25-04-2012, 04:17 PM
Automobile Industry
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Preview of Automobile Industry
The automobile industry, one of the core sectors, has undergone metamorphosis with the advent of new business and manufacturing practices in the light of liberalization and globalization. The sector seems to be optimistic of posting strong sales in the next couple of years in view of a reasonable surge in demand.
The Indian automobile market is gearing towards having international standards to meet the needs of the global automobile giants and become a global hub. Players are strategizing to consolidate their position and gradually increase market penetration with the launch of new models, targeting different segments. Since the sector is price driven, huge investment is envisaged to remain competitive through cost advantage, for which indigenization is highly important. The product becomes dearer if it is manufactured using imported parts. IT in the automobile sector plays a crucial role.. Some players are working towards development of efficient production systems that control the entire production process with high precision and accuracy.
Automobile industry – Wheels of Change
India had its date with this wonderful vehicle first time in 1898. Then for the next fifty years, cars were imported to satisfy domestic demand. Between 1910 and 20's the automobile industry made a humble beginning by setting up assembly plants in Mumbai, Calcutta and Chennai. The import/assembly of vehicles grew consistently after the 1920's, crossing the 30,000 mark in 1930. In 1946, Premier Automobile Ltd (PAL) earned the distinction of manufacturing the first car in the country by assembling 'Dodge DeSoto' and 'Plymouth' cars at its Kurla plant. Hindustan Motors (HM), which started as a manufacturer of auto components graduated to manufacture cars in 1949. Thanks to the Licence Raj which restricted foreign competitors to enter the Indian car market, Indian roads were ruled by Ambassador Car from Hindustan Motors and the Fiat from Premier Auto Ltd. for many of the initial years.
Background of Automobile Industry
The automobiles industry for many years operated in a seller's market. In such a scenario the manufacturer could offer outdated models and also raise prices at will. Little or no attempt was made to control costs or to offer new products. Lack of innovation restricted the consumer’s options to the models offered by these companies.
The number of manufacturers (domestic and foreign) increased dramatically after the de-licensing of the sector. Increased competition has forced companies to focus on cutting costs, improve technology and styling through research. It has also constrained them to limit price increases.
Automobile Fashion
Automobile Accessories
India has a good network of manufacturers of Auto accessories spread all over the country. International standards are also kept in mind while producing these products. Best quality materials are used so as to meet the international standards. Automobile Accessories such as Wheel Caps, Car Speakers, Fog Lights, Car Care Products, CAR AC PARTS, Car AC Condenser, Car Cooling Coil, Car AC Hoses, Car Reciver Drier, FLCD Kit and Car Batteries are available in India.
Automobile Finance
The availability of finance at lower interest rates, have made car purchase an affordable option for even young executives. Financing schemes varies from Margin Money Scheme, Installment in advance scheme, stepped schemes and as varying as balloon schemes, No income schemes etc The new schemes available in the market has made it possible for salaried individual to realize their aspirations to won a Car in India, early in Life. Businessmen and professionals can treat the interest amount as a business expense and avail tax deductions against the depreciation of the Car. Companies can also acquire cars for eligible employees without affecting cash flows. The interest amount can be claimed as business expense.
Automobile Insurance
Taking insurance cover for your vehicle is a must especially in Indian roads. There is danger at every corner when it comes to Indian roads. There is always the chance of your brand new vehicle hit by someone who mistakes a highway for space. Insurance can pay for your financial loss. There are various insurance schemes available in India. Major Insurance companies in India offering Auto insurance include The Oriental Insurance Company Ltd and New India Assurance Company.