INDIAN AUTOMOBILE INDUSTRY
THE ROAD AHEAD- 2010
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Automobile industry- in INDIA
The automobile industry in India happens to be the ninth largest in the world. Following Japan, South Korea
and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles. Several Indian
automobile manufacturers have spread their operations globally as well, asking for more investments in the
Indian automobile sector by the MNCs. Indian auto industry, which is currently growing at the pace of around
18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford.
The Indian automobile industry is going through a phase of rapid change and high growth. With new projects
coming up on a regular basis, the industry is undergoing technological change. The major players are
expanding their plants and focusing on mass customization, mass production, etc.
It is expected that by the end of year 2010
Indian automobile sector will be investing a
huge amount about Rs. 30000 crores For
example, Maruti Udyog has plans of investing
Rs. 6,500 crores; the Tata Motors is coming up
with more investment of Rs. 2,000 crores in
its compact car project. Not only the Indian
companies but also foreign players like
Hyundai are coming up with the investment of
more than Rs. 3,800 crores in India.
At present the industry is enjoying a growth
rate of 14-17% per annum, with domestic
sales growth at 12.8%. The growth rate is
predicted to double by 2015. As it is seen, the
total sales of passenger vehicles - cars, utility
vehicles and multi-utility vehicles - in the year
2005 reached the mark of 1.06 million. The
current growth rate indicates that by 2012
India will overtake Germany and Japan in
“In India there are 100 people per vehicle, while t