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GROWTHAUTOMOBILE
SECTORININDIA

I ND I A N A U TO I ND U STR Y, I S
C U R R E NTLY GR O WI NG A T THE
PA C E O F A R O U ND 18 % PE R
ANN UM, HA S BE C O ME A HO T
D E STI NA TI O N FO R GLO BA L
A U T O MA NU FA C TU R E R S LI KE

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VO

LVO , GE NE R A L MO TO R S

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 A

ND FO R D . THE I ND I A N

A U T O MO BI LE I ND U STR Y HA S A D O
PTE D GLO BA L
S TA ND A R D S WHI C H A R E MA NI FE

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 STE D I N THE
I N C R E A SI NG E XPO R TS O F THI S SE C
TO R .

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 FACTORS
AFFECTING
THE
AUTOMOTIVE
INDUSTRY

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1.Political factors. Political factors may also include
goods and services which the government wants to
provide or be...

2.Economic factors. Economic factors include

interest rates, disposable income, unemployment
rates, retail price index...

3.Social factors. Social factors include the cultural

aspects and include awareness, population growth
rate, age...

4.Technological factors. Technological factors

include ecological and environmental aspects, such
as...
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tellus sed risus lobortis sagittis eu quis est. Duis ut aliquam nisi.
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condimentum egestas nunc a maximus.

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YOUR TITLE GOES HERE
Many automobile industries tend to focus on
identifying customer demands and fulfilling
their needs. But sometimes these industries
can affect the growth of the economic trends.
The significant growth of economy can help
business managers to make better decisions
and potential development of the multiple
growths of the industry. So there are few
economic factors that affect the automobile
industry and decreases the gap between the
customer demand and supply.
of the vehicles.
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Demand & Supply Should Be Directly Proportional In an
automotive industry demand and supply plays a big role
and both should be directly proportional for the growth
of the economy. In other words as demand for the
vehicle increases, the price rises and manufacturer
increases larger supply; this indirectly leads to
competition and drives the price down. In order to make
more YOUR TITLE GOES HERE 5
profit some automakers offers discounts and incentives
to get people to buy cars without sacrificing the benefits.
Government Regulations
On an average, most of the industries are regulated by
the government regulations and laws in one or the other
form. In the automotive industry government regulation
directly affects on how components designed, looks,
features and overall performance of any vehicle. Many
government regulations also have a significant affect on
auto manufacturing industry by generally increasing the
production of the vehicle. Some government regulations
also have limitations on how cars are sold and marketed.
Mainly these regulations are designed to protect the
consumer and environment. If automakers didn't follow
the government regulations and laws, then they face stiff
fines and penalties. Environmental Impact In the
automotive industry, growth of the economy is not only
affected by the environmental issues of the products or challenges which have major impact on the growth of the
services, but it also has an impact on the customer economy. So automakers and designers are working with
perceptions. The top environmental factors of this industry
are fuel economy and emission or clear air regulations are few
Taxation
Another major economic factor of auto motive industry is taxation. The high tax on fuel encourages consumers to shift from private vehicles to public
transport. Also emission charges in the major cities leads to adapt other form of transportation facility to avoid thetaxation. Still many people are not
aware of environmental impacts that reduce the tax. First approach is to switch people from private vehicles to public transport. For instance, in many
cities car parking is expensive or inconvenient. So to avoid a tax problem it is better opt for the publictransport.
Interest Rates
Interest rates can significantly affects on the growth of any industry. Mainly in the automobile industry or vehicle manufacturers, an increase in interest
rates can avoid customers from borrowing to finance the purchase of products and service. Sometimes high interest ratestend to depreciate the value of
money and reduced purchasing power. In simple words consumer have to pay extra bucks of the same vehiclewhen the interest rate is low. So the
rejection of purchasing products often leads to consumer demand and cut the production to reducesupply of the vehicles.
Demand & Supply Should Be Directly Proportional
In an automotive industry demand and supply plays a big role and both should be directly proportional for the growth of the economy. In other words as
demand for the vehicle increases, the price rises and manufacturer increases larger supply; this indirectly leads tocompetition and drives the price down.
In order to make more profit some automakers offers discounts and incentives to get people to buy carswithout sacrificing the benefits.
Government Regulations
On an average, most of the industries are regulated by the government regulations and laws in one or the other form. In the automotive industry
government regulation directly affects on how components designed, looks, features and overall performance of any vehicle. Many government
regulations also have a significant affect on auto manufacturing industry by generally increasing the production of the vehicle.Some government

