Case Study Example of the Indian Automobile Industry

Paper Type:  Case study
Pages:  5
Wordcount:  1270 Words
Date:  2021-04-05

Idea assessment is an important part of the business development process. Research has supported that, not only does the evaluation of business ideas contribute to the success of the firm, but also steer the business towards planned continuous growth and prosperity. Design assessment is a series of steps that analyze and explore a business idea, conceptualize a business plan and move forward to build the business. Plan of activities and preparations involve extensive research operations on different factors that affect the success of the firm (Advisors, 2015, p. 11). The success of an international trade relies on the ability to understand the product, the size of the country, culture in the country as well as financial viability and competition in the country. For instance, the automobile industry is a growing business in India which accounts for 7% of the total GDP to the state. This industry in India provides a case study that describes concepts that are essential in starting an international business in India.

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According to research, the Indian automobile export has risen by 17% since 2008 to 2013. This shows that the industry is among the fastest ever growing international industries in the world. The paper will analyze the Indian Auto Industry as one of the largest international businesses in the world (Naik, 2016, p. 15). The paper aims at explaining the concepts that are essential for starting and running an international business. The paper will analyze the relationship between the Indian automobile industry and the size of the country, its population as well as culture and how the level of competition affects this business. The paper provides a detailed discussion on the process of idea conceptualization, preparation, planning, and execution.


The Indian automobile industry is one of the largest in the world. India is a large producer and distributor of steel around the world. With a growing middle class, the country has seen a rapidly growing automobile industry in the continent and around the globe. The Society of Indian Automotive Manufacturers (SIAM), states that as of today the Indian automotive industry is worth $74 billion. The society has gone further to say that the industry expects a turnover of $300 billion by the year 2026. According to research, the auto industry in India expects much growth and development and improved integration with its community. Having a 1.2% growth rate India takes it position as the second most populated nation around the globe. In the near future the nation is expected to reach a total population of 1.7billion, which would hold a greater population than China.

Indias population is made up of a large middle class and a young population. It is expected that the large population contributes to a large labor force that promotes the auto industry sector. The nation has a high population consisting of a large middle class and the young. The nation has half of its population aged below the age of 25 years. Having a young population the country has a sufficient provision of labor (Naik, 2016, p. 17). This promotes the countrys ability to produce steel works that contribute and support the automobile industry as an international business in the world market. The large population provides a huge market for automotive products. Above all, the young population provides a large market for automotive services, which create demand for the products within the country and abroad. India is the seventh country in the world in regards to size and geographic area hence it has expansive land for investment. Research has termed India to be a densely populated country. However, according to the Socio-Economic and Caste Consensus (SECC) around 73% of the population of India comes from a rural household. This would show that the country has a majority of its population in the countryside of the country.

Correspondingly, the census has shown that the vast of majority of the country receive very low incomes. With 27% striving in urban areas, the country has a large middle class striving to uplift the economy of the country. India has a large middle class that provides a large working force for the nation. The country has also recorded a 7.1% of unemployment; this shows that the nation has the potential to provide cheap labor for the automotive, industrial sector. Furthermore, the automobile industry has expanded to rural areas of the country so as to increase its market share and develop the country. India is also a developing nation; its geographic location is at the center of the globe. From its location, India can export to various parts of the world quickly (Advisors, 2015, p. 11). This provides a competitive advantage for any company that looks forward to investing in the automobile industry in the country.

India holds one of the oldest cultures in the world. Initially, the Western and European cultures ruled that the Indian culture was primitive and inferior. However, during the modern day, the culture of India has grown to be diverse. Different regions have established diversity in culture characteristics, religion, food, and arts. In fact, research has argued that Africa is the only area that holds a more diverse culture than the nation of India. The diversity of the different cultures of India has a positive and adverse effect on the automobile industry. A company that looks forward to investing in the auto industry should analyze and understand the complex cultures of India (Zimmermann, 2015, p. 22). This includes learning the language and religion of the people of India. For instance, 59% of the population of India speak and communicate in Hindi, the rest of the population communicates in other languages. It is important that the company develop measures that strategize to integrate the culture of India and the automobile industry. Alternatively, this will include developing stakeholder programs that teach a common language and culture in the car company in the country.

The automotive industry strategizes on reaching the rural population since it has the largest population making up the nation. The company focuses on exploring new markets for automobile products. The company focuses on developing quality products that are accepted in the international market. The company should be diverse and practice continuous research in developing the quality of services as maintaining a competitive advantage over its competitors. Recruitment of skilled stakeholders is important for the company; young skilled stakeholders will allow the company to adapt to the dynamic nature of the industry. According to the Automotive Mission Plan (AMP), companies should integrate these components to promote India as a favored manufacturing nation of the automobile industry. The company should research for other untapped markets around the world which provide a large market for vehicle products and components.

On the other hand, the company should look forward to developing unique products. For instance, the sales of two wheelers and four-wheelers have received significant growth during the last fiscal year. The company should strategize to produce non-pollutive automobile products that support the well-being of the nation and the globe (Zimmermann, 2015, p. 22). The motor industry is a very competitive industry on the planet. With different manufacturing and distributing countries of vehicle products, the industry marks the fifth most competitive industry around the world. However, the company should establish different unique products that have an adequate quantity of demand to generate sufficient financial viability for the enterprise. For instance, the company can produce electric cars or solar-propelled automobile products that do not pollute the environment. This will generate a competitive advantage over the other competitors in the global auto industry.


Advisors, B. (2015). Indian Automotive Industry: The road Ahead. India: India Forbes.

Naik, A. (2016). Top 5 Happenings in the Indian Automotive Industry in 2016. Punjab: NDTV venture.

Zimmermann, K. A. (2015). Indian Culture: Traditions and Custom of India. New york: Live Science.

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