Case Study Of The Indian Automobile Industry

1548 Words4 Pages
bulb-icon

Recommended: Economic effects of the automobile

The Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent of the country's Gross Domestic Product (GDP). The Two Wheelers segment with 81 per cent market share is the leader of the Indian Automobile market owing to a growing middle class and a young population. Moreover, the growing interest of the companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has 13 per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In April-January 2016, exports of Commercial Vehicles registered a growth of 18.36 per cent over April-January 2015. In addition, several initiatives by the Government of India and the major …show more content…

The company has doubled its India assembly capacity to 20,000 units per annum.
• Germany-based luxury car maker Bayerische MotorenWerke AG’s (BMW) local unit has announced to procure components from seven India-based auto parts makers.
• Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent shares in France-based Peugeot Motorcycles (PMTC).
Government Initiatives
The Government of India encourages foreign investment in the automobile sector and allows 100 per cent FDI under the automatic route.
Some of the major initiatives taken by the Government of India are:
• Mr. Nitin Gadkari, Minister of Road Transport, Highways & Shipping has announced plans to set up a separate independent Department for Transport, comprising of experts from the automobile sector to resolve issues such as those related to fuel technology, motor body specifications and fuel emissions, apart from exports.
• Government of India aims to make automobiles manufacturing the main driver of ‘Make in India’ initiative, as it expects passenger vehicles market to triple to 9.4 million units by 2026, as highlighted in the Auto Mission Plan (AMP)

Show More
Related

  • Outlook for the Automotive Industry

    1383 Words  | 3 Pages

    Picciotto, Dan and Nishit K Madlani. "The Global Auto Industry Shifts Its Focus To OVerseas And Emerging Markets." Credit Week (2013): 26. Online. 21 May 2014. .

    Read More

  • American Hypocrisy In The 50's

    838 Words  | 2 Pages

    The 50s were a period of unprecedented social and political conformity, marked by fear of the Soviet Union due to the Cold War. Americans avoided dissent due t fear of being labeled a “communist”, a label which could end careers and tear apart families. It is thus surprising, at first glance, that an era of mass protests rose from a period of such conformity. America in the 1950s was in a sustained economic boom, and the American Dream seemed accessible to everyone. In truth, this fact largely contributed to civil rights momentum. However, the seeds for change in America were planted a decade prior, after World War Two, when thousands upon thousands of African American soldiers returned

    Read More

  • Case Study Of General Motors

    741 Words  | 2 Pages

    General Motors has made great progress towards diversity however, it took the lawsuit in order for the company to do so. Adding females and minority to the upper management. Had the HR department of General Motors followed the EEOC regulations, this lawsuit could have been avoided.

    Read More

  • The U.S. Automobile Industry

    2538 Words  | 6 Pages

    The United States recession (which lead to a world recession), began in 1997 and significantly impacted the United States automobile industry during the recession period. The United States automobile industry is still reeling from the effects of the recession throughout the period of economic recovery that continues today. According to Chu and Su, “In this credit-driven recession, one of the hardest hit sectors was the automotive industry, along with the housing and financial markets. Chrysler and General Motors were pushed into bankruptcy; and 276,000 jobs in the automobile and parts industry were destroyed, a whopping 36 percent of the total employment in the sector”.

    Read More

  • The Automobile Industry: Growth Trends In The Automobile Industry

    516 Words  | 2 Pages

    The automobile sector has been a robust sector that has experienced tremendous growth in the past seven to eight years. Apart from two years in particular -2008-09 & 2012-13, there is general trend of ten percent plus growth in various segments like passenger car, commercial vehicles, two and three wheelers. The following chart shows the growth rate of various years in each sectors.

    Read More

  • A Case Study On The Australian Automotive Industry

    1661 Words  | 4 Pages

    This report is a case study on the Australian Automotive Industry. It identifies and describes the five force analysis developed by Michael Porter, and applies this framework to the industry in order to analyse the impact of profitability. Economic analysis is conducted to help support the framework and explores a variety of concepts in order to determine the potential profitability in the industry and whether it is growing or declining. The key success factors that are considered in the report for the Australian Automotive Industry are economies of scale, flexibility to adopt new technology, ability to obtain finance and development of strong supplier relationships (IBISWorld, 2014). These factors are analysed to justify the potential profitability that the industry currently offers and how each force is impacted in relation to these key factors.

    Read More

  • Car Dealership Case Study

    1184 Words  | 3 Pages

    Was the salesperson interested in your wants and needs or were they more interested in selling a certain product? Did the salesperson explain the features and benefits of the product and how it meets your wants and needs? What was the benefit of purchasing the item from that particular salesperson/company compared to another? Would you recommend that salesperson to family or friends looking to buy a similar product? What did they do right and what would you have done differently to make it a better shopping experience for the customer?

