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India is word's sixth largest vehicle manufacturer globally. Further, India is the Asia's second  largest two wheeler manufacturer and  fifth largest producer of commercial vehicle, fourth largest manufacturer of passenger car and the largest manufacture of tractor.
Sales across passenger cars, commercial vehicles, two‐wheelers, and three-wheelers have been affected in the past 2–3 years due to high interest rates, rising fuel prices, and the overall economics lowdown.
The sector has witnessed the entry of several new manufacturers with state of the art technology, thus replacing the monopoly of a few manufacturers.
Two wheelers account for a majority of the share in terms of export sales, with key export destinations being the markets in Asia and Africa.
Two-wheeler exports declined slightly in FY12 for the first time in the last decade on account of hike in import duty and uncertainties in the global economic environment.
The government favors FDI as it has the potential to generate employment, raise productivity, transfer skills and technology, enhance exports, and long-term economic development of the country.
The growth of global OEM sourcing from India and the increased indigenization of global OEMs is turning the country into a preferable designing and manufacturing base.

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