Indian Auto Sector Vrooms !

Indian Automobile Industry is on high! With steep rise in sales & profits and increasing employment opportunities, the industry is adding up to Indian GDP year after year. It is now undoubted one of the fastest growing sectors in India. The growth trajectory in the last five years seems incredible. According to industry experts, the Automobile Industry in India would be the 7th largest automobile market within the year 2016.

The government step to bring to an end 1991 FDI policy attracted many foreign auto giants to set up their production facilities in India. The sector foresees a triumphant market potential in coming years. According to www.researchandmarkets.com the production of passenger vehicle is forecasted to grow at a CAGR of around 10% from 2009-10 to 2012-13. 

With the recent mergers and acquisitions on the international dimension, the growth of Indian Automobile industry looks promising. From four wheel segments like Tata acquiring Jaguar & Land Rover; to two wheel segment mergers as in case of Mahindra and SsangYong, the boom in the Indian Auto sector looks unstoppable. Recently launched Tata Nano has set a milestone in the sector proving its potential in International Automobiles zone. The latest break off of more than two decade Hero & Honda partnership and diminishing customer acceptance of classics like Ambassador may be a minute hindrance, but the current growth buoyancy diminishes it all. 

Instead the direct customers are at the beneficiary with customized segments and competitive products to fulfill their needs of owning their dream wheels. It’s enormous to witness established brands like BMW, Volkswagen and a Harley Davidson standing upright in its showroom looking for its prospective buyers in India.

The sector forecasts great intensification in next ten years. Analyzing the past ten year’s progress report, the roadblocks in the growth of the Auto sector seems zilch. The India Auto sectors truly vrooooms !