Automobile Industry in India

Automobile Industry in India

 Today automobile sector in India is one of the key sectors of the economy in terms of the employment.

 Directly and indirectly it employs more than 10 million people and if we add the number of people employed in the auto-component and auto ancillary industry then the number goes even higher.

 According to figures released by the Society of Indian Automobile Manufacturers, the domestic passenger car sales managed a growth of 17.15 percent in 2010-2011.

 All major economies have advanced and developed automobile industry.

 Industries contribution is expected to be around 7.20 percent in the fiscal year 2010-2011.

 Small car accounts for approx 75% of the total car sales in India.

Segments of automobile industry are:

Two - Wheelers

Four - Wheelers

Commercial Vehicle

Passenger carriers

Indian automobile industry crossed a historic landmark of 20 million vehicles in 2010-11

The Indian auto industry has the potential to emerge as one of the largest in the world. Presently, India is

* Second largest two wheeler market in the world.

* Fourth largest commercial vehicle market in the world.

* 11th largest passenger car in the world and is expected to be the seventh largest market by 2016.

Two-wheelers industry:

 Domestic two-wheeler industry has steadily grown at a CAGR of 9.5 per cent to reach 7.25 million units in 2010-11.

 Entry level bikes (engine power below 125 cc and price US$ 850-1,100) account for around 80 per cent sales.

 Cost of ownership and economics of operation are key purchase criteria.

 Premium bike segment (engine power above 125 cc and price US$ 1,200-2,000) growing at a faster pace as compared to the entry level vehicles, an indication of increasing affluence of users.

 Hero Honda: Largest Two-wheeler manufacturer in the world and Bajaj Auto: Second largest Two-wheeler manufacturer in India and the largest 3 wheeler manufacturer.

 Exports of two wheelers have grown at over 41 per cent CAGR in last six years.

Passenger vehicles industry:

 The domestic Indian passenger vehicles market has grown at a CAGR