According to a report by SIAM (Society of Indian Automobile Manufacturers), production of automobiles in January 2012 registered a growth of 11.25 percent as compared to January 2011. This statement should give you an idea of how rapidly and progressively the automotive industry is growing. There are a few major factors that have brought about this escalation for automobile manufacturers in the country. Read on to find out what they are. There is a marked boom in the economy of the country, due to the inflow of many multinational companies, IT companies, corporate companies, international banks and the like. This has resulted in people having more disposable income. These days, homes have multiple cars parked in the garage as opposed to just one. The exposure to foreign countries, more family income, better lifestyles, comfortable living, and leisure activities has made comfort and status a priority for individuals. This translates into people desiring a comfortable and private mode of transport, making automobiles the best option. The government of India has taken some steps to help the industry as well. The reduction of import tariffs, the recent reduction in the excise duty from 24% to 16% for small cars, and relaxed equity regulations for the sector have all aided manufacturers in dropping prices of vehicles. This has made cars affordable for all income groups’ population and boosted sales. The population of India is booming, making traveling by means of public transport an unpleasant task. Due to the crowd and safety issues, more and more people are choosing to invest money in an automobile for personal use. Plus, an average household has more than one person earning. The offices are in different parts of the city, thus making it necessary to buy multiple automobiles. The automotive industry in the country is highly competitive. Using the latest technological advancements and developments, the manufacturers are luring in consumers by offering discount schemes and providing awesome features like power steering, airbags, radial tubeless tyres, anti-lock breaking systems, tip-tronic fuel transmissions, better pick-up speeds, fuel efficiency, central locking, choices in colours, accessories, amazing looks, designs, new models every year, segment options, and model options. One of the most important factors is the ready availability of car loans throughout the country. Most well-known banks have finance provisions for consumers with affordable rates of interest, deductions, and smooth repayment facilities. The process for getting such loans is fairly quick and easy, and a majority of retailers have tie-ups with major banks to help you negotiate the best deal. All these factors have played a significant role in making the Indian automotive industry what it is today, and giving automobile manufacturers plenty to look forward to in the years to come.