The Indian Automotive Industry in Depth
Automotive industry in India is one of the largest in the world. It has seen tremendous growth in the last one decade and is continuously moving towards attaining new heights. India’s passenger car and commercial vehicle manufacturing industry is the 4th largest in the world after China, United States and Japan. This impressive industry is driven by a gigantic demand from the world’s second largest population looking to meet its requirements.
The Indian population is primarily composed of the working middle class segment, earning a stable monthly income, without unlimited resources. The massive expansion of the Indian economy has given the Indian middle-class segment a hike and has led to the creation of new customers. Advent of new customers has allowed large automakers and international brands to set up camp in the country as they veritably have a huge potential customer segment they can target. Automotive market is one of the most prominent markets in India which has witnessed and exploited this rapidly expanding customer base in the Indian middle-class households. The Indian automobile industry in its own contributes as much as 7.1% share to India’s total GDP and 49% share to India’s manufacturing GDP.
Understanding consumers and their behaviour is key to analyse such a market appropriately, which is largely customer driven and scarcely product driven. How a majority of the Indian middle-class purchase decisions are made, what influences their behaviour towards the automobile industry and their means to carry out their decisions, all speak in a manner to explain the industry.
Background to the economy and evolution of the industry, social factors, and economic parameters such as road infrastructure together combine and define the industry. Understanding the market also poses as a viable solution to make it big in this industry. Having a clear idea of the consumer’s needs and demands, what they like, what they don’t and knowing what sells is all the difference that a brand could make. Analysing the trends in the industry, observing growing patterns and sales volumes and being aware of the potential competitors is crucial as well.
Experience the aura of the Indian automotive industry with us by interacting with the following pieces of creation