Scribd
Upload
262 views

Automobile

The Indian automobile industry has experienced strong growth since the early 2000s due to factors such as the introduction of new models, availability of low-interest financing, and price discounts. Production of total vehicles increased from 4.2 million in 1998-99 to 7.3 million in 2003-04 and is projected to exceed 10 million in the next few years. Exports have also increased significantly, growing over 50% in 2002-03 and 2003-04. Within the industry, commercial vehicles and two-wheelers like motorcycles have seen faster growth than passenger cars. The auto components sector has also expanded substantially due to outsourcing by global automakers.

Uploaded by

kishorepatil8887
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
262 views

Automobile

The Indian automobile industry has experienced strong growth since the early 2000s due to factors such as the introduction of new models, availability of low-interest financing, and price discounts. Production of total vehicles increased from 4.2 million in 1998-99 to 7.3 million in 2003-04 and is projected to exceed 10 million in the next few years. Exports have also increased significantly, growing over 50% in 2002-03 and 2003-04. Within the industry, commercial vehicles and two-wheelers like motorcycles have seen faster growth than passenger cars. The auto components sector has also expanded substantially due to outsourcing by global automakers.

Uploaded by

kishorepatil8887
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Following India's growing openness, the arrival of Automobile Export Numbers

new and existing models, easy availability of


finance at relatively low rate of interest and price
discounts offered by the dealers and Category 1998- 2004-05 (Apr-
manufacturers all have stirred the demand for 99 Dec)
vehicles and a strong growth of the Indian Passenger Car 25468 121478
automobile industry.
Multi Utility
2654 3892
Vehicles
The data obtained from ministry of commerce and Commercial
industry, shows high growth obtained since 2001- 10108 19931
Vehicles
02 in automobile production continuing in the first
three quarters of the 2004-05. Annual growth was Two Wheelers 100002 256765
16.0 per cent in April-December, 2004; the Three Wheelers 21138 51535
growth rate in 2003-04 was 15.1 per cent The
automobile industry grew at a compound Percentage
-16.6 32.8
annual growth rate (CAGR) of 22 per cent Growth
between 1992 and 1997.

With investment exceeding Rs. 50,000 crore, the


turnover of the automobile industry exceeded
THE KEY FACTORS BEHIND THIS
Rs. 59,518 crore in 2002-03. Including turnover UPSWING
of the auto-component sector, the automotive
industry's turnover, which was above Rs. 84,000 Sales incentives, introduction of new models as
crore in 2002-03, is estimated to have exceeded well as variants coupled with easy availability of
Rs.1,00,000 crore ( USD 22. 74 billion) in 2003- low cost finance with comfortable repayment
04. options continued to drive demand and sales of
automobiles during the first two quarters of the
Automobile Dealers Network in India current year. The risk of an increase in the
interest rates, the impact of delayed monsoons on
rural demand, and increase in the costs of inputs
In terms of Car dealer networks and authorized
such as steel are the key concerns for the players
service stations, Maruti leads the pack with Dealer
in the industry.
networks and workshops across the country. The
other leading automobile manufactures are also
As the players continue to introduce new models
trying to cope up and are opening their service
and variants, the competition may intensify
stations and dealer workshops in all the metros
further. The ability of the players to contain costs
and major cities of the country. Dealers offer
and focus on exports will be critical for the
varying kind of discount of finances who in tern
performance of their respective companies.
pass it on to the customers in the form of reduced
interest rates.
The auto component sector has also posted
significant growth of 20 per cent in 2003-04, to
Major Manufacturers in Automobile achieve a sales turnover of Rs.30,640 crore (US$
Industry 6.7 billion). Further, there is a potential for higher
growth due to outsourcing activities by global
 Maruti Udyog Ltd. automobiles giants. Today, this sector has
 General Motors India emerged as another sunrise sector.
 Ford India Ltd.
 Eicher Motors
 Bajaj Auto
 Daewoo Motors India EVEN GROWTH
 Hero Motors
 Hindustan Motors Opposing the belief that the growth in automobile
 Hyundai Motor India Ltd. industry has catered only to the top income-
 Royal Enfield Motors stratum of society, Growth of exports of 32.8 % in
 Telco the first three quarters of 2004-05, the fastest
 TVS Motors growth in volumes has come from commercial
 DC Designs vehicles as against passenger cars.
 Swaraj Mazda Ltd
Between 1998-99 and 2003-04, output of
Government has liberalized the norms for commercial vehicles has grown 2.8 times
foreign investment and import of technology compared to the 2.2 times increase in passenger
and that appears to have benefited the cars. Furthermore, two-wheeler output continues
automobile sector. The production of total to dominate the volume statistics of the sector. In
vehicles increased from 4.2 million in 1998- 99 to 2003-04, for every passenger car turned out by
7.3 million in 2003-04. It is likely that the the sector, there were 7 two-wheelers produced.
production of such vehicles will exceed 10 In the two wheeler segment, there is a greater
million in the next couple of years. preference for motorcycles followed by scooters,
with both production and domestic sales of
The industry has adopted the global standards motorcycles increasing at faster rates than for
and this was manifested in the increasing exports scooters in the current and previous years.
of the sector. After a temporary slump during However, mopeds have registered low or negative
1998- 99 and 1999-00, such exports registered growth. Export growth rates have been high both
robust growth rates of well over 50 per cent in for motorcycles and scooters.
2002-03 and 2003-04 each to exceed two and- a-
half times the export figure for 2001-02.

You might also like