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regulations also have limitations on how cars are sold and marketed. Mainly these regulations are designed to protect the consumer and environment. If
automakers didn't follow the government regulations and laws, then they face stiff fines and penalties.
Environmental Impact
In the automotive industry, growth of the economy is not only affected by the environmental issues of the products or services, but it also has an impact
on the customer perceptions. The top environmental factors of this industry are fuel economy and emission or clear airregulations are few challenges
which have major impact on the growth of the economy. So automakers and designers are working with these issues in order to develop the cost-
effective and fuel-efficient vehicles.

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 CONSUMER BEHAVIOR IN
THE AUTO INDUSTRY— CAR
BUYING SURVEY 2019

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SMARTPHONES AND VEHICLES ARE TWO OF THE MOST COMMONLY USED TECHNOLOGIES TODAY. THEY GO
HAND IN
HAND, ESPECIALLY WHEN IT COMES TO PURCHASING OR LEASING A NEW CAR. BUT WHAT ACTIVITIES DO
CONSUMERS ACTUALLY ENGAGE WITH DURING THE BUYING PROCESS? HOW IMPORTANT IS THEIR MOBILE
DEVICE AND HOW LIKELY ARE THEY TO CONSIDER ADVERTISEMENTS?
INTERESTED IN LEARNING MORE ABOUT CONSUMERS DECISION-MAKING AND JUST HOW MUCH INFLUENCE
THEIR MOBILE DEVICE HAS WHEN SHOPPING FOR A CAR, AD COLONY CONDUCTED ITS CAR BUYING SURVEY.
JUST A FEW KEY HIGHLIGHTS OF THE STUDY INCLUDE:
NEW VS. USED — THE MAJORITY OF CONSUMERS PURCHASE NEW CARS, ALTHOUGH A LARGEPORTION (43%)
STILL LOOKS FOR USED.
CAR BUYERS ARE YOUNG — IT’S IMPORTANT TO ENSURE YOUR ADS CATER TO YOUNGER AUDIENCES, BECAUSE
33% OF CAR BUYERS ARE BETWEEN THE AGES OF 18 AND 34.
SMARTPHONES ARE ESSENTIAL — 53% OF RESPONDENTS SAID IT’S VERY IMPORTANT OR IMPORTANT TO HAVE
THEIR SMARTPHONE WITH THEM WHILE SHOPPING FOR A CAR.

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SMARTPHONES HAVE MANY FUNCTIONS — CONSUMERS USE THEIR SMARTPHONES DURING THE PURCHASING
PROCESS FOR A VARIETY OF REASONS, BUT THE TOP THREE FUNCTIONS INCLUDE COMPARING PRICES,
RESEARCHING MODELS/SPECS, AND FINDING DEALERSHIPS.
FACTORS AFFECTING CONSUMER BUYING BEHAVIOR
AND PURCHASE DECISION-MAKING
CONSUMER BUYING DECISION ENTAILS A LOT OF TOOLS THAT ARE REVIEWED BEFORE MAKING ANY CONCRETE DECISION
ABOUT THE CAR PURCHASE. INDIVIDUALS ARE ALWAYS FOND OF TRIUMPH WHILE MAKING THE DECISION. MOREOVER,
THERE IS A CONCEALED INTERNAL ISSUE WHILE PURCHASING AMONG THE CONSUMERS. IMPLICITLY ONE CONSUMER
INDULGES IN THE PROCESS OF THE CYCLICAL CONTESTING WITH ANOTHER CONSUMER ABOUT THE UTILITIES THEY ARE
OBTAINING FROM THE PURCHASES. THAT IS WHY SOME PEOPLE NOT ONLY PURCHASE THE PRODUCT FOR SETTLING THEIR
OWN NEED BUT ALSO ENTAILS IN THE CYCLICAL COMPETITION OF GETTING THE BEST PRODUCT CONTRASTING WITH
OTHERS. THUS, IT IS A TIME-CONSUMING PROCESS OF DECISION-MAKING WHERE PEOPLE ARE EAGER TO EMPLOY A
HUGE SUM OF TIME IN ORDER TO GET THE BEST QUALITY OF THE PRODUCT (CONWAY & GAWRONSKI 2013, 216).
IN THE CASE OF PURCHASING LONG-LASTING GOODS, PEOPLE COSSET IN CRITICAL THINKING AND A JUDGMENTAL
APPROACH. THEY STRIVE TO ACCUMULATE INFORMATION REGARDING THEIR NEEDS AND COMPARE THE INFORMATION
WITH ONE ANOTHER. WITH THE SUPPORT OF THE EASY ACCESS OF THE INTERNET AND UPDATED ONLINE TOOLS,
PURCHASING INDIVIDUALS ARE PROCURING THE EXPECTED INFORMATION WITH THE SHORTEST POSSIBLE TIME.

