Automobile industry in India

In today’s world where the automobile industry in India is estimated to be a US $ 34 billions industry with exports contributing 5 percent of the revenue, the automobile industry is still at its growth stage of the product life cycle and is now working in terms of the dynamics of an open market. This change was possible due to the de-licensing of the sector in 1991 and the subsequent opening up of the 100 percent foreign direct investment (FDI) through the automatic route which marked the beginning of the new era for the automobile industry in India.

Due to the stagnation of the automobile industry in the markets (such as Europe, Japan and USA) has resulted in the shifting of the new capacities and capital to the Indian automobile industry. The Indian automobile industry has been growing at the rate of 15-27 percent over the past five years. Moreover the Indian auto makers are earning claim across the globe.

Many joint ventures have been set up in India with foreign collaboration, both technical and financial with leading global manufacturers. Also a very large number of joint ventures have been set up in the auto-components sector and the pace is expected to pick up even further. The Government of India is keen to provide a suitable economic and business environment conducive to the success of the established and prospective foreign partnership ventures. $5.7 billion is the investment envisaged in the new vehicles projects.

The home grown auto maker Maruti Suzuki has emerged as the fourth most reputed automobile companies in the world, even ahead of its parent company Suzuki Motor Co of Japan, according to the Global 200: The World’s Best Corporate Reputation List.

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011. Similar plans are for General Motors.

Turnover of Automobile Manufactures

The figures show that the automobile sector in India has been growing robustly. The market shares of the different types of vehicles will clearly depict the demand pattern in this sector.

Domestic Market Share for 2008-09