The automobile industry in India is one of the largest and the fastest growing industry in the world. The Indian automobile industry is undergoing a technological change. In order to sustain the competitive advantage and provide customers with the better products and services each and every firm is looking to change its processes and technologies. Indian automobile industry has achieved huge amount of success in the recent years in all segments of the automobile market especially in the luxury car segment. The foreign companies like Audi, Mercedes-Benz, BMW, Toyota etc., introduced their luxury cars in to the Indian market.

The luxury car dealers who are doing well in the major cities of all the states in India are trying to establish their show rooms in the small towns. For example, Parsoli Motors who are the dealers of BMW operating in Ahmedabad opened their new show room in Surat and they are looking for the major cities across the state and assessing the feasibility. Market for the pre owned luxury also good in these small towns and dealers of all the major luxury car makers like BMW, Audi, Mercedes-Benz are looking for setting up a preowned car show rooms. They are expecting 10 percent of net sales to come from the pre owned cars. Audi sold 285 cars in Ahmedabad in 2010, which is up by 60 per cent from 2009.