Indian Automobile Industry Essay

A. IntroductionThe Automotive Industry in India is nonp beil of the outstandingr commercialises in the world and had previously been hotshot of the fastest ripening glob entirelyy, but is now seeing flat or negative gain rates. Indias rider rail steering political machine and commercial fomite manuf motivateuring perseverance is the 6th largest in the world, with an annual crossrouteion of more(prenominal) than 3.9 atomic number 53 thousand gazillion building blocks in 2011. harmonize to modern reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world, grew 16 to 18 per cent to tell on virtu exclusivelyy three million units in the course of 2011-12. In 2009, India emerged as Asias fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand.In 2010, India beat Thailand to become Asias third largest exporter of passenger cars. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 m illion gondolamotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the routine ( subsequently China) fastest growing political machinemobile market in the world in that year.According to the Society of Indian machine Manufacturers, annual vehicle gross sales be projected to increase to 4 million by 2015, no longer 5 million as previously projected. The majority of Indias car manufacturing industry is based nearly three thumpings in the south, west and north. The southern gang consisting of Chennai is the biggest with 35% of the revenue sh ar. Chennai, with the India trading operations of Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Ca equatingo and PSA Peugeot Citron is about to begin their operations by 2014. Chennai accounts for 60% of the countrys self-propelling exports. The western hub near Mumbai and Pune contributes to 33% of the market. The Chakan corridor near Pune, Maharashtra is the western c luster with companies standardised General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Jaguar Cars, Fiat and Force Motors having prevarication plants in the atomic number 18a.Nashik has a major base of Mahindra & Mahindra with a SUV assembly unit and an Engine assembly unit. Aurangabad with Audi, Skoda and Volkswagen besides forms part of the western cluster. The northern cluster around the National Capital Region contributes 32% of the Indian market. Gurgaon and Manesar in Haryana form the northern cluster where the countrys largest car manufacturer, Maruti Suzuki is based. early(a) emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and further planned for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants ar managewise cross out to come up in Gujarat. Kolkata with Hindustan Motors, Noida with Honda and Bangalore with Toyota argon any(prenominal) of the other(a) automotive manufacturing regions around the country.B. major(ip) PlayersThe Major Market PlayersC. Product sectionalizationWhile there ar multiple ways of subdivisioning this industry like based on price and engine size but the more or less prevalent and the official method is based on dimension. i.e. the length of the vehicle be suffering consideration. A1 Segment Mini Up to 3400mm (M800, Nano)A2 Segment Compact 3401 to 4000mm ( alto, beach waggon r, Zen,i10,A-star, swift,i20,palio,indica and so forth A3 Segment Midsize 4001 to 4500mm (Manza, City, Sx4, Dzire, Logan, Accent, Fiesta, Verna etc) A4 Segment Executive 4501 to 4700mm (Corolla, civic, C class, Cruze, Optra, Octavia etc) A5 Segment Premium 4701 to 5000mm (Camry, E class, Accord, Sonata, Laura, Superb etc) A6 Segment Luxury Above 5000mm (Mercedes S class, 5 serial etc) B1 Segment Van Omni, Versa, Magic etcB2 Segment MUV/MPV Innova, Tavera, Sumo etcSUV Segment CRV, VitaraetcWhile it is slow for SIAM to segment the vehicles as per dimensions but for consumers, it becomes a tad serious. This is primarily because of the widely varying / spread out prices of the vehicles. A 2 segment, as per the racyer up criterion, will range in the midst of 3 lakhs to 7 lakhs. And A 3 will be between 4.5 to 9 lakhs. Such wide novelty in prices has distorted the image of segments in the minds of consumers. Hence, for simplicity pur comes, a variant segmentation has cropped up.The details be as follows- A Segment round beneath 3.5 lakhs Alto, eon, Nano, Spark, 800 B 1 Segment hatch plump for door largely at a set down place 6 lakhs Wagon R, Indica, Beat, Santro, A Star, Micra, Estilo B 2 Segment Hatchback majorly down the st denudates 7.5 lakhs Swift, I 10, I 20, Ritz, Figo, Polo, Liva, Vista, Jazz, Punto, Brio, Fabia, Pulse, Aveo UVA C 1 Segment sedan below 8 lakhs Dzire, Indigo, Etios, Sunny, Fiesta Classic, Verito, Accent, Ambassador, Aveo C 2 Segment b ar below 9.5 lakhs Linea, Manza, Verna, quick, Vento, City, SX 4, Verna New, Optra D 1 Segment Premium Sedan below 15 lakhs Corolla, Civic, Cruze, Laura, Jetta, Fluence D 2 Segment Luxury Sedan below 25 lakhs Superb, Passat, Accord, Camry, Sonata, Teana, Kizashi B1 Segment Van Omni, Versa, Magic etcB2 Segment MUV/MPV Innova, Tavera, Sumo etcSUV Segment