Term paper

Sub: Managerial economics Topic- Performance of Automobile Sector post liberalization regime

Submitted to: Submitted by: Mr. Varun Nayyar Pallavi Modi Dept of Management R315A22 LSB

MBA 1st Sem.


I am thankful to Mr.Varun Nayyar for providing me the task of preparing the Term Paper on Performance of Automobile Sector post liberalization regime. We at Lovely believe in taking challenges and the term paper provided me the opportunity to tackle a practical challenge in the subject of economics. This term paper tested my patience at every step of preparation but the courage provided by my teachers helped me to swim against the tide and move against the wind. I am also thankful to my friends and parents for providing me help at every step of preparation of the Term Paper. Pallavi Modi

Index About Indian Automobile Industry Performance of automobile sector post liberalization regime. Hypotheses Indian automobile sector .A Booming Market Auto sector set for a smooth drive Automobile Sector advertising on TV in the year 2006 Bibliography .

00. Dealers offer varying kind of discount of finances who in tern pass it on to the customers in the form of reduced interest rates. the turnover of the automobile industry exceeded Rs.The data obtained from ministry of commerce and industry.000 crore. 84.0 per cent in April-December. which was above Rs. With investment exceeding Rs. Including turnover of the auto-component sector. Eicher Motors Bajaj Auto Daewoo Motors India .1. In terms of Car dealer networks and authorized service stations.000 crore ( USD 22. the automotive industry's turnover. 59.000 crore in 2002-03.02 in automobile production continuing in the first three quarters of the 2004-05.About Indian Automobile Industry Following India's growing openness. Major Manufacturers in Automobile Industry • • • • • • Maruti Udyog Ltd. General Motors India Ford India Ltd. Automobile Dealers Network in India. easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry. Maruti leads the pack with Dealer networks and workshops across the country.518 crore in 2002-03. the growth rate in 2003-04 was 15. is estimated to have exceeded Rs. 50. 2004.1 per cent The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997. The other leading automobile manufactures are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. the arrival of new and existing models. shows high growth obtained since 2001. 74 billion) in 2003-04. Annual growth was 16.

3 million in 2003-04. Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Ltd Government has liberalized the norms for foreign investment and import of technology and that appears to have benefited the automobile sector. Automobile Export Numbers Category Passenger Car Multi Utility Vehicles Commercial Vehicles Two Wheelers Three Wheelers Percentage Growth 1998-99 25468 2654 10108 100002 21138 -16.8 The Key Factors Behind This Upswing Sales incentives. It is likely that the production of such vehicles will exceed 10 million in the next couple of years.99 to 7. The production of total vehicles increased from 4. The industry has adopted the global standards and this was manifested in the increasing exports of the sector.99 and 1999-00.• • • • • • • • Hero Motors Hindustan Motors Hyundai Motor India Ltd.2 million in 1998.After a temporary slump during 1998. The . such exports registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and.a-half times the export figure for 2001-02. introduction of new models as well as variants coupled with easy availability of low cost finance with comfortable repayment options continued to drive demand and sales of automobiles during the first two quarters of the current year.6 2004-05 (Apr-Dec) 121478 3892 19931 256765 51535 32.

Introduction Developing an appropriate public policy towards the industrial sector has been an important task for Indian policy makers for a long time. the impact of delayed monsoons on rural demand. As the players continue to introduce new models and variants. The ability of the players to contain costs and focus on exports will be critical for the performance of their respective companies.risk of an increase in the interest rates. industrial firms needed to restructure themselves to retain competitiveness. The policy changes were in two doses and took the form of partial . Much of these restructuring is needed to correct the inefficiencies created by operating in a protected market. When India moved away from an inward looking industrialisation strategy to a more ‘open’ economy in 1991. The automobile sector has been a major candidate in the industrialisation process since the beginning of planned development. and increase in the costs of inputs such as steel are the key concerns for the players in the industry. the competition may intensify further. Performance of automobile sector post liberalization regime.

