Not surprisingly, the Indian automobile industry has become the 4th largest automobile industry across the globe with the increment of 9.5 percent per annum. As from the last few last decades, the advancement in the production and management systems has revolutionized the Indian automobile industry. Moreover, the Indian automobile industry has witnessed the opening up and growth of several emerging markets and is now facing new and pressing challenges. However, globalization, digitalization and increasing competition in the market are changing the face of the industry.
Factors Influencing Automobile industry
Today, the Indian automotive industry is subjected to a range of factors that are increasing the complexity as well as influencing the economic options available to the automobile manufacturers. Meanwhile, the majority of these factors interact with one another which have strong interdependencies. Some of these factors including:
- Market convergence
- Rising investment
- Growing demand
- Policy support
In general, rise in the middle class income and young population may result in strong growth. However, India is expected to become a leader in shared mobility by 2030 which provide opportunities for electric and autonomous vehicles. Moreover, in shifting focus towards electric cars will also provide opportunities in the automobile sector. Besides, India has a significant cost advantage which attracts investments in the automobile sector in which the Indian government aims to develop India as a global manufacturing centre. Furthermore, they have also come up with reforms such as GST to boost the growth in the automobile sectors.
The Challenge of the Competitive Environment
Although, only way to succeed in the industry is by being focused, responsive, variable and resilient which can be accomplished by converting to an on demand company? While adapting to the ever- changing environment, it has become the core business requirement, having problem-solving tools and methods to be identified, selected and implemented as fast as possible.
- Brand management
- Customer relationship management
- Core competency management
- Software management
- Quality management
- Product development management
- Expansion management