Recently I read an article in the Economy Watch; according to this article before the policy liberalization was introduced, there was no significant investments in development of new products and research and development of auto industry in India. Indian auto market was restricted by few suppliers.
Indian market and manufacturers are affected by the recent changes and developments in the global auto sector. Now India has made it’s presence in recent years with it’s potentiality. There is scope to manufacture low cost vehicles with highly skilled but inexpensive manufacturing base, labor intensive components and developing economy in India.
After liberalization of the economy in 1991, a new brand phase was shown. Entering the global auto manufacturers led to the rapid rise in the number of vehicle manufacturers and upgrade of technology. It offered the customers a wide range of products to choose from. Some of the global manufacturers set up the manufacturing units in India. Later India became a prominent place to set up the automobile production units. Global manufacturers are using the India’s manufacturing base.
Now automobile industry plays a major role in Indian economy. There are recorded sales of Rs 20,000 crore and investments of Rs 11,500 crore is being involved by many, about 400 investors. It is using lot of employment force nearly 2.5 lakh people.
According to the Economy Watch article, Asian countries, India and China are big players in the Asian market. With recent technological advancements, fragmentation of the new market and globalization, the chances for growing Indian auto market are high.