Skip to main content

Volkswagen’s 1Bn Euros Investment in the Rapidly Growing Indian Automobile Sector

The Indian Automotive sector is on a drive to changing the automobile industry landscape. Being the fourth largest country in the Automobile sector, India is expected to be valued between $251.4 Billion and $282.2 Billion by the year 2026. With the growing dominance of the use of automobiles in the country, the interest of foreign companies in investing in the country for the sector is increasing in parallel.  
   

According to data, the automobile production in India increased by 16.69% year-on-year to reach 10.88 Million vehicle units, during the months of April-July 2018. The Compound Annual Growth Rate (CAGR) in the country, between FY13-18, increased by 7.01% with 24.97 million vehicles being sold in FY18. BMW and Mercedes-Benz, the leading luxury car manufacturers recorded their best-ever half-yearly sales in India during January-June 2018.  

The Indian government has set up National Automotive Testing and R&D Infrastructure Project (NATRiP) centers as well as the National Automotive Board to act as facilitator between the government and the industry. Since the year 2015, five testing and research centers have been established in the country under NATRiP. The Government aims to develop India as a global manufacturing and Research & Development hub. These initiatives by the Government and the major Automobile players in the market are expected to make India a leader in the two-wheeler and four-wheeler market by the year 2020. 

With the increasing global concern in the country, the Government has shifted its focus on electric cars in order to meet the Emission Reduction targets. To achieve the ambitious target of having only electric vehicles sold in the country, the Indian auto industry is expected to see 8-12% increase in its hiring during FY19. In the fillip to India’s mission of only Electric vehicles by 2030, the Ministry of Heavy Industries, under the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme shortlisted 11 cities namely Delhi, Mumbai, Ahmedabad, Bengaluru, Jaipur, Lucknow, Hyderabad, Indore, Kolkata, Jammu and Guwahati for the introduction of these vehicles. 

In order to cope up with the growing demand of the Indian automobile market, various international car manufacturing companies such as BMW, Audi, Toyota, Skoda, Volkswagen, and Mercedes Benz are willing to join hands with India entry consulting firms as their strategic partners in order to expand their horizon in the Automobile manufacturing sector. These companies have started providing finance to their customers in India through Non-Banking Financial Companies (NBFCs). India offers a comparative cost advantage of roughly 10-25 percent in comparison to that in Europe and Latin America; which acts as the major attraction force for foreign automobile companies to invest in the rapidly growing sector. The presence of large automotive clusters in the country: Delhi-Gurgaon-Faridabad in the north, Mumbai-Pune-Nashik-Aurangabad in the west, Chennai- Bengaluru-Hosur in the south and Jamshedpur-Kolkata in the east also prove the need of the hour.  

Considering the growth rate in the Indian market, Global car manufacturers have been escalating their investments in the country, with the plan to leverage India’s competitive advantage in setting up export-oriented production hubs. With the help of India business consulting firms, a growth of 26.56% had been observed in the Indian automobile exports during April-July 2018. The growth is further expected to reach a CAGR of 3.05% during 2016-2026. The Indian Automobile industry received Foreign Direct Investments (FDI) worth $19.29 Billion between the months of April 2000 and June 2018.  

The German Automobile Manufacturing company has declared its investment worth 1 Billion Euros in the Indian Automobile industry between the years 2019 and 2021. This has been done as a part of its latest strategy, led by the Skoda group in order to enhance its presence in the country and avail business opportunities in IndiaAn Engineering Design and Development will be set up in Pune besides its enhancing capabilities at the group’s two plants at Aurangabad and Pune. One of the world’s largest automobile companies is pointing at a significant 5% share in the Indian passenger market through its sister brand, Skoda Auto. With the motive of giving the best customer support services at competitive prices, Volkswagen has entered the Indian Automobile industry planning to launch one new product every year, from the year 2021 to 2025. 

Source- 


Address  
TECNOVA  
335, Udyog Vihar, Phase IV, Gurgaon, Haryana, INDIA 122015  
Phone  
India +91–124–435–6300  
Germany +49–151–4343–9243  
USA +1–847–471–3200  

Email Address  
Skype  

Comments

Popular posts from this blog

Pharmaceutical and Healthcare Consulting Services for German Companies for Indian Market

For Germany Companies, German manufacturer-Retailer-Franchise - Market Research India, Healthcare Consulting - Healthcare & Pharma Regulatory Consulting Firms in India PHARMACEUTICALS & HEALTHCARE CONSULTING | pharma consulting companies in india | pharmaceutical consulting india| Pharmaceutical Regulatory Consulting Firms in India|top pharmaceutical consulting firms in india|Healthcare & Pharma Regulatory Consulting Firms in India Regulatory Affairs: Pharmaceutical and healthcare consulting firms can help German companies navigate the complex regulatory landscape in India. This includes obtaining necessary licenses, approvals, and registrations with Indian regulatory authorities such as the Central Drugs Standard Control Organization (CDSCO). Market Research : Pharmaceutical and healthcare consulting firms can conduct comprehensive market research to help German companies understand the Indian healthcare market. This includes analyzing market trends, identifying potent...

How Indian Sourcing Can Be Beneficial for Foreign Companies.

In today's globalized economy, businesses are constantly seeking new avenues for sourcing products and services to remain competitive. How Sourcing from India Can Benefit Foreign Businesses Why is Sourcing from India Beneficial for Foreign Companies? Foreign organizations can get multiple benefits by  sourcing from the Indian market . Some of them are as follows: Cost-Effectiveness Skilled Workforce Wide Range of Products and Services Robust Manufacturing Infrastructure Access to a Growing Consumer Market Favorable Government Policies Cultural and Geographical Advantage

Bright days ahead for India: Unmatched ROI 2021 from Emerging Indian Market 2021

AN UNMATCHED ROI POOL FROM THE EMERGING INDIAN MARKET IN 2021. India has been one of the fastest-growing Asian economies in the world over the last few years. Some of the major stimuli to this growth are the rising demands of a large consumer base and significant development of the IT and manufacturing sectors. Most attractive: Indian Emerging Market Factors that are promoting this accelerated growth of the Indian Emerging Market Here are some of the essential factors contributing to India’s competitiveness and scope for an unmatched ROI pool. Geographic advantages Strong support of Infrastructure Expected infrastructure development Low-cost skilled labor Suppliers of Raw Materials Impressive logistics capabilities Favorable Government Initiatives Product Linked Incentive Scheme (PLI) 100% Foreign Direct Investments Tecnova, one of the  leading business setup consultants in India , offers you personalized India market entry consulting services which include: Structuring a corporate...