How was the automobile industry a boon for employment
Answers
Automobile industry in India has come of age. The roads once dominated by Ambassadors and Premier Padminis are now teeming with foreign-born luxury cars. The public transport system that started with hand-pulled rikshaws and bullock carts has advanced to a stage where air-conditioned cars can be hailed with a tap on the smartphone screen. In 68 years of independence, India witnessed an extraordinary revolution in the automotive sector.
A world of opportunities opened up in the post-liberalisation India for the global automakers. Suzuki, Toyota and Hyundai were the pioneers to venture into the market but now, all major carmakers have invested in manufacturing in India, clearly upholding the fact that despite several negative perceptions still associated with the country, India is competitive and capable of delivering quality.
Hyundai, which set up their plant in the Chennai in 1996, now exports to 119 countries, shipping over 190,000 cars in 2014-15. Maruti, too, saw sales of 1.29 million vehicles last year, registering a growth of 11.1 per cent over the previous year.
Indians bought around three million cars in 2012 when demand was at its best and various initiatives by the Government and major manufacturers are set to make India the third largest car market by 2020, with sales of 4-5 million annually.
Excise duty on small cars, scooters, motorcycles and commercial vehicles was reduced in February last year to 8 per cent from 12 per cent to boost the ‘Make in India’ initiative. Thus, India is poised to beat China, North America and Europe to become the fastest growing automotive market.
While the auto industry is one of the greatest engines of economic growth in India, it’s sad that the country is too far from world-class when it comes to