CRV, VitaraetcIf we go bad the 1st Quarter of 2012-13, and then summation vehicle sales has been around 6.32 lakh units. The hatchback segments has totaled to 56% of the entire passenger car sales in India. This comes to 355857 units. This clearly shows the popularity of smaller cars in the Indian market. Alto continues to be the top sell brand with 17422 in July. It is followed by Swift (11421) and Wagon R (9582) all Maruti brands. This is an indication of how signifi batcht the Maruti team has still the Indian market. i 10, I 20, Nano, Beat, Figo, Santro& Polo are some of the high selling models in these segments a nd these models continue to clock more than 3000 units monthly. Nano has been a disappointment so far with huge expectations but it is showing some kind of resilience off late. As a segment, the Utility segment is showing the utmost result. In fact, this segment has outclassed the other popular segments of A, B 1 & B 2.With 128110 units under its hood in the 1st quarter, the segment is definitely making some profound progress. MarutisErtiga, Mahindras XUV 500 & Bolero has been instrumental in pushing the volumes of this segment. Innova and Omni too are raking in good numbers. What has been disappointing is the act from the Tata Motors stable Venture, Safari and Sumo get under ones skin been showing steady decline in the numbers per se but definitely possess huge in all likelihood to challenge the other models.Among the sedans, Maruti Dzire continues to lead the pack. With 11413 numbers in July, it is way up of its next model Verna (5300). The iconic models of City, Linea, SX4 have been showing consistent under growth and seriously calls for some introspection by their respective manufacturers. Vento & Rapid too showed some slack but given the aggression of VW and Nissan, it system be long before they start to pull in good numbers. Tatas Indigo and Manza were on a slightly negative terrain all these months but somehow the trend has been reversed in July. 6816 for these 2 models augurs well for the guild.D. Indian Automobile Industry Barriers to Entry (and expiry) Barriers to entry (or, BTE) are anything that hinders the fecal matter of sign of the zodiacs into an industry. That is, BTE reduce or eliminate the entry of sorefound straines into an industry. Sometimes BTE substructure be almost insurmountable no new fasts potentiometer memorialise an industry. Other times BTE asshole slow down the entry of new flyings new firms appear but exactly slow. Very low BTE, however, elbow room that new firms empennage enter the industry relativ ely rapidly. What can act as a BTE ?1. Amount of capitalThe amount of capital compulsory to enter the auto industry is in billions of dollars. So, very few outsiders can ever hope to enter the industry. This major financial requirement function as a significant barrier to entry for many industries. The auto manufacturing industry is considered to be highly capital and labor intensive. The major damage for producing and selling automobiles admit * Labor While machines and robots are playing a greater role in manufacturing vehicles, there are still square(p) labor costs in designing and engineering automobiles * Advertising all(prenominal) year auto shapers spend billions on print and broadcast advertising, furthermore, they spent large amounts of gold on market research to anticipate consumer trends and preferences 2. additional jam of separate suppliersExisting parts suppliers have downsized their operations to the point that they do non have excess capacity.3. Competiti onThere are already significant numbers of well established competitors.4.political science regulationsThe blotto regulations regarding safety, design, emission standards and furnish efficiency may sometimes act as a deterrent.5. palpable harborion lawsThis may prevent the use of certain variations at low cost.6. MarketingMarketing a new brand can be difficult and very expensive.7. Economies of scaleEconomies of scale give large producers a significant cost advantage over small rivals. Where a firm has grown very large and significant economies of scale exist, they can have cost competitiveness. New entrants generally start small and therefore, have practically high unit reapingion costs than the freak firms. These new, small entrants discern it nearly impossible to survive against the large rival because they just cant be price competitive given their much big unit production costs.8. Entry-deterring behaviorA firm can protect itself from competition by deliberately act ing in a way that convinces potential competitors not to enter the industry. Some firms spend huge amounts of money on advertising to keep new rivals from starting up business. Or, firms can act especial(a)ly aggressive if faced with new competition by perhaps starting a major price war both time a new competitor enters their market. Lawsuits against new rivals have been use to drive them out of business or to, at the very least, boot the cost of entering the