This excerpt taken from the TTM 6-K filed Sep 29, 2008.
The Indian auto industry is one of the largest industrial sectors in India, with a turnover that contributes to roughly 5% of Indias gross domestic product. The Indian automobile industry contributes nearly 17% to total indirect taxes and provides direct and indirect employment to over 13 million people. Car penetration in India is extremely low with only 7 cars per 1,000 people. The Automotive Mission Plan (AMP) 2006-2016 aims at doubling the contribution of automotive sector in GDP to 10% by taking the turnover to US$ 145 billion in 2016 with special emphasis on export of small cars, MUVs, two & three wheelers and auto components. (Source: Automotive Mission Plan 2006-2016).
Until the mid-1990s, the auto sector in India had been a relatively protected industry with limits on the entry of foreign companies through import tariffs. Post liberalization, the industry has experienced rapid development. As per Indian Brand Equity Foundation (IBEF) article last updated (April-June 2008) as viewed on July 17, 2008), India is the worlds second largest manufacturer of two wheelers, fourth largest manufacturer of commercial vehicles and eleventh largest manufacturer of passenger vehicles.
The Indian automotive industry is highly competitive with a number of global and Indian companies present in the market. The foreign companies are present in India either through joint ventures with local partners wholly/partially owned technology tie-ups or as subsidiary companies of their parent companies. Most players are present in more than one segment. The industry is also witnessing diversification by players into other segments. The passenger cars and commercial vehicles industries in particular are poised to witness the entry of new players.