Skip to main content

The future of mobility in the Indian Automotive Market

 

India took around 7 years to increase the annual production of vehicles from 3 million to 4 million, while the next million increase is expected to come in less than 5 years. This is the kind of growth and demand the country has been witnessing in the automotive sector. With GDP growth consistently over 7 percent for the past few years, India is looking at healthy growth in the automobile market. These trends favorable for the multinational companies are being used by the Market research companies in India to elaborate on the benefits of entering the Indian market. The leading Business consulting companiesTecnova brings you some of the key trends shaping the Indian passenger-vehicle market- 

  • Favorable macroeconomic and demographic trends 
The Rising middle class, increasing urbanization and higher disposable income with consumers are leading to growth in many industries, the automobile being one of the major beneficiaries. Currently, the automobile sector contributes approximately 7 percent to India’s GDP. In the past decade, disposable income with consumers has increased. Also, easy access to financing activities on one hand, and plethora of choices for different customer segments has resulted in sales of passenger vehicles among the aspiring middle class. 

  • Continued government focus on supporting the industry 
The government has been supportive of growth in the automotive industry with a strong focus to reduce oil dependence and carbon emission. In the Automotive Mission Plan 2026, the government and industry have set a target to triple industry revenues to USD 300 Billion, and expand exports to seven-fold, to USD 80 billion. The government is also advocating the sales of electric vehicles by launching programs like National Electric Mobility Mission Plan (NEMMP) and providing additional subsidies and tax rebates on sales of electric vehicles along with Small business consulting firms that work on bridging the gap between the country’s market and services of multinationals.

  • India developing as a manufacturing hub 
Not only for the domestic companies but for foreign companies as well, India has emerged as a manufacturing hub. Automotive companies are manufacturing in India not only for sale in the country but for export to other countries across the globe as well. The government’s ‘Make in India’ initiative is playing an important in improving country’s manufacturing capabilities and know-how. Apart from domestic companies such as Maruti and Mahindra, foreign companies such as Toyota and Hyundai have also set up a manufacturing hub in India to export passenger vehicles to other countries. 

Now, given the trends in the Indian automotive section, what value proposition does India provide to any company to set up business in India? 

  • An Archetype for Emerging Markets 
India, owing to its vastness and diversity, in an archetype in many ways for other emerging markets in Latin America, South East Asia, and Africa. The Rising middle class, increasing urbanization and similar consumer preferences – quality product at a reasonable price – make India similar to other emerging markets. The products developed for the Indian market entry strategy could be exported and sold to other emerging markets with nil to very little customization. That provides ample scope for companies to expand their geographic footprint without much investment and increase their business in India. 

  • Embedded Software 
India’s scale of IT industry, skilled IT talent and the increasing use of technology in vehicles are perfectly in sync to gain the maximum benefit of the growing market of connected cars and the internet of things. In the near future, owing to the growth in connected cars and autonomous vehicles, the cars are expected to be loaded up with sensors, software and hardware devices. This positions India at a very sweet spot to leverage its huge IT talent pool. 

  • High-quality Managerial Talent at a Low-cost 
Multinationals use India as a hub for low-cost talent. However, India has been recognized as high-quality managerial talent hub by global organizations lately. The Indians have started occupying major positions in various industries from Consumer goods, Automotive to Pharmaceutical and Banking, amongst others. Major organizations leverage local talent with the motive of driving innovation through R&D centers. In case of leading global combinations, more than a quarter of the innovations are done by the Indian teams 

The Indian Automotive industry is on the verge of a major change. The disruptions that are brought up by the Market research companies in India are generating major opportunities for the professionals, ultimately changing the competitive game for players who are willing to step beyond their traditional roles and engage with their customers digitally. Small business consulting firms in India are also taking up their calls to assist major organizations to evaluate the Indian audience and make multiple benefits from the increasing demand and growth in sales. 

Tecnova, the Indian Business Development Consultant, helps global giants set up and/or establish their business in the country while establishing a suitable market for the specific organization.  

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...

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...

The Role of Business Incubation Support Services in Growth of a Business

Small booming business owners can get tips from the core principle business incubation support services to help newbie entrepreneurs. The fast-growing new group of boomer entrepreneurs are made up of people seeking to retire from their current employment. They look for a semi-retired life as business owners as compared to traditional retirement. Boomers have extra time pressure that makes learning from trial and error a poor choice for getting their business off the ground. Following a proven model can greatly expedite the development of your business and improve your odds of success.   Business   incubation support service in India  regularly help a new business launch. Here we take a look at the core principles by which they assist newbie entrepreneurs and have the potential to give them a head start.   Not just baby boomer entrepreneurs, but almost everyone has thought about being in a business of their own. Yet only a few people ever go beyond the point of dreami...