Automobile Industry

With the relaxation in the trade and import and export policies, the automobile industry is already on an upward curve. Another important contribution is of the banks and various other financial institutions, which have made owning a car or any other vehicle a much easier job. Earlier the very thought of owning a car would probably mean arranging for a huge sum of money, but now these banks and financial institutions have facilitated this with the loans. Almost all the big banks in the markets or financial institutions or even private lenders are today in for giving loans to people for buying vehicles.

Another interesting fact is that these automobile companies themselves are ready to make available these products on a higher purchase system or on installments. They charge a little fee as a processing fee and charge a nominal rate of interest. This works both ways for the banks as well as the customers. The customers are relieved from the burden of paying the entire amount at one shot and the banks makes a profit by charging them a little more than the stipulated price.

Automobile industry is now facing a lot of competition from the various other competitors. Earlier it was very specifically done that car companies would only deal with the production of cars and heavy vehicles would deal in the production of trucks and other heavy vehicles. Now with the market available all these big companies want to go retail. We get to see all those imported cars running on Indian roads, so much so that now most of these foreign cars have started investing in the Indian markets. This sort of investment of the automobile industry gives them a lot of profits, firstly the cost of production is cheap as there are hardly transport costs involved and also the labor involved is very cheaply available.