The rise in foreign investment has led to the rapid growth of automobile production, its export and developing of a more strong automobile industry. Overseas companies are making huge investments and are installing extensive production capacities in many developing countries. Today, the increase in the purchasing power and standards of living of people has resulted in the increased demand of automobiles especially four-wheelers in the developing nations. The fast pace of life and changes in lifestyles necessitates safer mobility for commuting to and from the work place and for traveling long distances. Research & development has resulted in increased productivity, better quality of automobiles and automotive accessories all across the globe. Low cost vehicles that are scooters and motorcycles have led to the massive growth of some of the fastest developing economies. The future of automotive industry in the developing countries seems bright and promising because of its further growth potential. Major automotive giants are shifting their production facilities to almost all emerging markets with the main purpose of gaining better access and reduction in their production costs.

According to the figures, South America and Asia have witnessed a boom in the past years. The various factors such as cheap financing and price discounts, rising income levels and infrastructure development have helped increasing the growth and development of automotive sector in the majority of developing countries around the world. The global automobile industry along with components and parts is expected to reach US$ 1.9 trillion by 2015, growth and it is thus evident that the economical potential of the auto industry is very high.

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