Economic growth of any nation(either
developing or developed) is mostly dependent on its key industry and its key
resources .The automobile industry in our country has shown a constant and considerable
growth and proven to be one of the best ever growing and the
prime movers of economic growth and major contributors towards the Gross Domestic
Product (GDP) roughly around  7 % and due
to rapid technological innovation, there is  tremendous growth in demand, and it generated
huge employment in organized and unorganized segment Gottschalk and Kalmbach,
2007. The recent decade is eyewitness of the significant growth of automobile sector
of developed countries and latest trends and innovations and better government
policies open a new chapter in automobile sector for developing nation like India
Choudhary and Goyal, 1997

to economic liberalization and government policies the automobile industry in india
has shown a great market potential. Now-a-days technologies changes at very
fast and these changes created innovative and novel development in the field of
science and technology, particularly in communications and transport helps a
lot to automobile industry .The government of India (GoI) has made tremendous changes
like implementation of Goods and Services Tax (GST), E-Way bill, ban on BS-III
vehicles to control pollution, Bharatmala project and government’s ambitious
plans for a mass scale shift to electric vehicles (EVs) by 2030.Government’s
new and innovative  policies give opportunities
for overseas players to investments in the country. The Indian auto industry contributing
around 6-8 % of world market producing around 2.6 Million unit’s .The industry
accounts roughly 7% of the country’s Gross Domestic Product (GDP). With around
roughly 81 % of market share the two wheeler segment is the leader of the Indian
automobile market owing to a growing middle class and a young population. India
is having a huge and potential market in rural areas hence companies are taking
interest and try to explore the market in rural areas and  further aided the growth of the sector. The
overall passenger vehicle (PV) segment has around roughly 13 % market share. Figure
1 shows segment wise market share of automobile industry in India which shows
total production of automobiles in units (millions)  year wise. 


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