India is now among the largest markets for automobile production in the entire world. The current news on automobile industry has been greatly affected by the global economic recession that has affected the economy of the whole world in general and particularly the automobile industry in India in particular. As a consequence, the automobile industry of India faced a setback, resulting in the retrenchment of a large number of its workers. However, with the arrival of a new phase of growth in the Indian economy, the automobile industry of India is bound to experience major transformations in the near future.
Today, automobile industry of India is witnessing a rapid phase of expansion as the government has approved a massive amount of funds for the construction of more roads and highways in the country. The current expansion in the automobile industry can be gauged from the fact that many leading automobile companies from abroad are planning to set up their manufacturing plants in India in the near future. Moreover, there are numerous foreign car makers that are exploring the option of setting up their automobile manufacturing plants in India.
However, there are several negative aspects associated with the present scenario of the automobile industry of India. One of these is that the competition in this sector is extremely tough and the automobile companies are finding it increasingly difficult to maintain the price level of their products as compared to the cost of imported vehicles. Another aspect of this problem is that the cost of imported automobiles is considerably higher than that of domestic automobiles. Current news on automobile industry states that the rising inflation rate and increasing unemployment level in the country have also resulted in a decline in the profit margin of the automobile companies.
With increasing competition, it is clear that the cost of making automobile products has declined steeply in the recent times. As a result of this, several leading automobile companies have decided to manufacture their products in foreign countries like those in China. It is very evident from the news reports that the automobiles produced in China are highly cost effective ways to run vehicles in the country. However, the cars manufactured in the Chinese assembly line are inferior in terms of quality. As a result of this, millions of auto workers who work in the vicinity of these assembly lines are suffering from the consequences of low production output and excessive labor costs.
It is also seen that the government has failed to take any initiative to stop the decline of the automobile industry in the country. Current news on automobile industry states that there have been significant amount of funds released by various government bodies and private sectors for providing incentives to encourage automobile manufacturers to increase their production output in the country. However, none of these announcements seems to be working out well. In fact, it is clear that there is no government that is interested in spending money on promoting the automobile industry in the country.
The situation faced by the industry is quite similar to the problems faced by the textile industry at present. The textile industry was once a rising star in the Indian economy. However, it has seen a tremendous decline in the past few years due to heavy rise in textile prices. Similarly, the automobile industry in India has witnessed tremendous decline in the last few years. It is obvious that if these two industries were to be promoted, significant progress can be seen in both the industries.
The current news on automobile industry states that there is absolutely no chance of revival in the industry in the near future. The main reason behind this gloomy news is the dwindling market share of the domestic automobile industry. The market share of Indian automobile manufacturers has come down over the years as a result of fierce competition. Due to this, foreign automobile manufacturers have also shown interest in India.
The current news on automobile industry states that the government has not taken any initiatives to revive the industry. This means that there are no funds or aid plans offered by the government for reviving the industry. This does not mean that there is absolutely no chance of revival in the near future. Auto manufacturers have a lot of scope to increase their sales in coming years and it is only the government who can help them achieve that target.