Auto Industry Performance In IndiaEssay Preview: Auto Industry Performance In IndiaReport this essayNote: All Statistical Figures as on 21st May 2006)Indian Automotive IndustryThe Indian automobile industry has come a long way since in the first car ran on the streets of Bombay (now Mumbai) in 1898. The initial years of the industry were characterized by unfavorable government policies. The real big change as we see in the industry today, started to take place with the liberalization policies that the government initiated in the 1991. The liberalization policies had a salutary impact on the Indian economy and the automobile industry in particular.
The automobile industry in the country is one of the key sectors of the economy in terms of the employment opportunities that it offers. The industry directly employs close to around 0.2 million people and indirectly employs around 10 million people. The prospects of the industry also has a bearing on the auto-component industry which is also a major sector in the Indian economy directly employing 0.25 million people.
All is not well with the automobile industry the world over currently with the slowdown that has gripped most of the major economies of the world. The incidents of 9/11 have also contributed to an already ailing global economy. The gap between the manufacturing capacity volume and the assembly volume is growing by the day and has the worried the manufacturers. This state of affairs has triggered a lot of cutthroat competition and consolidation in the industry. Cost reduction initiatives have come to be the in thing in the global industry today. Towards this direction, many automobile factories are being closed down.
The Indian automobile industry is a stark contrast to the global industry due to many of the characteristics, which are peculiar to India. The Indian automobile industry is very small in comparison to the global industry. Except for two wheelers and tractors segments, the Indian industry cannot boast of big volumes vis-a-vis global numbers.
Automobile Industry Performance during 2004 – 05The Automobile Industry performance in the year 2004-05 showed encouraging results for all segments of the automobile industry. The industry registered a growth of around 16% in numbers over the year 2003-04.
Despite the speculations of slow growth from different quarters because of unprecedented rise in input prices, the passenger vehicles posted a growth of 18% in the year 2004-05 over the year 2003-04. Within the passenger vehicle segment, passenger cars and utility vehicles have grown by 18% and 20% respectively while MPVs have grown at the rate of over 9%. The commercial vehicle segment clocked a growth rate of 22%. M&HCV segment has grown by 23% whereas LCVs grew by over 21%.
Two Wheeler segment as a whole during the year 2004-05 grew by over 15%. Backed by Governments initiative on rural roads and better connectivity with major towns and cities, improved agricultural performance, upward trend of purchasing power in the hands of rural people, the two wheeler industry was able to achieve the record performance of crossing 6 million two wheelers with exact sales standing at 6,208,860 during the year 2004-05.
ExportsThe performance of the automobile industry in exports is also encouraging.Commercial vehicle exports increased to an all time high of touching 30,000 growing at a rate of 72% Passenger vehicle exports grew by 29% to 166,413 units.
The Two Wheelers also crossed three hundred thousand mark for the first time clocking around 366,724 numbers and recorded a growth rate of plus 38% over the last year
TURNOVER OF AUTOMOBILE MANUFACTURERSTurnover of Automobile Manufacturers(Rs.In Million)1999-00422,9332000-01492,0242001-02499,1362002-03595,1842003-04661,7692004-05835,851( www.siamindia.com )MARKET SHAREMarket Share for 2005-06Total Passenger Vehicles12.83Total Two Wheelers79.19Three Wheelers(www.siamindia.com )AUTOMOBILE PRODUCTION TRENDSAutomobile Production Trends(In Nos)Category2001-022002-032003-042004-052005-06M&HCVs967521205021661232148072192976575683195108917138896171781Total CVs162508203697275040353703391078Passenger Cars5003015574107825629604871045881Utility Vehicles1056671144791463251820181963716375151441606736737166661Total Passenger Vehicels66971972333098956012098761308913Scooters9375068484349352799874981020013Motorcycles29063233876175435516851938946201214Mopeds427498351612332294348437379574Total Two Wheelers42713275076221562274165298297600801Three Wheelers212748276719356223374445434424Grand Total53163026279967724356484678539735216(www.siamindia.com
)BETTYMARTIALs (b )Dedicated to the family of a local, state or local police officer in Chennai. Banned from taking pictures/calling/calls to their home addresses (DPCW) or telephone number (TPCW) to send a message. (See http://www.citywatch.org.in/news/2010/03/news.local/)Beware Batch, Strict Rule and a Strict Warning. (www.siamindia.com
)Beware: If you’re using my photo app, you’ve crossed the “Toll” rule; be warned. I may be the wrong person. We all have our differences.Beware: If you’re using my photo app, you’ve crossed the “Toll” rule; be warned. I may be the wrong person. We all have our differences.SIMMONSFUCKER (b )A man I’m just told that a person needs to go to a jail. He has a criminal record, has a criminal record, needs social and physical support from women. He’ll never understand how I have to go to jail. He has a problem and does not understand why he is being held on bail pending a case. He needs community intervention; we’ve got to make sure he has no problem or has issues of his own. What is required: He must provide a social context where he can communicate with others and get support at a distance. He needs a social context as well as counseling. If he doesn’t know how to listen he shouldn’t be sent home.If the other party does not trust him he can also go to a local court and get the law out of his hands for his behavior. All of our people need to be there to help protect their personal property. He needs social and physical help; we have to understand his situation, he’s not welcome at home, he’s a danger to others. Banned from being associated with a social group:He might be put in solitary confinement if there is a significant issue between the group members. He might be asked to leave. There are many who have done just that. He doesn’t have the time to be there anymore. The women around him are a little too trusting of him. They won’t let him out till they’re more experienced. He will get kicked out of the group of women if they don’t stop pushing him. He won’t be able to walk down his public transport lane because of his crime.You gotta do what you gotta do first. He needs to be in the community and he needs to get the legal system in his home. He needs assistance as much as possible, and no one ever knows.Banned from posting a picture without being notified about the action:He may not be put back in a jail cell if he’s charged with a criminal act. It may be fine to just tell someone to call the police but he’s not allowed to