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Growing Foreign Investment and Favorable Programs is Motivating the Growth of Indian Automobile Market

Posted on: Oct-2017 | By: 9Dimen Group | Automotive

Indian market has loads of potential for the automobiles. The demand for the automobiles will continue to escalate as the ratio of vehicles per individual is unequal.

The key players of the sector are constantly bringing superior products to established untapped opportunities. The foreign players are furiously trying to penetrate the Indian market looking at the potential. This entry of the renowned players has also created a tough competition and there has been a drastic growth in the sales and production rate. The demand for auto chains is expected to boost in the coming future. It is projected that Indian automobile market will rank third in the global market by 2020. The factors responsible for the significant growth are the high number of untapped markets, government initiatives and favorable policies, growing per capita income of the population, increasing spending capacity, and enormously growing manufacturing. There is a direct connection of auto chains and sales growth. The growing profits of autochains will simultaneously spur the Growth of the market.

Modi government had implemented an initiative known as “Make in Indian” program that focuses on manufacturing and innovation within the country. The initiative being a medium has opened doors for various programs such as developing manufacturing sector, foreign direct investment, and intellectual property right implementation. This initiative has motivated local and international players to be unhesitant with the regulations and reforms to establish their businesses in India. This initiative has majorly impacted the growth of the Indian automobile market since 2014. Growing figures of two-wheeler and four wheeler sales has increased the proportion of resale vehicles, resulting in replacement demand in the future.

Financial institutions offering loan facilities with easy EMI options, low interests, and exclusive offers has enabled the majority of the medium class society to buy vehicle. Availability of affordable vehicles with efficient features, new transportation based startup companies expanding their business that include bulk purchase of the vehicles are some of the factors responsible for the growth of the market.

Automobile manufacturers implementing various marketing campaigns along with flat discounts, exchange benefits, and free extended warrant facility have also generated great leads that result in purchase of vehicles. And hence, drives the growth of the automobile market.