Skip to main content

A view on Automobile Sector

India's automobile industry is an industry which has steadily increased and the money invested in the shares of the companies of this industry has increased manifold. As we take the example of Maruti Suzuki or Bosch Limited or TVs Motors or even Hero Moto Corp.
One of the biggest reasons for the increase in automobile sector is the increase in spending capacity of the people. Today you will definitely see a motorcycle in any home. Motorcycle cycle is one of the basic necessity of today's time.
If I talked about some major changes, then banning of BS-3 vehicles was a major change. At the time the Supreme Court ordered this, all the companies had sold their vehicles at a discounted price. Prolonged pressure in crude oil prices was also a major reason for the growth of the automobile industry, because the pressure on crude oil prices is considered good for tyre companies. Another change is in taxation, which is GST, it was a change that made the sector even stronger, contributing a lot to get the things organized properly.
The way in which the amount of pollution is increasing in the country, the future of vehicles running on diesel and petrol can be seen in danger, as well as the demand for electric vehicles are definitely going to be increased. Although closing down petrol and diesel vehicles is very difficult in a country like India, but we cannot deny that the trend of electric vehicles will definitely increase.
In the changing times of this industry, the company will get better as soon as it adopts to the changes quickly. Some other companies are likely to make the debut, Tesla Motors is one of the leading names in it. All the attention of Tesla Motors is only to the electric vehicles if the arrival of such companies is done in India then the competition between the companies can reach to a new peak and that would be better for consumers.
Large companies like Tata Motors, which have a large amount of profit which comes from abroad is focusing mainly on it that how to increase their market share in a country like India. Many new vehicles are being unveiled in this phase, not only Tata Motors, all other companies are also unveiling new vehicle which is increasing a stiff competition between the companies.
In India, a four-wheeled vehicle is considered as a status symbol. Therefore, the demand for both small cars and luxurious cars will always be there and the possibility of further growth cannot be neglected.

One and only thing which is required for the companies is to adapt to the changing scenario and move quickly to the next level because now this industry will care about only those which will be a fast mover not a first mover.
Labels:

Comments

Post a Comment

Popular posts from this blog

India: Growth Slow Down (A note on GDP)

Indian economy slowed down significantly in the first quarter of FY2017, which is worst in last three years exactly the same years Modi government is in center. According to recently released data GDP expanded a weak 5.7% annually in Q1 FY 2017, which was sharply below the 6.1% increase in Q4 FY 2016. All those analyst who were forecasting a healthy growth rate now are vanished and our finance minister is accepting that this is a matter of concern. The probable reason of this slow down can be demonetization or implementation of GST. Export growth slowed notably from 10.3% in Q4 FY 2016 to 1.2% in FY 2017, the worst result since Q4 FY 2015. A strong rupee and confusion over the looming implementation of the Goods and Services Tax (GST) likely weighed on the result. There are many evidence in which suggests that firms were not sure of how to price product, with some even providing pre-GST discounts, which likely caused disruption in economic activity. Meanwhile, import growth rose to...
Post a Comment
Read more

Market update 22nd March

Market opened down by almost 70 points taking global cues as US stock sank yesterday. Market is expected to be negative for intraday session although a slight up move in afternoon session can not be ignored but sentiments remains negative.This correction was due in the market and for short term trader 8950 will act as a support for nifty on the another hand sentimental support is of 9000. The trading activity yesterday showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 1662.72 crore yesterday, 21 March 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 798.57 crore yesterday, 21 March 2017, as per provisional data. 9170-9200 will act as a resistance zone. Stocks which will be in focus today: Dena Bank: Board approves raising of share capital by the bank, amounting to upto Rs 800 crore. Wockhardt: Drug firm, Wockhardt, has received approval from the US heath regulator to m...
Post a Comment
Read more

What Macron’s Win In France Means For Emerging Markets And India

What Macron’s Win In France Means For Emerging Markets And India As result of France’s presidential election has already been announced and Emmanuel Macron won the election defeating Le Pen. Emmanuel Macron is the youngest president in the history of France. As market was expecting the same and the positive rally was already in cashed that’s why market has not reacted unexpectedly after the results. If Le Pen would had won then definitely a sell off rally was expected. Macron has sounded pro-business, consistently talking about labour and tax reforms as well as infrastructure spending. The equity markets love these terms. All French and EU focused businesses are likely to benefit, and there may well be a bit of an up-move in European equities in the first half of the week.  Investors in emerging markets like India would be happy that the EU markets are now unlikely to see some vicious sell-off. This puts the focus back on domestic factors and the local triggers...
Post a Comment
Read more