Indian manufactures over 11 million vehicles including 2 wheelers and 4 wheelers and exports about 1.5 million every year. It is the world's second largest manufacturer of motorcycles, annual sales exceeding 8.5 million in 2010 . Indian passenger car and commercial vehicle manufacturing industry is the seventh largest in the world with an annual production of more than 2.6 million units in 2010 in 2011 India emerged as Asia's fourth largest export of passenger cars, behind Japan, South Korea, and Thailand.
Post liberalization in 1991 and gradual weakening of the licence raj, a number of Indian and multinational car company launched operations. Since when , automotive component and auto mobile manufacturing growth has accelerated to meet domestic and export demands.
From February 2009, monthly sales of passenger cars in India exceeded 1 lac units and has since grown rapidly to record monthly height of 182992 units in October 2009.
From 2003 to 2010, car sales in India have progressed at a CAGR of 13 .7 percent and with only 10 per cent of Indian households owning a car in 2010 where are this figure reaches 80 % in Switzerland for example. This progression is unlikely to stop in the coming decade. Congestion of Indian roads, more than the market demand, will likely be the limiting factor. SIAM is the apex industry body representing all the vehicle manufacturers, home-grown and international in India.
Study can be done on the consumer behavior and advertising effectiveness of emergence of D & E segment cars in India. The objective of the research can be to find out the present status of the automobile industries in India and to study the consumer acceptability to watch the high end and purchasing power for expensive cars. The motto can be for the purchase of the D & E segment cars is not just for increasing the society status, but for more of a convenience, efficiency and durability purpose.