Top 5 Challenges for Indian Automotive Industry

Posted by SolutionBuggy on February 13th, 2021

In the Indian Automotive Industry, there is a lot of potential and scope. However, one should know that only a part of the potential and promise exist in the Indian Automotive Industry. One must also be well aware of the industry challenges and possibilities before jumping into the industry. This article looks closely at both these aspects. There are many factors that need to be considered while looking forward to the growth of the Indian Automotive Industry. These factors are discussed below:

- Challenges for New Entrants and Challenges for Old Entrants: Many believe that Indian Automotive Industry will not have enough space for new entrants. Many believe that in the near future there will be very few car manufacturers in India. This is due to the fact that there are many challenges that the industry has to face. As we know, in Indian Automotive Industry the lack of an adequate number of trained personnel is a key barrier for new entrants who have a minimal amount of capital for investment. Top automotive consultants find out rivals and their strong and week point for you to beat them.

- Challenges for New Entrants and Challenges for Old Entrants: There is a steep ramp-up in the cost of maintenance and replacement parts for domestic as well as export automobile products in India. Indian automotive sector is yet to experience this problem. Therefore, in the next years, the automotive components market in India will remain stagnant. There are some possible solutions though to overcome this problem, which includes training of skilled automotive workers, better use of advanced tools, production capacity expansion, and the introduction of new technology products.

- Challenges for New Entrants and Challenges for Old Entrants: Another challenge that the automotive industry in India has to face is that of increasing dependency on imported cars. The automotive industry in India depends on foreign cars for approximately 70% of its total production. The increasing import bills will reduce domestic capacity. In addition, India's domestic car manufacturing companies have limited resources to tap due to a lack of requisite technology, labor, and financing. This will result in reducing their capabilities to increase their capacity.

- Challenges for New Entrants and Challenges for Old Entrants: The third challenge that the industry in India has to face is enhanced productivity due to reduced inputs. The automotive sector in India has traditionally depended on heavy input costs but with increasing globalization, the processes involved here have become less costly. Moreover, increased productivity can be realized through better quality control and greater throughput. These factors are also expected to boost the competitiveness of the Indian auto industry. However, the scope for new entrants will remain small in this case because of existing constraints.

- Outlook for Indian Automotive Industry: With reduced barriers for entry and improved access to labor and requisite technology, the Indian automotive industry has a bright outlook. The key for such a scenario is proper mechanization of the processes and better quality inputs. However, the key issue is how to ensure the correct pricing of these products. To improve efficiency, the industry needs to unify all production processes including design, production, marketing, finance, and accounting. This will make the industry more streamlined and enable it to respond quickly to market changes and fess up its strengths to attract and retain new entrants as well as domestic and international customers alike.

If there is a challenge then definitely a solution is there, the effort we need to find out. Manufacturing enthusiast are busy finding these ideas, strategies, and challenges to overcome, don't worry SolutionBuggy is the largest platform that can find out, accumulate, and analyze for you. Solutionbuggy's automotive industry consultants help you with all the processes from scratch to product delivery in the market.