Automobile Industry in India

Indian Automotive Industry comprises the automobile and the auto component segments and is one of the largest industries in the country with a turnover of USD 34 billion. It contributes about 5% to the GDP. Indian automobile industry has a manufacturing capacity of over 95 lakh vehicles per annum and it now offers more than 150 models and variants of automobiles in various segments. India is the world's second largest manufacturer of two wheelers and fifth largest manufacturer of commercial vehicles. She also manufactures largest number of tractors in the world. India is also the fourth largest passenger car market in Asia. Indian auto component industry is producing practically almost all parts of automotives. This segment registered a growth rate of 16% during the year, 2005-06.

The Department of Heavy Industry, Ministry of Heavy Industries and Public Enterprises, Government of India is the nodal ministry. FDI up to 100% through automatic route is permitted for manufacture of automobiles and auto components. The import of technology for technological up-gradation on royalty payment of 5% without any duration limit and lump sum payment of USD 2 million is also allowed under automatic route.

CLG Automobile Industry Practice