8/8/2019 Small Car Big Profit http://slidepdf.com/reader/full/small-car-big-profit 1/16 INTRODUCTION TO AUTOMOBILE INTRODUCTION TO AUTOMOBILE SECTOR SECTOR y The automotive sector is one of the key segments of the economy having extensive forward and backward linkages with other key segments of the economy. y It contributes about 4 per cent in India's Gross Domestic Product (GDP) and 5 per cent in India's industrial production. y This sector has generated about 4.5 lakh of direct employment and about one crore of indirect employment.
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A large pie of the automobile market belongs to the small cars. Some of themajor factors influencing the hike in the sales of small autos are as follows:
y Price: The price of the new small cars is much less than the price of the new
luxury cars. This difference in price makes it more salable and affordable.
When the price of the new small car is less the loan requirement is also less.
The car loan if small can be paid back faster.
y Fuel consumption: One of the major concerns of the car buyers is the
consumption of fuel. The price of the fuel is rising. When the car buyers
seek the new car quotes they look for the fuel consumption in the technical
specifications. If the average is not good it can prove to be an elephant for the owner.
y Maintenance: The maintenance of the auto is very easy and comparatively
y The automotive ecosystem is in the midst of significant change,
with increasing challenges in consumer demands, technologydevelopment, and globalization.
y While demand for incumbent technologies will remain strong,alternative power trains could capture more than 20 percent of theglobal market by 2020, depending upon boundary conditions such
as fuel taxation and emissions regulation set by governments aswell as oil price development.
y storage is in the heart of the next generation of efforts for fueleconomy.
y More realistic scenario will emerge for technologies usingHydrogen as automotive fuel.
y Intelligent use of NCES (Non conventional energy sources) for powering Public Transport.