broadbased the classification of vehicles for issue of licenses. Results from the step-wise discriminant analysis presented in this paper reveal that the conduct and performance of firms in this sector differ significantly between the regulated [1985-86 to 1990-91] and liberal [1991-92 to 1995-96] economic policy regimes with respect to foreign equity participation. These changes dispensed with the bulk of controls and regulations and for the first time since independence assigned a central role to market forces. This paper analyses the behaviour of Indian automobile firms operating under regulated and liberal economic policy regimes.technology imports. Though these measures represented a "domestic Liberalisation". Automobile manufacturing firms were subjected to strict product specific and capacity licensing and as a result very few firms dominated all the . The initial changes. Policy Regimes. Firms' Conduct and Performance The automobile industry in India grew under a highly regulated and protected economic environment over the period 1950 to 1985. growth and profits. eased the licensing requirements. The pre 1985 regime could be described as an era of strict controls and regulations. capital intensity. allowed selective expansion of capacity and partially relaxed controls with regard to foreign collaborations. the policy environment continued being geared towards imposing trade and investment regulations. raw materials and spares. introduced in 1985. in-house R & D efforts. constraining the growth of big business houses and regulating exchange rates. It was only after 1991 that notable broad-based changes in policy that had far reaching implications actually came into being. imports of capital goods. exports. advertisement.de-regulations introduced in 1985 and Liberalisation measures launched since 1991.

brought about a dramatic change in this industry. efficient processes and effective shop-floor layouts. the industry witnessed the entry of new firms and adoption of strategies by the already existing firms to introduce technological change and improve their performance. partial relaxation of this kind failed to bring about a drastic change in the non-competitive environment in which the firms had been operating for a long time liberalisation of economic policies and the outward orientation introduced since 1991. As a consequence. These policy measures considerably transformed the environment in which the firms had been operating. On the whole.93 % per annum] in terms of the growth rate as well as increase over the earlier period. Medium and Heavy . The policy environment during the period 1985-86 to 1990-91 permitted a limited increase in technology inflow through various modes. Indian Automotive sector grew at a much faster rate in the post 1991 era[14.56 % per annum] the period of 1985-91 [Table 1]. reduction of inventories and product complexity. These restrictions provided no motivation or incentive for the firms to bring about technological upgradation.31 % per annum] when compared to [8. and creation of simpler processes by encouraging flexibility and teamwork. on the other hand. However.products. The new players brought in modern engineering. These firms also make extensive use of CAD/CAM in their plants. Inflow of technology from abroad brought about a shift in the technology frontier as well as a change in the technological trajectories in which the firms had been operating. reduce the complexity of purchasing logistics.The growth rate of all the sectors within the 4 wheelers and Commercial vehicles has been in double digit with the LCV sector registering the maximum [of 19. The new manufacturing strategies include breaking up of the plant into modules and cells.

The Car sector also had an increase of about 2.digit growth rate during the first period [which can be attributed to Maruti] and has improved its performance during the 1990s.10 5.31 CARS JEEPS ALL 4 WHEELERS M&HCVS LCVS ALL CVs TOTAL During this growth process. product quality was improved and in general the industry became more competitive.40 14.5 percent in its growth rate over the two periods.33 13. In the 4-wheeled drives sector Jeeps [other utility vehicles] experienced the maximum increase in growth [from about 5. the export-oriented policy induced the firms to direct efforts to reduce costs and improve quality by implementing changes that upgrade the .57 11.63 5.03 8.33 6.commercial vehicles sector also registered a growth rate of about 11% per annum. This was the only sector which had a double. which is a 100% increase over the previous period. the industry experienced changes in the strategy adopted by many firms in that efforts were made to build up technology acquisition.57 % per annum to 14. 1985-86 to 1990-91. Economic policy forces have an impact on the extent and direction of technological efforts of firms. ANNUAL AVERAGE GROWTH OF PRODUCTION OF AUTOMOBILES Sector/Period 1985-86 to 1991-92 12.56 1991-92 to 1995-96 15.93 14.4 % per annum] between the two periods.32 19.17 14. While the technological efforts during import substitution era were generally directed at increasing the local content of products.84 11.39 7.

