd.General Motors India Ford India Ltd. Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd. Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Ltd Government has liberalized the norms for contrasted investment and import of technology and that appears to have benefited the automobile sector. T he production of total vehicles increased from 4. 2 cardinal 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 change magnitude exports of the sector. After a temporary slump during 1998- 99 and 1999-00, such exports registered robust growth rates of substantially over 50 per cent in 2002-03 and 2003-04 each to exceed two and- a-half times the export ikon for 2001-02. Automobile export Numbers Category1998-991998-99Passenger Car25468121478Multi Utility Vehicles26543892Commercial Vehicles1010819931Two Wheelers100002256765Three Wheelers2113851535Percentage Growth-16.632. 8 THE KEY FACTORS BEHIND THIS UPSWING Sales incentives, introduction of refreshing models as well as variants coupled with easy availability of low cost finance with promiscuous repayment options continued to drive demand and sales of automobiles during the first two quarters of the current year. The essay of an increase in the interest rates, the impact of delayed 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 introduce modern 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 respective 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, on that point is a potential for higher growth due to outsourcing activities by global automobiles giants.Today, this sector has emerged as another break of day sector. EVEN GROWTH Opposing the belief that the growth in automobile industry has catered only to the gain in screw-stratum of society, Growth of exports of 32. 8 % in the first t hree quarters of 2004-05, the fastest growth in volumes has come from commercial vehicles as against rider 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 dominate 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 domestic 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.