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Automotive Industry

In the recent years, the Indian automotive industry has flourished by leaps and bounds. This phenomenon has taken its shape due to two factors, which are, better living standards of the middle class and a subsequent increase in their disposable incomes. Moreover, the liberalization steps implemented by the Government of India such as relaxation of the foreign exchange and equity regulations, refining the banking policies and reduction of tariffs on imports have played a key role in taking the Indian Automotive industry to great heights.

According to some market surveys, the sale of passenger cars has increased threefold than what it used to be five years ago. Hence, 1 million cars are already plying on the Indian roads and this figure is definitely going to increase in the near future. Furthermore, due to a marked increase in the consumer's buying capacity, the demand for luxurious models, mini-cars for family owners and SUVs has also increased manifold.

The increased demand for Indian automobiles has seen many offshore auto giants from U.S.A, Japan and Europe entering the Indian automobile sector and working in collaboration with the Indian automobile majors. Also, the people-friendly automobile finance policies have provided the required impetus to ensure stable and long-term growth in this sector.

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