Automotive

The Indian automobile industry has played a stellar role in research & development , the seventh largest in the world and is currently estimated to have a turnover of US$ 73 billion, accounts for 6% of its GDP and is expected to record a turnover of US$ 145 billion by 2016.

India's automobile industry is providing employment to 25 million people and is expected to grow by 11 to13% in the fiscal year ending March 2012 and the industrial production increased at a CAGR of 20%.

The Indian automobile industry has witnessed diversification from being a closed market to automatic approval of 100% foreign equity and with the delicensing of this sector in the year 1993 the global major Original Equipment Manufacturers (OEMs) have set up production facilities in India.

Government of India is planning to develop two Automotive Manufacturing Hubs with total area capacity of 10000 acres of land in central and east India to consolidate the Low cost Automotive Production in the country.

Automotive industry will drive ist growth on based of distinctive engineering and design to create products that respond to customers desires and in an unprecedentedly competitive marketplace and a recalibration of this industry in the value chain is in motion.

Automotive components companies are investing and contributing to the value chain in India but there is a crucial need for automotive sector to apply for new sourcing strategies, optimize infrastructure and achieve tangible cost savings.

R&D involves constant revitalisation of knowledge and undoubtedly, companies which persistently invest in R&D have outperformed others in Automotive industry.

The pace of technology is accelerating, specialization in newer technologies are rapidly becoming critical, companies therefore need to focus heavily on R&D and it is a crucial factor in determining the competitiveness of companies in the marketplace, nationally and internationally.

Indian luxury car market is growing at an annual rate of 70% and is expected to cross 20,000 units by the end of 2011 in terms of sales and the Luxury car makers are keen on Indian markets as the sales are expected to touch 150,000 units by 2020. The concerned majors are looking at Tier-II cities for new dealerships along with opening second or third outlet in top 10 metros in the country and India is poised to become the third largest car market by 2020 after US and China.