INDIAN ROADS: BIGGEST HURDLE TO AUTOMOBILE INDUSTRY

—	Country	Road length (km)	Expressway length (km)
1	United States	6,586,610	76,334
R 2	India	4,689,842	21,181
3	China	4,237,500	96,200
4	Brazil	1,751,868
5	Japan	1,210,251	7,803
6	Canada	1,042,300	17,000
7	Russia	982,000	806
8	France	951,200	11,100
9	Australia	823,217
10	Spain	681,298	15,152

The automobile industry is suffering huge expense on the logistical support due to this worse condition. Not only traffic delays the estimated time line and hampers the flow of raw material but also the digs and bumps on the washed away roads add a delay to them. Finally, the customer has to incur these charges as handling charges when they purchase a vehicle whichcosts  between  2% to 4% of the vehicles original cost.

A group always takes the stand that the production and manufacturing units of the auto sector are well connected with each other and with the major ports and markets. But on contrary to that one has to keep in mind the local market too. India is the sixth largest producer of passenger cars in the world and the third biggest exporter in Asia but losing its grip in the country itself. The Indian markets have fell by ten to twelve percent from the last year. Increase in import duty on the spares is one of the biggest reasons.

Talking technically, it is the Indian roads who have forced the manufacturers to keep the ground clearance of the vehicles high so that you don’t bang your car the every bumper or a ditch on the road you pass from. Increasing the ground clearance of the vehicle not only increases the cost of the add on material but also lowers the fuel economy of the car. There is a greater drag force on the vehicle when you have a high ground clearance which lowers the mileage of the vehicle.

Studies have been suggesting, India has the potential to control the automobile market in the coming few years. Reports suggest a ten percent GDP of India from this sector in the year 2016. But all theway, power comes at a price and this price has to be borne by the government by providing better infrastructure and attractive policies to the international market.

By:-
 Sarvarish Rausaria(A2325312010)