Automobile industry is the key driver of any growing economy. Due to Its deep forward and backward relation with almost every segment of the economy, the Industry has a string and positive multiplier effect and thus propels progress of a nation. With the falling demands for vehicles In most of the mature markets due to the global recession, high fuel costs and urban driving restrictions, the Industry Is focusing Its attention on expanding middle classes In the new powerhouses of China, India, Brazil, and other growing nations.
The Indian automobile market is one of the competitive markets with low costs, which make it an attractive assemble base for foreign automobile manufacturers. India is also the second fastest growing automobile market in the world after China. 12] 2. Market Segmentation The automobile industry has been broadly divided into the two wheelers, passenger vehicles, commercial vehicles and three wheelers. The various sub divisions of each segment is shown in the following figure 2. 1. Figure 2. 1 .
Market Segmentation of Automobile Industry Source http://www. ;beef. Org/download/Automotive-March-220313. PDF Source Figure 2. 1 . Market Segmentation of Automobile Industry The two wheelers dominate the production volumes in FYI 2012, which contributed for ore than three quarters of the total automobiles production in the country. India is the world’s 2nd largest two wheeler producer and the 4th largest commercial vehicle producer. Source http://www. Sanding. Com/scripts/market-share. Asps 2.
Passenger Vehicle Segments The segments in the passenger vehicle industry are done based on the price, utility and the length of each vehicle. There are different parameters based on which the cars available in the Indian market are categorized. The technically defining parameters are based on the length of the car, engine capacity, features offered, eating capacity and structure of the car etc. SIAM or Society of Indian Automobile Manufacturers divides the Indian passenger vehicles in the segments AY, AY, AY, AY, AS, AY, 81, 82 and SUB.