The automobile industry plays a pivotal role in India's growth and development. It has a competitive cost advantage in manufacturing vehicles in India compared to other countries. Major automobile manufacturing plants and parts manufacturers are located across various states in India, including Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, and West Bengal. The industry has shown strong growth in recent years, with India becoming the fourth largest auto market in 2017.
2. Introduction:
The automobile industry plays a pivotal role in the growth and development of India.
It is called as the “Locomotive of growth”. India enjoys a competitive cost advantage
in manufacturing automobile vehicles. The cost of manufacturing vehicles in Indian
is less as compared to the cost of manufacturing automobile vehicles in foreign
countries. It has shown great achievements in terms of introduction of new
technology, development, spread, flexibility and has changed the business scenario.
Today the Indian automobile industry is fulfilling the demand of the Indian as well
as consumers in other countries. The Automobile industry is showing is not only
meeting the growing demands of the Indian market but also making its presence in
the international market rapidly.
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5. MARKET OVERVIEW
India became the 4th largest auto market in 2017 with sales (excluding two-wheelers) increasing 9.5 per cent
year-on-year to 4.02 million units in 2017. Overall domestic automobiles sales increased at 7.01 per cent
CAGR between FY13-18 with 24.97 million vehicles getting sold in FY18.
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