The automotive industry has vast areas of a network from the manufacturing of motor vehicles, different components, such as engines, passenger automobiles such as light trucks, vans, including pickups, and sport utility vehicles. Apart from this many commercial related vehicles are the secondary part of the automobile industry.
In 2019, India became the fifth-largest auto market with sales of up to 3.81 million units. And become the seventh-largest manufacturer for commercial vehicles.
Although there has been a tremendous downfall of the market in terms of volume, as the middle class and a young population were growing very vastly and their demands. When talking about a rural sector there has been tremendous growth in rural markets, which aided the growth of the sector. In the coming future, India is going to be a prominent auto exporter and has strong export growth expectations.
NPCS’s detailed project report aims to provide a complete analysis of an automotive industry set-up. This project detail contains various key points which are mentioned as below:
Growing Market Size for Automotive Industry:
As per CARG report, the production of the domestic automobile is going to be increased at 2.36 percent between FY16-20. As per the calculated rate, there have been approximately 26.36 million vehicles being manufactured by FY20. And moving towards the domestic automobiles sales which has been increased to 1.29 percent between FY16-FY20 on sale of approximately 21.55 million vehicles.
NPCS’s gave analysis to set-up the automotive industry for meeting the growing demands. By increasing high level of product awareness, demand, and expectations. Living in the modern era everybody wants to have a personalized vehicle. By increasing the spending capacity, high levels of product awareness, rapidly evolving expectations, and demand for personalized products & services.
Related Videos:- Production of Automobile Components. Auto Parts Manufacturing Industry.
Requirements:
Initially, an automaker uses to make only aluminum for cylinder blocks, wheels, and other engine parts. There are mainly five different kinds of major cost drivers in the production and sale of an automobile field:
- Raw materials.
- Location.
- Labor.
- Advertising.
- R&D (research and development).
Overall of raw materials contribute approximately 47% to the cost of a vehicle. On average, an automobile requires approximately 8% iron, 47% steel, 8% plastic, 7% aluminum, and 3% glass. And other materials account for the remaining 27%.
Related Book:- Handbook on Automobile & Allied Products (2nd Revised Edition)
Investments and Rate of Investments:
By increasing the growing demand, many industries have started investing heavily in various segments of the industry. This sector has attracted Foreign Direct Investment (FDI) worth US$ 24.21 billion as per the Department for Promotion of Industry and Internal Trade (DPIIT), between April 2000 and March 2020.
Export of vehicles & growth trends:
Indian automotive industry is now getting a highly increasing recognition worldwide. By the end of the fiscal year 2020, the export quantity for two-wheelers for India will be around 3.5 million units. In recent years, the export sector had witnessed double-digit growth.
Green Mobility:
For the Global automotive industry green mobility is a necessary thing. India is highly focused on developing or building capabilities and increase consumer adoption in order to meet the nation’s environmental targets.
Related Books:- The Complete Book on Production of Automobile Components & Allied Products
Eco-system:
Automated industry highly requires an eco-system development network for the achievement of policy objectives that need to be prioritized. As it will create the foundation for growth across the value chain. NPCS’s helps you for upgrading and scaling for a supply chain improvement, skill development, ease of doing business, standards, testing with a long-term vision.
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