Contributed by Mr. Sunil Pahilajani, CEO of UniProducts India
The Indian automotive industry has been among the top contributors to the economic growth of the country. The world’s third-largest automobile market and the largest manufacturer of three-wheelers, passenger vehicles, and tractors, India is also the second-largest manufacturer of two-wheelers. Meanwhile, the automobile sector received a cumulative equity FDI inflow of about US$ 35.40 billion between April 2000 – September 2023. All these make the automotive sector in India the most promising, and this further is propelled by the recent technological enhancements in the sector.
Technological driving growth
The Indian automotive industry has seen a huge transformation in the last few decades; from mass manufacturing of cars to futuristic electric vehicles and autonomous cars, India has always been ahead in the race. Slowly but surely India is transitioning towards electric vehicles for all categories. As per the India Brand Equity Foundation (IBEF), India is on track to become the largest EV market by 2030, with a total investment opportunity of more than US$ 200 billion over the next 8-10 years. This is in tandem with India’s goal of shifting towards sustainable fuel and taking care of carbon emissions caused by vehicles.
As the demand for new-age automobiles is increasing in India, automobile companies too are upping their ante and progressing ahead with the latest innovations. India has by now won the confidence of big automobile giants as many of them have already set up their manufacturing bases in India. With the availability of skilled manpower, availability of large areas of land, and conducive government policies, India is set to become the most sought-after manufacturing hub of the world.
Though in its nascent stage, India is also looking towards autonomous vehicles. This innovation is going to change the face of India’s automotive sector. With time being the most precious commodity, consumers will prefer to use their road time for more important tasks such as meetings-on-the go, or even consuming entertainment content and relaxing while they are on the roads. This will lead people to opt more for self-driving cars. Technological enhancements such as these and more in the coming days are set to take India’s automotive industry a notch higher.
Consumers changing gears
While automobile manufacturers and stakeholders are going gung-ho for innovations and enhancements, there has also been an increase in demand for modern vehicles. The huge youth population with more disposable income has led to a rise in demand for cars primarily high-end vehicles. They are giving diesel cars a complete miss, and moving towards hybrid as well as electric vehicles. The increased awareness about green fuel has caught the interest of both – the consumers as well as the manufacturers. People are opting for cars with AI-enhanced safety features that will keep both drivers and pedestrians safe. Even for those buying two-wheelers, the consumer is going for the best in-the-line vehicles with the latest technology.
With technology enhancements such as AI and ML optimizing the performance of automobiles and increasing the use and manufacturing of electric vehicles, the industry is poised for immense growth. This coupled with the huge improvement in road infrastructure and rising demand for modern vehicles, the automotive industry in India is heading toward a great transformation. Post-Covid, the world over is looking at India as the next big manufacturing hub, and India with its robust automobile policies and stakeholder initiatives is sure to top the global automotive market in days to come.
Uniproducts is upgrading products for different fuel options and higher comfort levels also offering more efficient solutions. Also expanding capacities in each geography to keep pace with customer plans. Sustainability and environmental protection is an inherent part of product design and material selection.