Economic .The automobile industry in our country

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

Due to economic liberalization
and government policies the automobile industry in india has shown a great
market potential. Due to rapid technological changes and innovative 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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