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The global automotive industry is a highly diversified sector that comprises of manufacturers, suppliers, dealers, retailers, original equipment manufacturers or OEMs, aftermarket parts manufacturers, automotive engineers, motor mechanics, auto electricians, spray painters or body repairers, fuel producers, environmental and transport safety groups, and trade unions.

The automobile and automotive parts & components manufacturers constitute a major chunk of automotive industry throughout the world. The automotive manufacturing sector consists of automobile and light truck manufacturers, motor vehicle body manufacturers, and motor vehicle parts and supplies manufacturers. This sector is engaged in manufacturing of automotives and light duty motor vehicles, motor vehicle bodies, chassis, cabs, trucks, automobile and utility trailers, buses, military vehicles, and motor vehicle gasoline engines.
The automotive industry is witnessing tremendous and unprecedented changes these days. This industry is slowly and gradually shifting towards Asian countries, mainly because of saturation of automobile industry in the western world. The principal driving markets for Asian automotive industry are China, India and ASEAN nations.

Low cost vehicles namely scooters, motorcycles, mopeds and bicycles have led to the massive growth of some of the fastest developing economies like China and India. The future of automotive industry in the Asian countries such as Thailand, Philippines, Indonesia, and Malaysia is bright and promising because of the ASEAN free trade area under which the export tariffs are very less.

On a global scale, the assets of the top ten automotive corporations accounts for 28% of the assets of the world's top 50 companies, 29% of their employment and 30% of their total sales. In the year 2006, the United States of America sold around 16 million of new automobiles, Western Europe sold around 15 million, while China and India sold 4 million and one million respectively. Latin America, Middle East, Eastern Europe, China, Malaysia and other South-Asian nations are now emerging as the dominant markets of the automotive industry.

Most of the major automotive players are shifting their production facilities in these emerging markets with the main purpose of gaining better access and reduction in their production costs. There is an estimation that the automotive markets in South America and Asia will witness a boom in the near future. The various factors such as cheap financing and prices discounts, rising income levels and infrastructure developments will assist in the growth and development of automotive sector in the majority of Asian Nation.
Over a period of more than two decades the Indian Automobile Industry has been driving its own growth through phases. The entry of Suzuki Corporation in Indian passenger car manufacturing is often pointed as the first sign of India turning to a market economy. Since then the automobile sector witnessed rapid growth year after year. By late-90's the industry reached self reliance in engine and component manufacturing from the status of large scale importer.

With comparatively higher rate of economic growth rate index against that of great global powers, India has become a hub of domestic and exports business.

The automobile sector has been contributing its share to the shining economic performance of India in the recent years. With the Indian middle class earning higher per capita income, more people are ready to own private vehicles including cars and two-wheelers. Product movements and manned services have boosted in the sales of medium and sized commercial vehicles for passenger and goods transport.

Despite the fiscal slowdown worldwide, India had maintained its growth rate at a steady 8-8.5 per cent and the automobile industry has also grown in excess of 13 per cent over the last few years. With easy financing options and with the wide range of cars being launched frequently, the Indian automobile enthusiasts have never seen it better.
In the Automotive Mission Plan – 2006-2016 it is stated, ‘By 2016, India would emerge as the world’s seventh largest car producer (as compared to the eleventh largest currently) and retain 4th largest position in world truck manufacturing sector. Further, by 2016, the automotive sector would double its contribution to the country’s GDP from current levels of 5 per cent to 10 per cent. Its contribution to the manufacturing sector would rise to 30-35 per cent from the current level of 17 per cent. This is because the share of manufacturing in GDP is expected to go up to around 35 per cent from current level of 17 per cent by 2016’

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