India has become the world’s biggest two-wheeler market. Amid the slowdown in the domestic market, India witnessed a growth rate of 4% in the first half of the financial year 2019-2020. According to the statistics given by the “Society of India Automobile Manufacturers” (SIAM), the total two-wheeler exports, including motorcycles, scooters, and mopeds, reached 17,93,957 units in the H1 of the current fiscal year, as against the 17,23,280 units exported during the same period in the financial year 2018-19. With disruption in the automobile sector on account of technology-driven trends and pollution control measures, BIS Research says the EV market is expected to grow at a compounded annual rate of 43%, charging infrastructure at 42.4%, and the battery market at 60% during the period from 2019 ~ 2030.
The car market of India is projected to be the world’s third-largest by the Year 2030. The government also has targeted to reach 30% electric vehicle penetration by the Year 2030.
As per the current statistics and estimated trends, India’s automobile segment is headed for insightful growth, largely on account of cumulative domestic demand and expanding export prospects. Favorable Indian economics, strategic location, globally recognized engineering capabilities, price comparative manufacturing, and manpower expenditures are few factors that shall act as a catalyst to Indian automotive headway. Other demographics such as improved income-levels, higher purchasing power, easy finance alternatives, and a probable increase in the youth population of India shall create a supportable market for two wheeler's and four wheeler's in India. Currently serving as one of the biggest markets for automobiles in Asia, the Indian automobile segment is moving towards an unparalleled growth trajectory.
With the advent of superior technology, changing industry regulations, vicious competition, supply chain complications, mutable consumer demand, and dynamic market conditions, the automobile sector is exposed to various risks that are imperative to be covered for all automobile manufacturers and dealers. Socio-economic reforms and political turmoils might also lead the automobile companies to reorganize their entire system and retort straightaway to remain competitive and sustainable. Such sudden fluctuations unless insured can cause volatile expenditures for the company and create enormous ambiguity for them in the future.
