Auto output to cross10m by 07

New Delhi, Feb 25 | Updated: Feb 26 2005, 06:08am hrs
The Indian automobile sectors production will likely exceed 10 million vehicles in the next two years, said the Economic Survey highlighting the benefits reaped from the progressive liberalisation of foreign investment and the import of technology.

It estimates the automotive industrys turnover for 2003-04 to have exceed Rs 1 lakh crore. Easy availability of finance at low interest rates with easy repayment options, price discounts from dealers and manufacturers and the arrival of new and contemporary models as the demand drivers for the auto industry, the survey said.

The industry has registered growths of 18% and 15% respectively in the last two financial years. For April-January this fiscal, the auto industry output grew 17.4% to touch nearly 7 lakh units.

Racing Ahead
Total industry turnover exceeded Rs 1 lakh crore in 2003-04
Auto parts industry grows 20% to Rs 30,640 crore
Cost cutting and export focus crucial for performance
Of particular significance is the robust growth of auto exports at rates of 66.4% and 56% respectively, which reflects the global standards achieved by the industry. For the nine-month period ended December 2004, over 4.5 lakh vehicles were exported, a growth of 33%.

The auto component industry also grew 20% in 2003-04 to achieve a sales turnover of Rs 30,640 crore, the Survey said naming this as a sunrise sector with a potential for higher growth due to increased outsourcing global original equipment manufacturers.

The fastest growth in volumes comes from the commercial vehicles segment.