automobile industry has shown a very high percentage of growth. what are ghe factors responsible for it
Answers
India has witnessed a rapid growth in the auto mobile sector. The reason behind the growth is as follows :
1. Fuel economy : high rates of fuel have forced competition among the companies to focus on delivering performance-oriented products.
2. Demography : India is a huge market for automobile industries. It has a great demand for 2 wheeler and cheap 2 wheeler vehicles. Increased affordability has attracted many towards buying vehicles.
3. FDI : govt has allowed 100% FDI in automobile industries. kawasaki, honda, hundai, etc have set up their centers in India.
4. Banking infrastructure : financial inclusion, availability of car loans has helped.
5. Improved infrastructure : development of roads, highways (golden quadrilateral) promoted heavy vehicle industry.
6. Increase in demand from defense and agriculture industry of trucks, tractors etc.
7. Cheap skilled workers have reduced the production cost and also attracted FDI.
8. The Government technology modernization fund is concentrating on establishing India as an auto-manufacturing hub.
9.India has to keep up the progress as there will be competition from the rest of the world soon by the expansion of technology. self governing vehicles, more diesel powered cars, high performance hybrid cars will hit market soon.
10. Raw material: Raw material such as steel, electricity, tyres are available in India. Ex: Chennai automobile sector is located near Salem steel plant
11. Labour: India has presence of both cheap skilled as well as unskilled labour. Ex: Automobile center at delhi and mumbai beacuse of presence of cheap skilled labour
12. Port location: Helps in import of machinery part and export of final product. Ex: Mumbai and chennai port location make them favorable position for industry
13. Transport: Mumbai, Delhi, Chennai, Pune are well connected with both rail transport as well as road transport which help in transport of goods.
14.Market: India has ready market for automobile industry especially metro cites like Delhi, Mumbai
15.Govt. policy:Government policy for 100% FDI through automatic route, testing labs, tax benefits are boon for the sector
16. Strategic location of india: India's strategic location in indian ocean with accessibility towards east asia as well as Middle east and africa is boon for india.
However there are some issues like delay in constructing dedicated freight corridors, interrupted power supply, increased bank rate which need to be overcome to further increase growth of automobile sector and make Indian campaign 'Make in India' great success.
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Answer:
The market's demand for vehicles was boosted by the release of fresh, modern models.
Foreign Direct Investment introduced new technologies and brought the sector into line with international trends. Jamshedpur and Gurgaon are the two automobile industry centres.
Fuel economy: Excellent fuel prices have encouraged businesses to compete by concentrating on producing goods with high performance.
Demography: The automobile industry has a sizable market in India. Political factors are significant and directly affect the car industry's profitability.
Low emission automobiles are favoured by governments all over the world. In addition, levies on gas guzzlers and premium cars have increased.
Explanation:
From 2020 to 2027, the India automobile market is projected to expand at a compound yearly growth rate , 11 per cent, reaching 6,920,991 units. One of the biggest in the world is the auto industry in India. 7.1% of the nation's Gross Domestic Product is made up by this industry (GDP). Due to a young population and a growing middle class, the two wheelers category leads the Indian automobile industry with an 81 percent market share.
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