The automobile industry is revving up India's economy - Scoop Beats

The automobile industry is revving up India’s economy

Navjyot Gurudattaby:

Automobile

The Indian automobile industry has gained traction over the past few decades and is growing quickly, affecting the economy at large. The automobile sector is recognised as a core sector, contributing 40 % to the country’s manufacturing GDP resulting in the opening of more than 32 million jobs on the whole, which is huge.

Surprisingly, the Indian automobile market took over Germany, which is touted as Europe’s biggest economy powerhouse, to place itself in 4th place in 2018, with a total valuation of approximately $100 billion, which proves the kind of potential this industry has carries.

Though the global pandemic halted the growth of the automobile sector in India for a short period, it has again bounced back and looked at doubling its figures positively. Though a drop in domestic automobile sales was observed in 2021-22, which was the biggest fall in the decade, the earlier one to hit was during 2011-12, the industry is rising at a steady pace now, with bookings for new cars on an all-time high.

Although the Indian automobile industry has been performing low, exports have shown signs of improvement with passenger vehicles being exported in high numbers, including two-wheelers which have shown the highest ever growth in exports of late.

Also Read: New 2022 Maruti Brezza will be launched in India on June 30, know price and features

In the passenger vehicles segment, SUVs (sport utility vehicles) have shown significant growth in sales along with MPVs which have taken over the passenger vehicles space big time. With a decline in entry-level hatchbacks and sedans, SUVs are set to rule the automobile space being the largest segment in the past year, and the trend continues to grow. Looking at the kind of momentum the automobile industry has picked up in India, many international auto manufacturers are now looking forward to entering Indian shores and are devising strategies which would make India a part of their global expansion plans.

SHARE

Leave a Reply