he automotive industry plays a crucial role in economic prosperity of the nation, creating jobs and provides direct revenue to the government. Overall, it expands the tax base of a nation.
The Indian automobile market is one of the fastest growing markets in the world and ranks sixth at a global level, among passenger and commercial vehicle manufacturing countries.
The industry presently accounts for almost 7 per cent of the country's GDP and employs about 19 million people, directly and indirectly. However, the automobile sector has been experiencing negative growth rate from quite some time.
It witnessed a 9.59% drop in annual car sales for the first time in 11 years in 2013. Despite the introduction of 101 models, including 35 which are completely new ones and excise duty cuts, car sales registered a steep decline of 5% for FY 2013-14 as against the last year.
High fuel prices, dollar-rupee exchange rate and high interest rates have also affected sales and dampened market sentiments.Text
: Charu Kishnani, Car Dekho
www.CarDekho.com, India's #1 auto portal!
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