SAINTGITS INSTITUTE OF

MANAGEMENT

PROJECT (Phase -2) BUSINESS

ENVIRONMENT
COMPANY:ASHOK LEYLAND

Submitted To,
Ms Nissa James
Assistant Professor
Submitted By,
Aneeta Antony
Akshay S Kumar
Batch A
2019-21
Date of Submission

1
Contribution to gdp
The auto industry contributes 7.5 percent of India’s GDP and a whopping 49 percent of
manufacturing GDP with a large economic multiplier impact.
The automotive industry is facing a prolonged slowdown. The vehicle sales in all segments
have continued to plummet for the last one year. Considering component industry grows back
on the back of the vehicle industry, a current 15-20 per cent cut in vehicle production has
inter-alia adversely impacted the auto components industry performance and investments.
Going forward, with transition to BS-VI and implementation of safety norms, the value-
addition from the component industry is expected to progressively increase.
Subdued vehicle demand, recent investments made on transition from BS-IV to BS-VI,
liquidity crunch, lack of a clarity on policy for electrification of vehicles, among others, have
also had an adverse impact on the expansion plans of the component sector