Automobile Industry in India

The Automobile industry in India, which includes design, development, manufacturing, repairing and sale of cars, two-wheelers, three-wheelers, as well as trucks, buses and tractors, has witnessed an upsurge over the last few years and continues to boom even today. While India's automobile industry is one of the largest in the world, the country was the fourth largest exporter of automobiles in Asia last year. Additionally, as per the Automotive Mission Plan (AMP) 2006-2016, presented by the country's Ministry of Heavy Industries and Public Enterprises, India is a favourite investment destination for international auto-makers, many of whom have set up manufacturing divisions in the country, opening a whole new vista of job opportunities for engineers.

Choose your Lane as Automobile Engineers

A profusion of opportunities are available to fresh engineers depending on the specialisation of their degrees including mechanical, automobile, production and electrical. Broadly, the field offers a variety of jobs in research and development, manufacturing, design, sales and services and components manufacturing segments.

Research and Development in Automobile Industry

The automotive industry is volume driven and requires a certain critical mass for attracting the much needed investment in R&D and new product design and development. Investments in the R&D segment are imperative for innovations that are crucial for achieving and retaining competitiveness." Thus, increased attention is being paid to research and development in India. The industry is stressing on inventing new products and designs with increased frequency. Automobile Companies are scouting for fresh talent and fresher ideas. Another focus area of growth is product improvement that involves power unit research, emission control, vehicle simulation, and testing and prototype validation.

Generally, engineers with a postgraduate qualification are absorbed into R&D activities in the industry. Speaking about what a job in the R&D segment would ideally entail, Development of new products and improvement of existing products and processes are focus areas in research centres. Automobile segment offers immense scope and flexibility for new entrants. For instance, a trainee engineer on the shop floor may be transferred into sales and services, subject to his potential and aptitude.

Automobile Production

A career in automobile manufacturing usually begins on the shop floor and requires one to manage and supervise it. Plant process improvement is one of the goals of all major competitors in the industry. Supply chain management is another area of interest for job seekers dealing with logistics and optimisation of value chains. One may serve at different levels of the production unit depending on one's academic qualifications and experience. Freshers can be absorbed to work in growing fields such as robotics, supply chain management or operations as per their specialisation and aptitude. On the manufacturing front, one would handle operations such as procurement, material handling and quality control.

India Automobile Industry scripting success stories

According to New York Times report, India’s well-built engineering base and mastery in the production of economical and fuel-efficient cars has led to the expansion of manufacturing facilities of leading automobile companies.

India automobile industry is on a high-growth trajectory. In fact in 2009 Indian automobile industry emerged to be Asia’s fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. The economic liberalization in 1991 saw sustained growth, thanks to competitive markets and relaxed restrictions. Many of the Indian automobile manufacturers have embarked on a major expansion spree. Companies like Tata Motors, Maruti Suzuki and Mahindra and Mahindra are spreading their wings both in the Indian and the international markets. India’s strong economic growth rate has prompted multinational automobile manufacturers to further expand their domestic operations. India-centric investment has also become the focus of many multinational automobile manufacturers. In February 2009, the monthly sales of passenger cars in India surpassed 1, 00,000 units.

Inception of Indian Automobile Industry

In 1940s the Indian automotive industry was at a very nascent stage. In 1953, government of India and private sector came together to build an automotive component manufacturing industry to meet the rising needs of the automobile industry. Nonetheless the growth was not on the expected lines, rather relatively slow in the 1950s and 1960s due to the prevalence of nationalization and license raj. In due course, automobile industry started to grow, riding on the back of increased demand for tractors, scooters and commercial vehicles. Cars were still considered to be a rich luxury. Japanese manufacturers started entering the Indian marketplace, eventually leading to the establishment of Maruti Udyog. This set the pace, causing number of foreign firms entering into joint ventures with many Indian companies.

In 1980, a host of Japanese manufacturers set their sights on Indian markets leading to number of joint ventures being launched. The joint ventures were in the area of motor-cycle and light vehicle manufacturing. To make most of the rising opportunities, Indian government entered into an agreement with Suzuki to manufacture small cars for the Indian markets. Since then, Indian automobile industry has been scripting history as manufacturing accelerated to meet the requirements of both the domestic and export market.

Indian Automobile Exports in fast-gear

Today, India is known to the world’s largest manufacturer of small cars. According to New York Times report, India’s well-built engineering base and mastery in the production of economical and fuel-efficient cars has led to the expansion of manufacturing facilities of leading automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki.

In 2008, Hyundai Motors exported almost 240,000 units from India. Nissan Motors probably will export 2,50,000 cars in 2011. Likewise, General Motors might export 50,000 cars by 2011.

Ford Motors is also planning to set a manufacturing plant in India, which eventually would turn into company’s global production house. The Ford cars manufactured in India would be meant for both the Indian and International markers. Fiat Motors has also stated that the company plans to source around US$ 1 billion worth auto components from India.

As per Bloomberg reports, India in 2001 has taken over China as Asia's fourth largest exporter of cars.

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