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AUTOMOBILE INDUSTRY in india
• The Indian automobile market is currently dominated by two-wheeler segment but in future,.
• Also, as India has low vehicle presence (with passenger car stock of only around 11 per 1,000 population in 2008), it possesses substantial potential for growth.
• Last year has been a great ride for the auto sector. The recent launch of Tata Nano has brought about a new revolution in the country’s small car segment. Seeing the good initial response from consumers, many other players in the industry are chalking out their plans to launch cars in this segment in the next few years.
• Total sales of all auto-mobile companies are up 44.4% while two-wheeler sales grew by 43.43%.
LARGEST CAR MANUFACTURERS IN INDIA
• MARUTI SUZUKI
• GM CHEVROLET
TWO WHEELER MANUFACTURERS IN INDIA
• HERO HONDA
• ROYAL ENFIELD
COMMERCIAL VEHICLE MANUFACTURERS
• TATA MOTORS.
• ASHOK LEYLAND.
• EICHER MOTORS.
• MAHINDRA AND MAHINDRA.
• India has emerged as one of the world's largest manufacturers of small cars.
• In 2008, Hyundai Motors alone exported 240,000 cars made in India.
• Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011.
• Similarly, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011.
• In September 2009, Ford Motors announced its plans to setup a plant in India with an annual capacity of 250,000 cars for US$500 million.
• In 2009 India surpassed China as Asia's fourth largest exporter of cars.
FDI IN AUTOMOBILE
• The automobile industry in India is growing by 18 percent per year. The automobile sector in India was opened up to foreign investments in the year 1991.
• 100% Foreign Direct Investment (FDI) is allowed in the automobile industry in India.
• The production level of the automobile sector has increased from 2 million in 1991 to 9.7 million in 2006 after the participation of global players in the sector.
• Import of components is allowed without any restrictions and also encouraged.
EFFECT OF AUTOMOBILE INDUSTRY IN BSE
• 4 OUT OF 30 COMPANIES ARE THE AUTO COMPANIES WHICH ARE LISTED IN BSE.
• HERO HONDA (40,410 crs)
• M&M (36,047 crs)
• MARUTI SUZUKI (39,735 crs)
• TATA MOTORS (46,121 crs)
• Hence, any fluctuation in automobile industry is of great influence for the BSE.
EFFECT OF AUTOMOBILE INDUSTRY IN GDP OF INDIA
• The industry has emerged as a key contributor to the Indian economy.
• Its has an annual contribution of 4% to the GDP and also accounting for about 5% of the total industrial output, this segment clearly stands out as a significant contributor to the economic growth.
AUTOMOTIVE MISSION PLAN 2016
• PM RELEASED AUTOMOBILE PLAN 2006 – 2016 TO GIVE A ROAD MAP TO INDIAN AUTOMOBILE INDUSTRY.
• INCREASE TURNOVER TO $145 BILLION BY 2016.
• INCREASE EXPORT REVENUE TO $35 BILLION BY 2016.
• PROVIDE EMPLOYMENT TO ADDITIONAL 25 MILLION PEOPLE BY 2016.
• BY 2016, AUTO SECTOR IS EXPECTED TO CONTRIBUTE 10% OF THE COUNTRY’S GDP & 30-35% OF THE INDUSTRY.
Automobile power on rise
• Tata motors acquired Jaguar- Land rover in 2008.
• Mahindra & Mahindra Acquired Sangyong motors from South Korea.
• Tata motors has already acquired Daewoo commercial vehicle plant in South korea.