HIGH PRIORITY MARKET- AUTOMOBILE
LUXURY CARS GAINING TRACTION IN INDIA
New product launches
· Large number of products available to consumers across various segments; this has gathered pace with the entry of a number of foreign players.
· Reduced overall product lifecycle have forced players to employ quick product launches.
· In 2015, Mercedes launched the whole new Mercedes Benz B-Class Facelift which has new features like LED daytime running headlamps that are integrated into the cluster and new bumpers.
Improving product development capabilities
· Increasing R & D investments from both the government and the private sector.
• Private sector innovation has been a key determinant of growth in the sector; two good examples are Tata Nano and Tata Pixel; while the former has been a success in India, the latter is intended for foreign markets.
Alternative fuels
· The CNG distribution network in India is expected to increase due to the new geographical areas allocated through 5th and 6 th round of CGD bidding by Petroleum and Natural Gas Regulatory Board( PNGRB).
· The CNG station in India increased from 142 stations in 2005 to 1010 station in FY15 in 12 major states.
New financing options
· Carmakers such as BMW, Audi, Toyota, Skoda, Volkswagen and Mercedes-Benz have started providing customised finance to customers through NBFCs.
· Major MNC and Indian corporate houses are moving towards taking cars on operating lease instead of buying them.
Investments
· The Indian automobile industry attracts foreign direct investment( FDI) worth around USD13.48 billion during the period from April 2000 to June 2015.
· 51 per cent share of French based Peugeot Motorcycles( PMTC) has been acquired by Mahindra Two Wheelers Limited( MTWL) in January, 2015 DSK.
· Hyosung has announced to set up a plant to introduce more models in the 250cc segment in Maharashtra and also the company is planning to add 10-15 dealerships in the next financial year( FY15-16) mostly in the tier-II cities.
Trends
· Government of India allows 100 per cent FDI under automatic route while excise duty on commercial vehicles,, scooters, motorcycles and small cars was reduced to 8 per cent from 12 per cent to boost the ' Make in India ' initiative.
· Under Union Budget 2015-16, the government has announced to provide credit of USD14100 to farmers to boosts the tractor segment.
· The government plans to promote eco friendly cards such as hybrid vehicles, electrical vehicles, CNG based vehicle in India.
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