business to very high levels.9. Knowledge and technologyIdeas and Knowledge that provides competitive advantage over others when patented prevent others from utilize it and thus creates barrier to entry. For eg. TATA motors have great knowledge/ experience in the automobile industry and have renowned technological advantage because of the recent acquisition and mergers.10. Product Differentiation and Cost AdvantageThe new product has to be different and reapive to be accepted by the customers. attraction can be measured i n the terms of the features, price etc. For an entrant to attain this, it requires lot of effort as compared to an established player. TATA Nano is an suit where till now, no new entrant has entered as a competitor.Barriers to Exit Obstacles or impediments that prevent a keep company from becomeing a market. A company may decide to exit a market because it is unable to enamor market share or turn a profit or for some other reason altogether. high up barriers to exit might force it to continue competing in the market. The factors that may form a barrier to exit take on1. laid-back investment in non-transferable fixed assetsThis is particularly earthy for manufacturing companies that invest heavily in capital equipment which is specific to one task. 2. High redundancy costsIf a company has a large number of employees, employees with high salaries, or contracts with employees which stipulate high redundancy payments (layoff costs), then the firm may face significant cost if it wishes to leave the market. 3. Other closure costs. sign contingencies with suppliers or buyers and any penalty costs incurred from cutting short tenancy agreements.4. Potential upturn Firms may be influenced by the potential of an upturn in their market that may reverse their current financial situation. 5. political relation policies In India, the industrial Disputes Act, 1947 puts restrictions on employers in the matter of minify excess staff by retrenchment, by closure of establishments and the retrenchment process involved lot of legalities and interwoven procedures. Also, any plans of retrenchment and reduction of staff and workforce are subjected to strong opposition by trade unions.E. Role of Non-Pricing CompetitionNon-price competition refers to firms competing with one another not in terms of reducing the price to attract consumers instead, in form of brand name, advertising, packaging, free home- delivery, free service, sponsorship deals and so on. These are the diffe rent forms of non-price competition. The main aim of non-price competition is product development. As products are differentiated in monopolistic competition, to prove and show how ones product is skipper than others- colour, appearance, packaging, skill level etc. It is been done to create an inelastic subscribe for the product. Following parameters can be used for competition instead of reducing costQualityIf consumers must choose between cardinal products of the corresponding price but they can see that one is of a higher(prenominal) quality, they generally pick the product of higher quality. In this way, if a firm can figure out how to produce an item at a cost comparable to what its competitor charges but make it of higher quality, that firm may be able to steal the market from its competitor. Now in case of automobiles, within a given price range lot generally dont comprise with the quality aesthetics.For example Recalls of vehicles sold. Recently, Honda Cars India Ltd r ecalled 42,672 units of back up generation Honda City cars manufactured in 2007 and 2008 to replace their power windowpane switch. HCIL carried out preventive part replacement of power window switch. The company is proactively replacing Power Window Switch which may malfunction in case water or any other liquid enters the driver side window. Honda Cars India is carrying out the part replacement as part of a global exercise by Honda Motor Company to ensure stringent quality standards for its products. However, a problem with this border on is that it may take some time for consumers to realize any difference in quality.Perception and brandingIn some cases, little possibility of quality differentiation exists between two products. However, the long-term sustainability of much(prenominal) an approach may be difficult because, as such brand advantages arise through consumer trends, consumer trends may to a fault lead to their demise. We can take example of Hyundais Eon and Marutis Alto 800. Maruti being a well-known brand it was difficult for Hyundai Eon to vie with it. Hyundai India offers its Eon fleet within a price wall bracket of Rs. 2.8 to Rs. 3.8 lakhs in the country. Maruti Suzuki has pitched its Alto 800 models with a slightly humble price falling in the range starting from Rs. 2.4 lakhs that goes on till Rs. 3.6 lakhs in the Indian auto market.Sales Comparision between Maruti Suzuki Alto 800 and Hyundai Eon line of descent http//blogs.hindustantimes.com/car-nama/2012/07/13/alto-vs-eon-eight-months-on/Product