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Fast Growing Automobile Industry In India Essay

1151 words - 5 pages

Indian automobile industry is a globally one of the largest industries and a key sector of the economy. The automobile industry is one of the prime industry in india and now one of the fastest growing industries in the world in terms of vehicle manufacturing. The automobile sector in Indian industry is one of the high performing sectors of the Indian economy this has added largely in crating india an important intension for many international players in the automobile industry who desire to deposit up their business in india. The automobile industry in india is increasing by 18 per cent per year. The automobile sector in india was opened upto foreign investment in the year 1991. 100& FDI is allowed in the automobile industry. FDI inflow to automobile industry have been at an increasing rate as india has witnessed a major economic liberalization over the years in terms of various industries. The automobile sector in India is growing by 18 percent per year. The basic advantages provided by India in the automobile sector include, advanced technology, cost-effectiveness, and efficient manpower. Besides, India has a well-developed and competent Auto Ancillary Industry along with automobile testing and R&D centers. The automobile sector in india ranked third in manufacturing three wheelers and second in manufacturing two wheelers. The major investing countries are Mauritius, USA, Japan, UK, Germany, Netherlands and South Korea. The main objective of this research is to study the FDI in Indian Automobile sector. Researcher has used both primary and secondary data to accomplish all the research objectives.


Purpose of the Study
a. To study the concept of Foreign Direct Investment
b. To examine the Foreign Direct Investment inflow in India Automobile sector
c. To study the growth of FDI in Indian Automobile Sector
d. To analyze the potential of Indian Automobile Sector in terms of FDI
Context of the study
This research work is completely based on FDI in Indian automobile industry. As india is considered to be the 4th largest FDI destination in Asia. It is the most dynamic manufacturing sector of the country as well. This dynamic sector consist of many companies which gives each other very tough competition. Auto industry has grown in skills and lower prices. The chief players in Indian automobile industry are Hyundai Motor India Limited, Mahindra & Mahindra Limited, Hero Honda Motor Limited, TVS Motor Company Limited, Maruti Udyog Limited, Bajaj Auto Limited, and Tata Motors Limited. Big names like Ford Motor Company, General Motors, GE Corporation, Nissan-Renault, DiamlerChrysler, VW Group, Honda Motors, and Toyota Motors have set up their manufacturing units in India. With the help of 100% FDI in automobile industry direct investment inflow in Indian opportunity and benefits, important aspect of FDI. The cumulative foreign direct investment inflow into the Indian automobile industry during april 2000 to oct 2013...

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