The automobile industry is one of India’s major sectors, accounting for 22 per cent of the country’s manufacturing GDP. The Indian auto industry, comprising passenger cars, two-wheelers, three-wheelers and commercial vehicles, is the seventh-largest in the world with an annual production of 17.5 million vehicles, of which 2.3 million are exported. Two-wheelers dominate the Indian market; more than 75 per cent of the vehicles sold are two wheelers. (Source: http://www.investindia.gov.in)
Though the previous financial year was challenging for the industry, here is some interesting news.
Ashok Leyland likely to launch Dost electric variant in a year. Maruti Suzuki has unveiled the limited edition - EstiloNlive. Mahindra Reva will launch its electric car e20 in March 2013. The group also has launched new light commercial vehicle – Maxximo, and Ford has launched special edition Figo.
It is also important to note that Audi India sales have increased by 29 per cent in Feb 2013 and Jaguar has planned to increase its investment in UK engine plant over £500 m.
Ascent of the Cloud continues
Like every year, Deloitte India has released its Telecom, Media and Technology Predictions for the year 2013. The view is that developments in each sub-sector are now so inter-linked and interdependent that TMT executives need to be cognizant of key trends across all sectors. The key trends that could be observed in India this year as per the report are:
•4G is still a few years away: Deloitte believes it will still take few years for the ecosystem to develop for adoption of 4G services by the masses and pan-India coverage of 4G services.
•Smartphone market will grow but usage will remain simple: In 2013, two in every five smartphone owners may never or rarely (less than once a week) connect to the Internet through cellular or Wi-Fi.
•Voice and data tariffs to undergo transformation: Voice and data tariffs will need to be rationalised in 2013 to sustain the telecom industry.
•Hawking their ware: Will technology find its next big market in India retail? There will be increased use of technology in the retail industry in India as online and offline retailers scale-up and address newer market segments.
•Cloud, the ascent continues: While large enterprises would drive the volume consumption of cloud computing services, we shall continue to witness large scale adoption of cloud-based services by small and medium businesses.
•Television — old school, but still rocking the show: Television will continue to dominate as a media source and as an impactful medium for advertising.
•Print media — time for transformation: As the printing industry rejuvenates itself, the focus will be on making investments in digital printing, which represents a market growth opportunity for technology vendors as well as users.
•Movie content— digital means of entertainment: Rising consumer demand for movie content will lead production houses to generate more content in digital format. (For details refer www.deloitte.com)
Bracing up for weak growth
CFOs enter 2013 in a more optimistic mood than they entered 2012. The dominant concern for corporates a year ago was that the single currency – Euro, could break up. Such fears have receded. Better news from the euro area and an end to the UK double dip recession have boosted spirits with CFO optimism up sharply from the lows seen at the end of 2011.
Alongside these signs of confidence, CFOs continue to worry that growth will be in short supply this year. Weak growth prospects for the euro area and the UK growth rate are the greatest worries for CFOs in 2013. Perceptions of financial and economic uncertainty remain high. The central concern for CFOs today is the economy, just as it was at the start of the last four years.
CFOs seem less worried about company-specific issues such as margins, cash flow and credit availability. In the fourth quarter of 2012, CFOs reported a sharp decline in credit costs and now rate credit as being cheaper than at any time in the last five years. Please refer http://www.deloitte.com for more details.