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High growth has been observed since 2001-02 in automobile production. Annual growth was 16.0 percent in April-December, 2004; the growth rate in 2003-04 was 15.1 percent (Table 1.1). Consequent to liberalization, the arrival of new and contemporary models, easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers appear to have stimulated the demand for vehicles and a strong growth of the industry. The automobile industry grew at a Compound Annual Growth Rate (CAGR) of 22 percent between 1992 and 1997. With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector, the automotive industry's turnover, which was about Rs. 84,000 crore in 2002-03, has been estimated to have exceeded Rs.1,00,000 crore in 2003-04.
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