The Indian automobile industry can be divided into several segments, such as three-wheelers, two-wheelers (motorcycles, scooters (with and without gears) and mopeds), commercial vehicles (light, medium and heavy), passenger cars, tractors and The Indian automobile industry is the world’s fourth-largest industry in terms of employment and manufacturing of units. This massive growth made it the 7th most prominent manufacturer of heavy and commercial vehicles and 4th largest manufacturer of cars in 2018. India is a developing country, and automobile companies are leveraging this opportunity brilliantly. More than 13 million individuals are engaged in this industry directly and indirectly. Automobile exports showed significant growth of 14.5% in FY 2019. The potential growth of the industry fascinated futuristic investors in recent years. This USD 93 billion industry contributes 7.1% of India’s GDP and 49% of manufacturing GDP. The government initiated the program “Make in India” invited all major international players through a modification in Government’s import and FDI policy.
India ranked 4th worldwide in car manufacturing in 2018. Some famous car models which were exported include GM Beat, Ford Ecosport Nissan Micra and Sunny, and Volkswagen Vento. Ford India topped in exporting cars by shipping a massive number of 181 000 vehicles overseas. 6.7% CAGR growth is recorded in overall domestic vehicles between FY13-19 along with the sale of 26.27 units in FY19. Domestic production increased by 6.96% compound annual growth rate between the financial year 2013-19 with the sale of 30.92 million units manufacturing in FY19. Commercial vehicles showed 17.55 percent growth in sales in FY19, whereas three-wheelers showed 10.27% growth. One 1,000,000 units of premium motorbike sales were recorded in FY18. Sales of electric two-wheelers were reported to have breached the mark of 55,000 vehicles in 2017-18.
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