Business Overview (Introduction)
Automotive industry, globally as well as in India, is one of the key sectors of the economy. Due to its deep forward and backward linkages with several key segments of the economy, automotive industry has a strong multiplier effect and act as one of the key drivers of economic growth. The well-developed Indian automotive industry produces a wide variety vehicles, passenger cars, lights, medium and heavy commercial vehicles and other agriculture equipment etc. The sector has high potential for providing employment. This will increase the present level of employment in manufacturing sector which presently quite low at 12% as compared to the countries like Malaysia(50%), Korea(62%), and China(31%)
Indian automotive industry is now finding increasing recognition worldwide. While a beginning has been made in export of vehicles, the potential in this area still remains to be fully tapped. Significantly during the last two years the export in this sector has grown specifically in export of cars and two wheelers. The automobiles exports crossed USD 1 billion mark in 2003-04 and reached USD 2.28 billion in 2005-06
Indian Auto component industry is quite robust with around 500 firms in the organised sector producing practically all parts and more than 10,000 firms in unorganised sector in tierized completely Indian made vehicles like the TATA Indica, TATA Indigo, Mahindra etc. The company industry has now holistic capability to manufacture the entire range of auto-components.