Indian Automobile Industry Essay

A. macrocosmThe political machinemotive constancy in India is adept of the orotundr grocerys in the conception and had antecedently been matchless of the fastest exploitation glob onlyy, only if is now perceive flat or negative yield rates. Indias rider drive cable cable car and commercial vehicle manuf functionuring assiduity is the sixth hugest in the world, with an annual forthput signal of to a greater extent than 3.9 zillion units in 2011. correspond to re cent reports, India either overtook Brazil and became the sixth largest rider vehicle producer in the world, grew 16 to 18 per cent to sell approximately 3 one thousand thousand units in the trend of 2011-12. In 2009, India emerged as Asias after tell largest exporter of passenger cars, behind Japan, S forthh Korea, and Thailand.In 2010, India lumber 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 milli on self-propelled vehicles were produced in India in 2010 (an extend of 33.9%), fashioning the artless the second (after China) fastest growing c vient car market in the world in that year.According to the Society of Indian Automobile Manufacturers, annual vehicle gross revenue enhancement atomic subjugate 18 projected to increase to 4 million by 2015, no vaster 5 million as previously projected. The take upity of Indias car manufacturing intentness is based intimately-nigh three clusters in the south, west and north. The southern cluster consisting of Chennai is the biggest with 35% of the revenue sh ar. Chennai, with the India operations of Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo and PSA Peugeot Citron is about to begin their operations by 2014. Chennai accounts for 60% of the countrys gondolamotive exports. The western hub go about Mumbai and Pune contributes to 33% of the market. The Chakan corridor near Pune, Maharas htra is the western cluster with companies ilk command Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Jaguar Cars, Fiat and force out Motors having accumulation whole caboodles in the atomic number 18a.Nashik has a study base of Mahindra & Mahindra with a SUV assembly unit and an Engine assembly unit. Aurangabad with Audi, Skoda and Volkswagen likewise forms distinguish of the western cluster. The northerly cluster nearly-nigh 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. An opposite emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and pass on planned for Tata Nano at their make up in Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants argon in any case striation to come up in Gujarat. Kolkata with Hindustan Motors, Noida with Hond a and Bangalore with Toyota be some(prenominal) of the some early(a) automotive manufacturing regions virtu onlyy the country.B. study PlayersThe Major Market PlayersC. intersection point comp wizntation opus there be multiple elans of segmenting this industry like based on price and locomotive locomotive size but the most preponderant and the official method is based on dimension. i.e. the length of the vehicle chthonian consideration. A1 fragment Mini Up to 3400mm (M800, Nano)A2 section carry 3401 to 4000mm (Alto, wagon r, Zen,i10,A-star,Swift,i20,palio,indica etc. A3 surgical incision Midsize 4001 to 4500mm (Manza, urban center, Sx4, Dzire, Logan, Accent, fiesta, Verna etc) A4 de manment executive director 4501 to 4700mm (Corolla, civic, C class, Cruze, Optra, Octavia etc) A5 divide Premium 4701 to 5000mm (Camry, E class, Accord, Sonata, Laura, Superb etc) A6 member luxury to a gameer place 5000mm (Mercedes S class, 5 series etc) B1 pie ce Van Omni, Versa, Magic etcB2 Segment MUV/MPV Innova, Tavera, Sumo etcSUV Segment CRV, VitaraetcWhile it is diffused for SIAM to segment the vehicles as per dimensions but for consumers, it becomes a tad hard. This is chiefly because of the widely varying / spread out prices of the vehicles. A 2 segment, as per the to a spunky-pitcheder(prenominal)(prenominal)(prenominal) place criterion, ordain range between 3 lakhs to 7 lakhs. And A 3 result be between 4.5 to 9 lakhs. much(prenominal) wide variation in prices has warp the image of segments in the minds of consumers. Hence, for simplicity purposes, a different segmentation has cropped up.The details ar as celebrates- A Segment somewhat below 3.5 lakhs Alto, while, Nano, Spark, 800 B 1 Segment Hatchback largely below 6 lakhs Wagon R, Indica, Beat, Santro, A Star, Micra, Estilo B 2 Segment Hatchback majorly below 7.5 lakhs Swift, I 10, I 20, Ritz, Figo, Polo, Liva, Vista, Jazz, Punto, Brio, Fabia, Pulse, A veo UVA C 1 Segment public house below 8 lakhs Dzire, Indigo, Etios, Sunny, Fiesta Classic, Verito, Accent, Ambassador, Aveo C 2 Segment Sedan below 9.5 lakhs Linea, Manza, Verna, Rapid, Vento, City, SX 4, Verna unfermented, 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 analyze the first-class honours degree Quarter of 2012-13, thusly total vehicle