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 MOREOVER, WITH THE ACCUMULATED INFORMATION AND THE OPINION OF THE CONSUMERS, THEY ARE ESTIMATING
THEIR AVAILABLE SUBSTITUTES (ANDERHOFSTADT & SPINLER 2019, 87-107). BEFORE MAKING ANY CONCRETE
DECISION ABOUT THE PURCHASE, INDIVIDUALS ARE ALSO PONDERING OTHER FACTORS SUCH AS CULTURAL INFLUENCE,
SOCIAL STATUS, ETC. THUS, PRODUCERS ALSO ENSURE A SECURE ARRANGEMENT TO COPE WITH THE TRANSFORMED
ATTRIBUTES OF THE CAR CONSUMERS. MOREOVER, THE DECISIVE FACTORS ARE ALSO ENGAGED IN THE PART OF
EVALUATING THE DECISION ALONG WITH THE URGENCY OF NEE

THE MARKETING PERSONNEL

STRIVES TO UNCOVER THE ORIGINAL INTENTIONS OF BUYERS THROUGH EXTENSIVE MARKET
RESEARCH. THAT IS WHY CONSUMERS ARE FLOURISHING THEIR VIEWPOINT IN THE CASE OF PURCHASING SOMETHING
FROM THE MARKET. THEIR VIEWPOINTS ARE GREATLY MANAGED AND CONTRIVED BY SOCIAL FACTORS. FAMILY ESTEEM
AND SOCIAL STATUS ALSO INFLUENCE THE BUYING DECISION OF THE CONSUMERS. INDIVIDUAL CHOICES ARE ROTATING
ACCORDING TO PERSONAL ISSUES SUCH AS THE AGE OF THAT PERSON. ON THE OTHER HAND, BRAND RECOGNITION
CONCOCTS EXCITEMENT IN THE MIND OF THE USERS WHILE PURCHASING THE PREFERRED PRODUCT. FURTHERMORE,
PSYCHOLOGICAL FACTORS SUCH AS THE USER’S PERCEPTION GO HAND IN HAND WITH THE PURCHASING DECISION OF THE
CONSUMER (ANDERHOFSTADT& SPINLER 2019, 87-107).

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 SOCIAL FACTORS
CULTURE AND SOCIETY IMPOSE AN EXTREME WEIGHT OVER ONE’S BUYING CHOICE AND DECISION. THERE ARE
VALUES, OBSERVATION AND STATUS WHICH ASSIST TO PROLIFERATE THE PURCHASING DECISION-MAKING
PROCESS.
PURCHASING A LUXURIOUS PRODUCT MAY ASSIST IN ENRICHING SOMEONE’S STATUS IN SOCIETY. REGARDLESS IF
THE
INDIVIDUAL IS A CHILD OR AN ADULT EVERYONE TRIES TO REACH A HIGHER POSITION IN SOCIETY. IN THIS
REGARD,

PERSONAL FACTORS
DECISION-MAKING CAN BE SEEN AS A PERSONAL CONCERN THAT CAN VARY FROM PERSON TO PERSON.
MOST OF THE
TIMES INDIVIDUALS ARE RELUCTANT TO SHARE THEIR PERSONAL CONCERNSAND THOUGHTS WITH OTHERS.
AGE PERFORMS
AS A CONTROLLING FACTOR IN DECISION-MAKING. IN THE CASE OF CAR PURCHASE, A BOY YIELDS HIS
INTEREST IN THE
DESIGN OF THE CAR MODEL, WHERE AN ADULT CONTEMPLATES FOR THE QUALITY OF THE CAR. ALONG THE
VARIOUS
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STAGES OF THE LIFECYCLE OF THE INDIVIDUAL, THE EXCLUSIVENESS OF THE PRODUCT IS REORIENTING. A
SPECIFIC
QUALITY OF THE CAR MAY BE FANCIED IN ONE STATE OF THE LIFECYCLE AND CAN BE LESS DOMINANT IN
ANOTHER STATE
OF LIFE. THUS, DECISION-MAKING IS IMPLICATED ACCORDING TO THE CHANGE OF THE AGE OF THE
INDIVIDUAL (CHUN
ET. AL 2019, 5103). MOREOVER, AS A RESULT OF ALTERING THE TIME PERIOD, THE INDIVIDUAL’S CHOICE IS
TRANSFERRING INTO ANOTHER STATE. IT MAY CAUSE SWITCHING FROM ONE BRAND TO ANOTHER AND
LOWER
CONSUMER
LOYAL

