The automobile industry in India is considered to be one of the most promising and progressive industries of the global automotive market. There are technological changes, changes in the consumer’s choice and very significantly change in the policy that is making the automotive industry in India as a new age industry. Here in this blog, these tips, trends, technological advancement, impact of policy and other related factors associated with Indian car market of shall be featured.
Factors affecting the Market for Electric Vehicles (EVs)
- Government Initiatives: The governments of India has encouraged the adoption of electric vehicles through policies such as the FAME, the “Faster Adoption and Manufacturing of Hybrid and Electric Vehicles” and the NEMMP the “National Electric Mobility Mission Plan”. These policies are intended at preventing pollution and enhancing the uptake of EVs.
- Increased Investment: Currently, traditional automotive giants and potential players are putting significant amounts of capital in EV technology and development. Players like Tata Motors, Mahindra & Mahindra already seem to be prepping up their electric models while Ola electric is waiting in the wings.
- Consumer Incentives: Governments across different states are coming up with policies such as incentives and subsidies that would promote the acquisition of EV. These incentives offset the initial cost of electric vehicles, and therefore elongating their appeal to the consumer.
Integrated and Automated Roadways
- Technological Integration: Authors of this paper have highlighted IoT, AI, and machine learning as key drivers of innovation on automobiles. Modern connected vehicles have integrated applications for infotainment, instant diagnostic, direction finding and much more.
- Autonomous Driving: Although fully autonomous cars are yet to be realized, car makers are incorporating partial form of autonomy on the roads such as adaptive cruise control, lane keeping assistance and automatic emergency braking.
- Enhanced Safety: Smart and connected cars will provide enhanced safety aspects such as anti-collision systems and traffic management info that can reduce the incidences of accidents on the roads meaning that the use of the cars will mean safer roads.
Rising Preference for SUVs and Crossovers
- Consumer Preferences: The current Indian buyers are shifting their preferences from conventional sedans into suvs and crossovers. The attraction of these vehicles is mainly found in their ability to have a higher ground clearance than typical commuter cars and more usable interior space as well as their general utility.
- Market Expansion: Originally a niche market, the demand for SUVs and crossovers is gradually increasing, and auto makers are continuing to add models to their portfolios. New models with more and richer characteristics and relatively low prices are emerging one after another.
- Urbanization Trends: This has driven motorists to prefer car models with more passenger and load-carrying capacity, pickup-up shapes and additional off-road characteristics which are expressed in increasing sales of SUVs and CUVs.
Quality and Speed of Development for Sustainable Technologies
- Emission Norms: India however has introduced tighter emission standards as Bharat Stage VI in order to lower emissions from the automobiles and enhance quality of the surrounding air. These regulations have prompted manufacturers to look for cleaner technologies in which to invest.
- Alternative Fuels: Besides the electric automobiles, technologies embracing other fuels including hydrogen fuel cell and CNG (compressed natural gas) are emerging. These fuels are less emitting and could be used as a yardstick for the conventional fossil fuels.
- Sustainable Practices: Manufacturing processes are also an area of interest for car makers and such aspects as sustainable material use and recycling.
Advancements in Automotive Manufacturing
- Automation and Robotics: That is why the application of automation and robotics in manufacturing lines is promoting efficiency and accuracy. It is also worth stating, that application of new technologies in manufacture is positively affecting costs as well as quality of products.
- Local Production: The up-surging demand and cost cutting measures have forced most international automotive firms to localize their production capacity in India. This shift is also well in line with the government’s Make in India programme promoted to encourage manufacture and domestic production.
- Innovation in Supply Chains: Technological advancements that are being adopted in SCM including JIT and digital tracking are enhancing the flow of automotive supply chains.
Shift in Consumer Behaviour
- Digitalization: With growing use of internet people have shifted from traditional methods of car buying behaviour. Consumer purchasing of automobiles and primarily virtual showrooms and online markets are on the rise.
- Subscription Models: Some novel models that are currently emerging include, Flexible ownership which include things such as vehicle subscription services. These models grant the consumers a flexibility that allows them to change their automobiles or annul contracts much easier.
- Focus on After-Sales Services: The customers are being more conscious about the after-sale services as part of which maintenance and repairing service are part of. It shows that companies are spending a lot in enhancing service delivery and the support for customers.
It has also been seen that there are certain challenges facing the automotive sector and these include the following:
- Economic Uncertainty: There are different forces of demand which include economic forces such as changes in customer buying power, business cycles and fluctuations in consumer income levels which may affect the automobiles market and sales of vehicles. The industry has to face these conditions with more or less certainty and at the same time continue to grow.
- Infrastructure Development: Promoting charging stations to electric powered automobiles and roads to also enhance the growth of the innovative automotive system.
- Regulatory Changes: The automobile consumer and automobile manufacturer is therefore faced with the challenge of adjusting constantly to dynamics of the regulation and policies of the market in terms of safety, emission and manufacturing.
Conclusion
The Indian automotive market is characterized by a progressive transition due to technological advancement, changes in the consumer trend and favourable government policies. Environmental concerns, notable progress in the elements like connected and autonomous vehicles, and transition to electric vehicles are some of the factors defining the market’s future. Thus, though still chalking some deficits, automaking industry’s ever advancement presents prospects and breakthroughs for both buyers and makers. Thus, such trends will remain crucial to follow as the market for vehicles develops in India and throughout the world to remain informed regarding the shifts in the automotive market.
References
“Business Standard. “India’s EV Market: Opportunities and Challenges.”