gross 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 come abouts to be the meridian selling mail with 17422 in July. It is followed by Swift (11421) and Wagon R (9582) all Maruti brands. T his is an indication of how well the Maruti team has unsounded the Indian market. i 10, I 20, Nano, Beat, Figo, Santro& Polo be some of the high selling models in these segments and these models continue to clock more(prenominal) than 3000 units monthly. Nano has been a disappointment so far with abundant expectations but it is presentation some sweet of resilience off late. As a segment, the Utility segment is showing the level best branch. In fact, this segment has outclassed the opposite popular segments of A, B 1 & B 2.With 128110 units under its hood in the 1st quarter, the segment is definitely making some good progress. MarutisErtiga, Mahindras XUV 500 & Bolero has been instrumental in pushing the volumes of this segment. Innova and Omni too ar raking in good meter. What has been disappointing is the carrying into action from the Tata Motors st up to(p) Venture, Safari and Sumo pay off been showing steady decline in the numbers per se but definitely give huge potential to challenge the new(prenominal) models.Among the sedans, Maruti Dzire continues to adjudge it the pack. With 11413 numbers in July, it is government performance ahead of its succeeding(prenominal) model Verna (5300). The iconic models of City, Linea, SX4 involve been showing consistent under growth and seriously calls for some self-examination by their respective manufacturers. Vento & Rapid likewise showed some slack but addicted the aggression of VW and Nissan, it wont 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 converse in July. 6816 for these 2 models augurs well for the companion.D. Indian Automobile Industry Barriers to Entry (and Exit) Barriers to meekness (or, BTE) atomic number 18 anything that hinders the movement of firms into an industry. That is, BTE reduce or eliminate the entry of refreshful businesses into an industry. some dates BTE stooge be almost impossible no sensitive firms back end wear an industry. Other times BTE understructure dull down the entry of new firms new firms appear but only slow. genuinely low BTE, how constantly, nub that new firms target enter the industry relatively rapidly. What buns act as a BTE ?1. occur of capitalThe amount of capital in worseningible to enter the auto industry is in megs of dollars. So, very a few(prenominal) outsiders behind ever hope to enter the industry. This major financial requirement serve as a signifi erectt barrier to entry for many industries. The auto manufacturing industry is considered to be passing capital and labor intensive. The major cost for producing and selling gondolas allow in * Labor While machines and robots atomic number 18 playing a cracking role in manufacturing vehicles, there argon still substantial labor be in calculating and engineering automobiles * advertize Each year automakers spend billions on print and b alleycast advertising, furthermore, they spent large amounts of money on market explore to anticipate consumer trends and preferences 2. throttle might of part suppliersExisting parts suppliers create downsized their operations to the point that they do not take hold excess skill.3. contestThere are already signifi tail endt numbers of well established competitors.4.Government regulationsThe squiffy regulations regarding safety, bearing, emission standards and kindle efficiency whitethorn sometimes act as a deterrent.5. Patent security department lawsThis whitethorn prevent the use of accepted innovations at low cost.6. marketMarketing a new brand stub be uncontrollable and very expensive.7. Economies of dentureEconomies of outstrip give large producers a significant cost prefer over small rivals. Where a firm has great(p) very large and significant economies of scale exist, they can make cost competitiveness. New starting motors broadly speaking start small and therefore, have much higher unit exertion be than the giant firms. These new, small entrants regain it nearly impossible to survive against the large rival because they just cant be price competitive devoted their much larger unit exertion costs.8. Entry-deterring behaviorA firm can protect itself from emulation by designedly acting in a centering that convinces potential competitors not to enter the industry. whatever firms spend huge amounts of money on advertising to keep new rivals from scratch up business. Or, firms can act extremely in-your-face if faced with new contestation by perhaps starting a major price war any time a new competitor enters their market. Lawsuits against new rivals have been used to acquire them out of business or to, at the very least, raise the cost of move into the business to very high levels.9. acquaintance and TechnologyIdeas and Knowledge that provides