Indian Automobile Industry Poised To Take On The World
The Indian automobile industry has come a long way in recent years. Despite many critical industry challenges and market restrictions, our country has leapt to emerge as a most promising hub for global automakers. With Auto-Expo being around the corner after the hiatus of three years due to the pandemic, there is a positive shift in the sector to offer the best of the products in 2023 and mark new milestones. The year is going to be one of the most exciting tenures in the Indian Automobile Industry’s calendar.
Adding more, the upcoming Auto Expo will further exhibit the strength of the country in the field of green mobility to the rest of the world. With more than 30 EV companies participating, out of more than 110 participants (highest-ever), the market will witness a strong line-up of new products across categories, cutting-edge technologies, and advanced safety features as well as promotion of local vendors, which will create a strong positioning of the ‘Make in India’ vision across the global markets.
Interestingly, the global automakers are armouring their portfolios with the best-ever, while the Indian auto brands also look geared up to cater to any demand and challenge. Considering last year when the buyers welcomed good products despite substantial price rises, the automakers didn’t budge and was still confident, as the industry was getting a face-lift in terms of the product quality.
The Indian market has always been very price-sensitive, but I am sure now the bar of basic pricing to a product has been shifted because of the features and quality of engines. A number of electric vehicles are expected to be launched in all the segments, 2-wheeler, 3-wheeler, and 4-wheeler.
This year, we can expect a significant number of vehicle launches across various categories. These include two-wheelers, three-wheelers, four-wheelers, and commercial vehicles. The exact number of launches has not been disclosed. These launches will likely include a mix of electric and traditional gasoline-powered vehicles. It will be exciting to see what new innovations and technologies these launches bring to the automotive industry. The majority of launches are expected in the first quarter, with the remainder scheduled throughout the year and around the festival season.
The most highly anticipated launch is of new electric SUVs, coupes, and two-wheelers which are rumoured to have a good range over single charge and advanced autonomous driving features. Another eagerly awaited launch is a new gasoline-powered SUV, Jeep, and another passenger car. In addition to these new releases, there are also several updates and refreshes of existing models set to debut this year. These include a refreshed version of a popular sedan and a new luxury SUV.
A number of factors are contributing to this growth, including the country's large and growing population, increasing disposable incomes, and improved infrastructure. The government has also played a vital role in promoting the growth of the industry, with a range of policies and initiatives aimed at boosting production and sales.
Globally India is the fourth largest Automobile producer and was valued at USD 100 Billion in 2021 and expected to touch 160 Billion by 2027, reported Mordor Intelligence Market Analysis. It is one of the fastest-growing markets, with an expected compound annual growth rate of around 8.1 per cent over the forecast period. The automobile industry plays a vital role in the country's economy, contributing around 7 per cent to the country's GDP and providing employment to millions of people.
One of the key challenges facing the Indian automobile industry is the lack of a well-developed supply chain. Many components used in vehicle production are imported, making it difficult for companies to achieve economies of scale. The government has recognised this issue and is working to develop a domestic supply chain through initiatives such as the "Make in India" program.
In conclusion, the auto sector’s challenges are for all to see, and yet there are immense growth opportunities in it, hence the future looks bright for the Indian automobile industry. The country is expected to become the third-largest market for automobiles by 2030, and the government is working to put in place the necessary infrastructure and policies to support this growth. This includes initiatives such as the National Electric Mobility Mission Plan, which aims to put 5–6 million electric vehicles on the road by 2020.
