INDIA GOLF CART MARKET ANALYSIS

Market Challenges And Opportunities

• High maintenance cost is expected to restrain growth of the India golf cart market during the forecast period
• Low-quality products offered by local players are expected to hinder the India golf cart market growth over the forecast period

Market Driver:

• India has witnessed rapid urbanization in the last two decades. According to the World Bank, over 33% of the Indian population lived in urban areas in 2015 as compared to 18% in 1965. Growing urbanization combined with increasing industrialization has led to boost in mall culture, amusement and theme parks, and hi-tech and smart housing projects. Such development is expected to accelerate the demand for internal transportation, in order to carry people and goods. Furthermore, golf carts are emerging as a significant part of industries for internal transportation. Thus, rapid urbanization and industrialization are expected to drive growth of the market during the forecast period.
• Golf carts are battery-operated vehicles with simple build and maximum speed of up to 31 km/h. As a result of this, golf cars have become most favored vehicles in public places such as tourist spots, railway stations, and airports. Moreover, golf carts are easy to operate and do not require trained people to operate them. Besides, golf carts fall under electric vehicles, which have power of less than 250 W and are generally not categorized as motor vehicles. Hence, no transport rules are applicable to golf carts in India. Leniency in government regulations, coupled with simplicity in the manufacture of golf carts, has boosted production of golf carts in the country. Hence, these factors are expected to propel the India golf cart market growth over the forecast period.

Restraint:

• High maintenance cost is expected to restrain growth of the India golf cart market during the forecast period
• Low-quality products offered by local players are expected to hinder the India golf cart market growth over the forecast period

Market Opportunity:

• Increased import duties and ‘Make in India’ campaign can present lucrative business opportunities

As per the Union Budget 2016-2017, custom duties on imported golf carts in India was increased from 10% to 60%. This six-fold increase on custom duties has opened up wide opportunities for Indian manufacturers to elevate their sales and market share. Furthermore, the government of India’s ‘Make in India’ campaign is expected to create viable environment for the manufacture of golf carts in India by attracting significant FDI. Apart from this campaign, the government is focused on initiatives such as The National Electric Mobility Mission Plan (NEMMP 2020), Faster Adoption & Manufacturing of Hybrid and Electric Vehicles (FAME) and National Green Tribunal Act (2010).

• Advancements in technology can provide major growth opportunities

The India golf cart market is in nascent stage and hence there are multiple opportunities for technological advancements to capitalize. Among these, regenerative banking is the major where technology conserves energy that is usually wasted as heat during braking. Another major development to increase the reliability of golf carts is to adopt solar-electric hybrid. Development of batteries such as Lithium-ion batteries and lithium polymer batteries are expected to significantly increase travel range and load-carrying capacity of golf carts.