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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