India’s multi-regional progress has been characterized by automotive manufacturing success in 2022

India’s multi-regional progress has been characterized by automotive manufacturing success in 2022

India’s achievements in automobile manufacturing exemplify the multi-regional prosperity that benefits the country. India’s automotive industry provides 7.1% of the country’s GDP. With an annual turnover of around INR 7.5 lakh crore and exports of INR 3.5 lakh crore, it is the largest manufacturing industry in the country, accounting for 49% of manufacturing GDP.

Not only that, but the industry employs 37 million people directly and indirectly. The Indian government wants to increase the automotive sector‘s contribution to GDP to 12% and expand employment to 50 million people. It is unmistakable in its aim to make India the automotive manufacturing hub of the world. In 2020-2021, India produced 22.65 million automobiles, with 13 million built between April and October of the same year alone.

The success of the Indian automotive sector is due to several reasons. These include the availability of a young, skilled and economical labor force, which has fueled the growth of car and auto parts manufacturing clusters.

Some of these clusters are Delhi-Gurgaon-Faridabad in North India, Kolkata-Jamshedpur in East India and Mumbai-Pune-Nashik-Aurangabad in West India, Chennai-Bengaluru- Hosur in southern India and Indore, Pithampur and Mandideep in Madhya Pradesh in central India.

Using Indore-Pithampur-Mandideep, an automotive manufacturing cluster in Madhya Pradesh, as an example. Since its inception, more than a dozen equipment manufacturers, 200 equipment manufacturers and more than 100 manufacturing and technical companies have been integrated into it. Additionally, the state provides technical personnel to test facilities, industrial parks, and corridors.

The Madhya Pradesh dry port at Pithampur near Indore has also contributed to the success of the vehicle manufacturing industry. To help automotive exports, the state is boosting its logistics infrastructure by constructing inland container terminals, which will be located in the eastern and southern districts of the state including Satna, Katni, Jabalpur and Chhindwara.

Mandideep, Pithampur, Malanpur, Ratlam, Pawarkheda, Dhanbad and Tihi will be added to the existing seven container ports at Mandideep, Pithampur, Malanpur, Ratlam, Pawarkheda, Dhanbad and Tihi. This translates into the landlocked state’s overall growth, boosting its rail, road, and air logistics.

When vehicle production growth is amplified, it reveals a story of balanced regional development across the country. The automotive sector adds a lot of value to the economy and benefits both the state and the federal government, generates many jobs and boosts GDP.

The Madhya Pradesh state government has provided land and infrastructure assistance to companies such as VE (Volvo Eicher) Commercial Vehicles Ltd, Force Motors and supplier Bridgestone.

In 1986, VE Commercial Vehicles started producing vehicles in Pithampur. Pithampur is the hub for all of the company’s eight production sites. VECV has invested INR 6,000 crore in Madhya Pradesh, contributing to the company’s annual sales of INR 8,650 crore. Each year, the company produces 130,000 trucks and 15,600 buses and a state-of-the-art component distribution facility in Madhya Pradesh. VECV’s operations in Madhya Pradesh directly and indirectly employ 30,000 people and support over 100 ancillary businesses and suppliers.

Force Motors, based in Pithampur since 1986, manufactures the globally recognized FPT engine and Case Tractor Loader Backhoe intelligent hydraulic system. Force’s investment of INR 1,700 crore fuels its annual turnover of INR 2,000 crore.

Bridgestone is another success story, with its Pithampur plant producing over 20,000 tires a day. So far, the company has manufactured 89 million tires. The facts are in plain sight. In fact, the Madhya Pradesh government is preparing to host the inaugural Madhya Pradesh Auto Show in Indore from April 28-30 to showcase the state’s potential as an automobile manufacturing hub.

The success of India’s automotive industry is one of the most remarkable examples of multi-regional growth, with manufacturing clusters scattered across the country engaged in healthy rivalry and contributing to the advancement of the country. It is a success of competitive federalism and smart policymaking in equal measure.

What is the impact of technology on the trucking industry?

Bridging the Gap: Autonomous Vehicles and the Automotive Industry |  center for strategic and international studies

Artificial intelligence, automation and other sophisticated technological solutions are undoubtedly having a beneficial influence on various businesses. However, is it also useful for the transport industry? Let’s find it here.

India’s economy has long relied on the transport sector. According to statistics, about 90% of passenger traffic and 67% of freight use the highways. Trucks are the most popular means of transporting goods and products, and truckers play a vital role. Individuals own the majority of automobiles, yet fleet companies hire drivers to drive the roads.

In 2020, the Indian truck market was worth US$10,850 million and by 2026, it is expected to grow at a CAGR of roughly 12%. The market capitalization is huge, but the industry is disorganized and fragmented.

So how is technology affecting the industry?

automotive industry |  history, overview, definition, developments and facts |  British

  • The emergence of financial instruments

Financial tools such as GST, E-Way Bill, FASTags, UPI and others have benefited truckers and fleet owners. They have access to technology to conduct financial transactions on the go, track their taxes, receive financial support on the go, and increase their sources of income by securing new jobs.

Underutilization of truck capacity has long been a major concern in this industry, reducing employment prospects. This is also treated using instruments. For drivers, issues such as lack of funds to buy gas and food and pay toll charges have become controllable and trackable.

  • Fleet management software

The trucking industry is embracing fleet management software that helps analyze KPIs and provides deeper insight into vehicle fleets and their performance. Through technology-driven platforms, companies can analyze security incidents, engine hours, route performance, fuel management, and more, identify areas for improvement, and decide what needs to be improved. done now versus what can wait. On the road, truckers can get help in near real time.

This is used to find valuable fleet management information such as bottleneck identification, record keeping, transaction history, pricing data, etc. It involves analyzing data sets to develop conclusions and make informed judgments. Companies can map travel routes, identify networks with questionable infrastructure, and even calculate travel days and time estimates.

Smartphone applications can be used by truckers and transport companies. This online transportation network app and essential tool makes road trips easier with enhanced connectivity, readily available solutions, and payment options. They also help transportation companies improve supply chain operations, efficiency, and profitability.

  • In-Vehicle Safety Features

Today, all transport companies prioritize the safety of their drivers. The trucks are equipped with safety devices and technologies such as blind spot mirrors, lane departure alerts, automated emergency braking systems, truck dash cameras, etc. to ensure a safe and comfortable journey.

To summarize

Technological advancements have had a significant impact on the sector. With these apps, fleet owners and drivers can do everything from monitor the weather to check into a hotel for a night’s rest, to automatically pay tolls to use e-wallets. Every effort is made to ensure that the industry and its affiliates are recognized for their contributions. As technology evolves, it will be fascinating to watch how the industry adapts and expands its benefits.

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