DesignIn some cases, firms may compete by changing the design of their products to make them more appealing without significantly changing production costs or quality levels. Such a strategy can prove effective at stealing business from competitors, but it can withal backfire, because it can cause the company to surrender its existing consumers, who may be knowingly choosing the existing design over other products with different designs spe cifically because it appeals to their tastes.Product DifferentiationNot all consumers are the same. By offering a range of similar products pitch toward different market heavenss, firms can expand their market base. However, such product differentiation can result in significantly higher bang costs for production. For example every model has variants in following aspects raise used (petrol, diesel, LPG, CNG)Cost varients (low end to high end with addition of features like sunroof, airbags etc.) Model Price (INR) MileageVolkswagon Vento PetorlTrendline 7,29,000 15.04Volkswagon Vento Petrol Comfortline 7,75,805 15.04Volkswagon Vento Petrol Style trammel Edition 8,10,805 15.04 Volkswagon Vento Diesel Trendline 8,44,000 20.54Volkswagon Vento Petrol Highline 8,74,805 15.04Volkswagon Vento Diesel Comfortline 8,90,805 20.54Volkswagon Vento Diesel Style Limited Edition 9,25,805 20.54 Volkswagon Vento Petrol Highline AT 9,74,805 14.4Volkswagon Vento Diesel Highline 9,89,805 20.54Sales St ructureWhen two firms are competing with similar products, one may be able to bang more market share and a deeper level of penetration receivable to a more effective and aggressive sales structure. By act in direct sales, firms can appeal to prospective buyers who otherwise would not feel compelled to buy repayable to advertising or other kinds of marketing. multilevel marketing is one way in which firms rapidly build their consumer base. However, by turning buyers into sellers as well, such schemes may require significantly higher prices.A typical supply range of a function in Indian Automobile IndustrySource ImaginMor, Inderscience Enterprises Ltd and United Nations Industrial Development Organisation The exposition and the role of each of the contributors to the supply chain are discussed below. Third class Suppliers These companies provide basic products like rubber, glass, steel, plastic and aluminium to the second storey suppliers. Second stratum Suppliers These com panies design vehicle systems or bodies for First Tier Suppliers and OEMs. They work on designs provided by the offset tier suppliers or OEMs. They besides provide engineering resources for detailed designs. Some of their services may include welding, fabrication, shearing, bending etc. First Tier Suppliers These companies provide major systems right away to assemblers. These companies have global coverage, in order to follow their customers to various locations around the world. They design and innovate in order to provide black-box solutions for the requirements of their customers.Black-box solutions are solutions created by suppliers using their own technology to meet the performance and interface requirements set by assemblers. First tier suppliers are responsible not only for the assembly of parts into complete units like dashboard, breaks-axel-suspension, seats, or cockpit but also for the management of second-tier suppliers. Automakers/Vehicle Manufacturers/Original Equipm ent Manufacturers (OEMs) After researching consumers pauperisms and needs, automakers begin designing models which are tailored to consumers enquires. The design process normally takes five years. These companies have manufacturing units where engines are manufactured and parts supplied by first tier suppliers and second tier suppliers are assembled. Automakers are the key to the supply chain of the automotive industry.Examples of these companies are Tata Motors, Maruti Suzuki, Toyota, and Honda. Innovation, design capability and branding are the main focus of these companies. Dealers at once the vehicles are ready they are shipped to the regional branch and from there, to the authorised dealers of the companies. The dealers then sell the vehicles to the end customers. Parts and Accessory These companies provide products like tires, windshields, and air bags etc. to automakers and dealers or directly to customers. Service Providers Some of the services to the customers include se rvicing of vehicles, repairing parts, or financing of vehicles. Many dealers provide these services but, customers can also choose to go to independent service providers. The increased routine of IT at different tiers of the supply chain is on the increase in all the companies in India. An important finding that emerged from the findings was that the integration of supply chain is being done at all the cities in the country disregarding of the market share.F. Key Developments in Indian Auto SectorMajor Developments & Investments* Nissan Motor India Pvt Ltd is expecting to sell over 60 per cent more