Indias Automotive

Industry

From 1998 through 2008, its GDP has grown at an average of more than 7
percent per year. Moreover, its contribution to world GDP is expected to
increase from 2 percent in 2007 to 17 percent in 2050.
In India today, 13 million households earn US$10,000 to $50,000 a year;
that segment is forecast to more than triple by 2012, to 40 million.
Banks, well aware of the opportunities, have increased consumer credit
available to middle-class borrowers.

The Indian Automotive Industry is a significant contributor to the Indian

economy, contributing nearly 5% to the countrys GDP and about 17-18%
to the kitty of indirect taxes
Indias auto industry is growing fast, but it remains a two-wheel nation.
More than 78 percent of motor vehicles on the road are two-wheelers, their
popularity driven by low price, high fuel mileage, and an ability to
maneuver deftly through Indias dense traffic.
Rapid urbanization drives the need for commercial transportation. Consider
the need to keep food cold: 30 percent of agricultural produce in India now
perishes en route to the market due to refrigeration gaps in the supply
chain; hence, there is a nationwide need for refrigerated trucks

Infrastructure development in India must keep pace with the growth of

small cars :India has only 3,700 miles of highway, compared to 25,000
miles in China and 46,000 miles in the United States
A return to high steel prices will challenge these inexpensive four-wheelers
Oil and other commodity price increases will also challenge the four-wheel
passenger market
Internal combustion engineering and Mechanical vs IT ,electronics
Skilled technical and managerial manpower (auto designers)

Human resource and skill requirements related to the emerging

trends in the industry: electronics engineers will be needed to work on
the increasing, electronic content of vehicles, design engineers will need to
work on complicated engine designs, and manufacturing personnel will be
needed for hybrid vehicles.
Increasing cost of human resources due to the advent of foreign
players
Shortfall of human resources in vehicle design and styling functions
Increase in human resource requirements for vehicle financing and
vehicle insurance
Increasing proportion of women in the workforce
Skills that will be required due to the upcoming Inspection and
Maintenance regime (including vehicle scrapping):
Multi-product integrated dealerships and the corresponding need
for multi-skilled sales and service personnel
Organized used car industry: Maruti True Value and Mahindra First Choice

Category-wise incremental human resources

requirement (in lakh) expected in 2022:National
Skill development corporation