The Indian automobile industry is going through a technological change so as to sustain the competitive advantage and provide customers with the better products and services. Each and every firm is looking to change its processes and technologies. Indian automobile industry has achieved great success in the recent years in all segments of the automobile market.
Indian automobile industry is the second largest tractor and two wheeler manufacturer in the world. The fifth-largest commercial vehicle manufacturer in the world is also one of the top automobile markets in Asia.
The Indian automobile industry is dominated by Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Tata Motors, Bajaj Motors, Hero Motors, Ashok Leyland, Mahindra & Mahindra and a few foreign companies like Toyota Kirloskar Motor Ltd., Skoda India Private Ltd., Honda Siel Cars India Ltd. Large number of multinational firms are planning to enter in the Indian markets, though many of them may be forming alliances with the Indian companies. The automobile companies are coming up with financial schemes such as easy EMI repayment systems to boost sales. There have been exhibitions like Auto expo at New Delhi to share the technological advancements in India.
Indian automobile industry is growing because of the following reasons:
- Rising per capita income
- Availability of varied models of vehicle meeting diverse needs and preferences
- Favorable government policies
- Increasing disposable incomes in rural agricultural sector
- Easy finance schemes
- Rising industrial and agricultural output etc.,
The major drawback of inhibition of growth of automobile industry is poor and inadequate infrastructure in addition to the poor road network system.