AUTOMOBILE INDUSTRY

HISTORY: According the History of Automobile Industry US, dominated the automobile markets around the globe with no notable competitors. However, after the end of the Second World War in 1945, the Automobile Industry of other technologically advanced nations such as Japan and certain European nations gained momentum and within a very short period, beginning in the early 1980s, the U.S Automobile Industry was flooded with foreign automobile companies, especially those of Japan and Germany. CURRENT TRENDS: The CURRENT TRENDS of the Global Automobile Industry reveal that in the developed countries the Automobile Industries are stagnating as a result of the drooping car markets, whereas the Automobile Industry in the developing nations, such as, India and Brazil, have been consistently registering higher growth rates every passing year for their flourishing domestic automobile markets. TRENDS: Growth of exports of 45% FY 2010 11. Indian is expected to become worlds 3rd largest automobile market by 2030. The present contribution of automobile industry to GDP is 5% and its expected to increase to 10% by 2016.

RECENT CHANGES: As automobile industry is considered to be interest sensitive in nature, it is likely to be more affected when compared to other sectors by rise in borrowing cost. The banks have increased the minimum lending rate due to which the sales in automobile industry will decline. June has recorded the lowest growth in 30 months of automobile industry.

FUTURE ASPECTS: As per industry forecasts, by 2016 India is expected to be the worlds seventh-largest automobile market and third-largest by 2030. commodity price increase, emission norm change, regulatory reforms, research & capability building are some of the impediments to growth.

SOURCES Magazines Overdrive Auto car BS MOTORING Top Gear Car and Bike

WEBSITES www.siamindia.com www.wheelsunplug.com in.news.yahoo.com/autos