Automobile Industry

A small description about the automobile industry in India, its history and how the automobile industry have effects on the economy of India.

1. AUTOMOBILE INDUSTRY Presented By Neethu S Jayan

2. INTRODUCTION The automobile industry is a wide range of companies and organizations involved in the design, development, manufacturing, selling of motor vehicles. It is world’s most economic sectors by revenue.

3. HISTORY The history of automobile can be divided into number of eras. In 1768, the first steam powered automobile capable of human transportation was built by Nicholas-Joseph Cugnot. In 1807, Francois Isaac de Rivaz designed the first car powered by an internal combustion engine fueled by hydrogen. In 1886, the first petrol or gasoline powered automobile was invented by Karl Benz.

4. ECONOMY The automobile industry contributes to the major portion of the world’s economy. The automobile industry is expanding at a greater pace and has a great impact in the economy. Sales of cars and light trucks in the U.S likely set a record for 2015 at around 17.5 million vehicles. The car markets in China and India are expected to continue expanding but offer a dose of uncertainity .

5. INDIAN AUTOMOBILE INDUSTRY The Indian automobile industry includes two-wheelers, trucks, cars, buses and three wheelers which play a crucial role in growth of the Indian economy. India has emerged as Asia’s 4 th largest exporter of automobiles, behind Japan, South Korea and Thailand. The country is expected to top the world in car volumes with approximately 611 million vehicles on the Nation’s road by 2050.

6. MARKET SIZE Sales of passenger vehicle increased by 11.04% to 2,42,060 units in April 2016. Sales of passenger cars went up by 1.87% to 1,62,566 units in April 2016. The utility vehicles grew by 43% to 62,170 units. Sales of commercial vehicles maintained momentum and grew by 17.36% to 53,835 units. The sale of scooters increased by 35.86% to 4,63,368 units.

7. GOVERNMENT INITIATIVES Mr. Nitin Gadkari , minister of Road Transport has announced plans to set up a separate independent department for transport comprising the experts from the automobile industry. They aim to make automobiles manufacturing the main diver of “Make In India” initiative as it expects passenger vehicles market to triple to 9.4 million units by 2026. In the union budget of 2015-16, the government has announced to provide credit of RS 8,50,000Cr to farmers which is expected to boost the tractors segment sales.

8. They plan to promote eco-friendly cars in the country ie ; CNG based vehicle, hybrid vehicle and electric vehicle and also made mandatory of 5% ethanol blending in petrol. The government has formulated a scheme for faster adoption of manufacturing of electric and hybrid vehicles in India under the National Electric and Mobility Mission 2020 to encourage the progressive induction of reliable, affordable and efficient electric and hybrid vehicles in the country. The Automobile Mission Plan (AMP) for the period 2006-2016, designed by the government is aimed at accelerating and sustaining growth this sector.

9. THANK YOU