Million Dollar Marketing Blog: AUTOMOBILE SECTOR GROWING AT A RAPID RATE

Hello delegates,

Today our hot topic is about the automobile sector of India,we expect many new and foreign auto models in the coming years...yes its right ...

The ice breaking reason behind the sky rocketing growth is openness of Indian market ,following with the easy availability of finance at relatively lower rate of interest and at the same time the promotional discount offers of manufacturers and dealers.

while encompassing all such advantages,we can portrait a clear picture of the India's future in automobile sector.as per some of the renowned sites"India is all set to be a haven for Japanese auto majors. Automakers from that part of the world are making a beeline for India to expand their sales channels here. "

With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector, the automotive industry's turnover, which was above Rs. 84,000 crore in 2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.

Coming to the growth rate of various sectors, the commercial automobile segment registered an increase of 22%.

While the Light Commercial Vehicle (LCV) saw a surge by over 21%, both Medium Commercial Vehicle (MCV) and Heavy Commercial Vehicle (HCV) witnessed a growth of 23%. On the other hand, passenger cars and utility vehicles industry showed an upsurge of 18% and 20% respectively.

THE CRITICAL NETWORK IN INDIAN AUTOMOBILE INDUSTRY:

The successful strategy behind Maruti co. its dealer networks and authorized service stations, Maruti leads the pack with Dealer networks and workshops across the country. The other leading automobile manufactures are like Hyundai Motor India Ltd.,GM and ford co,has been good control over the accelerator, and also trying their level best performance in opening their service stations and dealer workshops in all the metros and major cities of the country. these dealers offer's varying kind of sales and promotional discount on financial aspects who in tern pass it on to the customers in the form of reduced interest rates.

It has been reported that the Suzuki Motor Corp aims to increase the number of local dealerships from 7269 by 50 per cent to 600 per cent by 2010-end.

Suzuki which started automobile production and sales in India in 1983, is currently the largest player in the market, boasting of a 50 per cent share. It already has an extensive network of 209 local sales firms operating 405 dealerships.

Meanwhile, Toyota Motor Corp, with 7203 outlets in Japan, plans to double the number of models on sale in India to eight. The auto giant will also triple the size of its local dealership network to 200 units by 2010, from the current 63, a report said. The company looks at boosting its share of the Indian market to 10 per cent from the current 4 per cent by 2010.

Another automobile major, Honda Motor Co which boasts of a total of 7267 dealerships in Japan, has plans to increase the number of dealers to 80 in fiscal 2008 and to more than 100 by fiscal 2010, from 53 at present.

TOP MANUFACTURER'S IN INDIA AUTOMOBILE INDUSTRY:

I think we know all such companies but still i want to give the details of drivers of Indian auto mobile industry.

MARUTI Udyog Ltd.
Hyundai Motor India Ltd.
General Motors India
Ford India Ltd.
Eicher Motors
Bajaj Auto
Daewoo Motors India
Hero Motors
Hindustan Motors
Swaraz Mazda Ltd
Royal Enfield Motors
Telco
TVS Motors
DC Designs
what i believe is a better and proactive industry push and approach as well as friendly government policies are very much required for this industry to grow still higher.

REASONS BEHIND THE SUCCESSFUL ROCKETING:

Yes my dear friends the attractive sales incentives, introduction of new models as well as variants coupled with easy availability of low cost finance with comfortable repayment options continued to drive demand and sales of automobiles during the first two quarters of the current year. The risk of an increase in the interest rates, the impact of delayed monsoons on rural demand, and increase in the costs of inputs such as steel are the key concerns for the players in the industry.

RECENT AUTO MOBILE MARKET NEWS ON UPS AND DOWNS:2011

The growth rate for the industry on a high base is now reverting to sustainable range of 14-16 per cent. While domestic demand remains strong, export of passenger cars continues to suffer with decline of 30 per cent, says the report.
In the passenger car segment, new launches / variants continue to excite customers and were the prime reason behind strong demand. The two-wheeler segment reported strong performance, with dispatches growing by 20 per cent during January.
In the commercial segment, medium and heavy commercial vehicle (MHCV) growth rate due to base effect has declined to a single digit.
while talking about the Tractor sales ,it remains the strong, with market leader M&M reporting over 20 per cent growth.
on the other hand the two-wheelers, industry dispatches increased by 20 % and continued to maintain their monthly run rate above 1.1 million. Domestic two-wheeler dispatches are well set to breach the 10 million mark during the current year. the top rank holder's of indian automobile sector are Honda Motorcycle & Scooters India.
As per the reports on passenger vehicles, Maruti Suzuki led passenger car segment with growth of 24 % in domestic dispatches. their competitive advantage remains the new introductions ,which facilitated them remain competitive along the line with Ford and Volkswagen.

FINALLY MY FRIENDS,IT WAS EXPECTED THAT INDIA WILL BECOME THE DREAM MARKET FOR THE FOREIGN GIANTS IN THE UPCOMING YEARS,AS THE FOREIGN MARKET BEING IN THE SATURATED POSITION,IT IS THE TIME FOR INDUSTRIALIST TO INVEST THEIR MONEY ON THE SO CALLED INDIAN AUTOMOBILE MARKET TO ACCELERATE THEIR GROWTH AND GENERATING REVENUE.....

YES ,NOW I M DREAMING ABOUT SOME OF THE EXPORT QUALITY CARS IN THE INDIAN SOIL...HMM