HIGH PRIORITY MARKET - AUTOMOBILE
OPPORTUNITIES
India is fast emerging as a global R & D hub
Ü Strong support from the government ; setting up of NATRiP centres .
Ü Private players , such as Hyundai , Suzuki , GM , keen to set up R & D base in India .
Ü Strong education base , large skilled English-speaking manpower .
Ü Comparative advantage in terms of cost .
Ü Firms both National and Foreign are increasing their footprints with over 1,031 centers .
Ü Indian automobile industries invest s USD100 billion for R & D sector annually .
Opportunities for creating sizeable market segments through innovations
Ü The world ’ s cheapest car ( Tata Nano ) has directed focus on the low-income market .
Ü Bajaj Auto , Hero Honda and M & M plan to jointly develop a technology for two-wheelers to run on natural gas .
Ü Electric cars likely to be a sizeable market segment in the coming decade .
Ü Comparative advantage in terms of cost . Ü
Tata Motors to launch MiniCAT , a car running on compressed air , thereby stepping into the next era where cars would not require any fossil fuel and emissions would be almost nil .
Small-car manufacturing hub
Ü General Motors , Nissan and Toyota announced plans to make India their global hub for small cars .
Ü Passenger vehicle market is expected to touch 10 million units by 2020 .
Ü Strong export potential in ultra low-cost cars segment ( to developing and emerging markets ).
Road Ahead
India ' s automotive industry is one of the most competitive in the world . It does not cover 100 per cent of technology or components required to make a car but it is giving a good 97 per cent , as highlighted by Mr Vicent Cobee , Corporate Vice-President , Nissan Motor ' s Datsun .
The Indian automotive sector has the potential to generate up to US $ 300 billion in annual revenue by 2026 , create 65 million additional jobs and contribute over 12 per cent to India ' s Gross Domestic Product , as per the Automotive Mission Plan 2016-26 prepared jointly by the Society of Indian Automobile Manufacturers ( SIAM ) and government .
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