competitive advantage over early(a)s when patented prevent another(p renominal)s from using it and thus creates barrier to entry. For eg. TATA motors have great knowledge/ experience in the automobile industry and have renowned expert advantage because of the recent acquisition and mergers.10. harvest-time note and court AdvantageThe new point of intersection has to be different and irresistible to be accepted by the customers. attractive feature can be measured in the wrong 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 example where till now, no new entrant has entered as a competitor.Barriers to Exit Obstacles or impediments that prevent a family from forgeting a market. A company may decide to exit a market because it is unable to capture market role or turn a profit or for some other reason altogether. senior high barriers to exit force force it to continue competing in the market. The factors that may form a barrier to exit include1. stee p identifyment in non-transferable fixed as good dealsThis is particularly common for manufacturing companies that invest heavily in capital equipment which is particular 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), wherefore the firm may face significant cost if it wishes to recant the market. 3. Other closure costs. Contract contingencies with suppliers or bargain forers and any penalty costs incurred from sour short tenancy agreements.4. Potential upturn Firms may be influenced by the potential of an upturn in their market that may reverse their received financial situation. 5. Government policies In India, the industrial Disputes Act, 1947 puts restrictions on employers in the matter of cut down excess staff by retrenchment, by closure of establishments and the retrenchment plow snarled lot of legalities and complex p rocedures. Also, any plans of retrenchment and reduction of staff and hands are subjected to strong opposition by workmanship 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, necessitous home- delivery, free service, sponsorship deals and so on. These are the different forms of non-price competition. The main(prenominal) aim of non-price competition is yield demotement. As products are differentiated in monopolistic competition, to prove and show how ones product is master key than others- colour, appearance, packaging, skill level etc. It is been by means of with(p) to create an inelastic demand for the product. following parameters can be used for competition instead of reducing cost attributeIf consumers must choose between twain products of the very(prenominal) price but they can see that one is of a h igher prime(a), they generally pick the product of higher woodland. In this way, if a firm can figure out how to produce an token at a cost akin 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 pillow slip of automobiles, within a prone price range people generally dont comprise with the quality aesthetics.For example Recalls of vehicles sold. Recently, Honda Cars India Ltd recalled 42,672 units of second generation Honda City cars manufactured in 2007 and 2008 to replace their violence window switch. HCIL carried out preventive part replacement of power window switch. The company is proactively replacing Power Window assemble 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 pattern by Honda Motor Company to ensure stringent quality standards for its products. However, a problem with this start is that it may take some time for consumers to realize any difference in quality.Perception and BrandingIn some cases, little possibility of quality specialization exists between two products. However, the long-term sustainability of such an approach may be difficult because, as such brand advantages devise through consumer trends, consumer trends may also 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 compete with it. Hyundai India offers its Eon occur within a price angle 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 pricing go in the range starting from Rs. 2.4 lakhs that goes on till Rs. 3.6 lakhs in the Indian auto market. gross sales Comparision between Maruti Suzuki Alto 800 and Hyundai Eon seminal fluid http//blogs.hindustantimes.com/car-nama/2012/07/13/alto-vs-eon-eight-months-on /Product send offIn some cases, firms may compete by ever-changing the design of their products to make them more appealing without significantly changing production costs or quality levels. such(prenominal) a strategy can prove effective at thievery business from competitors, but it can also back burn, because it can cause the company to sacrifice its existing consumers, who may be wittingly choosing the existing design over other products with different designs specifically because it appeals to their tastes.Product DifferentiationNot all consumers are the same. By offering a range of similar products geared toward different market celestial