Write any five characteristics of automobile industry in India

characteristics of automobile industry
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With a scintillating 10 million units produced in 2019 the Indian automobile industry bagged the position of being the ninth largest in the world. Following economic liberalization, Indian domestic automobile companies like Tata Motors Maruti Suzuki and Mahindra and Mahindra expanded their production and export operations in and across the country and since then the industry has only shown signs of growth. The automobile industry comprises of heavy vehicles (trucks, buses, tempos, tractors), passenger cars, and two-wheelers. So, here are the below characteristics automobile industry in India.

Characteristics of automobile industry

High growth

The growth of the Indian middleclass is a major characteristics of automobile industry along with the growth of the economy over the last few years has resulted in a host of global auto giants setting their foot inside the Indian Territory. Moreover India also provides trained manpower at competitive costs making the country a manufacturing hub for many foreign automobile companies. India proves to be a potential market as compared to most of the other countries which are witnessing stagnation as far as automobile industry growth is concerned.

A recent research conducted by the global consultancy firm Deloitte says that at least one Indian automobile company will feature among the top six automobile companies that will dominate the car market by 2020.

The Indian automobile industry proved to be in good shape last year even after the economic downturn. This was majorly due to the fact of renewed interest shown by global automobile players like Nissan Motors which consider India to be a potential market.

As far as authorized dealer networks and service stations are concerned Maruti Suzuki is the most widespread. The other automobile companies are also showing rapid progression in this field.

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Year of commencement & periods of development

The Automobile Industry of India has come a long way since in 1898 the first car rolled out on the streets of Mumbai (then Bombay). Indian auto industry, is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto manufacturers like Volvo, General Motors and Ford. This is having a significant   characteristics of automobile industry in India. The Indian Automobile industry has adopted global standards which are manifested in the increasing exports of this sector. After a temporary decline in the years 1998- 99 and 1999-00, exports increased with robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and- a-half times the export figure for 2001-02.

Employment opportunities

India today is well known as a potential emerging automobile market and jobs in the automobile industry are rising. Several foreign investments are pouring into Indian automobile industry. It has become a major three-wheeler market and two-wheeler manufacturer in the world. India is also the second largest manufacturer of tractors. Candidates with bachelor’s degree in mechanical, electrical or automobile engineering are eligible to get good job opportunities in automobile companies is one of the major characteristics of automobile industry.

Total contribution to the economy/ sales

The share of Automobile industry in the last decade in the Indian economy was around 5% of GDP. The Indian Automobile industry has become the seventh largest in the world with an annual production of over 2.6 million units in 2009.


This is the major characteristics of automobile industry with development story of the Indian automobile industry cannot be complete without mentioning the Pioneer Mr. J.R.D Tata’s role in setting up the Tata group with high standard Engineering Research Centre (ERC) in 1965 to facilitate technological advancement. Pioneering the indigenization of scientific knowledge for trucks in collaboration with Mercedes Benze and launched Maruti 800 in the year 1983 which changed the dynamics of the passenger car sector in India. It was also known as the people’s car.

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