Growth of the Indian Automobile Industry

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Due to fast economic growth, Car ownership in India has increased alot. Popularity of the several segments of vehicles by size and price have also undergone changes. I am presenting a study about the influence of Car attributes on the purchase of car in Delhi-Ncr. We analyze choices made for cars. The Indian Automobile Industry has got a tremendous market potential. With the population growth and change in their lifestyle pattern due to urbanization, there is a rapid rise in demand for Cars among Indian Middle class. 1.2 Industry Profile The Indian Automobile Industry has flourished a lot since the 90’s.It was Maruti 800 that began the revolution in Indian car Market in 1984 with it’s launch.Then,Post the economic Liberalisation in the 1991,Various MNC’s entered the Indian Market and brought variety of choices for the Indian Middle class. This extraordinary growth that the Indian automobile industry has witnessed is a result of a major factor namely, the improvement in the living standard of the middle class and an increase in their disposable incomes. Also, the institutionalization of automobile finance has further paved the way to sustain a long term high growth for the industry. India is the second fastest growing automobile market in the world after China. The Indian car industry is witnessing a shift in demand going from two wheelers to cars due to rising availability of low cost cars and the car being a symbol of high prestige. Based on the overall production of cars in the country the Indian automotive industry is now the 6th largest in the world .The Indian Car Market has got a tremendous market potential. With the growth of population and change in their pattern of life style as a result of urbanization, there has been a rapid increase in demand for Indian automobiles. The Indian Automobile Industry has flourished like never before in the recent years. This marvelous growth that the Indian Car Industry has gone through is a result of a major factor namely, the improve in the living standard of the middle class and an increase in their disposable incomes. Indian automobile sector witnessed a modest beginning when first car was produced by Premier Automobile limited, and rolled out on Indian roads in 1949,. For a long time only three players dominated the Indian car manufacturing industry. When Maruti Udyog Limited introduced its much awaited and much sought after small car, MARUTI-800 in India in 1984,A mass hysteria was created in the Indian Market.

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