Automobile Industry Essay

1627 Words4 Pages
bulb-icon

Recommended: Essay on automobile industry in india

Introduction- A overview of Indian automotive sector

The Automobile Industry in India is attaining significant growth at a rapid pace with broadening domestic and international markets in the past 15 years. This industry, at present has achieved a turnover of Rs. 1,65,000 crores. An investment of Rs. 50000 crores has already been made and another Rs. 35000 crore is in the conduit. This industry caters to a labour utilization to the tune of 1.31 crore people with 17% contribution to the indirect taxes.
However, with all these in context, Indian Automobile Industry is destined to become one of the largest in the world. India already ranks second globally in two- wheeler production, eleventh in passenger car production and thirteenth in the commercial vehicle segment. As a result of the expanding industrial base and increased spending power domestically, India has the potential to reach within the top five slots globally in all segments of automobile production.
India is now a favoured location for auto majors due to the factors of being pivotal in manufacturing and providing qualified manpower at competitive costs. This is being augmented by the stasis of the Western auto market which has led to capacities shifting and capital flow towards the Indian side.
The Auto component section is another off shoot of this industry with its turnover estimated to reach around 2.3 lakh crore in 2015-16. The automobile OEMs (Original Equipment Manufacturer) has a multiplier effect as they create ripples leading to the setting up of auto component suppliers and other ancillaries thus leading to huge investments and indirect employment.
Tamil Nadu- leader in India- Auto production:

Within India, Tamil Nadu acts as the pioneer when it co...

... middle of paper ...

...near Chennai which would in turn attract ancillary industries. Similarly, an Auto city has been proposed which would cater to the prototyping, manufacturing and designing. Auto Supplier Parks and Automotive Industrial Development Centre (AIDC) would also augur well for the development of this industry.
Weaknesses:
However, even in spite of the entire favourable climate existing, there are some pitfalls which could be identified. They include, power shortage with further worsening of power situation, need for road and other infrastructure to keep in pace with demand, deteriorating port conditions, low intellectual property protection, high tax rate, risk averse population with low consumption rate and high savings rate, little spending on Research and Development, monopolistic auto component manufacturers in certain segments and high petroleum prices.

Show More
Related

  • Three Stages Of American Automobile Essay

    721 Words  | 2 Pages

    There is no doubt that automobile plays an inevitable role in the world’s history, especially in the history of America. Both Kline and Pinch and Flink are on the problem of automobile, but they certainly have various focus. In Three stages of American automobile consciousness written by Flink, it divides the auto history into three stages and mainly argues about the history or the development of automobile industry in America, which is written in a big picture. On the other hand, Kine and Pinch tend to discuss the connection between rural area and automobile, also how gender get involved in the social construction after cars are brought to the America.

    Read More

  • The U.S. Automobile Industry

    2538 Words  | 6 Pages

    To properly illustrate externalities that may shift the supply and demand curve in the U.S. auto market over the next five years, it is necessary to look at the recent events having affected the U.S. auto industry during the recession and the strides U.S. auto makers have made to recover from near devast...

    Read More

  • Economic Overview In Auto Industry

    1580 Words  | 4 Pages

    The automotive industry is without a doubt an industry that has massive implications relating to the United States economy as well as affecting every American household. Shifts in the supply and demand of automobiles influence the current and future household purchases. Households must determine what amount of their hard-earned income to allocate to certain necessities. Because most households have a budget, the amount spent on transportation it limited. While most industries have an effect on the economy, the automotive industry has far-reaching implications for most Americans. Not only are the workers affected but the many spin-off jobs created as well as the consumers that must purchase the automobiles manufactured.

    Read More

  • Trucking Industry Essay

    1587 Words  | 4 Pages

    This report was made to show how Action Modular can increase their profits and make them more marketable. The trucking industry is an industry that has and will be around for a long time. As long as there are manufacturers and consumers requiring their freight to be moved, there will be a need for trucks. If the marketing trend is monitored regularly by putting the right people in place and being proactive regarding the equipment and freight rates. Action Modular will be highly marketable and can yield more in revenue versus decreasing the revenue by utilizing outside carrier.

    Read More

  • The Automobile Industry: Growth Trends In The Automobile Industry

    516 Words  | 2 Pages

    The automobile sector has been a robust sector that has experienced tremendous growth in the past seven to eight years. Apart from two years in particular -2008-09 & 2012-13, there is general trend of ten percent plus growth in various segments like passenger car, commercial vehicles, two and three wheelers. The following chart shows the growth rate of various years in each sectors.

    Read More

  • Informative Essay About Cars

    968 Words  | 2 Pages

    One of the many cars that came out of the mid 80s to early 90s was the Dodge Daytona. The Dodge Daytona is a 2 door sports car made from 1984 through 1993. The trims include the standard Dodge Daytona, Daytona Turbo, Daytona Turbo Z, Daytona Turbo Z C/S, Daytona Pacifica, Daytona Shelby Z, Daytona ES, Daytona C/S, Daytona Shelby, Daytona IROC and Daytona IROC R/T. The first Daytona to come out of production was it's base model in 1984.

