3 Point Analysis | How will the automobile sector fare this festive season?


The festive season in India is incomplete swing, and it is a win-win situation for both clients and automobile companies. Let’s do a three-factor analysis to determine out why.

Why is this time of the year vital for automotive businesses? Because these few weeks represent at least 30 percentage income for the whole year. It is that point of the yr while businesses and their dealers are desperately trying to make up for the deficit in income at some stage in the sooner months. The first half has been disappointing to this point, with the car industry recording a boom of simply 6.88 percent.

What can the purchaser expect? New launches and version refreshes as properly mouth-watering reductions on the prevailing fashions are greeting buyers at showrooms. Hyundai is prepared to release the new Santro, Nissan will release the Kicks SUV. Honda has released the new CRV, and Tata Motors has rolled out the up-to-date Tiger. Datsun has released upgraded Go and Go+ simultaneously as Ford has rolled out the up-to-date Aspire.

So what is the scenario going ahead? Sales of passenger vehicles were down 5.6 in September to two.92lakh. This isn’t always a great signal for the industry because the festive duration seems to have started on a somber notice. High lending expenses, high gasoline costs, excessive coverage prices, and an average negative sentiment within the retail market will retain to refer to volumes inside the following few weeks.


During the early 60s & 70s, cars got here in large part in twos.

In scooters, you had a Lambretta or a Vespa.

In motorcycles, you had a Bullet or a Java.

In vehicles, you needed to pick out between an Ambassador and a Fiat.

In vehicles, it becomes either an Ashok Leyland or a Tata.

In tractors, it becomes among a Swaraj and a Mahindra.

This state of affairs contemplated India of yesteryears. Economic reforms and deregulation have converted that scene. Automobile enterprise has written a new inspirational story. It is a tale of exciting multiplicity, remarkable growth, and amusing consumer enjoyment – all inside some years. His is a tribute to leaders and executives within the enterprise and, equally, to policy planners. India has already come to be one of the quickest developing car markets inside the globe. The automobile industry has the opportunity to go past this first-rate success. It is standing on the doorsteps of a quantum jump.

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The Indian vehicle industry goes through a technological change. Each firm is engaged in changing its methods and technologies to keep the aggressive advantage and provide clients with the optimized services and products. Starting from the two-wheelers, vehicles, and tractors to multi-utility cars, business automobiles, and posh cars, the Indian car industry has achieved awesome success in recent years.

“The opportunity is staring to your face. It comes most effective once. If you omit it, you will no longer get it once more.”

On the canvas of the Indian economy, vehicle enterprise continues an excessive-flying location. Due to its deep frontward and rearward linkages with numerous key segments of the economy, automobile enterprise has a strong multiplier impact. It is capable of being the motive force of monetary growth. A sound transportation machine performs an essential position within u. S .’s fast monetary and commercial improvement. The nicely advanced Indian car enterprise skillfully fulfills this catalytic function via generating an extensive form of motors: passenger vehicles, light, medium, and heavy industrial motors, multi-software cars inclusive of jeeps, scooters, motorcycles, mopeds, three-wheelers, tractors, and so forth.

The automobile quarter is one of the center industries of the Indian financial system, whose prospect reflects the financial resilience of u. S .. Continuous economic liberalization over time by way of the authorities of India has resulted in making India one of the high commercial enterprise vacation spots for lots of global automotive gamers. The car zone in India is developing at around 18, consistent with a cent in line with the annum.

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“The car industry is just a multiplier, a motive force for employment, for funding, for technology.”
The Indian car industry started its new journey from 1991 with delicensing of the world and next beginning up for a hundred percent FDI through the automatic direction. Since then, nearly all of the worldwide majors have installation their centers in India, taking the production of a vehicle from 2 million in 1991 to nine.7 million in 2006 (almost 7 in line with the scent of worldwide cars manufacturing and a couple of.4 in step with the scent of four wheeler production).

The cumulative annual boom price of production of the car industry from the yr 2000-2001 to 2005-2006 was 17 in line with a cent. The cumulative annual boom fee of exports for the duration of the duration 2000-01 to 2005-06 was 32.92 in keeping with the cent. The production of the automobile industry is predicted to achieve an increased charge of over 20 in keeping with the cent in 2006-07 and approximately 15 in line with the cent in 2007-08. The export in the identical period is anticipated to develop over 20 in line with a cent.

The automobile quarter has been contributing its proportion to the shining monetary performance of India in the latest years. With the Indian center class earning better in line with capita income, greater people are ready to personal cars and cars and two-wheelers. Product movements and handled services have boosted the sales of medium and sized industrial motors for passenger and items shipping.

Side by way of aspect with sparkling vehicle sales increase, the car additives region has witnessed a huge boom. The domestic vehicle additives consumption has crossed rupees 9000 crores, and export of 1 1/2 size of this discern.