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Automobile Sector

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Growth in Indian Automobile sector

Submitted to: Prof. V P Sharma

Submitted by: Mansi Pancholi ( 12 SDP 719 )

Date: 31/07/2012

Introduction:
Looking at the economy of India, India is the Largest Democracy in the world with 1.2 billion people. It is 4th largest GDP (PPP) and 11th largest GDP (Nominal). India is 2nd fastest growing economy (Estimate 2011-12 – 9%) with India’s average growth rate 7.3% over past 10 years and expected to outpace China in next decade. India is 3rd largest investor base in the World. If we look at the demographics of People of India, It consists of 50 % under 25 years & 65% under 35 years. India also having the 2nd largest pool of certified professionals and highest number of qualified engineers in the world. If we look at sector wise distribution, India is having Services (52%), Manufacturing (27%) and Agricultural (21%) shares. Average Real GDP growth in last 5 year was 8.5% with GDP Per Capita at US $ 1018 and a projected GDP growth in 2011-12 is 9.0%. The Automotive Sector in India is one of the largest in the world and one of the fastest growing globally. It was 1897 when the first car rolled out on Indian roads. Until 1930 cars were imported from other countries. First Indian Automotive Company starts with Mahindra & Mahindra in 1940 when it was established by two brothers as a trading company in 1945, and begun assembly of Jeep CJ-3A utility vehicles under license from Willys. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the Indian private sector. After 1970, the automotive industry started with its growth, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury.

Development in Indian Automobile Sector
The production of automobiles has greatly increased in the last decade. It passed the

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