The automotive & Engineering sector, comprising of the automobile and auto component sub sectors, is one of the crucial segments of the economy having extensive forward & backward associations with other key segments of the economy. There has been an impressive development and change in Automobile industry, particularly for the last couple of years. With many companies now concentrating more on customer needs and price factors, there has been a sharp rise. Foreign Direct Investment (FDI) impact on the growth of Automobile Industry is visible across the sector – direct employment in manufacturing, auto component suppliers and auto service segments.
With global players and FDI playing a crucial role in this segment, there are abundant opportunities for investment in the sector. According to Global Insight — a U.S. based provider of economic and financial information — 14.7% of growth is expected to come from India by 2013. The economic scenario is also encouraging for the buyers to buy more vehicles and thus the demand is likely to increase even further.
Establishing Research and Development Centers
With growing competition in the market, R&D has become crucial in this segment for this sector. Innovation and new technology is a strong point that is helping various brands differentiate & market themselves.
Establishing Engineering Centers
The sector manufactures over 1.1 Crores of vehicles and exports about 15 lakhs each year, thus making engineering centers a key essential.