Auto Industry in India is facing the twin problems of Fuel Price Hikes and High Interest Rates which have sharply reduced the growth of the industry.The Indian car companies were riding high in 2010 as the economy grew and many people in India graduated to the middle class.Some companies were showing triple digit growth rate as India become the hottest market in the world.All global car companies were in a rush to expand their India sales and distribution network at any cost.However 2011 has brought them down to earth with almost 50% increase in petrol prices keeping buyers away.On top of that car financing companies have also increased their interest rates for auto loans by around 2-3% which makes the servicing of the EMIs of car loan very difficult.This has made most buyers sit tight and wait for a better environment.The car companies which hiked price to pass on the increasing costs of steel and other commodities are in a pickle.They are being forced to sit on high inventories and can’t afford to give big discounts as well.

The sautomobile industry in India happens to be the ninth largest in the world. It is the fourth largest exporter of automobiles following Japan, South Korea and Thailand. It is the world’s second largest manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009. Several Indian automobile manufacturers have spread their operations globally. India manufactures over 17.5 million vehicles (including 2 wheeler and 4 wheeler) and exports about 2.33 million every year. India’s passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. In the commercial vehicle segment, Tata Motors is leader with a market share of about 64%, whereas Maruti Suzuki is leads the passenger vehicle segment with a market share of 46%. Hyundai Motor India and Mahindra and Mahindra are more interested in expanding their hold in the overseas market. (Source – Wikipedia).

China’s Green Stimulus policies has been massively biased towards the growth of domestic industries.Electric Vehicles is no different with China recently introducing Fuel Efficiency Subsidies in Auto Industry exclusively for Domestic Firms.Now the new announcement by the Ministry of Industry and Information Technology to subsidize energy efficiency in Transportation with a 100 Billion Yuan Subsidy over the next 10 years further explicitly supports domestic firms

It was earlier reported that China would promotes its CleanTech Industry through Electric Vehicle subsidies.It would give between $7000-9000 in subsidies to Electric Vehicles and Hybrid Vehicles.Note China is already a leader in Battery Technology for Electric Vehicles with both Japanese and American automajors looking to Chinese technology and production of Batteries for their new […]

Electric Vehicles is becoming the most active segment of the Green Industry in recent times with Alliances,Acquisitions as well as Breakups . Global Auto Heavyweights along with numerous small startups  like Fisker,Coda,Tesla are jostling for position in this new “Hot segment” of the Auto industry.The past few months have seen furious activity with a mish-mash […]

China is leading US in Clean Energy Manufacturing while it lags behind the US in Technology .While the US government is only thinking that they might lose the clean energy leadership to the Chinese,the Reality is that they are already behind in the Clean Technology Race.This is being confirmed from actions by US as well […]