The Automotive Engineering Service market in India is to grow at a CAGR of 18.22 percent over the period 2012-2016. One of the key factors contributing to this market growth is the cost effectiveness of the Indian Automotive Engineering Service industry. The Automotive Engineering Service market in India has also been witnessing rise in demand for green engineering. However, the competition from other upcoming outsourcing destinations could pose a challenge to the growth of this market.
The Manufacturing sector in the West is facing difficult times and it is looking for an economical cost structure as a survival strategy. With the existing crisis in the Manufacturing sector globally, manufacturers are gravitating toward India in search of inexpensive development and design solutions. India is also recognized as an emerging innovation location with a flexible talent pool and cost advantages. The design of a new product is an expensive process. Earlier, global firms were reluctant to hand over this process to an outsourcing partner. However, attitudes are changing because India has managed to understand the process severity, it has established result-oriented governance models, and it has a large English-speaking working population.
The availability of low-cost labor and inexpensive manufacturing capabilities is one of the key attractions boosting the market growth. In addition to low-cost labor, the availability of a technical education infrastructure that provides an increasing number of technically-trained human resources each year has been another key factor promoting the Automotive Engineering industry in India.
The competition from other upcoming outsourcing destinations is a major threat to the market.
Key vendors dominating this space include Tata Consultancy Services Ltd., Infosys Ltd., HCL Technologies Ltd., and Tata Technologies Ltd. Other vendors mentioned in the report are Mahindra Engineering Services, Eicher Engineering, Plexicon Inc., DC Design Pvt. Ltd.
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