Current news on the automobile industry in India is more focused and critical about Indian car industry. The significance of Indian automobile industry has been recognized all over the world for its tremendous development in the automobile sector. The rapid progress of the automotive sector has resulted in a significant contribution in the gross domestic product (GDP). Moreover, the automotive sector also contributes to employment generation. Automobile companies in India are highly competitive in the international scenario but still maintain limited foreign share.
Indian automobile sector is growing at an unprecedented rate. There are two broad reasons for this growth. One is the high level of investment and huge demand for new cars and second is liberalization policy by government. As per industry analysts, there is a drastic change in the future scenario as far as the expansion of the automobile manufacturing is concerned. According to the latest market research report, four Indian states have maximum demand for new cars in the coming years.
In this competitive scenario, the Indian automobile manufacturing has grown at an unprecedented pace. Automakers are gearing up to introduce new models in the new year. Reports indicate that almost all major carmakers have started new facility expansion at various states across India. Even some of the smaller players in the field like Mahindra have taken the decision to expand their existing plant by one or two states. In total, the Indian automotive industry has the highest number of vehicles in fleet.
There is a drastic change in the outlook of the Indian automobile industry in the coming years. Recent reports indicate that Indian state governments have offered incentives of more than twenty thousand dollars to automobile manufacturing. This is considered as one of the major reasons for the accelerated growth of the automotive industry in India. This new policy and the incentive offered by the state, will provide a new impetus to the domestic automobile manufacturing.
The importance of the state government’s support in the growth of the automobile industry has never been ignored. With the government favoring the automobile industry, the domestic car makers feel at ease. These manufacturers now have the requisite financial leverage to invest in the requisite technologies and tools for speedy growth. Moreover, state governments are also convinced about the economic viability of automobile manufacturing. Several car makers in India have received assistance from the central government. State support has made it easier for foreign cars to set shop in India.
The recent economic slowdown has had adverse impacts on the auto industry in India. However, the positive aspects have encouraged many Indian state governments to come forward and provide financial assistance to the automobile industry. With the infusion of stimulus money, the sector can look forward to buoyancy in the coming years. The current news on the automobile industry in India indicates that the state governments are propping up the automotive sector. The growth story in the Indian auto industry is expected to continue in the coming years.
Current news on the automobile industry in India has reported that the government is planning to make automobile manufacturing a profitable business venture. The Indian government is keen on promoting automobile manufacturing and job creation in the country. The auto makers want a share of the pie of the $1.7 trillion car industry in the global market. In fact, the government has also taken initiatives to provide support for the domestic car makers. With increased foreign investment in the country, the government is trying to promote local industry and create more job opportunities for people.
Current news on the automobile industry in India has also reported that several new deals have been finalized in the last few months. These deals have resulted in reduction in the import price of cars. As the price of automobiles is reduced due to globalization, the Indian car makers can be expected to produce more cars at cheap prices. With the entry of cheap foreign cars into the Indian car markets, competition has increased among the auto makers in the country. Now, state governments are trying to facilitate car makers by offering tax rebates, cheaper premiums and other such benefits.