The Hindu : Business : Auto sector registers growth despite slowdown

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Auto sector registers growth despite slowdown

Special Correspondent

NEW DELHI: Despite economic slowdown that has affected the automobile industry, production and exports of the sector went up last fiscal, said the Economic Survey 2008-09, and underlined that the industry employs over one crore people. While the overall automobile production went up by 3 per cent to reach 1.11-crore, exports increased by over 23 per cent to over 15-lakh. The domestic turnover of the sector stood at Rs. 2.19-lakh crore, while exports totalled at Rs. 31,782 crore, taking the total size of the industry to Rs. 2.50-lakh crore during 2008-09.

The survey also pointed out that although auto industry production grew at a CAGR of 11.5 per cent over the last five years, in 2007-08 it fell into the negative territory (-2.3 per cent), after witnessing a high growth rate of 13.6 per cent in 2006-07. “However, in 2008-09, the industry has witnessed a modest growth of three per cent,” it said. However, it was the utility and commercial vehicle segment that remained an area of concern with negative growth rates of (-)11.9 per cent and (-)24 per cent.The survey said the automobile sector has a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy.

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