Automobile After managing to end FY 2011-12 with a 2.19% growth in car sales, the industry body Society of Indian Automobile Manufacturers (SIAM) on Tuesday said that it expects the segment to grow by 10-12% in FY 2012-13.
For the entire industry, SIAM has predicted a growth of 10-12% as compared to the 12.24% achieved in the last fiscal. Other segments like Commercial Vehicles, Two-wheelers and Three-wheelers are expected to grow by 9-11%, 11-13% and 5-7% respectively. Regarding the commercial vehicle sales, Sandilya mentioned that since the segment is cyclic, the industry body foresees some moderation of growth considering issues related to the mining sector
The auto sector reported a robust growth rate of 26 percent in the last two years (2010-2012). The BSE AUTO Index outperformed the benchmark Nifty by 79%, 12% and 19% in FY10, FY11 and FY12, respectively.
India is emerging as a strong automotive R&D hub with foreign players like Hyundai, Suzuki, General Motors setting up base in India. This move is further enhanced by Government's support towards setting up centres for development and innovation. Tata Nano's successful entry in the Indian market has steamed up the opportunities of growth available in alternative segments like electric cars, vehicles run on natural gas, etc.
Job opportunities in automobile sector
According to the Confederation of Indian Industry, auto sector currently employs 787, 7702 people, 58 percent of who are in the passenger car segment. However, there is an increasing demand for skilled professionals in the domain of effective service delivery, spares management and support functions. ITIs and Polytechnics provide 530,000 graduates every year, but there is an urgent need for updating courses to keep up with changing trends in technology, manufacturing, and processes.