spheres, firms can expand their market base. However, such product differentiation can result in significantly higher overhead costs for production. For example every model has variants in following aspectsFuel used ( gasolene, diesel, LPG, CNG)Cost varients (low end to high end with appendix of features like sunroof, airbags etc.) Model Price (INR) gas mileageVolkswagon Vento PetorlTrendline 7,29,000 15.04Volkswagon Vento Petrol Comfortline 7,75,805 15.04Volkswagon Vento Petrol Style Limited interlingual rendition 8,10,805 15.04 Volkswagon Vento diesel engine 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 StructureWhen two firms are competing with similar products, one may be able to enjoy more market share and a deeper level of insight out-of-pocket to a more effective and aggressive sales structure. By engaging in direct sales, firms can appeal to potential buyers who otherwise would not feel compelled to buy imputable 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 picture range in Indian Automobile IndustrySource ImaginMor, Inderscience Enterprises Ltd and United Nations industrial Development organic law The description and the role of each of the contributors to the cater reach are discussed below. Third tier up Suppliers These companies provide basic products like rubber, glass, steel, tractile and aluminium to the second tier suppliers. twinkling level Suppliers These companies design vehicle systems or bodies for First Tier Suppliers and OEMs. They work on designs provided by the first tier suppliers or OEMs. They also provide engineering resources for fine designs. some(a) of their services may include welding, fabrication, shearing, bending etc. First Tier Suppliers These companies provide major systems directly to assemblers. These companies have global coverage, in order to follow their customers to various locations around the world. They desig n and acquaint in order to provide black-box solutions for the requirements of their customers.Black-box solutions are solutions created by suppliers using their own engineering to meet the performance and interface requirements fasten up 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 Equipment Manufacturers (OEMs) After researching consumers wants and needinesss, automakers begin designing models which are tailored to consumers demands. 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, Toyo ta, and Honda. Innovation, design capacity and branding are the main snap of these companies. Dealers 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 auxiliary 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 servicing 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 wont 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 desegregation of supply chain is being do at all the cities in the country irrespective of the market share.F. Key Developments in Indian Aut o 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 secondary of Mahindra and Mahindra (M&M), volition 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 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 miniskirt 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, speed of light 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* friend 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 champion MotoCorps first-ever candor purchase in an overseas 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 also partnered with Ryce due east Africa to sell its two-wheelers in the country * Daimler is develop its Indian commercial vehicle operations as an export hub. Daimler India Commercial Vehicles (DICV) ordain export locally assembled trucks from the conglomerates Mitsubishi Fuso range in 15 markets in Asia and Africa.Government InitiativesThe Government of India plans to introduce kindle-efficiency ratings for automobiles to make headway sale of cars that consume less petrol or diesel, as per Mr. Veerappa Moily, pairing rector for Petroleum and Natural Gas, Government of India. The brotherhood 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 assignment available for specified part of electrical and interbreeding vehicles till April 2013 has been extended upto blemish 31, 2015* The basic customs job (BCD) on imported luxury goods such as high-end motor vehicles, motor cycles, yachts and similar vessels was increased. The concern was raised from 75 percentage to nose candy percent on Cars / motor vehicles (irrespective of engine capacity) with CIF value 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 incre ase in excise trading from 27 to 30 per cent has been allowed for SUVs with engine capacity exceeding 1,500 cc, while excise profession was decreased from 80 to 72 per cent, in case of SUVs registered solely for taxi purposes* An prerogative from BCD on lithium ion automotive outpouring for manufacture of lithium ion battery packs for supply to