Key Factors influencing Automobile Industry
Consumer Sentiment Index:
Customer Sentiment Index, 12 month rolling average of the Index; historical and forecast data and analysis. The end customers are very important to ensure the survival of the Motor Vehicle Manufacturing industry. Economic downturns and other events can affect the expenditure decision of households. When customers are not happy or optimistic about the future of the economy, they will tend to postpone expenditure until times are better.
Domestic Goods Price Metal/ Iron and Steel
Steel is a major input used when manufacturing a motor vehicle. Rises in the price of steel puts cost pressures on manufacturers, which often leads to a fall in profitability. Over the past five years, the price of steel has been rising rapidly. These rises inprice eventually pass from the manufacturers to the end customers’.
Import and Export Taxes (Duties) / Motor Vehicle Tariffs
Tariff rates applicable to the industry: High taffies may restrict flow oftrade but may attract investment if domestic market is big enough and growing. Over the last few years India’s tariff policies and conditions of import ofvehicles have served the purpose of attracting investments. Industry is keen that the existing tariff structure roadmap and conditions of import of vehicles are retained without any modifications because of certain systematic deficiencies which make manufacturing less cost competitive in India as compared to some of the neighbouring countries like China, Thailand, Indonesia, etc.
Wold Price Energy/ Crude Oil
The hike or the effect of increasing prices of crude oil at world level per barrel will affect the market scenario of the Automobile industry adversely.The price of oil and petrol affect the driving habits of consumers and the type of car they buy. Over the past five years, the price of petrol has been influenced the buying decision of motorists, who are switching more to fuel efficient options. These include cars that run on liquefied petroleum gas (LPG), CNG etc, diesel and small cars that achieve better mileage. The trucking sector has also been struggling with the rise in the price of fuel, which has put enormous pressures on their costs.

Automobile industry driving key success factors:
The Key Success factors in the Motor Vehicle Manufacturing industry are * Efficiency factor- Improve labour productivity, labour flexibility, and capital efficiency * Resource Availability- Quality manpower availability, infrastructure improvements, and raw material availability * Effective cost controls- Close relationship with supplies and goods distribution channels. * Establishment of export markets- Growth of export markets * Having an extensive distribution/collection network- Goods distribution channels * Successful industrial relations policy- Ethical and tacticalindustrial relations * Access to the latest available and most efficient technology and techniques- The degree of investment in technological improvements and product development * Optimum capacity utilisation- The level of plant utilisation * Management of high quality assets portfolio- Understanding implications from Government policies