Introduction to automobile industry

Automotive industry, The business of manufacturing and selling self-powered vehicles, including
passenger cars, trucks, farm equipment, and other commercial vehicles. By allowing consumers to
commute long distances for work, shopping, and entertainment, the auto industry has encouraged the
development of an extensive road system, made possible the growth of suburbs and shopping centers
around major cities, and played a key role in the growth of ancillary industries, such as the oil and travel
businesses. The auto industry has become one of the largest purchasers of many key industrial
products, such as steel. The large number of people the industry employs has made it a key determinant
of economic growth.

India is One the fastesters growing automobile market . The automobile industry is one of the
largest revenue-earning sector in India and donate 4.4% to India’s GDP and 17% to the tax
collection(indirect tax) . It is one of the biggest sources of employments due to its deep backward
linkages (in metals — such as steel, aluminium, copper — plastics, paint, glass, electronic, capital
equipment, storing and logistics) and forward linkages (including dealership retail, solvansing and
financing, logistics, publicity , repair and maintenance, petroleum products, gas stations, insurance,
service parts, etc). It provides indirect and straight employment to more than 13 million people. In
recent years the automotive industry has seen an flow in its exports to other nations .

The Indian automobile sector became the 4th biggest in the globe, with sales rising 9.5 % year-
on-year to 4.02 million units (excluding two-wheelers) in 2017. It was the 7th biggest producer of
commercial vehicles in 2018.

The two-wheelers wheelers segment controll the market in terms of volume owing to a expanding
middle class and a young generation. In addition, The growing concern of the companies in exploring
the rural and agronomic markets further aided the expansion of the sector.

India is further prominent auto exporter and has heavy export improvement expectations for the coming
up future. Automotive export grew 14.5 % during financial year 2019. It is expected to grow at a CAGR
of 3.05 per cent during 2016-2026. In addition, several initiatives by the Government of India and the
major automobile players in the Indian market are expected to make India a leader in the two-wheeler
and four wheeler market in the world by 2020.
industry has seen an flow in its exports to other nations .