Rising Indian auto industry: Most of the countries faced financial crises in last two year. But Indian automobile still seems to be at top gear. Last year automobile sector of India showed growth of 26 per cent while predictions are made for growth of about 10 to 14 per cent this year. Indian automobile industry is the ninth largest in the world with an annual production of over 14,049,830 units in period 2009-10. In year 2009, India emerged as Asia’s fourth largest exporter of automobiles. Other countries above India are Japan, South Korea and Thailand. In 2009-10 the Automobile Domestic Sales increased to 12,292,770 units from 9,724,243 units in 2008-09. Indian government and private sector put their efforts to make automotive industry. Growth stated in 1970s when mainly tractors, commercial vehicles and scooters. Later the entry of Japanese manufacturing units the golden era of Indian automobile started. In joint venture large numbers of light commercial vehicles and motorcycles were manufactured in 1980s. After the economic liberalization in India in year 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and fewer restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India has emerged among the largest manufacturer of small cars.
Potential of the Indian automobile industry: Not only the small and cheaper vehicles other luxurious vehicles have also shown significant growth. India’s strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki. Every day we see a new launch which shows the success of the Indian auto industry. Cars are not only launched for rich people but common man is also taken care. Indian automobile industry is continuously growing. The turnover of the entire industry in April-February 2009-10 stood at Rs. 1, 62,708.77 crore vs. Rs. 1, 28,384.53 crore in the same period last year. India has attracted lot of Multi-national automobile manufacturers to set up their plants here. Different manufactures have set up their plants here to manufacture vehicles. Audi is manufacturing A4 and A6 while BMW is making 3 and 5 series. Chevrolet has launched several cars like Spark, Aveo U-VA, Aveo, Optra, Cruze, and Tavera while Fiat is owner of Palio, Grande Punto, and Linea. Ford manufactures Ikon, Fiesta, Fusion, and Endeavour while Honda has manufacturing Jazz, City, Civic, and Accord. Many other car manufacturers like Hyundai, Mercedes-Benz, Mitsubishi, Skoda, Toyota, and Volkswagen has also launched their vehicles in Indian market:
India is 2nd biggest car buyer: India has emerged as second largest buyer of car. Only China is ahead to India. The incentive packages given the government have made this high growth possible. Society of Indian Automobile Manufacturers (SIAM) is extremely excited by this rate and has predicted that the industry will grow at a rate of 10-14% in 2010-11. According to experts, there are several factors which gave rise to growth of Indian auto industry like low interest rates and high competition. Last year, China showed growth of 42 percent while India was at rank two with 26.4 percent. Germany got third place with 23 percent growth while most of other countries had negative growth.Share