Political - In the wake of the slowdown of the manufacturing sector in the past two years, and the fall in the automobiles production, the finance ministry had allowed excise duty concessions for the automobiles till 30th June this year. But while presenting the budget for the first time after assuming the chair of Finance Minister, Mr. Arun Jaitley has extended the duty cut for another six months to December 31 this year. This has given a much needed boost to the Automobile Industry, which was growing at a negative rate in quarters prior to the announcement of the Excise duty cut. The companies have decided that they will pass on the reduction in prices to the customers, who would have to pay less for purchasing a new car.
And with the government…show more content… Increase in the percentage of working woman has increased the number of working member in the family. The propensity to spend has increased for a common man, as a result of which the ability to spend on a quality education has gone up. With rising education, the population’s expectancy towards product quality and the services offered with it has risen, which has resulted in the growth of the automotive industry in India. Today an upper middle class person wants to provide his family with the comfort of a private vehicle, which saves the pain of travelling in a public transport. Also with the increasing distance between the work-place and residence has pushed the demand higher for the automotive sector. And with the easy availability of the EMI these days, it’s become easier for the customer to purchase cars. While most of the buyer’s purchase just one car, there are customers like corporate or government which always buy a large fleet of cars. So by personally communicating with them and some prime individual customers, the companies play a vital role in influencing the buying decisions of such customers. We see manufacturers offer heavy discounts during the festive season, thereby luring customers to buy their products. The price of the automobiles has also come down in recent times, allowing the consumer to buys the…show more content… The traffic police have also come up with a number of initiatives to create awareness among the drivers of various vehicles. They strictly penalize the people riding a motorcycle without a helmet, for not wearing the seat belt while driving a car or for over speeding. The government passing more rules concerning the safety of the citizens while driving, the new entrants have to invest more in the features like airbags, anti-braking system, offset frontal crash and side and rear impact tests, which would further push up their cost of manufacturing. Thus the automotive industry has to implement the required safety features which are mandatorily imposed by the