Auto sector growth rate 3% in 2008-09

Auto industry has witnessed a modest growth of three per cent in the year 2008-09. It was 13.6 per cent in 2006-07 while it fell into red (-2.3%) in 2007-08. These figures were disclosed during the presention of Economic Survey in Parliament on Thursday. Although auto industry production grew at a CAGR of 11.5 per cent over the last five years. Auto sector turnover crossed Rs 2 lakh crore in the last fiscal whereas the industry employs 10.5 million people, directly as well as indirectly. "The industry has a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy," a finance ministry statement said. The automobile industry, which was plagued by the economic downturn amidst a credit crisis, managed a growth of 0.7 per cent in 2008-09 with passenger car sales registering 1.31 per cent growth while the commercial vehicles segment slumped 21.7 per cent.