The automotive industry in India can be classified into four broad categories. The first group consists of the two wheelers. Under this category, there are the scooters, mopeds, motorcycles and electric two wheelers. Next are the passenger vehicles that comprise of buses, shuttle cars and vans. The next category is the commercial carrier. They are cars, trucks, and other heavy and light-weight vehicles. Finally, there is also the three-wheeler category.
In 1991, this sector was de-licensed and the gates were opened to world players in this field. Since then there has been no looking back. Most of the top automobile companies have targeted India as one of their prime markets. The last two years have seen a 26% growth in this sector. Currently India is the largest three-wheeler market and has the second largest two wheeler market. Its growth in the bus and truck segment is also quite huge. Since this industry promises growth, thereby improving the economic stature of India, the government has also taken steps to catalyse the growth.
The Automotive Mission Plan 2016 that has been implemented from 2012 aims to take the market to a size of $145 billion. However, there are a few deterrents in the way. The first one is the growing fuel cost. Then there are things like registration cost, excise duty, and road tax. Also the recession in the market is playing things down in a great way.
These few deterrents can slow the growth, but they cannot stop it. The main reason why the automotive industry in India is bound to grow is because the population of India is finding different ways to be employed. This is increasing affordability of the cars. The cars are being manufactured so that they can be fuel efficient. People are resorting to alternate fuel means so that the cost of fuel can be curtailed. Finally, the automobiles are becoming a necessity. Even in the rural areas, they are being used widely not only for travelling, but also for farming and as carriers.
The automotive industry in India has come a long way and the growth will continue for a long time.
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