The Indian Automobile Industry is on overdrive. The rapid urbanization, coupled with an overwhelming growth in the middle class population, has created an Indian market that is extremely conducive for the automobile industry to flourish. With a number of foreign brands joining ranks with the domestic manufacturers, the Indian consumer is now flooded with choice. An average Indian can now select from a wide range of Indian and foreign products.

India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 4.2 million units in 2011. In 2010, India reached as Asia's third largest exporter of passenger cars, behind Japan and South Korea beating Thailand.

The liberalization policies of government have been one of the biggest factors behind the industry's rapid growth. Supportive policy measures like relaxation of foreign exchange and equity regulations, reduction tariffs on imports, and banking liberalization leading to a boom in financing driven purchases and convenient EMIs have contributed to the present success of the Indian automobile industry.

The Indian Automobile Industry manufactures over 11 million vehicles and exports about 1.5 million each year. The industry has a turnover of more than USD $35 billion and provides direct and indirect employment to over 13 million people.

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