Automobile Industry in India and World

Automobile Industry in India and World

This article deals with the ‘Automobile Industry in India and World .’ This is part of our series on ‘Geography’, which is an important pillar of the GS-1 syllabus. For more articles, you can click here.

Location Factors for Automobile Industry

Proximity to Markets

  • Detroit in the USA has a huge automobile industry due to its proximity to the U.S. consumer market.

Supply Chain

  • Building a vehicle requires numerous components ( like steel, rubber, plastic, paint, cables etc.). Hence, an efficient supply chain is important in deciding where to locate the automobile industry. E.g., Germany’s automotive industry benefits from a well-developed infrastructure and efficient supply chain networks for building automobiles. 

Skilled Labour and Talent Pool

  • Stuttgart (Germany) is home to major automotive companies benefitting from a talented pool of engineers and workers.
  • Similarly, the Gurgaon-Manesar Belt (Haryana, India) has attracted automotive manufacturing due to the availability of skilled labour.

Government Policies and Incentives

  • The Mexican government’s pro-business policies and trade agreements have attracted automakers to set up plants in Mexico.

Research and Development Centers

  • Silicon Valley in the USA and Bengaluru in India have attracted electric and autonomous vehicles due to R&D centres in these regions. 

Major Automobile Producers

Automobile Industry in India and World
USA General Motors, Ford and Tesla
Germany Volkswagen, Audi, BMW and Mercedes
Sweden Volvo
India Tata and Mahindra
China SAIC and Dongfeng
Korea Hyundai and Kia
Japan Honda, Toyota, Suzuki, Nissan, Mazda and Mitsubishi

Reasons: Why is Detroit a major Automobile Centre? 

Reasons: Why is Detroit a major Automobile Centre?
  • Transport: Located on the banks of the Detroit River and linked to Lake Huron, the geographical positioning of the city of Detroit provides a vital connection to the expansive Great Lakes waterway system, facilitating the cost-effective movement of goods and materials.
  • Labour: In the 19th century, Detroit saw the emergence of floor mills utilizing running water and the adoption of internal combustion engines for boats. It led to the establishment of numerous repair shops, fostering the development of generations of skilled labour.
  • Entrepreneurs: Two iconic figures stand out in the narrative of Detroit’s entrepreneurial spirit: William Durant (founder of GM) and Henry Ford (founder of Ford Motors).
  • Raw Material: Detroit’s proximity to Pittsburgh, a major steel-producing centre, ensured a steady steel supply. Additionally, the region has numerous intermediate industries providing components, such as seat cushions, spray paint, tires, and electronic circuits.

Indian Automobile Industry

Renowned international and domestic companies operate in India, such as Tata Motors, Maruti Suzuki, Mahindra & Mahindra, Hyundai, Honda, and Volkswagen.

The automobile industry in India is spread across various regions, with key manufacturing hubs that play a crucial role in the country’s automotive landscape.

Chennai Major automobile manufacturing hub of India hosting manufacturing plants of companies like Ford, Hyundai, Renault-Nissan, and Royal Enfield.
Gurugram-Manesar Hosts manufacturing facilities of Maruti Suzuki, Hero MotoCorp, and Honda Motorcycles
Sanand (Guj)  Hosts manufacturing plants of Tata Motors and Ford.
Jamshedpur (Jh) Home to Tata Motors’ flagship manufacturing plant.
Bengaluru and Hyderabad Becoming hub of Electronic Vehicle manufacturing due to presence of Startup ecosystem and IT research and development infrastructure.

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