Production and Sales Trend of Automobile Industry in India | Abstract

Global Journal of Commerce & Management Perspective
Open Access

ISSN: 2319-7285


Production and Sales Trend of Automobile Industry in India

Jimmy Corton Gaddam

The present paper studies the trend of automobile industry in terms of production and sales. In recent years India has been growing as a market potential for automobiles due to rise in demand and as a result there is an increased production to tap the growing demand both at home and in the foreign markets. This is reflected in the production figures of the industry especially remarkable in the motor cycle and three wheeler divisions, where production rose from 7.64 lakhs in the year 1995-96 to 20 lakh in the year 2002-03 and reached to 4.9 million in the year 2007-08. The sales figure of the industry reveals that sales of motor cycles have increased massively from 2.6 million to 8 million from the year 1995-96 to 2007-08. In the two-wheeler segment mopeds and scooters have exhibited a declining trend. The sales of passenger vehicles have increased from 4.4 lakhs to 1.7 million during the period 1995-96 to 2007-08, while commercial vehicles have grown almost 2.5 times. The analysis of the 13 year data of the industry indicates that the sale of the industry is quite satisfactory. Two wheelers continue to dominate the industry while passenger vehicles and commercial vehicles showing signs of slow growth. The exports of made in India vehicles soared by 31% in financial year 2004-05 as passenger cars, two and three wheelers, commercial and multi utility vehicles continue to charm overseas buyers. A total of 1.2 million units were shipped during financial year 2007-08 over 1 million units exported in the financial year 2006-07. Europe continue to be the biggest importer of cars from the country while, African nations bought bulk of buses and trucks. The Asian region became the prime destination for Indian two wheelers. A large number of joint ventures and technical collaborations of old renowned manufacturers have been approved for production of automobiles and their components within the country for domestic and international needs. This is likely to further increase the investment and market employment in the industry. Objectives 1)To stuby the segmentation wise production trend of Automobile industry. 2)To analyze the segmentation wise sales trend of Automobile industry. 3)To examine the overall production and sales trend of the Automobile industry.