Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Factors affecting automobile industry in india
Rise of indian automotive industry
Factors affecting automobile industry in india
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Factors affecting automobile industry in india
The automobile industry, and the auto components industry, is one of the core industries in India. A well developed transportation system its plays the important role in the development of an economy . Automobile is one of the largest industry in the global market. Automobile Sector occupies a special place in the fabric of Indian Economy. Automobile sector is leader in product domestic automobile industry is believed and manufacturing sector. It has been recognized as economic growth and the to be the barometer of the economy. Economies the automobile industry’s performance is the reflection the economy’s health. This sector has increased in the Indian economy. The auto sector accounts for 4 per cent of the total FDI Inflows (in terms
The automobile industry is one of the key drivers that boosts the economic growth of the country. Indian automobile sector has come a long way. Austria based motorcycle manufacturer KTM, the established makers of Harley Davidson from the US and Mahindra & Mahindra have set up manufacturing bases in India. Furthermore, according to internal projections by Mercedes Benz Cars, India is set to become Mercedes Benz’s fastest-growing market worldwide ahead of China, the US and Europe. As per the data published by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce, Government of India, the cumulative FDI inflows into the Indian automobile industry during April 2000 to October 2013 was noted to be US$ 9,079 million, which amounted to 4% of the total FDI inflows in terms of US $. The production of compact superbikes can take place in India. The country has the production of base 16 million two-wheelers and the several global as well as Indian bike makers are looking forward to use it as an advantage to roll out sports bikes in the 250 cc
Accordingly, two-wheeler service sector should have generated revenue amounting to INR 100,000 million per year, but in reality, this has not been realised in the organised in service sector.
Biswajit Mahanty and Virupaxi Bagodi (2008) It is an era of customer delight for the two wheeler industry and the conventional measures implemented by the service organizations tend to be inadequate to attract customers
In many ways, the automotive industry has huge impacts on Canada. The impact it has creates jobs, and services. It also boosts economy and contributes to its success. Over the last two decades, the automotive industry has been a leading contributor to Canada’s economy and is a primary factor as to whether or not the economy will be successful. There are many contributing branches of the sector that allow it to be successful. This is shown through the production and manufacturing of vehicles, as well as the sale of the vehicles. The automotive industry has had a significant impact on Canada’s economy over the last 10 years. If the production and sale of domestic vehicles were to decline, Canada’s economy to be severely crippled and fall back into a recession.
In a capitalistic country with a free market, foreign competition is expected. This is no exception for the automobile industry where America competes with its various rivals. Competition from elsewhere encompasses that from Italy, Germany, and of course, the renowned Japan. The Japanese vehicle industry is especially competitive; according to the Automotive News Data Center, five out of the ten best selling vehicles of the year are Japanese vehicles. This data applies to the U.S. market over the first 9 months of the year. Expectedly, the automobile industry is an important and significant market. Motor vehicles are a major form of transportation as many people in the U.S. own at least one car.
Despite its image as a quintessential American company, Harley-Davidson (HD) has been an international company since shortly after its founding in 1903. In 1912, HD began exporting to Japan; eight years later in 1920, it was the world’s largest motorcycle manufacturer with 2000 dealers in 67 countries (Gardiner, 2014). Beginning with their dealings in Japan HD has had to navigate the hurdles associated with international trade, including having a major export market (Japan) on the opposite side of a war. With HD looking to expand in foreign markets as a growth strategy, it encounters additional obstacles to market entry in each country.
This paper will focus on the future of the U.S. Automobile industry as the United States recovers from the worst recession we have experienced in the past 75 years. I will provide information on the following topics pertaining to the U.S. automobile industry:
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.
The automotive industry is without a doubt an industry that has massive implications relating to the United States economy as well as affecting every American household. Shifts in the supply and demand of automobiles influence the current and future household purchases. Households must determine what amount of their hard-earned income to allocate to certain necessities. Because most households have a budget, the amount spent on transportation it limited. While most industries have an effect on the economy, the automotive industry has far-reaching implications for most Americans. Not only are the workers affected but the many spin-off jobs created as well as the consumers that must purchase the automobiles manufactured.
As the economic integration of Europe continues, it is likely that increasing international competition will affect firms in European industries. As other countries expand and have more trade worldwide, the more the European economy will be affected. The economy will tend to buy from outside of Europe due to taste and lower prices. There would be more firms to choose from decreasing Economies of scale are significant because motor vehicle manufacturing is an industry based on growth. Since the automotive industry being discussed is in Italy, it is based primarily around one company, Fiat. The majority of sales of automobiles in Italy are acquired by Fiat. The automotive industry constitutes a substantial part in the European economy because this industry makes up 10 percent of total manufacturing output.
The rubber tire demand is good in India (Malik, 2016). The process of rubber and carbon prices are low in the country. The crucial factor related with the demands of tires is its dependency over the good agriculture, transportation facility and industrial performance. The development of infrastructure is increasing rapidly and there are many works to be done to develop basic infrastructure in many parts of country but as India is a huge country therefore the demand for the products are also high.
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).
The automotive sector is a key industry in the Malaysian economy. The economic contribution of this sector is immense, with significant linkages to the manufacturing and services sectors. The automotive sector began with importation of vehicles which then progressed to assembly operations and the establishment of a wide network of automotive components and parts manufacturers. (Malaysia Automotive Association, 2005)
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
The opportunity to grow in Asia and India is limitless. The land and labor are cheaper and could help with lowering the operations cost, which can only help the product cost, and their profit margin. Harley-Davidson has just opened a new facility in Thailand and are hoping that the production there will help offset the costs here in
India’s automobile industry is one of the key drivers that promote the economic growth of the country. Personal vehicle ownership in India is increasing at a fast pace as a result of rapid economic growth witnessed in the last two decades. The rise in disposable income (in both rural and urban sector), presence of a wide variety of options to choose from and availability of easy finance are the main drivers of automobile sales in India. The relative popularity of the various segments of vehicles based on their size, price and usage are also undergoing sea changes. Especially in a country like India where motorized and non-motorized informal transports are a major mode of travelling (along with public transport in bigger cities), a fast-paced shift towards private motorized transport is a substantial change. The post globalization period has witnessed the footprints of global automobile majors striding towards India to tap India’s highly potential vehicle market. With manufacturers fighting to capture the biggest slice of the pie in one of the fastest growing automotive markets in the world, the Indian consumer is being offered with extravagantly larger set of vehicles in
In fact, the per capita consumption of plastic products in India is growing and is moving towards 8% of GDP. The growth of the demand urges India to import plastic products to make up for the shortage in domestic. At the same time, automotive market and packaging industry are experiencing fast development. Packaging consumption is the largest consumption of plastic in India, counting for 24% of overall consumption. In 2009, there was about 2.6 million motor vehicles which were manufactured in India. It was estimated that automobile manufacturing in India could raise 7% in 2015. They need more supports from plastic industry. This has led to an increase in
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.