Automotive Industry Structural Adjustment Programme
The year 2016 should have been the third year of consecutive growth for the Indian automotive industry, but conditions in the country did not allow it. A ban on large-engine diesel vehicles in Delhi, a change in emission norms, several vehicle recalls, new recycling regulations and the demonetisation campaign of the government hit the sector — where most transactions are made in cash — hard. In line with this goal, the companies that have invested in our country need to increase their capacities and also draw new main industry investments into the country. Up until the mid-1980s, auto assemblers employed the majority of those workers, but from then on the employment share for automotive parts suppliers in the United States has consistently been greater than the share of workers at assembly plants. The average manufacturing job in the automotive sector pays 60 percent more than the average U.S. job.
While it remains an important factor, comparative advantage is not the sole determinant of trade patterns in the automotive industry. Today, China has captured attention as the location for new automotive productive capacity. Tonight’s news feed is unusually fat, due to the inclusion of last night’s items, which were never used because of the Blogger outage. In its initial stage of development, the auto industry was comprised of auto assemblers that integrated parts production into the enterprise.
In 2000 BMW sold the Land Rover segment to Ford, which had acquired the stock of Jaguar in 1989, while its Rover cars segment was spun off to a British consortium and became MG Rover Group Ltd. Based on the country’s century-long engineering tradition, good infrastructure and skilled workforce, it significantly contributes to automotive manufacturing and R&D. The automotive industry is dynamic and vast, accounting for approximately one in ten jobs in industrialized countries.
When consultancy Mazars published its 2014 Expectation Survey for the Indian Automotive Industry, it turned out that an overwhelming majority of 300 surveyed auto companies was positive about the growth potential of the sector, with 88 per cent expecting the industry to record double-digit growth over the ensuing five to seven years. In 2015, the United States exported approximately 2.6 million vehicles valued at $65 billion to more than 200 countries around the world, with additional exports of automotive parts valued at approximately $81 billion. Regulation would also create new opportunities beyond traditional industry competencies.
That’s why automotive plants need to run 24/7 and minimize downtime due to maintenance work in order to stay competitive. This complete portfolio for the automotive industry comprises hard- and software products that ensure the highest power quality while offering all necessary support to help increase energy efficiency. This means that about one-sixth of total Turkish exports belong to the automotive sector.