Indian automotive production including vehicle and part manufacturing found its progressive growth since the fiscal liberalization in the mid-1990's. Export based business in this sector is expected to reach the value of $30 billion by 2020. In fact, India is forecasted to continue developing to emerge as the third biggest exporter in this field by 2030.
These are the factors that have prompted rapid development in the Indian automotive sector:
- Increased disposable income
- Graduation from two-wheelers to four-wheelers
- Road and infrastructure improvement
- Easier finance systems
- Enabled organizational environment
- Availability of many choices and promotions offers throughout the year
Currently, India is the seventh biggest automotive manufacturer internationally. The local market for auto components in the country is worth around USD 45 billion. This development is largely due to the booming demand for commercial vehicles. With the advent of Western and East Asian OEM's as well as the altered inducement structures, the rate of sector development is expected to be maintained at a steady 11% per annum.
Indian automotive imports market
Around 40% of the income contributed to the Indian auto sector is gained from foreign investment and imports. To further develop this sector, players should begin local manufacturing of OEM engines and transmission systems, and get innovative with production processes and materials.
India is projected to be among the top 5 economies leading in the automotive components sector by 2025, progressing at a higher rate than China. Major Indian automotive components players aim to solidify deals in North America and Europe as they are rated as high opportunity areas, particularly for skill-intensive components.
India is viewed as being competitive in the manufacturing of:
- Wiring tackles
- Electronic fuel injectors
Why should you supply automotive components to India?
There are many reasons to supply car parts to India. It is clear that the rate of skilled work in the country is one of the least worldwide with an average yearly cost of around 8,000 USD for an entry-level engineer. As per record, India delivers more than 400,000 engineers annually. Plus, innovation is no longer new in the country with the advent of advanced new brands, such as, the TATA Nano and the REVA - India's first electric auto simply happened together with smart cars. This means that car assembly will grow rapidly.
To remain competitive Indians follow global automotive standards just like JISC and DIN.
Today’s automotive business in India
India has turned into a desirable auto destination with numerous foreign companies setting up their India offices and forming alliances with local organizations. Also, the Indian economy is now gaining balance in the realm of free trade and liberal developments of goods and services between nations.
In today's steadily evolving markets, however, it is important to undertake detailed market research about the country and industry for a successful venture. This is particularly critical given the common volatilities in business due to competition and persistently altering client preferences.