Maruti enjoyed as much as 50% of the market share during the first period of this study.to single digit. Before 1983 the passenger Car sector of the Indian automobile industry consisted of only three firms with limited capacity. a leading Commercial Vehicle manufacturer in India. depended on technological trajectory advantages during the licensing regime and on the variables capturing technological paradigm shifts after the introduction of de-regulation policies during the mid 1980s.production process.which have introduced . Rao [1993] found that the investment strategies for R & D. continue to struggle for survival in the face of competition that has resulted from the entry of new subsidiaries of the world's leading auto manufacturers: General Motors and Ford Motor Company [from USA]. Hindustan Motor and Premier Automobiles. Narayanan [1998] also found that interfirm differences in competitiveness in the automobile sector in India. These two firms. Recently there are two more entrants in the Car segment Honda [Japan] and Hyundai [Korea] . All these firms have entered into the Indian Car segment after this sector was delicensed in 1993 and their products hit the market in 1996. In 1983.Hindustan Motor and Premier Automobiles . Later Maruti. Daewoo Corporation [from Korea] and Automobiles Peugeot [from France]. Maruti [which is a joint venture of the Government of India and Suzuki Motors. with its range of four wheeled vehicles. plant modernisation and expansion. was able to push up its market share during the 1990s to 60%. also entered the Car segment after 1991 and introduced four wheeled passenger cars that are ideally suited for long distance travel on Indian roads. Telco. The entry of Telco virtually decreased the market share of the two formerly leading car manufacturers in India . Mercedes Benz [from Germany. material and machine tool inputs undertaken by Indian automobile firms are all related to the technological position of the firm on product and process dimension. Japan] entered the industry and dramatically affected the market share of all firms.

Technology Acquisition: Technology acquisition by a firm can be facilitated through imports [technology transfer from abroad] and in-house R&D efforts. product improvements through imports of components. has emerged as a leading competitive sector in India during the post Liberalisation period. The Car segment. therefore.small sized cars to compete with Suzuki. product differentiation and performance. An in-house research and development effort of firms [RD] is one of the . intra-firm transfer of technology through foreign direct investment (foreign equity participation [FE]) and technology transfer through the supply of machinery and equipment. The parameters to capture the behaviour of firms have been classified into technology acquisition. where the technology is embodied in the imported capital good itself [IMCAP]. Technology acquisition from abroad consists of technology imports through the market or "arms-length" purchase of technology against lumpsum and royalty payments [LR]. this study formulates hypotheses [in Section 3] concerning the nature of differences in the behaviour of firms across the two policy regimes. vertical integration. Market share of Maruti Suzuki has declined from as high as 89% during the early 1990s to 54% by the late 1990s. Hypotheses On the basis of these possible effects of Liberalisation on the behaviour of firms and drawing upon the empirical knowledge. keeping in mind the idiosyncrasies of the Indian market. Telco also introduced a small sized car during 1998.

The increasing presence of multinationals and transfer of better quality technology could have also led to an increase in technology [lumpsum and royalty] payments. With Liberalisation multinational firms could have majority equity holdings and therefore influence management of the firm as well.important methods of location. Following Ansal [1990].  Disembodied Technology Imports: Restrictions on technology collaborations involving heavy lumpsum and royalty payments resulted in selective use of imports of disembodied technology during the first period. Basant [1997] and Narayanan [1998]. it could be argued that the technological strategies adopted by a firm could be different during varying policy regimes. Moreover. This ability to influence the management may have led to transfer of design and drawings which accelerated the diffusion of technological knowledge and also enabled such concerns to develop export markets in association with the Indian firms. adaptation. assimilation and development of the imported technology. since most of the firms during the first period were established with minority foreign equity holding. The present study examines the role of all the four technological factors identified above during the two policy periods  Intra-firm Technology Transfer: Restrictions on foreign equity investment and selective permission allocate a limited rolefor intra-firm transfer of technology. diffusion of technological knowledge in India could also have been slower.Liberalisation of restrictions on lumpsum and royalty payments could have led to an increase in the use of this mode of technology imports. In-house R & D Efforts: The absence of competitive pressure and the perpetuation of sellers markets may lead tolow R & D activity in firms belonging to a developing  .

