Domestic market

Sales of car in commercial vehicle has been impacted due to global

economic slowdown. However in spite of that they have been a marginal
increase in the number of vehicles sold in 2008-09 as compared to
2007-08 Total number of vehicles sold including passenger vehicles,
commercial vehicles, two-wheelers and three-wheelers i n 2008-09 was
9 72 million as compare to 9.65 million in 2007-08 According to an Enst
& Young analysis, passenger vehicle le sales in the country will grow at
a CAGR of 12 per cent to touch 3.75 million units by 2 14 as against
1.89 million units at the end of 2008-09 While domestic market is expert
to contribute 2:75 million units to the totally, the remaining 1 million
units would contribute towards exports. Likewise as per estimates by
CARE Research, the domastwa-wheeler sales will grow at a CAGR ot
.Sper cent by 2014 at1 3 million units vis-a-vis 743 milion units in 2008-
09 TiondaSicl Cars India tHsCI), the Indian subsidiar of the Japanese ant
Honda Motor Co, said that its sates will register double digit grow
within the current financial year The company expects it’s total sales to
be

Exports
According to the Society of Indian Automobile Manufacturers (SIAM),
automobile safes (including passenger vehicles, commercial vehicles,
two-wheelers and three-wheelers) in t he overseas markets increased to
1.53 million units in 2008-09 from 1 23 million units in 2007 08. Export
of passenger vehicles increased from 218,401 in 2007-08 to 335.739
units in 2008-09 The growth in export was led by Hyundai Motor India,
followed by others such as MSIL. Mahindra Renault, Fiat India
Automobiles, General Motors India and Honda Sie! Cars India
Policy
In order to make India a power to reckon with in the automotive sector
the government launched the Automotive Mission Plan (AMP) 2006-
2016. The vision of the AMP Is "to emerge as the destination of choice
the world design and manufacture of automobiles and auto components
with output reaching a level of USS 145 billion accounting for more
than 10 per cent of the GDP and providing additional employment to 25
million people by 2016." As per the AMP, it is estimated that the total
turnover of the automotive industry in India would be in the order of
USS 122 billion-159 billion in2016 It is expected that in real terms.
India would continue to enjoy its eminent position of being the largest
tractor and three-wheeler manufacturers in the world and the world's
second largest two-wheeler manufacturer By 2016, India will emerge as
the words seventh largest car producer (as compared to the eleventh
largest currently) and retain the fourth largest position in world truck
manufacturing sector. Further. by 2016, the automotive sector would
double is contribution to the country's GDP from current levels of five
per cent to 10 per cent