Transportation and Automobile - Consumption revolution

The transportation and automotive landscape is undergoing a remarkable transformation, fueled by several influential trends that are redefining the way we move and commute. These trends reflect not only changes in consumer preferences but also advancements in technology and infrastructure development. Let's delve into some of the prominent trends that are shaping the present and future of this dynamic industry:

Preference for Larger Cars and SUVs: In recent times, there has been a discernible shift in consumer preferences towards larger vehicles, such as SUVs and crossovers, as opposed to smaller hatchbacks. This trend is indicative of changing lifestyles, with individuals seeking more space, comfort, and versatility in their vehicles.

Electric Vehicle Revolution: The global push towards sustainable and eco-friendly mobility has spurred a significant adoption of electric vehicles (EVs). Both in the four-wheeler and two-wheeler segments, EVs are gaining traction as governments and consumers prioritize cleaner modes of transportation, thereby contributing to reduced emissions and a greener future. Recently the government has committed 7 Billion dollars to electric buses in 169 two-tier cities.

Expansion of Metro Networks: The expansion of metro networks beyond major cities into two-tier cities is a crucial step toward enhancing urban mobility. This move not only eases traffic congestion but also provides affordable and efficient public transportation options for a broader population.

Dedicated Freight Corridors: The establishment of dedicated freight corridors has revolutionized the movement of goods across the country. By enabling trains to transport goods at high speeds of up to 100 km/hour, these corridors enhance logistics efficiency and contribute to the growth of the economy.

Infrastructure Overhaul: The development of extensive infrastructure, such as modern freeways connecting major cities, has significantly improved connectivity and reduced travel time. An example is the Delhi-Mumbai expressway that promises to cover the distance in a mere 12 hours, transforming long-distance travel.

Rural Road Connectivity: Initiatives like the Pradhan Mantri Gram Sadak Yojana (PMGSY) have played a pivotal role in connecting rural areas through improved village roads. This connectivity not only facilitates smoother transportation but also promotes economic growth and social development in rural regions.

Financial Inclusion through Demonetization: The strategic move of demonetization has led to increased formal banking services adoption, consequently paving the way for wider access to credit facilities. As a result, credit scores have become more accessible, enabling Non-Banking Financial Companies (NBFCs) to extend credit services across the nation.

Aviation policy - the government's UDAN scheme, which is short for "Ude Desh Ka Aam Nagrik", intends to build infrastructure and a culture of air travel for people in tier 2 and 3 cities by making flying cheaper and more accessible. there are plans to build 220 new airports by 2025, create 33 new domestic cargo terminals, 15 new flight training schools for pilots

These trends collectively impact the dynamic evolution of the transportation and automotive industry. As a result of this following stock will see exponential growth over the next decade 

• Railway and Infrastructure - some are Public Sector Companies  - RITES, IRFC, IRCTC, IRFC, Titaghar Wagons, RVNL, BEML
• Infra Companies  - Larsen, NBCC
• Auto - M&M, TVS Motors, Eicher Motors
• Auto Ancillaries -  Gabriel, Sundaram Fasteners, FIEM, JBM Auto, Motherson Sumi
• Airconditioning - Amber Enterprises ( they provide airconditioning for all vande bharat trains)
• Electric Busses - Olectra GreenTech, Tata Motors, JBM Motors, Ashok Leyland
• Battery Charging Infrastructure and Green Fuels - Praj Industries, Indian Oil, Reliance, Tata Power
• NBFC and Insurance - Shriram transport finance,  M&M Finance, Bajaj Finance, Bajaj Finserv