Automobile exports cross 2 billion mark

New Delhi, Feb 27 (UNI) The automobile sector clocked an impressive export figure of 2.28 billion dollars in 2005-06, selling 17.7 per cent and 16.3 per cent of its domestic production of three wheelers and passenger cars outside the country, according to the Economic Survey 2006-07.

During the period, the industry produced 1.7 million four wheelers (passenger cars, jeeps and light, medium and heavy commercial vehicles) and more than 8 million two and three wheelers, says the survey, presented in Parliament today.

It attributes the high export figure to the delicensing regime and the opening of the sector to foreign direct investment.

Recognising auto component industry as one of the fastest growing segments of Indian manufacturing, the Survey says the turnover of the sector has grown from 3.1 billion dollars to 10 billion dollars between 1997-98 and 2005-06.

In 2005-06, the sector's exports grew by 28 per cent to reach 1.8 billion dollars.

The major challenges facing the auto industry is with respect to its capability to innovate and upgrade in order to remain competitive, the survey showed.

UNI