Automobile Industry Essay

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India is one of the world’s largest automobile industries; it’s in fact the second fastest growing automobile market in the world after China. India is now focusing in the production of small cars, in which they are building a reputation in designing and manufacturing ultra low cost cars. It is important to highlight that international business such as Hyundai and Nissan have invested in plants in Chennai, India. These two businesses are showing how efficient their production and logistics functions can improve their business’s competitive position by lowering the costs. Lowering costs is the main reason why these two firms have invested in India. The same has happened to many other industries in other areas not just the automotive, there are many reasons why India is so attractive to foreign industries, which it will be explained later in this text. The automobile industry in India has turned out to be a very lucrative market for foreign firms. This industry has witnessed impressive growth in the past two decades; it has modernized itself; it has come up with newer technology, as well as aligning itself to global developments. The automotive industry has significantly contributed to the overall industrial growth in India. It has also been generating employment opportunities to many people in India and abroad. There’s also brilliant engineering talent, as well as the language strength of English, and of course the low overall cost. All these resources that India has, makes them more and more attractive not only to the all foreign auto manufacturers, but other industries in general such as Microsoft who had four good reasons to invest in India. One of those reasons is that India has an excellent higher education system that graduat... ... middle of paper ... ...e Indian automotive market is one of the most competitive markets with ultra low costs in the world, which makes it an attractive place for foreign automotive manufacturers. India is now being used as a global automobile hub to produce and to sell in India and to the global market. Automobile manufacturers which are considered rivals have chosen Chennai India as their hub for the following reasons; India has an excellent higher education system, competition makes these companies more efficient and innovative, clear policies on FDI. There are also barriers that limit the potential growth of industries. Such as the lack of adequate infrastructure, the roads and ports are lacking, congested roads with no parking available and electricity shortages. Foreign businesses need to have all this in mind when trying to invest in a country that seems to be very attractive.

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