India has become world’s biggest two-wheeler market in the world. Amidst slow down in the domestic market India witnessed a growth of 4% in the first half of financial year 2019-20. 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 43.1 per cent, charging infrastructure at 42.4 per cent and the battery market at 60.1 per cent during the period from 2019 to 2030.
The car market of India is projected to be world’s third largest by 2030. The government also has targeted to reach 30% electric vehicles penetration by 2030.
As per the current statistics and estimated trends, India’s automobile segment is spearheaded for profound growth, mainly on account of increasing domestic demand and rising export opportunities. Favourable Indian economics, strategic location, globally recognized engineering capabilities, and lower manufacturing and manpower costs are few factors that shall act as catalyst to Indian automotive growth. Other demographics such as improved income-levels, higher purchasing power, easy finance options and an estimated increase in the youth population of India shall create a sustainable market for two wheelers and four wheelers in the country. Currently serving as one of the biggest markets for automobiles in Asia, Indian automobile segment is moving towards an unprecedented growth trajectory.
With the advent of superior technology, changing industry regulations, fierce competition, supply chain complications, fluctuating 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 decisions might also lead the automobile companies to reorganize their entire system and react urgently to remain competitive and viable. Such sudden changes unless insured can cause serious losses for the company and create huge uncertainty for them in future.
