Growth of Indian Automobile Industry

Growth of Indian Automobile Industry exhibits the rate of development of this prominent industrial sector of India and its contribution to the economy of the country. The expansion of the automotive industry of India has also attracted foreign investors to this sector.

The growth in the production, the domestic sales and the foreign markets together showcase the progress that the automobile industry of India has achieved during the last few years. The liberal policies of the Indian government has also enhanced the scope of this growth.

Growth of Indian Automobile Industry exhibits the rate of development of this prominent industrial sector of India and its contribution to the economy of the country. The expansion of the automotive industry of India has also attracted foreign investors to this sector.

The growth in the production, the domestic sales and the foreign markets together showcase the progress that the automobile industry of India has achieved during the last few years. The liberal policies of the Indian government has also enhanced the scope of this growth.

The growth of Indian automobile industry in the field of production in the past of years can be understood from the following:

Category	2002-03	2003-04	2004-05	2005-06	2006-07	2007-08
Two-wheelers	5,076,221	5,622,741	6,529,829	7,608,697	8,466,666	8,026,049
Three-wheelers	276,719	356,223	374,445	434,423	556,126	500,592
Passenger Vehicles	723,330	989,560	1,209,876	1,309,300	1,545,223	1,762,131
Commercial Vehicles	203,697	275,040	353,703	391,083	519,982	545,176
Total	6,279,967	7,243,564	8,467,853	9,743,503	11,087,997	10,833,948

The growth of Indian automobile industry in the domestic sales sector exhibited a rapid increase. The following table gives details about the growth in this sector:

Category	2002-03	2003-04	2004-05	2005-06	2006-07	2007-08	Percentage of growth (2006-07)
Two-wheelers	4,812,126	5,364,249	6,209,765	7,052,391	7,872,334	7,248,589	11.42%
Three-wheelers	231,529	284,078	307,862	359,920	403,910	364,703	12.22%
Passenger Vehicles	707,198	902,096	1,061,572	1,143,076	1,379,979	1,547,985	20.70%
Commercial Vehicles	190,682	260,114	318,430	351,041	467,765	486,817	33.28%
Total	5,941,535	6,810,537	7,897,629	8,906,428	10,123,988	9,648,094

The domestic sales market of the sub-categories of vehicles have also witnessed an increase. The following table offers information about this:

Category	Sub-sections	Percentage of growth (2006-07)
Two-wheelers	Motorcycles	12.79%
	Scooters	3.48%
	Mopeds	6.95%
Three-wheelers	Passenger Carriers	11.33%
	Goods Carriers	13.52%
Passenger Vehicles	Passenger Cars	22.01%
	Multi-Purpose Vehicles	25.20%
	Utility Vehicles	13.21%
Commercial Vehicles	Light Commercial Vehicles	33.93%
	Medium and Heavy Commercial Vehicles	32.84%

The increase in the export of vehicles manufactured in India have also helped in the expansion of the automotive industry of India. The following table offers information about the export trends in the past few years:

 

Category	2002-03	2003-04	2004-05	2005-06	2006-07	2007-08	Percentage of growth (2006-07)
Two-wheelers	179,682	265,052	366,407	513,169	619,644	819,847	20.65%
Three-wheelers	43,366	68,144	66,795	76,881	143,896	141,235	87.17%
Passenger Vehicles	72,005	129,291	166,402	175,572	198,452	218,418	13.05%
Commercial Vehicles	12,255	17,432	29,940	40,600	49,537	58,999	22.58%
Total	307,308	479,919	629,544	806,222	1,011,529	1,238,499	25.43%

The chief importer of Indian automobiles is Europe. The trucks and buses manufactured in India are exported mostly to the African nations. The two-wheelers manufactured in India are exported to the South-East Asian region. China is also becoming a major importer of Indian vehicles.

The investment of foreign car companies in India automobile industry have also helped in its growth. Several automakers of the world including Ford from USA, Renault from France, Honda from Japan, BMW from Germany have made significant investments in this industry.