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Driving Towards Success

- Home : Industries : Automotive

Automotive

Industry- Automotive

The industry for auto & auto components since 2000 (as trends indicate), has been transforming from being highly domestic-centric, to a force ready to face global competition. Entry of global OEMs has transformed the Indian automobile and auto components landscape. India is being perceived as a major market for cars and two wheelers by global OEMs.

  • The Indian automobile industry offers great potential considering the low penetration along with rising income levels and a rapidly growing middle class.
  • The two segments of passenger cars and two wheelers are estimated to grow at between 10-12% for at least the next five years.
  • The model of cluster-based development prominent in this sector will provide economies of scale.
  • Rising exports of Indian-made vehicles are indirectly increasing the demand for Indian auto components.
  • De-regulation and the Government’s policy initiatives have facilitated growth and focus has now shifted towards attracting foreign direct investments.
  • The Government’s initiative towards road development will give a boost to demand.

Extending their reach to global markets is the pre-dominant outlook among the top auto component manufacturers in the country. The vision to compete globally comes from the inherent strengths that the Indian auto component industry possesses.

Investments in research and development, coming in from global OEMs stand out positively in favour of India. Key players are not only willing to invest in R&D, but also in mechanical and engineering operations.

There are lower labour costs, easy availability of raw materials, established quality systems, and cost reduction of 25-30% in production in the domestic market compared to overseas.

How Tecnova Can Help?

Tecnova has successfully assisted numerous clients (both foreign and domestic) set-up or expand their operations in the booming Indian automotive market. From market-analysis to business set-ups, Tecnova delivers the ‘India-Advantage’ to their clients. Our clients in this sector include General Motors (US), Wellman Products (US), Polaris Industries (US), Volkswagen (Germany), Fras-le (US).

Tecnova offers following services to its automotive clients:

  • India Entry strategy (Intelligence, Research Market Analysis Business Plan)
  • Setting up Green field projects/Acquisitions/ JVs with Indian companies
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  • Executive search for the India Market
  • Support Services (Incubation, Admin, Finance, Legal Regulatory and Statutory approvals))

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