firms may realise that to catch up with technological frontier. The study. as a result. This could have been undertaken by developing technological trajectory advantages. With a more open policy environment. was facilitated by the availability of trained personnel. on the basis of a survey of 32 R & D units of transnational corporations in India. either for adaptation of imported technology or in locating technology imports could also explain low R & D activity.house efforts. they need to direct their efforts to build capabilities for technology generation. increasing competition and higher costs of technology imports. With the entry of leading multinationals and transfer of design and drawings. found evidence suggesting an increasing trend of investments on R & D seeking to develop new products and processes. firms operating in a restrictive regime directed their in-house R & D efforts either to complement imported technology to facilitate technological trajectory shifts or to locate their technology imports. This. Some firms in the process of diffusion of imported technology. could have used the interaction between technological imports and in. Reddy [1997].country. it may be appropriate to hypothesise an increasingly important role for R & D intensity  Technology Interaction: As stated earlier. analyses the difference in the role played by technology interaction [between imported technology and in-house R & D] variables over the two policy . he argued. therefore. Since auto industry has been one of the major beneficiaries of multinational participation during the Liberalisation period. Limited use of in-house efforts. the technological search activity during the post Liberalisation period may have resulted in bringing about cost reduction and technological upgradation of vehicles to face global challenges. As a result expenditure on in-house R & D would increase in a liberalized environment. rather than depend on imports.

firms may use the latter option. With an across the board change in trade policy. The presence of a number of multinationals after the 1991 policy reforms. restricted trade and strict exchange rate control. dependency on imports of components may actually decline. Higher imports could also be because firms would choose the quicker option of importing the parts and components rather than encouraging parallel technology transfer to component manufacturers as well. In an era of domestic Liberalisation. The means of all the three interaction variables [FE*RD. imports of components were used by some firms as a source of technological upgradation of their product.regimes. and the resultant scope for non-price competition may have led to an increase in advertisement . To stay put in competition. expects a reduction in the dependency on imports of components [IMCOM] between the two policy regimes. however. This is because of the choice between importing at a higher price and domestic procurement. therefore. The absence of effective competition during the first period could have been a source of low advertisement intensity. move towards tariff controls and more realistic exchange rate. The study. LR*RD and IMCAP*RD] are expected to be higher in the second period over the earlier one and emerge as important discriminants. Product Differentiation: Advertisement is an important aspect of non-price rivalry among firms. devaluation of the currency. Imports of Components: Firms use imported components and parts either as a part of a 'package' in the transfer of technology or due to certain costs and quality advantages.

xpenditures. Vertical Integration: Following Williamson [1985] it could be argued that vertical integration [VI] takes place in order to economise on transaction costs. Evidence on the relationship between trade Liberalisation and firm-level productivity improvements vary across countries and industries [Tybout. therefore. The restricted policy environment during the second half of the 1980s would have encouraged firms to depend on the easier options of either importing or procuring required components and parts from the market. it is only appropriate to hypothesise a positive and increased use of advertisement [AD] as a varying strategy over the policy changes. . growth [GROWTH] and exports [EX]. The study. Liberalisation of economic and trade policies [especially with a more realistic exchange rate] can lead to higher costs of imported components and parts. Dunning [1981] has found an increasing dependency on advertisement for a given rise in multinational participation. Since the automobile industry witnessed entry of a number of multinationals during the post1991 period. 1992]. postulates an increased vertical integration as a strategy by firms operating under a liberalised regime in contrast to their behaviour under the earlier policy regime. In addition the emergence of non-price competition may cause firms to produce most of the components and parts themselves to ensure quality and timely delivery. Most of the studies linking Liberalisation to performance have analysed the impact of trade Liberalisation on productivity and efficiency of firms. Performance: The performance of automobile firms operating under partially decontrolled and liberalised regimes has been compared in terms of price-cost margins [PCM].

introduction of products involving technological upgradation by new firms. it could be argued that a shift to a higher growth and profit frontier usually takes place with a change in the economic environment in which the firms operate. increased production was basically aimed at catering to the requirements of unfulfilled demand. during the first period. As a result. With the intense competition that has come to characterise the industry since the 1991 policy changes. • Growth: Following Marris [1964]. During the first period. However. which was characterised by extensive regulations and unfulfilled demand. the average profits earned by all firms in this industry could be low. During the post1985 period. profit margins can be expected to have gone up. firms in this industry concentrated primarily on creating capacity and obtaining a large market share. achieving a high domestic . firms would have attempted to shift to a higher growth-profit frontier. As a result.• Price-Cost Margins: Competition seeking to maximise profits could be a preferred objective of all firms in the short-run. barring a few firms. With Liberalisation and change in the macro environment. which had been exporting their vehicles for a long time. • Exports: Growth through geographical diversification would have been a preferred strategy by firms. This is because most of the firms in all the segments of this industry would have already been established and new firms would not yet have garnered a large market share. the price-cost margins of firms would have been quite high. could lead to lower profits for older firms. During the initial period under study. either due to insufficient domestic demand or to fulfil the export obligations that the Government has imposed from time to time.