manufacturers of hybrid and electric vehicles * The excise duty on chassis of diesel motor vehicles for transport of goods reduced from 14 per cent to 13 per cent Moreover, the Government of India allows 100 per cent foreign direct coronation (FDI) in the automotive industry through automatic route. The Government also plans to hurry the supply of electric vehicles over the next eight years. It is judge that there depart be a demand for 5-7 million electricity-operated vehicles by 2020. The contribution of automotive arena in the gross domestic product (GDP) is expected to double, stretchability a dollar volume worth US$ one hundre d forty-five billion in 2016, with special focus on export of small cars, MUVs, two & three wheelers and auto components, as per the Automotive care Plan (AMP) 2006-2016.Road Aheadworld(a) 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 thick-skulled SUVs, in the coming months. The automobile consistency SIAM expects the launches to be able to brighten the market. Lastly, the imagery of AMP 2006-2016 sees India, to emerge as the endpoint of choice in the world for design and manufacture of automobiles and auto components with output reaching a level of US$ 145 billion accounting for more than 10 per cent of the GDP and providing additional manipulation 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 l oss, moved crisply 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, due 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 difficulty to obtain loans for purchase. 2. copy unsheathed parts- Indian market has always suffered from duplicate products and cheap takefeits. This puts pressure on OEMs to reduce the prices and compete with these cheaper counterfeits. According to the study conducted by market research agency nielson co with acma, 41 % of total spare parts conk out to OEMs and OESes, 23 % belong to imported segment and 36 % are duplicate.3. Lack of infrastructure- Lack of proper road infrastructure, resulting into heavy Traffic has become major concern in most of the cities in India. Parking problem, parking cost adds to it. badly roads, Bad drivers on road further add to the problem. 4. Availability of experient man-power- As per data published by NSDC(National science Development Corporation), automobile sector in India is going to face a dearth of 35 million skilled work force by 2022. Limited handiness of skilled manpower is bound to pose a great challenge to the incontrovertible growth of the Indian automotive manufacturing industry.5. High possession cost- Small car sales are likely to fall by a couple of percentage points in 2013-14 due to continued uncertainty over income growth, high fuel costs arising from a reject rupee and still relatively high inflation.Diesel cars will lose their sheen, particularly in the small car segment, due to the deliberate deregulation of diesel prices and the expected fall in petrol prices. 6. IR think issues- The $73 billion automobile sector has witnessed abhorrent industrial unrest in the recent 5 years wi th 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 generate double revenue needs a flexible workforce of 25 million with an amicableatmosphere to hire and fire proles to cope with the cyclical swings in demand for cars, trucksand bikes but the archaic labour laws regime employment of contract labour has cull out thesetensions.This speculates the lack of efficient implementation machinery. Industrial unrestsaccompanying murders of the executives 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 global 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 crossways 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 government policies Tax benefits for R&D study and Skill connect investments, subsidies for hybrid vehicles are the measures if taken can boost the Indian automobile sector. also extension of 200 % weighted deductive reasoning of R & D expense under income tax law andweighted deduction of cl % for expenditure in skill development by industries seem to be positive steps towards the cause.2. Healthy Industrial traffic through better contract worker polic ies As in most of the unquestionable countries thecontract workers are covered under the social security provisions and are paid at par with the permanent workers. Such transparent policies may definitely get along positive industrial relations and promote industrial growth. 3. Technology up grade 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 eternal going for same old firm 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 Hybrid 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 willpower cost. For this concession on import duty on specified parts of hybrid vehicles are necessary. Stringent laws and strict exercise to eliminate spurious 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 sink EMI with longer loan tenure will definitely help.