Automobile Industry One of the major industrial sectors in India is the automobile sector.

Subsequent to the liberalization, the automobile sector has been aptly described as the sunrise sector of the Indian economy as this sector has witnessed tremendous growth. Automobile Industry was delicensed in July 1991 with the announcement of the New Industrial Policy. The passenger car industry was, however, delicensed in 1993. No industrial licence is required for setting up of any unit for manufacture of automobiles except in some special cases. The norms for Foreign Investment and import of technology have also been progressively liberalized over the years for manufacture of vehicles including passenger cars in order to make this sector globally competitive. At present 100% Foreign Direct Investment (FDI) is permissible under automatic route in this sector including passenger car segment. The import of technology/technological upgradation on the royalty payment of 5% without any duration limit and lump sum payment of US$ 2 million is also allowed under automatic route in this sector. With the gradual liberalization of the automobile sector since 1991, the number of manufacturing facilities in India has grown progressively. Production The cumulative production data for April-December 2012 shows production growth of only 2.16 percent over the same period last year. The industry produced 1,697,625 vehicles in December 2012 as against 1,677,588 in December 2011, with marginal growth at 1.19 percent. Domestic Sales The overall growth in domestic sales during April-December 2012 was 4.57 percent over the same period last year. However, in December 2012, overall sales grew only marginally by 2.77 percent over December 2011.

Passenger Vehicles segment grew at 8.37 percent during April-December 2012 over same period last year. Passenger Cars declined by -0.33 percent, Utility Vehicles grew by 59.10 percent and Vans grew by 3.71 percent during April-December 2012 as compared to the same period last year. However, in December 2012 passenger car sales fell by (-12.51) percent over December 2011. Total passenger vehicles sales also declined by (-1.13) percent in December 2012 over same month last year.

The overall Commercial Vehicles segment registered marginal growth of 0.74 percent in AprilDecember 2012 as compared to the same period last year. While Medium & Heavy Commercial Vehicles (M&HCVs) registered decline at (-19.13) percent, Light Commercial Vehicles grew at 15.61 percent. In December 2012, M&HCVs sales declined by (-38.34) percent over December 2011.

Three Wheelers sales grew by 4.96 percent in April-December 2012. Passenger Carriers grew by 8.96 percent during April-December 2012 and Goods Carriers registered de-growth at (-10.29) percent during this period.

Two Wheelers registered a growth of only 4.09 percent during April-December 2012. Scooters, mopeds and motorcycles grew by 18.44 percent, 1.80 percent and 0.77 percent respectively over same period last year. However, in December 2012 Scooters and Motorcycles grew by 6.40 percent and 4.83 percent respectively, while mopeds declined by (-6.88) percent over the same period last year.

Exports During April-December 2012, overall automobile exports registered de-growth of (-2.92) percent compared to the same period last year. Passenger Vehicles grew by 10.52 percent, while the other segments like Commercial Vehicles, Three Wheelers and Two Wheelers fell by -4.76 percent, -20.88 percent and -2.79 percent respectively. In December 2012 Passenger Vehicles, Two & Three wheelers segment grew by 31.59 percent 9.36 percent and 4.63 percent respectively, while Commercial Vehicles declined by -25.79 percent.