The other reasons attracting global auto manufacturers to India are the country’s large middle class population. strong technological capability and availability of trained manpower at competitive prices. .3 Million Units in 2001-02 to 10. postulates an increased role for exports in the post Liberalisation period in contrast to the second half of eighties. attracting foreign auto giants to set up their production facilities in the country to take advantage of various benefits it offers.market share was the preferred objective of most of the firms.A Booming Market De-licensing in 1991 has put the Indian automobile industry on a new growth track. with a more open. Further. This took the Indian automobile production from 5. growing earning power.8 Million Units in 2007-08. However. The study. a fall in the value of Indian rupee would have made Indian vehicles cheaper internationally and could possibly have stimulated exports. economic environment and introduction of new technological sophisticated vehicles by both the Indian as well as the multinational firms. Indian automobile sector . there may have been some orientation towards external markets. therefore.

. Auto sector set for a smooth drive After the strenuous.000 people. Buoyed by the cut in excise duties announced in the Budget.Passenger car production in India is projected to cross three million units in 2014-15. And. . . cumulative sales of the commercial vehicles segment as a whole also went up by about 17 per cent.Value of auto component exports is likely to attain a double digit figure in 2012-13. grew by 6.In 2006-07. Key Research Highlights .Turnover of the Indian auto component industry is forecasted to surpass US$ 50 Billion in 2014-15. but fairly good growth of about 14 per cent in the last fiscal.7 per cent during the same period. domestic sales of passenger vehicles rose by 31 per cent during first two months of this fiscal compared to the corresponding previous period. and a general improvement in consumer confidence.Sales of passenger cars during 2008-09 to 2015-16 are expected to grow at a CAGR of around 10%. the Indian automotive industry provided direct employment to more than 300. exceeding 10 Million units by 2012-13. Due to this large contribution of the industry in the national economy. Sales of motorcycles. the largest selling subsegment of two-wheelers. the Indian government lifted the requirement of forging joint ventures for foreign companies.87 Billion. and contributed 5% to the GDP. the automobile industry as a whole continues to be on a roll. exported auto component worth around US$ 2. . resulting in heightened automobile production. . which attracted global to the Indian market to establish their plants.Motorcycle sales will perform positively in future.Export of passenger cars is anticipated to rise more than the domestic sales during 2008-09 to 2015-16. .

with the . especially sheet metal. Utility vehicles on overdrive: Amongst passenger vehicles. and the soon to be introduced Ford Explorer. In fact. The sharp spike in volumes in April and May has been influenced by a few developments the benefits of which may not be available through the rest of the year. They will include the Opel Corsa Sail from General Motors India and possibly one new top-end small car model each from Maruti Udyog and Hyundai Motor India by early 2004. could prove to be the reason for a gradual increase in prices. such as the Chevrolet Forester.5 per cent growth in the previous year. the increasing cost of inputs. can potentially dent the benefit that the excise cut gave away to customers. With the launch of a bunch of new upper end sports utility vehicles. the utility vehicles sub-segment is likely to sustain the scorching 23. For one. the small car club could witness a further expansion in terms of number of models available. which may be slapped on by car makers as early as next month (Hyundai and Maruti Udyog have already hiked prices of some of their products once this fiscal). led to a substantial postponement of purchases by potential buyers. the Suzuki Grand Vitara XL-7. price hikes. This is compared to a lower 16. Further. From the manufacturer's point of view.Behind cars' rally: The key question is whether the kind of growth rates in the passenger vehicles segment is sustainable. this sub-segment will corner more sales volumes later this fiscal. On the other hand. More models in store: Talking of new product introduction. and in terms of total sales with the planned launch of at least two new cars.8 per cent growth witnessed during the first two months of this fiscal. the jump in sales could also have been due to customers advancing their purchase decisions before the expected round of price hikes is announced by the car manufacturers. The over 35 per cent rise in car sales during April and May is attributable to this duty cut. the expected cut in the excise duty on passenger cars and the subsequent 8 per cent reduction effected in the Budget.

