The Indian automobile industry is the fourth largest industry and the sixth-largest producer of automobiles in the world. Due to growing urbanisation, increasing fuel prices, pollution, and the need for cleaner fuel sources, the Indian automobile industry has seen tremendous growth during the last few years, which has promoted emerging startups to work towards innovative solutions that are tailor-made for the Indian industry and consumers. With technological advancements like Artificial Intelligence, Internet of Things, Software as a Service, automation, etc., the Indian automobile industry has taken a giant leap towards growth and development. Here are the major contributions of the automobile industry to India’s growth trajectory.
Startups' continuous innovation in the automobile space contributes to the growth of the industry and in turn to a huge revenue to the economy. Revenues are generated in terms of total sales of vehicles, income tax and business taxes, etc., which contributes a great deal to a country’s GDP and as startup innovations are turned into reality, disrupting the industry and offering solutions to challenges that had plagued the industry, the automobile sector grows consistently.
Startups and established companies in the automobile space have contributed massively to the industrial development of India. The automobile industry is an ever-growing industry, and it requires several resources like steel plants, glass manufacturing plants, transportation facilities and much more. Thus, the automobile industry helps in providing an adequate amounts of resources to the economy, resulting in industrial development.
With the growing rate of urbanisation and the increasing need for sustainable mobility solutions, startups and existing companies working in the mobility space have revolutionised the overall mobility sector. Due to continuous advancements in the mobility industry, people can now more easily move across geographical locations, which brings new revenue streams for the economy.
Automobile helps in demographical advancements in the country since it increases the quality of life of the people in terms of comfort and reliability. The automobile industry in India is evolving each day as new developments are coming in to enhance the mobility space even more. This, in turn, results in skill development and job creation for the people. The Indian startups working in this sector have already contributed to providing millions of job opportunities, and the graph is likely to grow even further in the coming years.
The automobile industry is a knowledge-intensive industry, and it requires a lot of research and development to provide mobility solutions for a wide range of consumers. Customers always look for something new in economical automobiles that give better performance, are environmentally friendly, have higher emission standards, improved safety features, and much more. Hence, continuous development in the mobility space helps foster innovation and bring in sustainable mobility solutions for the growing need of consumers.
Looking at the growing number of automobile startups in India and helping them grow in the Indian automobile market, Maruti Suzuki, the largest car manufacturer in India, has launched Maruti Suzuki Innovation, an initiative that acts as a catalyst for the growth of startups to revolutionise the automobile and mobility space, providing the right direction to support startups to help them become market-ready.