AUTO INDUSTRY

On the canvas of the Indian economy, automotive industry occupies a prominent place. Due to its deep forward and backward linkages with several key segments of the economy, automotive industry has a strong multiplier effect and is capable of being the driver of economic growth. A sound transportation system plays a pivotal role in the country's rapid economic and industrial development. The well-developed Indian automotive industry ably fulfils this catalytic role by producing a wide variety of vehicles:passenger cars, light, medium and heavy commercial vehicles, multi-utility vehicles such as jeeps, scooters, motorcycles, mopeds, three wheelers, tractors etc.

Automotive Industry comprises of automobile and auto component sectors and is one of the key drivers of the national economy as it provides large-scale employment, having a strong multiplier effect. Being one of the largest industries in India, this industry has been witnessing impressive growth during the last two decades. It has been able to restructure itself, absorb newer technology, align itself to the global developments and realize its potential. This has significantly increased automotive industry's contribution to overall industrial growth in the country.

Growth Drivers of Indian Automobile Market

• Rising industrial and agricultural output
  
• Rising per capita income
  
• Favourable demographic distribution with rising working population and middle class Urbanisation
  
• Increasing disposable incomes in rural agri-sector
  
• Availability of a variety of vehicle models meeting diverse needs and preferences
  
• Greater affordability of vehicles
  
• Easy finance schemes
  
• Favourable government policies
  
• Robust production

India's Position in World's Production

• Well-developed, globally competitive auto ancillary industry
  
• Established automobile testing and R&D centres
  
• Among one of the lowest cost producers of steel in the world
  
• World’s second largest manufacturer of two wheelers
  
• Fifth largest manufacturer of commercial vehicles
  
• Manufactures largest number of tractors in the world
  
• Ninth largest car manufacturer in world