    Read More

  • Automotive Industry Analysis

    794 Words  | 2 Pages

    The automotive industry is one of the most important sectors of the economy for every country in the world. It involves a large number of corporations and institutions engaged in the manufacturing process of motor vehicles including designing, developing, manufacturing, marketing, and selling. It contributes to the global economic growth by generating a significant return and creating a ripple effect on supporting the supply chain as well as providing job opportunities for the skilled workers (ACEA, 2016).

    Read More

  • Tata Motors Case Study

    1712 Words  | 4 Pages

    This essay will analyse Tata Motor Company and its motive for internationalization and include the background information on the company then it will go on to consider the definition of theories as well as applying them to the Company. The paper will focus on theories which are Dunning Eclectic paradigm; Learning Theories and Porter Diamond .Tata Motors Company is one of the largest automobile companies in India with a 42 billion organization. Further the product range of automobiles, information and technology is varied and covers almost all the segment of the car market as per the Tata Motors (2014).The research shows (Business Leadership Management (BLM), 2013) the motive for internationalization is due to its acquisition and its ease the

    Read More

  • Case Study Entry Into The Car Manufacturing Industry

    1091 Words  | 3 Pages

    Entry into the car manufacturing industry involves overcoming high barriers; car manufacturing is a highly capital-intensive market, thus forcing new entrants to acquire large sums of capital simply to enter. This capital goes into purchasing a manufacturing plant, sophisticated equipment, raw materials and supplies, and the development of extensive supply chains. Additionally, they must invest in research and development. In economic terms, this last item is deemed a sunk cost because the firm must undergo the research and development/engineering expense prior to even selling a vehicle. Other significant sunk costs come in the form of marketing campaigns. On the other hand, technological innovations through research and development allow for automotive firms to lower costs and achieve economies of scale. In addition to requiring large amounts of capital to enter the car manufacturing industry, entrants must comply to government regulations regarding environment and safety standards, including fuel efficiency. Customers are also often loyal to established brands, and therefore it is vital newcomers establish brand

    Read More

  • Auto Ford Motor Company Case Analysis

    911 Words  | 2 Pages

    The automobile industry is a pillar of global economy. Globally automotive contributes roughly 3 % of all GDP output. It historically has contributed 3.0 – 3.5 % to the overall GDP in the US. The share is even higher in the emerging markets, with the rates in china and India at 7 % and rising. China produces the highest number of automobiles followed by US and Japan (oica.net, 2015). The industry supports direct employment of 9 million people to build 60 million vehicles and parts that go into them (oica.net, 2015). Many other industries such as steel, iron, glass, aluminium, textiles etc. are associated with the automotive industry and resulting in more than 50 million jobs owed to the auto

    Read More

  • Automotive Industry Essay

    1929 Words  | 4 Pages

    All people around the world have made automobile as one of their most basic needs in their lives and automobile proves to be the most effective medium of transportation. In recent decades, either personal or public transportation have become more prevalent and more important for people to go to from one place to another which directly facilitate people to live in easy and convenient life. In addition, the fast development of the economy and the high obtaining power of its populace have made Malaysia the biggest traveler car market in South-East Asian Nations (Malaysian Industrial Development Authority, 2010). For that reason, the automotive industry has become one of the major industrial and economic

    Read More

  • Tata Motors: A Case Study Of Tata Motors

    774 Words  | 2 Pages

    Reduce the emission levels of vehicles in full compliance of the regulatory norms and proactively work with the Industry, Government , and other related industries and agencies to bring in international performance.

    Read More

  • Development of India's Economy

    906 Words  | 2 Pages

    The growth of U.S. investments in India has increased, but the country still remains a small destination for foreign U.S. investors. So, we know that U.S. views India as a growing nation compared to U.S. foreign investors so, the U.S. is considered a significant source of FDI in India. However, there are things that might increase the importance of India for U.S. firms looking for foreign investment opportunities. The multinationals firms in U.S. facing increased labor costs can invest in India due to its large, well-educated and English speaking workforce. India and U.S. share about their economic and trade issues and both are members of WTO, IMF and World Bank.

    Read More

  • I Want to Become a Mechanical Engineer

    718 Words  | 2 Pages

    My interest in the field of Automobile goes back to my early years in high school which is when I decided to pursue a career in engineering. As a child I was always fascinated by the very concept of automobile. Further, my father’s constant involvement in the automotive industry as an insurance claims assessor further enhanced my interests in automobiles. He was the one responsible for showing me the correct path to pursue my career in automobile field. Hence, after having completed my primary education, I decided to delve straight into the world of mechanics and engineering and pursued a diploma in mechanical engineering followed by a bachelor’s degree in mechanical engineering. Since there were very few options in India & there was no direct path to get into automobile field.

    Read More

More about Case Study Of The Indian Automobile Industry

Open Document