What Drives the Automotive Industry?

The automotive sector is growing at a speedy rate. Yet, it faces disruptions from new business model innovation such as augmentation of shared economy rental car players as well as government policy on the use of electric cars to eliminate BS-III compliant and lower-graded automobiles that cause more pollution than BS-IV automobiles.

With an increase in the purchasing power of Indians, there has been a steady rise in the demand for affordable as well as luxury cars. However, there is another segment of consumers that prefers to rent cars to minimize overhead costs and liabilities. Hence, at Felix, we have worked with some of the best names in the industry to help them address these issues and devise innovative strategies to flourish in a highly uncertain and volatile industry. We provide the following services for companies operating in the auto sector:

Working Capital Management

Backed by a team of experts who have in-depth knowledge of automotive market, Felix Advisory has proposed and designed innovative strategies and financial models for top luxury car brands to help them increase efficiency and control costs. By efficiently streamlining working capital needs, we have helped luxury brands increase their cash flow and utilize working capital to meet strategic objectives, reduce overhead costs on production, and increase profits.

Investment Banking (Fund Raise and M&A)

Traditionally, the global automotive industry has witnessed a rapid increase in mergers and acquisitions throughout the decades. This trend has been influenced by different factors such as:

  • Autonomous Cars
  • Car Renting
  • Carpools
  • Electrification

Today, the Indian automotive industry is also experiencing increased activity in capital raise and M&A. This is partly because companies are now realizing the importance of collective effort to achieve long-term goals. Hence, Felix partners with investors to raise funds and aid growth so that start-ups can focus on crucial aspects of the business. We have worked with big automobile companies to ensure a smooth M&A process and simplify this process by conducting stringent audits and reviewing both parties to ensure compatibility and identify loopholes to prevent failure.

Tax Services

Automotive companies are grappling with several issues related to taxation. These include:

  • Global consolidation
  • New market development
  • Innovation
  • Risk management
  • Operational efficiency

Although these issues can complicate the tax planning process, our team of tax experts works collaboratively with clients to help them design and implement tax planning strategies to achieve short-term and long-term efficiency within the applicable tax framework.

Partner Profile

Adamya Sharma

Adamya Sharma

Partner
Risk & Business Advisory

Gulshan Grover

Gulshan Grover

Partner
Assurance & Advisory

Vikash Lath

Vikash Lath

Partner
Virtual CFO Services

Deepak Mittal

Deepak Mittal

Partner
Assurance & Advisory