Size of Indian Automobile Industry
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Since its inception in 1898, the Size of Indian Automobile Industry has grown over the years. One of the major contributors in the progress of Indian economy, the automotive industry of India also plays a major role in the development of the transport network of the country.
A wide range of vehicles are produced by the manufacturers of Indian Automobile Industry. These include two-wheelers like motorcycles, scooters and mopeds, three-wheelers, passenger cars, multi-utility vehicles, heavy, medium and light commercial vehicles.
Since its inception in 1898, the Size of Indian Automobile Industry has grown over the years. One of the major contributors in the progress of Indian economy, the automotive industry of India also plays a major role in the development of the transport network of the country.
A wide range of vehicles are produced by the manufacturers of Indian Automobile Industry. These include two-wheelers like motorcycles, scooters and mopeds, three-wheelers, passenger cars, multi-utility vehicles, heavy, medium and light commercial vehicles.
The automotive industry of India comprises 15 passenger cars and multi-utility vehicles’ manufacturers, 14 manufacturers of two and three-wheelers, 9 commercial vehicles’ manufacturers and 14 tractor manufacturers. 5 engine manufacturers are also present.
The amendments in the government policies have helped in the development of the Indian automobile industry. According to the new policies, 100% Foreign Direct Investment is allowed. Foreign Direct Investment is also permissible in the segment of passenger cars.
Indian automobile industry is known for its achievements in various segments. India is known for the following:
- Largest two-wheeler manufacturer in the world
- Largest three-wheeler market in the world
- Second largest tractor manufacturer of the world
- Fifth largest commercial vehicle manufacturer in the world
S. No Production 2005-2006 2005-2006 (Apr-Nov.2005) 2006-2007(Apr-Nov.2006) 1. Two-wheelers 7600801 4990487 5739861 2. Three-wheelers 434424 275579 361525 3. Cars 1045881 666898 792446 4. Commercial Vehicles 391078 247277 325475 5. Multi-Utility Vehicles 263032 263032 173407 Total 9735216 6353648 7414420 The export section of the automotive industry of India has also achieved huge success in recent years. Vehicles as well as component parts are exported from India to foreign countries. This has also given a boost to the Indian economy. The details of the exports of the Indian Automobile Industry is as follows:
S. No. Production 2005-2006 2005-2006 (Apr-Nov.2005) 2006-2007(Apr-Nov.2006) 1 Two-wheelers 513256 343446 430412 2 Three-wheelers 76885 50805 89039 3 Cars 170193 113280 126734 4 Commercial Vehicles 40581 24443 31363 5 Multi-Utility Vehicles 76885 50805 89039 Total 806494 535588 681531 The investment in the automotive industry of India was more than Rs. 50,000 crore in 2002-03 and the estimated investment in the year 2007 is about Rs.80,000 crore. The annual turnover of the Indian automobile industry Rs. 1,65,000 crore (34 billion USD).
The contribution of the Indian automotive industry in the GDP has increased to 5% in 2005-06 from 2.77% in 1992-93. The annual growth rate in terms of production have reached 16.07% in 2006-07. The growth rate in the exports of automobile industry of India has risen to 27.25% in 2006-07.
The ever increasing size of the Indian automobile industry showcases the growth of this section of trade and industries of the country. The expansion, the profit and the liberalized policies have also attracted foreign investment in this sector.
