New Delhi: After two decades of impressive growth, the automobile sector’s performance has not been encouraging after 2006-07, but its growth turned modestly positive last fiscal, touching a domestic turnover of Rs2.19 lakh crore, the Economic Survey said on Thursday.
Although auto industry production grew at a CAGR of 11.5% over the last five years, in 2007-08 it fell into negative territory (-2.3%), after witnessing a high growth rate of 13.6% in 2006-07.
“However, in 2008-09, the industry has witnessed a modest growth of 3%,” the pre-Budget Economic Survey, tabled in Parliament, noted.
But, the utility and commercial vehicle segment remained an area of concern with negative growth rates of (-)11.9% and (-)24%, respectively.
The domestic turnover of the sector in 2008-09 was about Rs2,18,996 crore, while exports totalled Rs31,782 crore. Taken together, domestic as well as export figures, the total size of India’s auto industry was Rs2,50,778 crore during that fiscal.
“The turnover and the exports of the automobile vehicle industry in 2008-09 were at Rs1,42,646 crore and Rs16,782 crore,” the Survey said.
On the other hand, the domestic turnover of the auto components industry was Rs76,320 crore, while exports garnered Rs15,000 crore in 2008-09.
Noting that the auto industry employs 10.5 million people, directly as well as indirectly, the Survey said that the sector has “a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy”.