Manufacturing more than 11 million automobiles each year (includes two and four wheeler), the Indian automobile industry is one of the top growing industry in the world. Each year India witnesses considerable increasing number of new customers in the automobile industry. As per a report published in the year 2009, the annual sales record of Indian automobile industry had exceeded 8.5 million. This has made India rank in top ten countries worldwide as far as sales of automobile is concerned. In the same year it produced more than 2.6 million units of commercial vehicles and cars, making it rank seventh in the world in terms of auto production. As per a research done by the Society of Indian Automobile Manufacturers, by 2015 India will witness an increase in the sales figure of cars by 5 million.
India exports a number of passenger cars, it is behind Japan, Thailand and South Korea by few differences in the figures in the exported cars.In Asia, India comes number four in terms of exporting. Previously Haryana was the hot spot in India regarding the automobile manufacturing site. Other regions in India has soon caught up Haryana in this regard; other automobile manufacturing places in India are; Kolkata in West Bengal, Jamshedpur in Bihar, Pune and Aurangabad in Maharashtra. Thanks to the government, for bringing the economic liberations in the country due to which it is witnessing such growth and consequently economic development. There are however other factors that have lead to the increase in the automobile sector of India, they are as follows:
Growth Of Industrial And Agricultural Sector Of The Country
There has been a growth in the industrial and agricultural sector of India that has lead to a higher growth in the GDP of the country.In the past three years, Indian GDP has increased by about 9%. This growth shows that there has been an increase in the automobile sales in the past three years.
Rise In The Per Capita Income Of People
India has witnessed a lot of growth in different sectors of economy in the past few decades. Industrial growth in 70s, IT growth in 80s and BPO boom in 90s are few to mention. Such economic development has increased the purchasing power of Indian middle class. Today’s generation can earn what people used to earn with great effort three decades back, in much less time. This has increased the demand for commercial vehicles among Indians as they can easily afford this comfort now.
Financial Lubrication Of Purchasing A Vehicle
Previously people had to save money to buy a vehicle but now no one has to wait to own their dream car. Banks and even car companies offer various financial schemes which have facilitated every Indian to easily buy a car, thus leading to more demand.
Government Policies Favoring Auto Growth
The government of India has contributed to the growth of auto India. Measures taken by government like low entry barriers, investment incentives, tax deduction etc. has contributed to the growth of automobiles in India.
Sales of Indian automobile industry have been increasing at a rate of 26% and it is believed that it will increase more than this figure. India is the second largest automobile industry in the world and with the speed that it is growing; it will surely become the leader in manufacturing automobiles in the recent future.