Falling Sale of Automobiles: An Impact of Rescission in India

Falling Sale of Automobiles: An Impact of Rescission in India

Automobile industry of India is one of the fastest growing industries of the world. An automotive industry started in India in the 1940s. Now Indian automobile industry; manufacturing cars, buses, three wheelers, two wheelers, commercial vehicles, heavy vehicles, provides employment to a large number of workforce in India. The Largest automotive companies in India are Maruti Suzuki, Hyundai Motor India, Tata Motors and Mahindra & Mahindra. The growth of the industry was hobbled by the many hurdles of the Indian political and economic system. It has been achieved 17% annual growth rate in production of automobiles and 30% of growth rate in its export. But since past some years it is facing cut-throat competition and problems arises due to of industrial recession.

PRODUCTION TREND OF AUTOMOBILES SECTOR IN INDIA

Today Indian automotive industry is fully capable of producing various kinds of vehicles and It includes two wheelers, three wheelers, four wheelers and other commercial vehicles. The restrictions of license raj on the private sector of the industry were abolished since 1991. As a result new private sector companies entered the market and the competition gained new heights. Producers encouraged the introduction of new models and types of automobiles in the industry. If we observed that, the production is increased continually after 1991.  Since 2002 to 2009 total production of automobiles are increased from 6279967 vehicles to 11175479 vehicles in India.

DOMESTIC SALE OF AUTOMOBILES SECTOR IN INDIA

As per data provided by SIAM  the domestic sale of automobiles are gradually increasing since 2002-03 to 2006-07 but after 2006-07 domestic sale reduced drastically.  As per the table no.2 overall domestic sale of automobiles was 5941535 units in 2002-03 and 10123988 units in 2006-07 but it was reduced near about 9723391 units till 2008-09.

EXPORT OF AUTOMOBILES FROM INDIAN FIRMS

The Indian automobile industry has grown at a staggering pace over the last few years and the period of April-November witnessed increase in domestic sales and exports of automobiles by 34 percent. Total export of overall automobile units is increased from 307308 to 1530660 within year 2002-03 to 2008-09. In the export of automobiles includes passenger vehicles, commercial vehicles, three and two wheeler. The country’s largest car exporter, Hyundai Motor India’s, exports increased by 91.13 per cent in the current fiscal to 2,14,900 units against 1,12,439 units in the corresponding period last fiscal. Indian automobiles have started getting global recognition.

RESULTS OF THE STUDY

Production growth is recorded 39.33% of passenger vehicles, 48.83% of commercial vehicles, 55.23% of three wheelers and 60.29% of two wheelers production in the study period.
Overall production is increased 1.77 times of all types of automobiles in India
In the year 2002-03 to 2008-09 the domestic sale of the automobiles in India has been increased   times. Especially, 45.57% growth of  domestic sale of  passenger vehicles,  49.64% of commercial vehicles, 66.20% of  three wheelers and 64.69% of  two wheelers.
The data shows that, domestic sale of passenger vehicles and two wheelers are not affected by economic recession in India because of increased increasing population and demand of travelling vehicles.
Due to the economic recession and decline commercial and industrial activities domestic sale of commercial vehicles is decreased 83,643 units in year 2006-07 to 2008-09.
Most of three wheeler vehicles are used for commercial and industrial porous also. Hence domestic sale of three wheelers is reduced 54191 units in year 2006-07 to 2008-09 due to the economic recession.
Export of commercial vehicles is affected by the global economic recession. Most of commercial vehicles producing firms can’t export their vehicles in expected countries since year 2007-08.

CONCLUSIONS

After economic reforms period the Indian automobile industry is enjoying restriction free environment. Resulted the Indian automobile industry is growing since 1991. But the economic recession in Indian economy and global economic meltdown created some problems before Indian automobile sector since 2007. Mostly after year 2007 the domestic sale and export of vehicles is affected by economic recession. Now days some reputed and top most automobile companies also facing less sale problem of commercial vehicles, three wheelers and other vehicles also. It is biggest problem again the industry and economy also. Hence, there is emergence need to re-correct the problem and provide better space to develop automobile industry in India.

REFERANCES

1. Auto India: India largest selling automobile magazine, Publisher- Business India

2.Kumar Raja K Indian Automobile Industry, EAN: 9788174466624, EXCEL BOOKS

3.Profile of the Indian Automobile Industry 2006-07, Society of Indian Automobiles Manufactures (SIAM)

4. Rajmanohar T P, Indian Automobile Industry- An Introduction ISBN: 8131407330, by ICFAI

5. Economic Survey of India 2002-03 , 2005-06, 2007-08 and 2008-09

6.The automobile industry in India: a study, Hindustan Motors, 1967

7. http://automobiles.mapsofindia.com/

8. http://automobiles.mapsofindia.com/automobile-history/index.html

9.http://auto.indiamart.com/cars/car-statistics/production.html

http://www.business-standard.com/india/news/domestic-auto-sales