The Indian Auto Component Industry Of India's Component Industry

At the same time, the BMW Group will invest substantially in future technologies, new vehicle concepts and pioneering drive systems. The new strategy, which has been given the name Number ONE, is aimed at profitability and increasing value over the long term. In order to achieve these objectives, two new areas of responsibility have been created within the Board of Management for the “Corporate and Brand Development” and “Purchasing and Supplier Network” divisions. BMW Group remains best-selling premium manufacturer The BMW Group registered new sales volume records in 2007 for all three brands. In total, 1,500,678 BMW, MINI and Rolls-Royce brand cars were sold during 2007, an increase of 9.2 % compared to the previous year.

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.

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

Accordingly, domestic same-store sales increase 4.3% for the quarter. Net income for the quarter increased by as much as 9.4% - to $192.8 million – over the same period last year, while diluted earnings per share grew 18.8% to $5.63 per share, marking the thirtieth consecutive quarter of double digit earnings per share growth. These are remarkable figures by any means and reflect the company’s ability to sustain growth. http://nocache-phx.corporate-ir.net/phoenix.zhtml?c=76792&p=irol-newsArticle&ID=1905705&highlight= Average age of vehicles continues to rise According to a recent study by Polk, a global automotive market intelligence firm, the average age of all light vehicles on US roads is at an all-time high of 11.4 years. That compares to an average age of 8.4 and 9.6 years, respectively, in 1995 and 2002.

Road Ahead 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. Investments Since 2000, the auto component industry has recorded an investment level of Rs 18 bn and has attracted US$ 530 mn in terms of foreign direct investment. Investments in the sector have been growing at 14% per year.

IT Sector Trends in India The Indian information technology sector has been instrumental in driving the nation's economy onto the rapid growth curve. According to the Nasscom-Deloitte study, the IT/ITES industry's contribution to the country's GDP has increased to a share of 5.2 per cent in 2007, as against 1.2 per cent in 1998. Further, the IT and BPO industries are poised to clock revenues worth US$ 64 billion by the end of fiscal year 2008, registering a growth of 33 per cent with exports expected to cross US$ 40 billion and the domestic market estimated to clock over US$ 23 billion, according to a study. Simultaneously, the Indian IT services market is estimated to remain the fastest growing in the Asia Pacific region with a CAGR of 18.6 per cent, as per a study by Springboard Research. India's IT growth in the world is primarily dominated by IT software and services such as Custom Application Development and Maintenance (CADM), System Integration, IT Consulting, Application Management, Infrastructure Management Services, Software testing, Service-oriented architecture and Web services.

ABOUT THE INDUSTRY The Indian automobile industry is one of the the largest in the world. It contributes to 7% of GDP and provides employment to 30 million people and contributes 13 % to excise revenue. The two-wheeler industry has the largest market share of automobile sector in India, holding 78 per cent of the market. It is basically divided into three segments: motorcycles, scooters, and mopeds. The bulk of India’s two-wheeler sales come from commuter motorcycles and automatic scooters.

The Indian retail industry is the fifth largest in the world. Consisting of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. The retail industry in India was mostly un-organized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 28-33% annually. The India retail industry is expected to grow from 350 billion rupees in 2009-05 to 1090 billion rupees by the year 2016.

Despite the crisis, the luxury industry kept increasing over the last few years; the value of the global personal luxury goods market was worth 217 billions in 2013 and 224 billion in 2014, three times more than 20 years ago. This histogram shoes the value of the personal luxury goods market worldwide from 1995 to 2014. We can observe an upward climb since 1995, and a 46,5% increase in

Presently, there are more than 30 OEMs offering more than 75 options in all categories of vehicles. India’s automotive industry is the world’s sixth largest producer of automobiles in terms of volume and value and has grown 14.4% in the last decade. The industry contributes 7% to India’s GDP, 7-8% of the total employed population (about 13 million people), 4% of exports. - Bhattacharya, S.