What is Automobile Industry & Its Future in India

Automotive Component Manufacturers Association of India (ACMA) is the nodal agency for Indian Auto Component Industry. Automobile Industry India is made up of two main authorities including ACMA and SIAM.

Automobile Industry India is made up of two main authorities including ACMA and SIAM.

ACMA

Automotive Component Manufacturers Association of India (ACMA) is the nodal agency for Indian Auto Component Industry.

SIAM

Society of Indian Automobile Manufacturers (SIAM) is the top Industry body representing all vehicle and vehicular engine manufacturers in India.

Some Interesting facts about automobile industry are:

Indian Auto Industry is the

  • Largest 3-Wheeler Market across the World
  • 2nd largest 2-Wheeler Market across the World
  • 4th largest Passenger Vehicle Market of Asia
  • 4th largest Tractor Market across the World
  • 5th largest Commercial Vehicle Market across the World

The Future Growth Drivers

  • Higher GDP Growth
  • India's huge geographic spread- Mass Transport System
  • Increasing Road Development
  • Increasing disposable Income with service sector
  • Cheaper ( declining interest rates) & easier finance Schemes
  • Replacement of aging 4-wheeler
  • Graduating from 2-wheeler to 4-wheeler
  • Increasing dispensable income of rural agriculture sector
  • Growing Concept of Second Vehicle in Urban Areas

India automotive industry is one of the largest auto markets across the globe and had earlier been the fastest growing on global scale but now witnessing flat or negative growth in automobile in India. Country's passenger car and commercial vehicle industry comes at sixth spot on world level. Annual production of industry lies at more than 3.9 million units in 2011. According to the figures, India overtook Brazil and became the sixth largest passenger vehicle manufacturer in the world. India grew as Asia's 4th largest exporter of passenger cars, after Japan, South Korea and Thailand.

Majority of nations’ car developing industry is based around three clusters in south, west and north. Southern cluster comprehends Chennai with 35% of the revenue share. Western region in Maharashtra contributes 33% of the market and northern cluster around NCR contributes 32%.