BUSINESS


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AUTOMATIVE

An automobile is a wheeled vehicle that carries its own motor. Different types of automobiles include cars, buses, trucks, and vans, with cars being the most popular by far. Older terms include horseless carriage and motor car, with motor referring to what is now usually called the engine. The act of operating an automobile is called driving. An automobile has seats for the driver and, almost without exception, one or more passengers.

himalyan.biz The costs of automobile ownership, which may include the cost of: acquiring the vehicle, repairs, maintenance, fuel, depreciation, parking fees, tire replacement, taxes and insurance, are weighed against the cost of the alternatives, and the value of the benefits - perceived and real - of vehicle ownership. The benefits may include personal freedom, mobility, independence and convenience

The installed capacity of the automotive industry has been growing at a compounded annual rate of over 16 per cent since 2001-02. It produced a wide variety of vehicles including 1.7 million four wheelers (passenger cars, light, medium and heavy commercial vehicles, multi-utility vehicles such as jeeps), and over 8 million two and three wheelers (scooters, motor-cycles, mopeds, and three wheelers) in 2005-06.

himalyan.biz The Indian auto industry has grown at an impressive 16.82 per cent over the last year with total sales of vehicles reaching around 10 million vehicles till November 2006 as against 8.5 million in 2005. Spurred by a huge demand from the market, the increase in production is set to improve further driven by a buoyant economy, with increasing purchasing power, new product launches, coupled with attractive finance schemes from automobile manufacturers and financial institutions.

Pasengers sales shown increasing rate of growth at the start of the new fiscal year. For example, Maruti, Honda and General Motors, which account for 60 per cent of the market, jumped 16 per cent in April, 2007 over the same month last year.

Signs of economic development are becoming more visible both in rural and urban India with the number of households owning cars and motorcycles increasing significantly in recent years.

himalyan.biz The number of rural households possessing cars or jeeps has grown four times between 1993-94 and 2004-05, according to the 61st survey conducted by the National Sample Survey Organisation (NSSO). Similarly, motorcycle or scooter owners have increased from 11.6 per cent to 26.0 per cent.

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