Business Opportunities In Automotive Industry For Women
In the 21st century India, women are invading corporate sectors like information technology, engineering, medicine, including the automotive sector. Women are starting their own automotive business or are getting hired by the workforce to work for their organization. The employment varies depending upon the nature of the company and work culture.
Why is this sector a good investment opportunity?
The industry includes diverse variants of automobiles like trucks, cars, motorcycles, etc. With the increase in diversification, a number of business opportunities and demand are expected to rise more, especially among the women entrepreneurs.
The automotive market is assumed to reach $17 billion by 2021, growing at a CAGR of 10-15 percent, having a potential to grow up to $300 billion in terms of revenue.
FDI in the automobile industry
Foreign Direct Investment (FDI) has caused the automobile sector to increase by 72 percent during 2014-2016. The automobile sector received US$729 million, which has increased scope for young entrepreneurs for shaping their business.
Further, invasion of international brands like ISUZU and Ford motors have invested heavily, establishing new assembly and manufacturing units. This is expected to boost the automobile industry, creating numerous opportunities for women entrepreneurs.
Government’s manufacturing policy framework is supposed to play a vital role in transforming the automotive industry. This is perhaps the best time for women to invest in this segment, pursuing their career and business goal.
The automotive sector is now being termed as a ‘sunrise sector’ because of the following government policies:
- The government’s Automobile Mission Plan 2016 – 2026 envisages making India one of the top three automobile manufacturing centers in the world, potentially earning a gross revenue of US$300 billion by 2026.
- Hybrid vehicles now attract excise duty at 12.5 percent and electric vehicles attract excise duty at 6 percent, as against the excise duty of 30 percent, 27 percent, 24 percent, and 12.5 percent applicable on vehicles with conventional fuel.
Thus, an automotive industry will be a boon for both male and female investors. Women, especially, will be looking to expand their reach more than ever, looking to dominate in the male dominant sector.