Automobile Industry
The Automobile industry in India is one of the largest in the world and one of the fastest growing globally. The industry has a turnover of more than USD $35 billion and provides direct and indirect employment to over 13 million people. The Indian Automobile Industry manufactures over
Automobile Industry
India's world. India is set to overtake Brazil to become the sixth largest passenger car and commercial vehicle
Automobile IndustryExports
The exports in automotive sector have grown on an average compound annual growth rate of 30% per year for the last seven years. India's automobile exports have grown consistently and reached $4.5 billion in 2010-11. India's automobile exports are expected to cross $12 billion by 2014.
Industry Conditions
The automobile manufacturing sector is characterized by a high cyclical growth patterns, high fixed cost and break-even point levels, and an excessive number of participants. Some of the barriers that need to be overcome by a new entrant include: the cost of developing high
volume
production
facilities
to
benefit
from
economies of scale
Industry Conditions
The ability to gain access to technology of major operators, as the present incumbents include some of the largest multinationals, that have considerable claims to new technology. The relative large size of domestic market, together with high competition, has already seen significant
Industry Volatility
The level of volatility is medium. According to the Economic Times of India, economic liberalization foreign currency allowing unrestricted and export
Industry Volatility
This has been the result of fluctuations in metal prices and fuel prices, as well as changes in legislation and assistance packages. India's increasing per capita disposable income and growth in exports is playing a major role in the rise and the competitiveness of the industry.
Advantage In India
India holds huge potential in the automobile sector including the automobile component sector owing to its technological, cost and manpower advantage. India has a well developed, globally competitive Auto Ancillary Industry and established automobile testing and R&D centres.
Automobile Industry
India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies. In 2010, Hyundai Motors alone exported 300,000 cars made in India.
Automobile Industry
Ford Motors announced its plans to set up a plant in
Key Competitors
Tata Motors Market Share: Commercial Vehicles 63.94%, Passenger Vehicles 16.45% Maruti Suzuki India Market Share: Passenger Vehicles 46.07% Hyundai Motor India Market Share: Passenger Vehicles 14.15% Mahindra & Mahindra Market Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three Wheelers 1.31% Ashok Leyland Market Share: Commercial Vehicles 22%
Total Production
3,536,783--2010 2,641,550--2009 2,332,328--2008 2,253,999--2007 2,019,808--2006 1,628,755--2005 1,511,157--2004 1,161,523--2003 894796 --2002 814611 --2001 801360 --2000
% Change
--- 33.89 --- 13.25 --- 3.35 --- 10.39 --- 19.36 --- 7.22 --- 23.13 --- 22.96 --- 8.96 --- 1.62 --- (-2.10)
Contribution to GDP
Automobile industry is currently contributing about 5% of the
Objectives
Exalt the sector as a lever of industrial growth and employment and to achieve a high degree of value addition in the country. Promote a globally competitive automotive industry and emerge as a global source for auto components. Establish an international hub for manufacturing small,
Objectives
Ensure a balanced transition to open trade at a minimal risk to the Indian economy and local industry. Conduce incessant modernization of the industry and facilitate indigenous design, research and development.
Objectives
Assist development of vehicles propelled by alternate energy sources.
Development of domestic safety & environmental standards at par with international standards.
Key Factors
Key Sensitivity. Consumer Sentiment Index. Domestic Goods Price Metal Iron and Steel. Import and Export Taxes (Duties) Motor Vehicle Tariffs.
Key Statistics
SIAM expects India's car sales to grow 2-4 per cent in the fiscal year ending march 2012 while a growth of 13-15 per cent is projected in commercial vehicles' sales segment. Car sales in November 2011 stood at 165,925 cars. Sales of commercial vehicles increased by 18.05
Key Statistics
Total sales of vehicles across categories witnessed a growth of 19.39 per cent to 1571,342 units in November 2011 from 1316,118 units in the corresponding period last year. The sales of scooters increased by 50.74 per cent to 231,710 units from 153,716 units in November 2010.
Drawbacks
Even with this rapid growth, the Indian automotive
IT SECTOR
It has grown from US $ 150 million in 1991-92 to US $ 75 billion in year 2010. Indias GDP has grown significantly from 1.2% in 1999-2000 to cross 7.5% in FY10. The sector has been growing at an annual rate of 28% per annum.
Liberalization in IT Industry
Change in industrial policy leads to transformation of IT
industry.
Post 1990, a 100% income tax exemption was extended to profits from software exports, and the double taxation of software imports was eliminated. The duty for software imports was reduced to 110% in 1992, 85% in 1993, split in 1994 to 20% for applications software and 65% for system software, and then reduced to 10% for both categories in 1995.
Liberalization in IT Industry
STPI was created to facilitate growth of software industry. In 1996 internet services was started in India by VSNL a public sector company. Multiple technologies were started evolving due to development of IT industry.
Liberalization in IT Industry
Peak rate of basic customs duty is 10%.
IT SECTOR
Indias IT success represents the emergence of another elite enclave, with increased inequality the result. The IT sector can be an important source of growth for India if the global demand for these products and services is likely to grow rapidly.
IT SECTOR
The sector is estimated to have grown by 19 per cent in the FY2011, clocking revenue of almost US$ 76 billion. The export revenues are estimated to have aggregated to US$ 59 billion in FY2011 and contributed 26 per cent as its share in total Indian exports. The workforce in Indian IT industry will touch 30 million by
IT SECTOR
The IT-BPO sector has become one of the most significant growth catalysts for the Indian economy. Poised to become a US$ 225 billion industry by 2020.
Following Quality Standards such as ISO 9000, SEI CMM etc.; English-speaking professionals; Cost competitiveness; Quality telecommunications infrastructure
investment opportunities
Communication Infrastructure Optic Fiber Cable Gateways Satellite based Communication Wireless Software Development IT-enables Services IT-enabled education Data Centers & Server Farms
Employment generation
Additional employment generation Driving growth of other sectors of the economy Encouraging balanced regional development
Core Competencies
Availability of Large Human Resources Indian Education System Quality Manpower Government Policies Cost of Labour and resources
IT SECTOR -GDP
Growing share of the countrys GDP: GDP has been Steadily increasing from a share of 1.2% in FY98 to 7.5% in FY10. Boosting the foreign exchange reserve of the country: IT-BPO exports including hardware exports reached USD 47.3 billion in FY2009.
IT SECTOR
The Indian IT industry is expected to grow at a CAGR of 15.6% to reach Rs 4,582.28 bn during 20082011. The domestic IT market is expected to reach Rs 362.38 bn by 2011, at a CAGR of 264% during 20082011.
IT SECTOR
The Indian IT industry has been one of the great success stories of modern India. The power of middle class, first generation
entrepreneurship in India.
The Indian IT industry has contributed significantly to Indian economic growth in terms of GDP, foreign exchange earnings and employment generation.