Released on = August 23, 2007, 5:07 am

Press Release Author = Shushmul Maheshwari

Industry = Automotive

Press Release Summary = According to OICA, India has rolled three positions down in
2006 world rankings for growth in passenger car production. But despite this
downtrend, the country has registered a healthy growth in absolute terms.

Press Release Body = India has dropped to the 14th rank (from 11th position in 2005)
in 2006 world rankings for growth in the production of passenger cars.

The OICA (International Organization of Automobile Manufacturers) has noted that
India clocked in a rise of 16.5% in 2006 as compared to just 7% in 2005. But still,
the country dove by three positions in the rankings primarily due to the fact that
countries like Nigeria and Finland, whose annual passenger car production is in four
figures only, registered an outstanding growth of more than 50%.

But in production terms, India climbed one step up to the 7th place in 2006 by
producing over 14.7 Lakh cars. The country replaced UK that reported a sharp decline
of around 9.6% from 2005.

The Government of India has been giving tax rebates and putting other measures in
place to make the country a low cost car producing destination in Asia. The factors
that are working in favor of India are its cheap labor cost (this is the principal
reason why India is considered for production outsourcing), expanding middle class
base, rising standards of living among affluent class and increasing manufacturing.
On the back of these strong parameters, foreign investors are increasingly
channeling more investments into India.

Mr De Filippis Giovanni, Managing Director, Fiat India, stated to Business Line that
decline in the position of India is not a cause of concern. "The market is robust.
We expect the growth momentum to be sustained even this year", added Mr Giovanni,
according to the news published by MoneyControl.com on July 3, 2007.

RNCOS report "Indian Automobile Sector - A Booming Market" calls Indian automobile
industry a flourishing industry with immense growth potential. Among all the
segments, passenger car (contributed over 77.9% in 2006-07) dominates the passenger
vehicles market in India. The production of passenger vehicles crossed 1544,800
units in 2006-07, whereas the commercial vehicles' production stood at nearly
520,050 units in 2006-07, a jump of around 33% from 2005-06. This incredible
increase in production will push the car sales that are expected to grow at an
annual rate of 12% from 2007-08 to 2011-2012.

The report presents a comprehensive picture of the Indian automobile industry,
including production, sales, and export of passenger cars, commercial vehicles, 2
and 3-wheelers, and auto components. It gives a rational analysis of factors
impacting the industry both in positive and negative ways.

About RNCOS E-Services Pvt Ltd.:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM526.htm
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