The Indian automotive industry is growing at a rapid pace, mainly due to the growing economic prosperity which has resulted in people having more disposable income on their hands. At the same time, lack of proper road infrastructure, the rising cost of fuel and the high overall maintenance costs of vehicles have proved to be major obstacles to the industry’s sustained growth. The automotive industry can be broadly categorised under passenger cars and utility vehicles, commercial vehicles and two wheelers. Of these, two wheelers command a major market share, followed by the passenger car segment. An overwhelming number of vehicles sold in the country are used by private households, with the rest being utilised for commercial purposes. Apart from local car and two wheeler manufacturers, a string of foreign automotive players have also entered the Indian market and some of them have already gained a strong foothold in the region. While a rise in India’s working population and easier availability of finance has led to rapid increase in the purchase of vehicles at all levels, other factors such as the recent economic slowdown and high interest rates have proved to be stumbling roadblocks in the process. Increased government support and more subsidies to vehicle manufacturers should go a long way towards further expansion of the Indian automotive industry. Hide this