Automobile Industry and Auto Components, Automotive components, Spare parts, Auto Parts, Car Parts, Replacement Parts, Tractor Parts, Motorcycle Parts, Auto Body Parts, Two Wheeler, Three Wheeler and Four Wheeler Parts, Accessories & Spares
The automobile industry is one of the key drivers that boosts the economic growth of the country. The Indian automotive industry includes two-wheeler, trucks, cars, buses, three wheeler and four wheeler which play a crucial role in growth of the Indian economy. The country is expected to top the world in Car volumes with approx. 611 Million vehicles on the nation’s road by 2050. The economy progress of this industry is indicated by the amount of goods and services produced which give the capacity for transportation and boost the sale of vehicles. There is huge increase in automobile production with a catalyst effect by indirectly increasing the demand for a number of materials like Steel, Rubber, Plastics, Glass, Paint, Electronic and Services.
The Indian auto industry is one of the largest in the world. India’s automotive industry is one of the most competitive in the world. It does not cover 100 per cent of technology or components required to make a car but it is giving a good 97 per cent. The Indian automotive sector has the potential to generate up to US$ 300 billion in annual revenue by 2026, create 65 million additional jobs and contribute over 12 per cent to India’s Gross Domestic Product.
There are a wide range of jobs available in the automobile industry. With the number of vehicles available on the road today, the need and requirement for people who can fix these machines is fast increasing. Careers like automobile technician, car or bike mechanics are a great option. Becoming a diesel mechanic is also a significant alternative.
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 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.
· Passenger vehicle production to grow to 9.4 million units annually by 2026
· Commercial vehicles production to grow to 2.0 million units annually by 2026
· Two wheelers production to grow to 50.6 million units annually by 2026
· Three wheelers production to increase to 0.95 million units by 2026
· The availability of a variety of vehicle models meet diverse needs and preferences.
· Favourable government policies like lower excise duties, automotive mission plans, the constitution of NATRiP, National Mission for Electric Mobility 2020, FAME - Faster Adaption and Manufacturing of Hybrid land Electric Vehicle etc.
The Indian auto-components industry has experienced healthy growth over the last few years. This industry remains one the fastest growing segments in India’s manufacturing sector. As far as investments are concerned, the Government of India continues to encourage foreign investments in the sector. Some policy initiatives include automatic approval for foreign equity investment up to 100% for manufacture of automobiles and components, delicensing the industry and allowing free imports of auto components.
As indicated earlier, the auto component suppliers are emerging as systems suppliers with capacity to design and develop critical parts. The Indian automobile components industry has, no doubt, significant cost advantages, primarily due to lower labour cost (about one-fifteenth of Japanese cost). The large labour cost advantage translates into an overall cost advantage of 20-30% over the Japanese producers, despite lower labour productivity.
The improved quality of vehicles and extended warranties offered by the vehicle manufacturers has helped the existence of a huge secondary market in India. The Indian auto-components industry can be broadly classified into the organised and unorganised sectors. The organised sector caters to the Original Equipment Manufacturers (OEMs) and consists of high-value precision instruments while the unorganised sector comprises low-valued products and caters mostly to the aftermarket category.
Automobile & Auto Components Policy 2015-20 aims to generate new employment opportunities for at least 2 lakh people and attract new investments of at least Rs. 20,000 crore in this sector by 2020.
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