    Read More

  • Outlook for the Automotive Industry

    1383 Words  | 3 Pages

    Picciotto, Dan and Nishit K Madlani. "The Global Auto Industry Shifts Its Focus To OVerseas And Emerging Markets." Credit Week (2013): 26. Online. 21 May 2014. .

    Read More

  • Automotive Industry Analysis

    794 Words  | 2 Pages

    The automotive industry is one of the most important sectors of the economy for every country in the world. It involves a large number of corporations and institutions engaged in the manufacturing process of motor vehicles including designing, developing, manufacturing, marketing, and selling. It contributes to the global economic growth by generating a significant return and creating a ripple effect on supporting the supply chain as well as providing job opportunities for the skilled workers (ACEA, 2016).

    Read More

  • Informative Essay On Import Cars

    829 Words  | 2 Pages

    When people think of full-size sedans, the 2017 Kia Cadenza near Rio Rancho NM likely isn't the first one that comes to mind, but that may soon be changing. The manufacturer has made a number of changes to this car to ensure it can compete in a category known for vehicles such as the Chevy Impala, the Ford Taurus and the Toyota Avalon. Driving dynamics have improved thanks to the stiffer chassis, and noise from the exterior of the car is never an issue. Furthermore, the V-6 now offers more power, and drivers may choose an eight-speed automatic, if they so desire. With so many new things to love about this car, every driver should head to one of our Rio Rancho Kia dealerships to see it up close and personal.

    Read More

  • Informative Essay About Cars

    620 Words  | 2 Pages

    There are so many different cars around these days, and the general public only really knows about half of them. Everyone knows about the regular car companies. People know all about these car makers and they also know about the standards they can expect from these companies. There are also other car companies that most people know about, but only a half of the population would ever have the finances to own one of their cars. The general public only knows the name of these cars, and not much about what makes them a quality vehicle.

    Read More

  • I Want to Become a Mechanical Engineer

    718 Words  | 2 Pages

    My interest in the field of Automobile goes back to my early years in high school which is when I decided to pursue a career in engineering. As a child I was always fascinated by the very concept of automobile. Further, my father’s constant involvement in the automotive industry as an insurance claims assessor further enhanced my interests in automobiles. He was the one responsible for showing me the correct path to pursue my career in automobile field. Hence, after having completed my primary education, I decided to delve straight into the world of mechanics and engineering and pursued a diploma in mechanical engineering followed by a bachelor’s degree in mechanical engineering. Since there were very few options in India & there was no direct path to get into automobile field.

    Read More

  • Indian Auto Component Industry Case Study

    1922 Words  | 4 Pages

    According to ACMA, the Indian auto components industry is likely to grow to US$ 150 billion by 2020 with domestic market share of about US$ 85 billion. The Indian auto components industry is well poised to achieve strong growth in the coming years owing to rising domestic demand in the OEM market. Also, the decline in raw material cost, such as decrease in cost of rubber, will help in improving the operating margins and consequently aid in increasing the exports from the auto components sector in India.

    Read More

  • Trucking Industry Essay

    502 Words  | 2 Pages

    The trucking industry in America is facing a growing shortage of drivers resulting in some retailers opting to delay nonessential shipments. Many are also paying high prices to ensure their goods get delivered on time. A report from the American Trucking Association states that more than 70 percent of goods consumed in the U.S. are moved by freight, however in order to meet this demand, the industry needs to hire almost 900,000 more drivers – something many trucking companies do not have the financial resources to do. The matter is made worse by the fact that customers can take up to three months to pay their invoice back. How are freight companies supposed to invest without prompt returns for their services?

    Read More

  • Economics of the Automobile Industry

    2412 Words  | 5 Pages

    Spatz, J., & Nennenkamp, P. (2002, January). Globalization of the automotive industry-traditional locations under pressure. Retrieved January 14, 2012, from http://www.uni-kiel.de/ifw/pub/kap/2002/kap1093.pdf

    Read More

  • Auto Ford Motor Company Case Analysis

    911 Words  | 2 Pages

    The automobile industry is a pillar of global economy. Globally automotive contributes roughly 3 % of all GDP output. It historically has contributed 3.0 – 3.5 % to the overall GDP in the US. The share is even higher in the emerging markets, with the rates in china and India at 7 % and rising. China produces the highest number of automobiles followed by US and Japan (oica.net, 2015). The industry supports direct employment of 9 million people to build 60 million vehicles and parts that go into them (oica.net, 2015). Many other industries such as steel, iron, glass, aluminium, textiles etc. are associated with the automotive industry and resulting in more than 50 million jobs owed to the auto

    Read More

More about Automobile Industry Essay

Open Document