Automobile Sector - the Next Blue-eyed Boy of Indian Economy

By: addi vardhaman

For the last two decades, the Indian automobile industry was a way behind some of the most influential economies in the world like USA, Japan and China. The Indian automobile industry, though in its nascent stage, is expected to have an impressive impact in the Indian Economy. Coming to the automotive trends, today, the Indian automobile industry is definitely one of the most vibrant, modern and upbeat automobile markets of the globe. It is also the second largest two-wheeler market in the world. With the emergence of the financially sound middle class, the four-wheeler segment is also witnessing tremendous growth and one can expect more contribution to the economy from this sector in the near future. Now, automobile industry in India has become the center of attraction for most of the global automotive giants the world over.

The factors playing a key role in the growth of Indian automobile industry are:

&bull Liberalized government policies: Unlike in the past, the Indian Government has gone through a total reversal by becoming the manager rather than the controller. In the recent past, Government of India has started providing better infrastructure, conducive atmosphere to attract investments and implementing growth oriented economic policies.

&bull Competition in the automobile segment: With the coming of the multinationals, an immense pressure has grown on the Indian automobile manufacturers. As a result, a lot of joint ventures have taken place keeping Indian market in mind. Now, companies are investing heavily on R&D.

&bull Increased Customer base: Armed with higher buying power, reaping the growth of IT and other intellectual property related sector, the disposable income in the hands of Indian youth is increasing. This has increased the target audience for automobile giants.

* Easy availability of car and automobile loans: The and other automobile loans are now available easily. The easy loan availability has increased the sale of automobiles and cars. Many nationalized and private banks are now offering car loans at attractive terms and conditions.

Keeping all these things in mind, it can be said without any hesitation that Indian automobile sector is all prepared for a boom.

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