Indian Auto Industry is one of the most
dynamic in the world. As per Industry Pundits, the domestic Auto industry’s
growth is estimated to be more than 20% in the near future.
Some of the key drivers for such a robust
growth in the Indian Automotive Industry can be listed as under:
v
Purchasing Power: Purchasing power of Indian people, and in
turn, their disposable income has indeed gone up in accordance with India’s
economic growth story which is consistently showing signs of positivity.
v
Status Symbol: Possessing a car or, for that matter, more
than one car, has become a matter of prestige & a symbol of Self- esteem
amongst Upper middle class Indians.
v
Increase in number of Nuclear families:
With children going to other cities for studies & thereafter settling down,
the increase in the number of nuclear families in on a high. With this increase
comes the increase in the consumption of cars as well.
v
DINK: Amongst the Nuclear families also,
the factor of DINK (Double Income No Kids) plays a major part. With both
Husband & Wife being working, the requirement of two cars becomes a
necessity as both need to drive down to their respective destinations
separately.
v
Young India: With majority of Indian
population being less than 35 years of age, India is a very young nation. Also,
increase in employment opportunities due to the emergence of BPO sector, young
Indians get disposable income in their hands very early in their career. Hence,
they want to give wings to their aspirations by putting their money in luxuries
like mobiles & automobiles, thus growing India’s consumption.
v
Easy Interest/ EMI Options: Thanks to
the easy availability of loans for car purchase from Banks & financial
institutions & attractive EMI & Interest schemes, possession of a car
was never so hassle free.
v
Indian Weather conditions: India, being
a predominantly hot country, people who wish to travel little longer distances
prefer to do so in a car than a bike as the option of switching on an air
conditioner can only be possible in a four-wheeler.
v
Attractive offers by car manufacturers: With
attractive offer schemes given by car manufacturers during off & non-peak
seasons like providing heavy discounts, some of the buyers wait for the low
season of the year to satisfy their buying spree.
v
Varied Segment options available: With
different kinds of segments of cars available by a particular manufacturer, the
buyers now-a-days have variety of options to choose from even if they have a
set budget.
v
Healthy Competition: Now-a-days, Indian
consumers are well-travelled & are well-aware about global trends, hence
they look for value for money for what they buy. The entry of foreign players
has given a downward push to prices. Hence, people are getting a better value for
money & they don’t mind buying a four-wheeler if the return-on-Investment
is good.
v
Attractive advertising & marketing:
Car manufacturers are putting in more efforts in making people aware of their
products & what they have to offer by investing in right kind of
advertising, be it print, television or even Aerial (through helicopters).
v
Skilled
Staff: Last but not the least, the hiring of right kind of staff by the
automobile manufacturers also helps in driving the sales, as these are trained
people who know how to make their guests turn into customers & how to
retain those customers by giving good after-sales service & high-end
experience of car buying.
A sum of all the
above factors is helping the Automobile industry in India to grow exponentially
& in leaps & bounds. The belief by Industry pundits in India to be a
4-million units car market by 2015 is surely going to bring a smile on the
faces of car manufacturers.
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