A market is never saturated with a good product, but it is very quickly saturated witha bad one. - Henry Ford”INDIAN AUTOMOBILE INDUSTRYThe automotive industry is one of the largest industries worldwide and in India aswell. The automotive sector is a vital sector for any developed economy. It drivesupstream industries like steel, iron, aluminium, rubber, plastics, glass and electronics,and downstream industries like advertising and marketing, transport and insurance.The automotive industry can be divided into five sectors:- 1) Passenger Cars 2) Multi- Utility Vehicles (MUVs) 3) Two- and Three- Vehicles 4) Commercial Vehicles - Light Commercial Vehicles (LCVs) / Medium and Heavy Commercial Vehicles (MHCVs) 5) TractorsWe will be looking at the Passenger car industry in India.Despite a head start, the passenger car industry in India has not quite matched up tothe performance of its counterparts in other parts of the world. The primary reason hasbeen the all-pervasive regulatory atmosphere prevailing till the opening up of theindustry in the mid-1990s. The various layers of legislative Acts sheltered the industryfrom external competition for a long time. Moreover, the industry was consideredlow-priority as cars were thought of as ‘unaffordable luxury’.The following table presents a comparative view of the extent of motorization in Indiavis-à-vis certain other countries in the world