The Indian Automotive Sector Success Story -Low Cost Assembly in India and Other Aspects
The Indian automotive industry has emerged as one of the major driving forces of the country’s economy in recent times. It is one of the fastest growing passenger car markets in the world and also the second largest two wheeler manufacturer. The largest motor cycle manufacturer and fifth largest commercial vehicle manufacturer comes from India. There is an increasing demand for sports utility vehicle in India making it an export hub with immense potential. The growth in the Indian automotive industry has been significantly driven by tie-ups, mergers and JVs with top global automotive manufacturers. Apart from many other favorable factors, the facility for low cost assembly in India is also a reason for growing global interest in this market.
The Industry Has Grabbed Global Attention
However, there is still a long way to go before industry can achieve steady growth, despite the impressive numbers it has notched up in recent years. There are many challenges associated with these growth opportunities. In order to take advantage of these opportunities, the industry must have a detailed plan in place to acquire technologies and improve capabilities. Technology must either be developed or acquired to build vehicles that meet the future needs of the market. While low cost assembly in India is definitely one of its major strengths, there are many others factors which keep attracting top global brand manufacturers towards the country.
The government has a major role to play to ensure the current growth trends are maintained and gradually improved upon. It is evident that the government is keen to push for the development of greener vehicles. Major car manufacturers are now using technologies that can further improve compliance to global environmental standards.
Pulling Along Other Associated Sectors Too
This success story of the Indian automotive industry is being gradually repeated in other segments of the market. It is more evident in the commercial vehicles and motorcycles manufacturing sector. These segments have evolved dramatically from inertia to give tough competition to global majors. Consumers now have a glut of models to choose from. The advent of foreign players and the introduction of advanced technologies from these companies have definitely proved to be the trigger for change.
One of the huge positives emerging from the industry’s stunning growth story is that domestic manufacturers have adapted extremely well to working with foreign players and sophisticated technologies. They could have easily got overwhelmed, but to their credit, they have adjusted to the dramatically changing conditions splendidly.
Many other associated industries too are benefiting from the solid surge that the Indian automotive industry is currently experiencing. Spare parts manufacturers, tire companies and makers of automotive HVAC components in India are also doing extremely well thanks to the huge surge in demand for their products.
According to industry experts, the companies benefiting most from this highly-evolving landscape will be those who are willing to forge shrewd alliances with the right foreign partners and have the best resource-sharing agreements. The future in the Indian automotive industry belongs to those who are flexible enough to respond to the changing demands of the Indian and global customers.