Forbes wrote about 5 big consumer trends in the automotive industry we can expect to see in 2015. These changing trends are important for executives to watch for, track, and analyze in order to stay competitive and profitable. Forbes writes, “After the best sales year since 2006, the U.S. auto industry is looking forward to a strong 2015, with sales likely to top 17 million units. A better economy, rising consumer confidence, and easier access to credit have created ideal, market conditions for carmakers and put the 2009 crisis firmly in the rearview mirror. But there are other industry trends that will drive customers into dealer showrooms in the coming year. Here’s a look at five big ones.
Cute UTEs: Car-based sport utilities have been popular for several years. But in 2015, look for a new twist: more subcompact SUVs like the Jeep Renegade, Honda HR-V, and Mazda MX-3. Demand among U.S. buyers is still uncertain, but these compact SUVs have huge global potential.
Wired Up: Besides styling and fuel economy, in-car technology is becoming a major buying consideration. After early misses, automakers are redesigning their information systems to make them safer and easier to use. Ford, an early leader, for instance, is dumping its My Ford Touch system in favor of easier-to-use technology.
Fast Cars: At a national average of $2.24 per gallon, gas prices aren’t. The concerns they used to be, which is why sales of high-performance sports cars like the new Acura NSX and Cadillac CTS-V should pop this year.
Green Machines: Even with falling gas prices, carmakers are experimenting with new power train technologies to meet tough new laws on fuel economy.
Automobile industry, the business of producing and selling self-powered vehicles, including passenger cars, trucks, and other commercial vehicles. The large number of people the industry employs has made it a key determinant of economic growth. Suburbs and shopping centers around major cities and played a key role in the growth of ancillary industries, such as oil and travel businesses. The auto industry has become one of the largest purchasers of many key industrial products, such as steel. The large number of people the industry employs has made it a key determinant of economic growth.
Today, automobiles play an unimaginable role in the social, economic, and industrial growth of any country.
a) India’s annual production has been 29.08 mn vehicles in 2018 as against 25.33 mn in 2017, registering a healthy growth of 14.8%. The industry is expected to reach $135 billion by 2020 and $300 bn by 2026 at a CAGR of 15%.
b) In FY 2018-19, the sale of passenger vehicles has increased by 2.70%, two-wheeler by 4.86%, and three-wheeler by 10.27% as compared to FY 2017-18.7.
c) In April-March 2019, overall automobile exports grew by 14.50%. The overall Commercial Vehicles segment registered a growth of 17.55% in April- March 2019.
d) Automobile export grew 14.50% year-on-year during FY19, while during April-December 2019 overall export increased by 3.9%.
e) India became the fourth largest auto market in 2018 with sales increasing 8.3% year-on-year to 3.99 million units. It was the seventh-largest manufacturer of commercial vehicles in 2018.
d) Overall domestic automobile sales increased at 6.71 percent CAGR between FY13-19 WITH 26.27 million vehicles getting sold in FY19. Domestic automobile production increased at 6.96%.
The Automotive Industry is comprised primarily of the world’s largest passenger automobile and light truck manufacturers. Through broad dealership networks, most members of the industry sell vehicles in the global market covering developed. Automotive manufacturers offer a variety of makes and models, though there tends to be limited brand integration at the marketing, advertising, and dealership levels. The bulk of these companies operate production facilities in multiple geographic regions.
Total no. of car
In a country with the third-largest road network in the world, the total number of vehicles in the year 2016 stood at 230 million. Road travel seemed to be the preferred choice in India with over 60 percent of the population who used personal or shared vehicles for a commute.
Vehicles per 1,000 people = 18
Population of India = 1.252 billion
Therefore, Total No of cars in India = 22,536,000
India is the fourth-largest motor vehicle/car manufacturer in the world in 2016¹. Indian auto manufacturers produced a record of 25.3 million motor vehicles in 2016-17 (Apr-Mar), incl. 3.79 million passenger vehicles.
