Automotive

Automotive

The automotive industry consists of companies—often referred to as automakers—that are involved in the design, development, manufacturing, marketing, and sale of motor vehicles. However, this definition excludes businesses focused solely on the post-sale maintenance and servicing of automobiles.

Among the 50 countries with the infrastructure to assemble or manufacture vehicles, only 13 nations—including India—possess the capability to design vehicles entirely from scratch. Notably, India ranked 5th among the top 20 motor vehicle-producing countries in 2016. Major global automotive groups by production volume include Toyota, Volkswagen, General Motors, Hyundai, Ford, Nissan, Fiat Chrysler, Honda, Suzuki, and Renault.

Over the past few decades, the Indian automotive industry has played a significant role in the nation’s economic development. Since the liberalization of the sector in 1991, which allowed 100% foreign direct investment (FDI) and removed licensing requirements, the industry has experienced substantial growth. Often referred to as the “industry of industries” due to its mass production and mass consumption dynamics, the automotive sector fuels a vast ecosystem. A critical part of this ecosystem is the automotive aftermarket, which is entirely dependent on the health and expansion of the primary automotive industry.

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