Economic growth of any nation(eitherdeveloping or developed) is mostly dependent on its key industry and its keyresources .The automobile industry in our country has shown a constant and considerablegrowth and proven to be one of the best ever growing and theprime movers of economic growth and major contributors towards the Gross DomesticProduct (GDP) roughly around 7 % and dueto rapid technological innovation, there is tremendous growth in demand, and it generatedhuge employment in organized and unorganized segment Gottschalk and Kalmbach,2007. The recent decade is eyewitness of the significant growth of automobile sectorof developed countries and latest trends and innovations and better governmentpolicies open a new chapter in automobile sector for developing nation like IndiaChoudhary and Goyal, 1997Dueto economic liberalization and government policies the automobile industry in indiahas shown a great market potential.
Now-a-days technologies changes at veryfast and these changes created innovative and novel development in the field ofscience and technology, particularly in communications and transport helps alot to automobile industry .The government of India (GoI) has made tremendous changeslike implementation of Goods and Services Tax (GST), E-Way bill, ban on BS-IIIvehicles to control pollution, Bharatmala project and government’s ambitiousplans for a mass scale shift to electric vehicles (EVs) by 2030.Government’snew and innovative policies give opportunitiesfor overseas players to investments in the country.
The Indian auto industry contributingaround 6-8 % of world market producing around 2.6 Million unit’s .The industryaccounts roughly 7% of the country’s Gross Domestic Product (GDP). With aroundroughly 81 % of market share the two wheeler segment is the leader of the Indianautomobile market owing to a growing middle class and a young population.
Indiais having a huge and potential market in rural areas hence companies are takinginterest and try to explore the market in rural areas and further aided the growth of the sector. Theoverall passenger vehicle (PV) segment has around roughly 13 % market share. Figure1 shows segment wise market share of automobile industry in India which showstotal production of automobiles in units (millions) year wise.