Market Growth of Automobile industry: 118 Bn Automobile industry is expected to reach 300Bn.

It is also expected that India will emerge as third largest in passenger vehicles segment in world by
2021.
Contribution of automobile industry in economy: 7% overall GDP, 22% manufacturing GDP
Key players in the automobile industry: Highly competitive market
Market Segmentation commercial vehicles, three wheelers, passenger vehicles, two wheelers

Assumptions
1. Demand curve is linear
2. Effect of time value of money is negligible
3. Railway is assumed to be a close substitute for passenger vehicles
4. Price is assumed to be net realizable value per car sold (i.e. Total quarterly turnover/number of
passenger vehicle sold)
5. Fuel price is assumed to be a close compliment for passenger vehicles