GROWTH OF AUTO INDUSTRY IN INDIA

The Indian Automobile market is a promising industrial sector that is growing immensely every passing year. The automobile industry has an enormous opportunity for creating new wealth by delivering value to the world and also to the domestic user. The four-wheeler industry in India has not been able to match up to the performance of its counterparts in other parts of the world. The main reason for this has been the regulatory atmosphere that prevailed till the deregulation in the mid- 1990s. After the liberalization the passenger car segment saw a boom and many companies from India as well as foreign entered the market. With liberalization, Government abolished licensing and removed restrictive trade policies. Automobile industry benefited greatly from these measures. The automobile industry in India happens to be the ninth largest in the world, following Japan, South Korea & Thailand. In 2009, India emerged as the fourth largest exporter of automobiles. Several Indian automobile manufacturers have spread their operations globally as well, asking for more investments in the Indian automobile sector by the MNC's.