India is a developing nation but the trends and technologies are moving after it for the justification of modernization concept. Due to this, large number of companies and organizations started their involvement in diversified enclosures including marketing, manufacturing, development, and design and selling of motor vehicles. Some of these are termed as automakers. Before independence, Indian market was known for imported vehicles. They primarily focus on dealership, financing, servicing and vehicle maintenance. But after a decade form Indian freedom, the process of manufacturing came into existence.
In earlier times, the transportation requirements were met by the system proposed by Indian Railways. Since 1947, the industry of Indian automobile confronts several challenges and road blocks, as the capability of manufacturing industry was restricted by abiding the rule related to licensing system and could not be increased later. Despite all this, it leads to the growth and success which is still appreciated by the citizen of India.
When we talk about revenue generation, it is considered as one of the most important economic sectors which create larger effects on the growth and development of the country. As this sector does not incorporates industries that are committed to the maintenance of various automobiles that follows delivery to the end-users like motor fuel filling stations and automobile repair shops. The term automobile is served as any form of self-powered vehicle.
In the year 2015-16, the automotive industry is contemplated as one of the largest Industry in India that made an annual production of 23.96 million vehicles in Fiscal year, with a rapid growth of 2.57% over the last year. Out of the country’s gross domestic product, Automobile industry accounts 7.1% on an average. Growing middle class and young population of the country owe large market share in the two wheeler segment. This sector is growing with a rapid pace by exploring the rural markets by the big companies.
Our country is examined as a prominent auto-exporter with strong growth expectations for the near future. This growth has resulted in several initiatives by the Government of India and the players of major automobile industry in the Indian Market. They are expected to influence our country with a leader of Two Wheeler and Four Wheeler market in the world by 2020.
Automobile is a fundamental transportation mode used for economies of most of the developed countries. By 2014, it is observed and stated that the BRIC (Brazil, Russia, India and China) markets fulfill demand for one-third of automobile industry in the world.
In automobile sector, foreign investments are also encouraged by the government of India that allows 100% of FDI under automatic route in the country. There are several initiatives taken by our government which includes, planning which introduces scheme of green urban transport with the collaboration of central government which aims at growth expansion of urban transports along low carbon path which make the reduction on substantial pollution, automobile manufacturing aims to drive ‘Make in India’ campaign which expects passenger markets to triple their production units by highlighting Auto Mission plan.