units this year on the back of the launch of its upgraded small car Nissan Micra * Daimler India Commercial Vehicles (DICV) exported its first lot of 64 Fuso trucks manufactured at its Oragadam plant in Chennai. * Mahindra USA, a subsidiary of Mahindra and Mahindra (M&M), will set up an assembly and distribution centre, expanding one of the four tractor facilities in North America, by January 2014 * The Japan-based automobile manufacturer Isuzu Motors local anaesthetic subsidiary Isuzu Motors India has entered into an agreement with Hindustan Motors (HM) for contract manufacturing of Isuzu SUVs and pickup trucks * A year after introducing the popular MINI range of cars in India, luxury car maker BMW has started local production of MINI Countryman at its facility in Chennai * New Holland Fiat India plans to invest Rs 1, ampere-second crore (US$ 184.56 million) to set up a new green-field plant in Maharashtra and also to increase its tractor manufacturing capacity by 50 per cent in the next three years* Hero MotoCorp has bought a 49.2 per cent stake in its US-based technology partner Erik Buell Racing (EBR) for US$ 25 million. This is Hero MotoCorps first-ever equity purchase in an oversea company. Also, Hero MotoCorp has entered into the African continent with launch of its brand and products in Kenya, where it has also set up an assembly unit. The company has al so partnered with Ryce East Africa to sell its two-wheelers in the country * Daimler is developing its Indian commercial vehicle operations as an export hub. Daimler India Commercial Vehicles (DICV) will export locally assembled trucks from the complicateds Mitsubishi Fuso range in 15 markets in Asia and Africa.Government InitiativesThe Government of India plans to introduce provide-efficiency ratings for automobiles to encourage sale of cars that consume less petrol or diesel, as per Mr. Veerappa Moily, unification Minister for Petroleum and Natural Gas, Government of India. The Union Budget 2013-14 announced by Mr. P Chidambaram, the Union Finance Minister, Government of India, in the Parliament on February 28, 2013, had a few add-ons for the industry. The analysis by Deloitte on the Union Budget highlighted the following * The period of concession addressable for specified part of voltaic and interbreeding vehicles till April 2013 has been extended upto knock against 31, 2 015* The basic customs duty (BCD) on imported luxury goods such as high-end motor vehicles, motor cycles, yachts and similar vessels was increased. The duty was raised from 75 percent to 100 percent on Cars / motor vehicles (irrespective of engine capacity) with CIF care for more than US$ 40,000 from 60 percent to 75 percent on motorcycles with engine capacity of 800cc or more and on yachts and similar vessels from 10 percent to 25 percent * In addition, an increase in collide with duty from 27 to 30 per cent has been allowed for SUVs with engine capacity exceeding 1,500 cc, while excise duty was decreased from 80 to 72 per cent, in case of SUVs registered solely for taxi purposes* An exemption from BCD on lithium ion automotive battery for manufacture of lithium ion battery packs for supply to manufacturers of hybrid and galvanising vehicles * The excise duty on chassis of diesel motor vehicles for commit of goods reduced from 14 per cent to 13 per cent Moreover, the Government of India allows 100 per cent foreign direct investment (FDI) in the automotive industry through automatic route. The Government also plans to accelerate the supply of electric vehicles over the next eight years. It is expected that there will be a demand for 5-7 million electricity-operated vehicles by 2020. The contribution of automotive sector in the gross domestic product (GDP) is expected to double, reaching a turnover worth US$ 145 billion in 2016, with special focus on export of small cars, MUVs, two & three wheelers and auto components, as per the Automotive Mission Plan (AMP) 2006-2016.Road Ahead globular and Indian manufacturers are focusing their efforts to develop innovative products, technologies and supply chains in the industry. Car makers are launching a slew of car models, mostly compact SUVs, in the coming months. The automobile body SIAM expects the launches to be able to brighten the market. Lastly, the vision of AMP 2006-2016 sees India, to emerge as the addres s of choice in the world for design and manufacture of automobiles and auto components with produce reaching a level of US$ 145 billion write up for more than 10 per cent of the GDP and providing additional employment to 25 million people by 2016. G. Major Challenges and Suggested MeasuresChallenges1. Strong decline in economic growth-* It affects the consumer buying behavior- Buyers driven by fear of job loss, move aggressively to increase their rate of saving. At the same time, high cost and growing longevity of motor vehicles prompted buyers to postpone purchases that they might have otherwise made. * Freezing of credit markets meant cancelledorders, unpaid supplier invoices, and temporarily shuttered plants. * High excise duty- 12 % for sub 4 meters cars and 24 % for over 4 meters cars. * High interest rates as well as hassle to obtain loans for purchase. 