PSYCHOLOGICAL FACTORS
HUMAN PSYCHOLOGY IS A MIXTURE OF A COMPLEX SUBCONSCIOUS MINDSET.AS A RESULT OF A
PSYCHOLOGICAL
DIFFERENCE SOME PEOPLE ARE EAGER TO BUY SOMETHING ONLY BECAUSE THEY LIKE IT. THAT IS WHY
SOMETIMES
PEOPLE DO NOT LOOK-OVER THE QUALITY OF THE PRODUCT, BUT FOLLOW THEIR SUBCONSCIOUS
MINDSET. INDIVIDUALS
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 DON’T APPRAISE THEIR RATIONALITY AND ANALYTICAL PERSPECTIVE IN THAT CASE. OTHER'S
PERSPECTIVE TOWARDS AN
INDIVIDUAL ALSO MATTERS IN THIS CASE. OTHERS’ PERCEPTION TOWARDS BUYING A LUXURIOUS
MODEL OF THE CAR
AND THEIR OPINION MATTERS MOST WHILE EVALUATING BUYING DECISIONS. PSYCHOLOGICAL
NEGATIVITY CAUSES
COMPLICATIONS AND STIRS NEGATIVELY WHILE CONSIDERING THE BUYING DECISIONS. THIS
PSYCHOLOGICAL
NEGATIVITY FOSTERS DOUBT ABOUT THE QUALITY OF THE PRODUCT (HAFNER, WALKER &
VERPLANKEN 2017, 89-105).
THAT IS WHY THE CAR MANUFACTURER MUST CHECK OUT ADEQUATE PRECAUTIONARY MEASURES
AGAINST THE
PSYCHOLOGICAL NEGATIVITY OF THE INDIVIDUALS

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3
 CONCLUSION
THE AUTOMOBILE INDUSTRY IN INDIA IS EVOLVING AND EXPANDING THROUGH CONTINUOUS INNOVATION AND
TECHNOLOGICAL ADVANCEMENT. CONSUMERS' PERCEPTION, IDEOLOGY AND BEHAVIOR ARE ALSO REFINING ALL
THE
TIME. THE SPOUSE, FRIENDS AND OTHER FAMILY MEMBERS TAKE PART IN PERSUADING A CONSUMER'S ULTIMATE
DECISIONS ABOUT THE CAR PURCHASE. THE PRICE AND THE FEATURES OF THE CAR MOSTLY INFLUENCE THE
PURCHASE
DECISION OF THE BUYERS. THUS, CONSUMERS NEED TO SORT OUT THE BALANCING ARRANGEMENT BETWEEN
THE PRICE
AND FEATURES OF THE COVETED CARS. ADVERTISEMENT LESSENS THE HURDLE TO REACH THE PRODUCT-RELATED
INFORMATION TO THE CONSUMERS. IT ASSISTS THE CONSUMERS IN GETTING INFORMATION FACING FEWER
COMPLICATIONS. INFORMATION ABOUT THE PURCHASE INITIATIVES OF THE CONSUMERS AND THEIR DEMAND
FOR THE
CAR WORKS AS A CRUCIAL SOURCE OF INFORMATION FOR PRODUCERS. AS A RESULT OF THE OLIGOPOLY NATURE,
THE
VYING IN THE CAR INDUSTRY REACHED A NEW LEVEL. MARKET RESEARCH UNLOCKS SEVERAL CRUCIAL MATERIAL
INFORMATION ABOUT THE CONSUMER WHICH ASSISTS TO ENHANCE THE MODIFICATION OF THE CAR

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