GM India alone is likely to inch up the market share ladder.roll out of the Chevrolet Optra also next month. Monsoon drive two-wheelers: The prospects of the other most watched segment of the auto industry — two wheelers — should also improve with the expectations of a near normal monsoon this year. the auto industry's growth is likely to be good this fiscal as industrial growth has been projected to grow at eight per cent in 2003-04 compared to the estimated 6 per cent last year. motorcycles and step-throughs recorded a modest 6. the two-wheelers segment as a whole is likely to be positively influenced by the improvement in the economy and new product introductions. The practice of price discounts. a C+ segment car. Teetering on the brink of negative growth rates during a few months of 2002. According to the Society of Indian Automobile Manufacturers (SIAM). the motorcycles sub-segment has now been drumming up good sales numbers during the last four months. Overall. the auto industry's prospects look bright this . have had a good start for the year. After a growth of over 30 per cent during the year ended March 2003. The trend of increased exports from India even evident during 2002-03. manufacturers could also get a leg up from the steadily increasing exports of these vehicles.7 per cent growth. Top gear beckons: Commercial vehicles. has been on the decline. which had become rampant amongst bike dealers (at the behest of the manufacturers). especially in the small car segment. indicative of a revival of demand in the segment. widely considered to be the economy's barometer. Again. when the total export of passenger vehicles from the country shot up by about 34 per cent compared to the previous year. Korean Chaebol Hyundai Motors and Japanese auto giants Toyota Motor Corporation and Suzuki Motor Corporation are already sourcing out of or have indicated their intention to source out of their Indian operations and subsidiaries. for the first two months of the current fiscal. The export thrust: Apart from the developments in the domestic passenger car market.

Cars/Jeeps garnered half of the ad volumes of Automobile sector on TV in 2006. Tata Motors topped advertising on TV. . General Motors and TVS Motor had the maximum share of endorsement advertising by Celebrities on TV. Cars/Jeeps saw the maximum new brands launched in the year 2006. Automobile sector saw maximum share of endorsement by Aamir Khan in the year 2006. Automobile Sector advertising on TV in the year 2006 Key Findings: • • • • • • • 37 per cent rise in ad volumes of Automobile sector on TV in 2006 over the previous year. A good monsoon with widespread precipitation may help automobile manufacturers ease into top gear. Most of the ads of Automobile sector on Hindi News and Regional GEC.year.

.Growth in advertising of Automobile Sector on TV in 2006 compared to previous year.

Share of sub-categories in Automobile Sector on TV in the year 2006. • Automobile sector used maximum ad volumes in the fourth quarter across the years 2005-2006 on TV.37 per cent rise in ad volumes of Automobile sector on TV in the year 2006 compared to 2005. .

Top New Automobile brands launched on TV in year 2006. Sub-categories in Automobile Sector with the maximum growth in ad volumes on TV in the year 2006 compared to 2005.• • 50 per cent of the ad volumes in Automobile sector were contributed by Cars/Jeeps followed by Motorcycles with 35 per cent share on TV in the year 2006. . Scooterette and Commercial Vehicles had a share of 7 per cent and 4 per cent of ad volumes respectively.

Top Advertisers using Celebrities for endorsing their Automobile brands on TV in year 2006. six of them belong to Motorcycles and rest four belong to Cars/Jeeps. .• • Among the Top 10 new brands on TV in the year 2006. Tata Indica V2 Xeta Petrol topped among the new Automobile entrants on TV followed by TVS Apache.

. Other three Top advertisers are Toyota Kirloskar Motor.• • • Top five advertisers contributed 87% share of advertising endorsed by Celebrities on TV in the year 2006. Maximum share of Celebrity endorsed advertising by General Motors and TVS Motor Company. Hero Honda Motors and Ford India.

Profession of Celebrities endorsing Automobile brands on TV in year 2006. . • • Film Actors (7 are film actors out of 14 celebrities) had the maximum 52 per cent share in endorsing of Automobile brands on TV in the year 2006. Film Actresses had a share of 26 per cent followed by 22 per cent share by five of the Sports celebrities.

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