Automobile Industry in India Essay

Chennai accountancys for 60% of the countrys automotive exports. In tune with international standards to overthrow vehicular pollution, the central government unveiled the standards titled India 2000 in 2000 with subsequent upgraded guidelines as Bharat Stage. These standards are quite similar to the more blotto European standards and have been traditionally implemented in a phased manner, with the latest upgrade getting implemented in 13 cities and later, in the simplicity of the nation.The Automotive Industry has flourished in Pune Region in Maharashtra, What were the special conditions were there for this development. Still Indian cars are not considered as a break in itself compared to European cars.Indias strong engineering base and expertness in the manufacturing of low- bell, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies like Hyundai, Nissan, Toyota, Volkswagen and Maruti Suzuki In recent categorys, India has emerged as a leading center for the manufacture of teensy-weensy cars. Indian brands AMW(Asian motor works- Commersial vehicles), Eicher Motors(tractors, Buses, components), Force(Bajaj Tempo), Hindustan motors(Birla, Ambassador car, Joint venture with Mitsubishi), Premier(Padmini, Moved from Mumbai to Pune), Tata, Mahindra, BharatBenz.Per capita keenness at around nine cars per thousand people is among the lowest in the world. While the industry is highly capital intensive in genius in case of quadruplet-wheelers, capital intensity is a lot less(prenominal) for two-wheelers. Though three-wheelers and tractors have low barriers to entry in terms of technology, four wheelers is technology intensive. Costs involved in branding, distribution network and unembellished parts availability increase entry barriers. With the Indian market move towards complying with global standards, capital expenditure will rise to take into account future safety regulations.Automobile majors inc rease profitability by selling more units. As number of units sold increases, average cost of selling an incremental unit comes down. This is because the industry has a high stiff cost component. This is the key reason why operating efficiency finished increased localization of components and maximizing output per employee is of significance. Maruti Suzuki, which is the market leader in PVs, had to deal with labour strikes at its plant at Manesar as a result of which production was severely hit.As petrol prices firmed up, the differential amidst petrol and diesel widened. Thus, there was a surge in shoot for diesel cars. Most companies faced pressure at the operating take aim as margins declined due to rise in input costs. Steep wear and tear of the rupee also took its toll. Tractors While good monsoon is a positive for the sector, inclined the fact that non-farm incomes have continued to climb up, volumes should still hold up intumesce in the longer run despite a year or tw o of poor monsoons. privatisation of select state transport undertakings bodes well for the bus segment.