Wednesday 16 March 2016
Tuesday 15 March 2016
Auto Industry
Introduction
The Indian auto industry is one of the largest in the world with an
annual production of 23.37 million vehicles in FY 2014-15, following a
growth of 8.68 per cent over the last year.
The automobile industry accounts for 7.1 per cent of the country's gross domestic product (GDP).
The Two Wheelers segment with 81 per cent market share is the leader
of the Indian Automobile market owing to a growing middle class and a
young population. Moreover, the growing interest of the companies in
exploring the rural markets further aided the growth of the sector. The
overall Passenger Vehicle (PV) segment has 13 per cent market share.
India is also a prominent auto exporter and has strong export growth
expectations for the near future. In FY 2014-15, automobile exports grew
by 15 per cent over the last year. 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 (2W) and
Four Wheeler (4W) market in the world by 2020.
Market Size
The industry produced a total 14.25 million vehicles including PVs,
commercial vehicles (CVs), three wheelers (3W) and 2W in April-October
2015 as against 13.83 in April-October 2014, registering a marginal
growth of 3.07 per cent year-on-year.
The sales of PVs grew by 8.51 per cent in April-October 2015 over the
same period last year. The overall CVs segment registered a growth of
8.02 per cent in April-October 2015 as compared to same period last
year. Medium & Heavy Commercial Vehicles (M&HCVs) registered
very strong growth of 32.3 per cent while sales of Light Commercial
Vehicles (LCVs) reduced by 5.24 per cent during April-October 2015
year-on-year.
In April-October 2015, overall automobile exports grew by 5.78 per
cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95
per cent, 18.59 per cent and 3.22 per cent respectively in April-October
2015 over April- October 2014.
Investments
In order to keep up with the growing demand, several auto makers have
started investing heavily in various segments of the industry during
the last few months. The industry has attracted foreign direct
investment (FDI) worth US$ 13.48 billion during the period April 2000 to
June 2015, according to data released by Department of Industrial
Policy and Promotion (DIPP). (Ref: http://indiainbusiness.nic.in)
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