The India Golf Cart Market, By Product Type (ELECTRIC and GASOLINE), By Seating Capacity (2–4 Seater, 6–8 Seater and 10+ Seater), By Application (PSUs, Railways, Hotel/Resorts, Golf Courses, Airports, Housing Projects and Others) - India Forecast to 2027”, is expected to be valued at US$ 49.4 Million by 2027, exhibiting a CAGR of 12.0% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
A golf cart is a small vehicle used to carry two golfers with their golf clubs in and around the golf course. Generally, a golf cart is battery operated and its price ranges from under US$ 1,000 to over US$ 20,000, depending upon several factors. Battery operated vehicles are used for internal transportation of man or material with an average speed of 25-50 km/h. Moreover, including electrically operated large vehicles such as buses and excluding battery-operated vehicles with material handling equipment fitted in it such as a forklift, pallet trucks, etc.
The India Golf Cart Market was accounted for US$ 12.1 Mn in terms of value and 1747 Units in terms volume of in 2019 and is expected to grow at CAGR of 21.0% for the period 2020-2027.
Upcoming large-scale infrastructure projects are expected to boost the India golf cart market growth over the forecast period
Growth of infrastructure plays a crucial role in growth of the country’s economy. Significant investment is being made in the construction and renovation of infrastructures including airports, golf courses, housing projects, and amusement parks. In the Union Budget 2016–2017, the government announced plans to revive over 160 unserved and underserved airports across India. Over the next 10 years, about 50 airports are expected to begin operations, thus creating significant demand for golf carts as golf carts are preferred for transportation of passengers as well as luggage at airports. According to India Brand Equity Foundation (IBEF) 2016, the government of India invested around INR 25 Tn for the next three years. This includes INR 8 Tn for the development of 27 industrial clusters across the country and INR 5 Tn for development of transportation facilities. Moreover, in February 2016, Adlabs Entertainment (AEL) announced plans to set up two new theme parks in north and south India over the next five years. Thus, these factors are expected to support growth of the India golf cart market during the forecast period.
India Golf Cart Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 Pandemic have adversely affected economies of many countries around the globe. According to the International Monetary fund data published in 2020, the global economy is expected to shrink down by 3% percent in the year 2020 compared to year 2019. Due to the reduction in the size of global economy the spending or purchasing power of people also decreases. Golf charts are typically used for leisure activities. People are expected to spend less on the leisure activities. The COVID-19 is expected to restrain the market growth during the forecast period.
High growth of tourism and hospitality sector can present lucrative opportunities
The tourism and hospitality industry has witnessed significant growth in the recent past. According to the World Economic Forum, Travel & Tourism Competitiveness Index 2015, India is ranked 52 out of 141 as compared to 65 in 2014. Furthermore, the government of India has launched various initiatives to endorse tourism across the country. Under these initiatives, governments have implemented golf carts at tourist spots for transporting tourists including children, the elderly, and physically challenged people across long distances and hillocks. For instance, in 2012, Department of Tourism Rajasthan deployed golf carts to carry tourists between Amber Fort and Jaigarh Fort. It has also announced plans to implement battery-operated vehicles across various tourist spots in Rajasthan.
Lack of standards and regulations is expected to hamper the India golf cart market growth over the forecast period
Since there are no standard regulations for the manufacturing of golf carts and other battery-operated vehicles in India, local manufacturers do not adhere to stated quality norms and manufacture low-quality products so as to cut down on costs in order to be able to offer their products at competitive prices in the market. Moreover, there is no regulatory body governing the quality of golf carts provided by manufacturers. As per primary interviews with industry participants, Indian manufacturers deploy low-quality Chinese components such as motors & controllers. Therefore, these factors are expected to hamper the India golf market growth in the near future.
Golf carts are increasingly being used as a means of marketing and promotion at various places such as railway stations, housing projects, and golf courses. These carts are specifically modified to accommodate banners and advertisement boards for different products and services. For instance, railway stations are increasingly adopting golf carts for endorsement and advertisement activities. According to the Minister of State for Railways, around 70 golf carts have been deployed at 48 major railway stations as part of CSR activities by various companies, NGOs, trusts, and corporate firms.
Demand for high-quality golf carts by end users such as hotels, resorts, and golf courses mostly prefer to buy imported golf carts. High-quality products by international manufacturers such as Club Car and Yamaha are boosting imports in India. Increasing imports is also due to low-quality products offered by Indian manufacturers. Moreover, the Export Promotion Capital Goods (EPCG) scheme exempts hotels, golf courses and resorts from paying customs duties on imported golf carts as these entities bring in significant amount of foreign currency to India.
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Major companies involved in the India golf cart market are Yamaha Golf-Car Company, Volmac Engg. (P) Limited, Club Car, LLC, Carrieall Car Private Limited, Speedways Electric, GDrive Golf Carts, Maini Material Movement Pvt. Ltd., Nebula Automotive Pvt. Ltd., Prevalence Ltd., and Auto Power.