Background of Automobile Industry
The automobiles industry for many years operated in a seller's market. In such a scenario the manufacturer could offer outdated models and also raise prices at will. Little or no attempt was made to control costs or to offer new products. Lack of innovation restricted the consumer’s options to the models offered by these companies.
The number of manufacturers (domestic and foreign) increased dramatically after the de-licensing of the sector. Increased competition has forced companies to focus on cutting costs, improve technology and styling through research. It has also constrained them to limit price increases.
Availability of easy credit facilities also resulted in creating demand for automobiles. The car financing market has boomed from a turnover of Rs 7,000 m in FY95 to nearly Rs 35,000 m in FY97.
Structure
The Indian automobile industry can be broadly classified into:
2 /3 Wheelers
Passenger Cars
Commercial Vehicles (LCV/HCV/MCV)
UV (Utility vehicles)
Tractors
The automobiles industry for many years operated in a seller's market. In such a scenario the manufacturer could offer outdated models and also raise prices at will. Little or no attempt was made to control costs or to offer new products. Lack of innovation restricted the consumer’s options to the models offered by these companies.
The number of manufacturers (domestic and foreign) increased dramatically after the de-licensing of the sector. Increased competition has forced companies to focus on cutting costs, improve technology and styling through research. It has also constrained them to limit price increases.
Availability of easy credit facilities also resulted in creating demand for automobiles. The car financing market has boomed from a turnover of Rs 7,000 m in FY95 to nearly Rs 35,000 m in FY97.
Structure
The Indian automobile industry can be broadly classified into:
2 /3 Wheelers
Passenger Cars
Commercial Vehicles (LCV/HCV/MCV)
UV (Utility vehicles)
Tractors