India is the largest manufacturer of three-wheelers (0.78 m units) and fourth-largest in the commercial vehicle (0.81 m units) manufacturing. India is the largest manufacturer of two-wheelers in 2016-17. Construction vehicle production was approx.
The total turnover of the auto industry amounted to ca USD 145 billion in 2015-16 and the total installed capacity was ca 32 m units at the end of 2014-15. Over 13 million people work directly or indirectly in the auto industry.
Over 43000 medium and heavy-duty trucks were exported from India in 2016-17 incl. makes such as Daimler, Mitsubishi Fuso, Tata Motors and Ashok Leyland.
A relatively hefty increase in the luxury car segment took place in 2017 as almost 39000 cars were sold compared to 33000 units in 2016.
Passenger Vehicle Sales (2016-17)
Car in India
The total turnover of the Indian automotive component industry stood at USD 43.5 billion in 2016-17. Auto ancillary exports fetched USD 10.9 ban in the same year while the total turnover of India’s vehicle tire industry amounted to an estimated ₹ 450 billion in 2013-14. The total number of registered motor vehicles reached approx. 210 million in March 2015.
Future new entrants into the Indian auto market include MG Motor, owned by the Chinese auto manufacturer SAIC and the French Group PSA, the latter making a re-entrant for the first time since the production of the Peugeot 309 model by Premier Automobiles (PAL) in the 1990s
Vehicles per 1,000 people = 18Population of India = 1.252billionTherefore, Total No of cars in India = 22,536,000Source- List of countries by vehicles per capita Source – Total Number of Registered Motor Vehicles in India.
A number of cars used in the major cities are as follows:
Figures in million
With 510 private cars every kilometer, Mumbai is the most car-congested city in India, ahead of cities like Pune, Kolkata, and national capital Delhi.
Delhi, with 108 cars per kilometer, has a car density five times lower than Mumbai, according to a report by Straits Research (Leading market research and market intelligence organization in New York).
Age of car in India
Well, the legal life of a Car in India ranges from 10–15 years. Cars that use petrol as fuel have a legal life of 15 years and cars which use diesel as fuel has a life of 10 years. In 1897, the first car ran on an Indian road. Through the 1930s, cars were imports only, and in small numbers.
(As of 2019, India is the 4th largest automobile market in the world, surpassing Germany in terms of sales
Car insurance claims
Insurance claims ratio across India from the financial year 2002 to 2019.
In the financial year 2019, the total insurance claims ratio of private and public multi-line insurers across India stood at 87 percent. Overall, the claims ratio differential between public and private multi-line insurers in the country has increased significantly since the fiscal year 2016. Insurance claims ratio is the percentage of claims costs incurred to the insurance company in relation to the premiums earned. The government’s policy of insuring the uninsured has gradually pushed insurance penetration in the country and proliferation of insurance schemes.
The following are some of the major investments and developments in the Indian insurance sector.
- The non-life insurance companies witnessed a rise of 14 percent in their collective premium for April-February 2019-20.
- In November 2019, Airtel partnered with Bharti AXA Life to launch a prepaid bundle with insurance cover.
- In September 2019, the Competition Commission of India (CCI) approved the acquisition of shares in SBI General Insurance by Napean Opportunities LLP and Honey Wheat.
- As of November 2018, HDFC Ergo is in advanced talks to acquire Apollo Munich Health Insurance at a valuation of around Rs 2,600 crore (US$ 370.05 million).
- In October 2018, Indian e-commerce major Flipchart entered the insurance space in partnership with Bajaj Allianz to offer mobile insurance.
- In August 2018, a consortium of West Bridge Capital, billionaire investor Mr. Rakesh Jhunjunwala announced that it would acquire India’s largest health insurer Star Health and Allied Insurance in a deal estimated at around US$ 1 billion.
- India’s leading bourse Bombay Stock Exchange (BSE) will set up a joint venture with Ebix Inc to build a robust insurance distribution network in the country through a new distribution exchange platform.