The automobile industry is one of the fastest growing sectors in India. The increase in the demand for cars, and other vehicles, powered by the increase in the income is the primary growth driver of the automobile industry in India. Automobile industry in India also received a boost from stringent government auto regulations over the past few years. This ensured that vehicles produced in India conformed to the standards of the developed world. And as of now Maruti Suzuki and Mahindra and Mahindra are leading manufacturers of cars in India. These two companies are having their origin from India itself.

The automobile industry, along with auto components industry, is one of the core industries in India. A well-developed transportation system plays a key role in the development of an economy, and India is no exception to it. Automobile is one of the largest industries in the global market. Automobile Sector occupies a prominent place in the fabric of Indian Economy. Automobile sector is leader in product and process technologies in the manufacturing sector.

Automobile industry has been recognized as one of the drivers of economic growth and the domestic automobile industry is believed to be the barometer of the economy. Such a belief is in line with international trends since in most mature economies the automobile industry’s performance is viewed as a reflection of the economy’s health. This sector has emerged as sunrise sector in the Indian economy.

India is one of the key markets for Global Manufacturers for hybrid and electronics vehicles, which is the new development in automobile sector. With a turnover of almost $59 Million US Dollars, Automobile industry provides employment to 13 million people in the Indian work-class. The automobiles sector is divided into four segments -two-wheelers, passenger vehicles, commercial vehicles and three wheelers. Two wheeler’s India is one of the world’s fastest growing passenger car markets it is second largest two-wheeler manufacturer and fifth largest commercial vehicle manufacturer. It is also home for the largest motor cycle manufacturer. Moreover, India is fourth passenger’s car market in Asia.

The Indian automotive industry has demonstrated sustained growth as result of these reforms on various dimensions, like a variety of choices for the customer, modernity of offerings, quality consciousness or even scale of production, many Indian companies have equaled, if not surpassed, global standards. Several Indian automobiles manufactures such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India’s robust economic growth led to the further expansion of its domestics’ automobile market which has attracted significant India-specific investment by multinational automobiles manufactures.

Automobile industry plays a vital role in the fabric of Indian economy. This sector of industry has made a rapid and steady growth in India particularly after 90’s due to delicensing, favorable Government, policy and whole-hearted support of the Government, opening up of the automobile industries for 100% FDI, increase in purchasing power capacity of middle class and easy and cheap auto-finance facility.