Automotive production is expected to grow steadily in the near future. Growing middle-class population and increasing disposable incomes are expected to drive demand for automobiles. Factors such as upgrades in road infrastructure and decreasing interest rates further augment industry growth. Uncertainties in prices and limited availability of petroleum products are expect to warrant an increase in fuel-efficient engines that are capable of providing more mileage. Increasing number of road accidents are expected to drive demand for enhanced safety and security features in automobiles. Government initiatives such as Smart Cities would require augmentation of public transportation systems with connected technologies and analytics.

The automotive & transportation industry is characterised by Global Value Chains (GVCs) with various players in various countries adding value at various stages.  The complexities that arise due to this fragmented industry structure needs to be given due diligence while studying these markets.

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