The automobile industry was severely hit by the COVID 19 pandemic. But with receding pandemic, macroeconomic factors and resurging economic growth, the industry is gaining traction and with the year-end incentives in pipeline, the industry is upbeat about sustained growth. The Omicron virus could, however, throw a spanner in the works.
The Indian automobile industry is of more than ?8 lakh crore and its turnover contributes approximately 7.1 per cent of overall GDP, 27 per cent of industrial GDP and 49 per cent of manufacturing GDP. Two-wheeler is the largest contributor to the automobile sector contributing about four-fifth to the overall industry followed by passenger vehicles contributing approximately 13 per cent to the industry.