2. Duplicate spare parts- Indian market has always suffered from duplication products and cheap counterfeits. This puts p ressure on OEMs to reduce the prices and compete with these cheaper counterfeits. According to the field of study conducted by market research agency nielson co with acma, 41 % of total spare parts belong to OEMs and OESes, 23 % belong to imported segment and 36 % are duplicate.3. Lack of infrastructure- Lack of proper road infrastructure, resulting into grievous Traffic has become major concern in most of the cities in India. Parking problem, parking cost adds to it. Bad roads, Bad drivers on road further add to the problem. 4. Availability of skilled man-power- As per data produce by NSDC(National Skill Development Corporation), automobile sector in India is firing to face a shortfall of 35 million skilled manpower by 2022. Limited availability of skilled manpower is bound to pose a great challenge to the demonstrable growth of the Indian automotive manufacturing industry.5. High Ownership cost- Small car sales are likely to fall by a couple of percentage points in 2013-14 d ue to continued uncertainty over income growth, high fuel costs arising from a deprecating rupee and still relatively high inflation.Diesel cars will ache their sheen, particularly in the small car segment, due to the gradual deregulation of diesel prices and the expected fall in petrol prices. 6. IR relate issues- The $73 billion automobile sector has witnessed abhorrent industrial turmoil in the recent 5 years with disputes in Maruti Suzuki, Hero Honda, Honda Motorcycles and Scooters India, Rico,Hyundai, Ashok Leyland, MRF, Apollo Tyres, Sona Koyo and Toyota Kirloskar Motors Ltd. Thissector, to suffer double revenue needs a flexible workforce of 25 million with an amicableatmosphere to hire and fire doers to cope with the cyclical swings in demand for cars, trucksand bikes but the archaic advertise laws governing employment of contract labour has fan thesetensions.This speculates the lack of effective implementation machinery. Industrial unrestsaccompanying murders of the ex ecutives have also been committed in 2-3 instances recently,demonstrating the urging to address the issue by the cordial partners. 7. Global competition Competition will only increase in the years to come, as more international players enter India and the pace of innovation accelerates. This would elevate both R&D and selling and distribution costs, thereby impacting margins. Despite these headwinds, India would continue to remain an attractive market, as volumes across segments are projected to grow at a five-year compounded annual growth rate (CAGR) of over 10 per cent.Suggested MeasuresIndia has a very low car penetration about 10 per 1000. This number is expected to become 382 by 2025, this means that there is plenty of room to each automobile giant to grow in Indian market without affecting the volume of other competitors. Few of the following suggested measures may have a bounce back effect on the Indian Automobile Industry 1. Friendly establishment policies Tax benefits for R&D development and Skill related investments, subsidies for hybrid vehicles are the measures if taken can boost the Indian automobile sector. besides extension of 200 % weighted deduction of R & D put down under income tax law andweighted deduction of 150 % for expenditure in skill development by industries seem to be positive stairs towards the cause.2. Healthy Industrial Relations through better contract worker policies As in most of the developed countries thecontract workers are covered under the social security provisions and are paid at par with the permanent workers. Such transparent policies may definitely promote positive industrial relations and foster industrial growth. 3. Technology up stair measures-Automobile industry is slowing down, but at the same time we are seeing long waiting periods for new launches, which means people are no longer going for same old trusty brands and models and want more value for their money.Which gives me hopes that if Auto makers focus on launching more new models and more global launches they will surely find customers. 4. Promoting hybridisation vehicles or better fuel efficiencyTo counter the problems of high fuel prices, its the need of the hour to develop higher fuel efficient products and also the products running on alternative fuel to decrease the self-will cost. For this concession on import duty on specified parts of hybrid vehicles are necessary. Stringent laws and strict exercise to eliminate mean auto-spare part business. 5. Ensuring easy loan availabilityThe industry should also approach the banks and NBFCs for better and easier loan availability to the car buyers. 100% finance and lower EMI with longer loan tenure will definitely help.