The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over As of , India is home to 40 million passenger vehicles and more than 3. A chunk of India's car manufacturing industry is based in and around Chennai, also known as the " Detroit of India " [10] with the India operations of BMW , Ford , Hyundai and Nissan headquartered in the city. Chennai accounts for 60 per cent of the country's automotive exports.
The Indian Automobile Industry is manufacturing over 11 million vehicles and exporting about 1. The industry has attained a turnover of more than USD 35 billion and provides direct and indirect employment to over 13 million people [21]. The supply chain of this industry in India is very similar to the supply chain of the automotive industry in Europe and America. This may present its own set of opportunities and threats. The orders of the industry arise from the bottom of the supply chain i.
However the products, as channelled in every traditional automotive industry, flow from the top of the supply chain to reach the consumers. Interestingly, the level of trade exports in this sector in India has been medium and imports have been low.
However, this is rapidly changing and both exports and imports are increasing. The demand determinants of the industry are factors like affordability, product innovation, infrastructure and price of fuel. Also, the basis of competition is the sector is high and increasing and the life cycle stage is growth. With a rapidly growing middle class, all the advantages of this sector in India are yet to be leveraged.
Note that, with a high cost of developing production facilities, limited accessibility to new technology and soaring competition, the barriers to enter the Indian Automotive sector are high and these barriers are study.
