The automobile industry in India may be the ninth largest filed in the world. Many Indian automobile manufacturers have spread their operations globally as well, asking for more investments in the Indian automobile sector by the MNCs. The automobile industry consisting of cars, busies, trucks, two-wheelers and three-wheelers, is vital to the growth of the Indian economy. In the last decade their share in the Indian economy is around 5% of GDP.
Economic progress is indicated by the amount of services and goods produced which give the impetus for transportation and boost the sale of vehicles. Increase in automobile production has a catalyst effect by indirectly increasing the demand for a number of raw materials like steel, plastics, glass, rubber, paint, electronics and services.
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