next 5 years of Indian Automobile Industry
1)Majorly, an increase in the consumption of cars in the rural sector either by shifting consumers of 2-wheelers to cars or by making cars at dirt-cheap prices.
Presently, annual production of 2-wheelers (bikes) in India: 65lakh.
MUL’s production rate: 6.5lakh cars/day, which will increase once the Manesar plant starts production by the end of this year.
Passenger car penetration in India: 7/1000 people
2)Improve the emission standards of the present batch of cars. All metros have
BS-III cars, but semi-urban & rural areas still have BS-II compliance at max. Vehicles like “Zen-carb” still being produced.
3)Improve fuel efficiency of cars so that fuel consumption reduces, resulting in higher affordability of cars post-purchase.
4)Diesel cars, though more complex and demand higher maintenance, but give a higher mileage and diesel is cheaper than gasoline. The new entrants run as smoothly & noiselessly as petrol cars giving them a steady competition.
So development of diesel cars should gain speed, bringing out diesel variants of the existing petrol cars.
Not just diesel variants, but company-produced CNG variants will also be produced.
5)Though not comparable to the higher consumption rate of smaller cars, but significant due to higher costs involved.
As the semi-rural sector shifts to C-segment, the semi-urban & urban sector is shifting towards B and B+ segments. The disposable income of the middle class is increasing, resulting in a swell in the number of cars a household can purchase.
The standards are to be maintained & hence one & all desire nothing but the possible best.
It’s a growing section, which no auto company would wish to ignore, as the market is highly aggressive and capable of filling the gap in the blink of an eye.
6)The industry also needs to plan for the times to come in a little distant future. The present sources of fuel are exhaustible & non-renewable, a fact which cant be ignored for long (at max 10-15 years) even at the pretext of being a developing economy. So alternate fuels & concept vehicles need to be developed ASAP. For those who say that nothing is being done anywhere in the world, I say: India can be the pioneer.
