Need for an Auto Start.

Economic Times reports that India's booming automobile industry may be a crucial driver of economic growth and pose a serious threat to manufacturers in many developed nations, but a new study has revealed that the country's automakers are plagued by several challenges.

However, according to the study, the Indian auto industry will surmount the impediments to make India one of the world's top ten vehicle-producing countries by 2015. "Roads are the big problem... The infrastructure needs to be improved more than you might think. There's a number of problems, but they're aware of them and they know what it takes to overcome them," Senior Managing Consultant of the IBM Institute for Business Value Allan Henderson said.

Exporting is troublesome as well. Indian automakers have difficulty understanding foreign consumers, developing a range of models, managing global supply chain logistics and incorporating advanced technology, the study concluded. Additionally, Indian ports would need significant upgrades to handle high volumes of vehicles. The country’s automakers do have several important factors working in their favor: The Indian government is solidly behind their efforts, even drafting an aggressive mission plan for the industry, and Indian consumers generally want to buy vehicles made in their own country to support the economy.

Even if automakers are able to increase production, the study found that many consumers do not want to buy cars because roads are in poor shape and congested. Motorcycles and other two-wheelers are the most popular form of transportation, outselling four-wheeled vehicles by a four-to-one margin.

“There is no doubt the Indian government will play an integral role in shaping the automotive industry and its future. The Automotive Mission Plan (AMP), created by the government could be construed as a step in the right direction as it outlines development goals till 2016. More importantly, it clearly describes the role of the government in supporting the industry, especially through improved infrastructure, tax, and labor law revisions. During our study, most of the interviewees were unanimous when it came to the optimism about government’s support for the growth of the industry,” commented Bruce M. Belzowski, Assistant Research Scientist & Associate Director, University of Michigan Transportation Research Institute.