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Changing structure of Indian automobile industry

Author: 
Neeraj Kumar and Dr. Kuldip Kaur
Subject Area: 
Social Sciences and Humanities
Abstract: 

The aim of the present study is to investigate the change in structure of Indian automobile industry in the context of liberalization and globalization, which caused major changes in this industry. Before 1991, the industry was dominated by a few domestic manufacturers and was hardly known for any innovations, but now it is one of the fastest growing manufacturing industry not just in India but globally as well. The data for the analysis have been extracted from the various secondary sources like Centre for Monitoring Indian Economy (CMIE PROWESS), Society of Indian Automobile Manufacturers (SIAM) reports and Organisation Internationale des’ Constructeurs d’Automobiles (OICA) over the period 1992-93 to 2010-11. The results indicate that the automobile sector of emerging nations like China and India is growing at faster rate than developed one. China’s automobile industry registered 16.92 per cent compound annual growth, followed by India 13.57 per cent. Whereas the developed nations like US and Germany lost their ground during that same period (1997-2013). The study also shows that the vehicle penetration is rising over the years in India. The situation was not good during 1990s but later on the situation started improving and in 2013 there were 31 motor vehicles available for 1000 persons.

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