Oct 03, 2004 05:26 PM
2581 Views
(Updated Oct 03, 2005 09:50 AM)
If you think the only two internationally competitive industries in India are IT and Pharma then think again.
The other most happening sector-auto sector- is recently in news when Indian PM praised the Indian auto sector in US and Suzuki announced its major expansion plans in India.
Auto sector can be divided into two.Auto parts and full fledged Automobiles.
AUTO COMPONENTS
This sector is basically export oriented . India is a holding more than 1% world market share in few industries like Textiles and pahrma. Exports in auto parts(worth 1 billion$ per year) now has reached 1% of world trade in auto parts.
AUTOMOBILES
Though the exports in two wheelers, four wheelers have just started dmestic Automoblie industry has became vibrant and has come of age and the following aspects can be noticed.
Technology
Started in collaboration with other foreign technical partners now it is using indigenous technology.TVS Victor, Bajaj Pulsor, LML Freedom, Kinetic Challenger are all made with out any foreign partner.TATA Indica in cars is made with indigenous technology.
Customer oriented India specific
Earlier in Indian market Customer has pick from what is available.Now companies are coming out with models based on customer requirements.
Large scale economies
Started as nascet industry now auto sector has grown up and started obtaining economies of large scale and is passing on to customers which is resulting is reduction in prices of vehicles.
Government policy
Govt has reduced the excise duty on cars from 36 to 24 and and has a stated auto policy objective of making India a small car hub.
And whats more.Tata has promised Rupees 1 lakh for India and Suzuki told if TATA succeds in doing it it will also come out with two seater car at less than 1 lakh. The second hand car market is boomomg with the entry of Maruti into it.
More developments in the sector will help economy and also consumer in terms of better products
