India, along with China and Brazil, is poised to be one amongst the three large and growing CE markets globally. As per reports, in the next few years the size of the Indian CE industry, by volume, is expected to reach that of Europe. This huge potential has led to various new players entering the industry, which is in turn, getting more hyper-competitive, putting constant pressure on existing players and new incumbents to continuously improve their value proposition and cut costs. The high margins that have traditionally been earned by market leaders are also expected to come down.
This has a direct impact on the technology and services provided by the OEMs; product, technology and services are catching up with global standards. Customers are keen for high levels of fuel efficiency, the highest levels of reliability but all at costs far below global levels. Advanced electronics features for machine control and maintenance diagnostics are becoming a must; styling, safety and operator comfort are increasingly becoming relevant options. The big challenge for OEMs will be to offer products of contemporary technology at prices that are the lowest in the world. In spite of the present slowdown and resultant sluggishness in the CE market, the long-term growth prospects are still intact; experts view the huge infrastructure deficit as a major growth driver. Prudent steps from the government can bring India back on the growth trajectory. The demand for construction equipment has declined because of the ongoing slowdown. However, even in these challenging times, most of the major players were busy in creating new avenues through generation of newer markets and enhancing efficiency to provide hassle-free service and parts support.
With the depreciating rupee, exports have become lucrative for Indian OEMs. Considering the earlier growth projections, most companies had ramped up their capacities. Some are even looking at using their India base for exports to nearby countries, as well as to the Gulf and Africa. The slowdown has also thrown open the opportunity to review the process and that could well lead to positive results. Further, new markets and diversified opportunities are more focused. Since business is always cyclical in nature, it is important that the companies maintain a positive outlook and work towards implementing the changes needed. To that end, mega shows like EXCON are sure to bring the positive vibes back to the industry, especially because they provide a platform for Exhibiting Confidence.