If India is to meet the demands of the global automotive industry and evolve in to a destination for automotive production and sales, it will need better transportation infrastructure, improved product quality, and more skilled workers, says an IBM and the University of Michigan study.

The study, ‘Inside India- Indians view their automotive future’, further states that labour and tax regulations need to change, coupled with an increase in the scale of exports of automotive companies. The study was jointly conducted by the Automotive Analysis Division at the University of Michigan Transportation Research Institute (UMTRIAAD), and IBM’s Institute for Business Value (IBV), to highlight the rapid growth and challenges of the Indian automotive industry.

Most of the interviewees state that Indian has the potential to become a global hub for the development of small, inexpensive cars. But they report significant challenges in exporting from India, in the form of managing global supply chain logistics, improving local road and port infrastructure, increasing manufacturing scale, and building resources to support potential global warranty claims.

Bruce Belzowski, assistant research scientist & associate director, UMTRIAAD, said, "There is no doubt the Indian government will play an integral role in shaping the automotive industry and its future. The Automotive Mission Plan (AMP), created by the government, could be construed as a step in the right direction, as it outlines development goals till 2016. During our study, most of the interviewees were unanimous when it came to the optimism about the government’s support for the growth of the industry."

Mr. Neeraj Sharma

Neeraj Electronics

CEO, Neeraj Electronics
Jorhat, India

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