The Automobile Industry in India can broadly be classified into four segments, namely two wheelers, three wheelers, passenger vehicles and commercial Vehicles, with the two wheeler segment comprising 80% of the total market share.
This sector contributes about 22% to the country’s manufacturing GDP and accounts for about 7% of India’s GDP by volume. The de-licensing of the sector in the early 90’s combined with the government allowing for up to 100% FDI under the automatic route greatly spurred growth, and the market grew to be the 4th largest in the world by volume in 2015.
The substantial rate of production of automobiles also means that the Industry is responsible for a sizeable chunk of the exports market, with almost every major Auto manufacturer having set up shop in the country. Recent trends show that the focus of automobile manufacturers has been geared towards acquiring parts from domestic producers, advocating further investment and highlighting the potential of the sector. There have also been considerable number of deals entered into by Industry giants both for supply of vehicles in India as well as exports to other countries, thus solidifying our foothold in those economies.
The government has promised implementation of the Goods and Services Tax by April 2016, which will standardize the rates of taxation across states in a bid to strengthen its Make in India program. Rs 750 million has been dedicated to the manufacture of electric cars, to promote the growth of green vehicles in the country. The budget for the current fiscal year also contained provisions for supplying a line of credit to farmers, with expectations that it would encourage growth in the tractor segment.
India is one of the most competitive economies in the world, especially with regard to the Automotive Industry. In this cutthroat world, disputes are bound to arise over time. We believe, that by providing our clients with sound legal backing from the get go, the effect of these disputes on their business could be minimized and their work can continue uninterrupted. Our unparalleled experience in the field also lets us represent our Client’s to our fullest capabilities and ensures we achieve the best possible outcome for them.