Automobile Industry

By: EconomyWatch Date: 30 June 2010

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In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled, military tractor that made the use of a steam engine. The range of the automobile, however, was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these automobiles were not fit for the roads as the steam engines made them very heavy and large, and required ample starting time. Oliver Evans was the first to design a steam engine driven automobile in the U.S.
A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832 and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson were amongst the first to invent more applicable automobiles, making use of nonrechargeable electric batteries in 1842. Development of roads made travelling comfortable and as a result, the short ranged, electric battery driven automobiles were no more the best option for travelling over longer distances. The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk production of cars. This lead to the development of the industry and it first begun in the assembly lines of his car factory. The several methods adopted by Ford, made the new invention (that is, the car) popular amongst the rich as well as the masses. According the History of Automobile Industry US, dominated the automobile markets around the globe with no notable competitors. However, after the end of the Second World War in 1945, the Automobile Industry of other technologically advanced nations such as Japan and certain European nations gained momentum and within a very short period, beginning in the early 1980s, the U.S Automobile Industry was flooded with foreign automobile companies, especially those of Japan and Germany. The current trends of the Global Automobile Industry reveal that in the developed countries the Automobile Industries are stagnating as a result of the drooping car markets, whereas the Automobile Industry in the developing nations, such as, India and Brazil, have been consistently registering higher growth rates every passing year for their flourishing domestic automobile markets.

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Automotive industry in India

From Wikipedia, the free encyclopedia

This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (May 2012)

Mahindra Scorpio, one of India's best selling indigenously developed SUV.

Indian-assembled Audi A4 at Audi India Production Facility, Aurangabad

The Tata Nano - the cheapest car made in India

The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units in 2011.[1] According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil), growing 16 to 18 per cent to sell around three million units in the course of 2011-12.[2] In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand.[3] In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second (after China) fastest growing automobile market in the world.[4][5] According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by 2020. [6] By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.[7]

The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster consisting ofChennai and Bangalore is the biggest with 35% of the revenue share. The western hub near Mumbai and Pune contributes to 33% of the market and the northern cluster around the National Capital Region contributes 32%.[8] Chennai, is also referred to as the "Detroit of India"[9] with the India operations ofFord, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, and PSA Peugeot Citron is about to begin their operations by 2014. Chennai accounts for 60% of the country's automotive exports.[10] Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car manufacturer, Maruti Suzuki, is based.[11] The Chakan corridor near Pune, Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors[12][13] having assembly plants in the area. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster. Another emerging cluster is in the state of Gujaratwith manufacturing facility of General Motors in Halol and further planned for Tata Nano at Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up in Gujarat.[14] Kolkatta with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country.[15][16][17]
Contents
[hide]

1 Overview 2 History 3 Industry Definition 4 Key statistics

o o o o o o

4.1 Automobile production 4.2 Automobile sales 4.3 Automobile exports 4.4 Product and service segmentation 4.5 Vehicle registration 4.6 Total Number of Vehicle Registrations in India from 2001 to 2008

5 Emission norms 6 Geographic segmentation

o o

6.1 Geographical segmentation: state-wise motor vehicles registration in India from 2001 to 2008 6.2 Geographical segmentation: category-wise number of registrations in states and union territories of India

7 Manufacturing facilities

7.1 Bihar

o o o o o o o o o

7.2 Gujarat 7.3 Haryana 7.4 Himachal Pradesh 7.5 Karnataka 7.6 Madhya Pradesh 7.7 Maharashtra 7.8 Punjab 7.9 Rajasthan 7.10 Tamil Nadu

8 Exports

8.1 Top 20 export destinations in 2007-2008 and growth from previous year

9 Passenger vehicles in India

o o

9.1 Indian automotive companies 9.2 Foreign automotive companies in India

9.2.1 Vehicles manufactured or assembled in India 9.2.2 Vehicles brought into India as CBUs

10 Commercial vehicle manufacturers in India

o o o

10.1 Indian brands 10.2 Joint Venture Brands 10.3 Foreign brands

11 Electric car manufacturers in India 12 Electric vehicle and Hybrid vehicle (xEV) industry 13 Market characteristics

o o

13.1 Market size 13.2 Demand determinants

14 International markets analysis 15 Life cycle 16 Industry assistance 17 Capital and labour intensity 18 Industry volatility 19 Key competitors

o o

19.1 Tata Motors 19.2 Maruti Suzuki India

o o o

19.3 Hyundai Motor India 19.4 Mahindra & Mahindra 19.5 Ashok Leyland

20 See also 21 Further reading 22 Footnotes

[edit]Overview

The Indian Automobile Industry manufactures over 11 million vehicles and exports about 1.5 million each year.[18] The dominant products of the industry are two-wheelers with a market share of over 75% and passenger cars with a market share of about 16%.[18] Commercial vehicles and three-wheelers share about 9% of the market between them. About 91% of the vehicles sold are used by households and only about 9% for commercial purposes.[18] The industry has a turnover of more than USD $35 billion and provides direct and indirect employment to over 13 million people.[18]??? The supply chain is similar to the supply chain of the automotive industry in Europe and America. Interestingly, the level of trade exports in this sector in India has been medium and imports have been low. However, this is rapidly changing and both exports and imports are increasing. The demand determinants of the industry are factors like affordability, product innovation, infrastructure and price of fuel. Also, the basis of competition in the sector is high and increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the advantages of this sector in India are yet to be leveraged. With a high cost of developing production facilities, limited accessibility to new technology, and increasing competition, the barriers to enter the Indian Automotive sector are high. On the other hand, India has a welldeveloped tax structure. The power to levy taxes and duties is distributed among the three tiers of Government. The cost structure of the industry is fairly traditional, but the profitability of motor vehicle manufacturers has been rising over the past five years. Major players, like Tata Motors and Maruti Suzuki have material cost of about 80% but are recording profits after tax of about 6% to 11%.[18] The level of technology change in the Motor vehicle Industry has been high but, the rate of change in technology has been medium. Investment in the technology by the producers has been high. System-suppliers of integrated components and sub-systems have become the order of the day. However, further investment in new technologies will help the industry be more competitive. Over the past few years, the industry has been volatile. Currently, India's increasing per capita disposable income which is expected to rise by 106% by 2015[18] and growth in exports is playing a major role in the rise and competitiveness of the industry.

Tata Motors is leading the commercial vehicle segment with a market share of about 64%.[18] Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%.[18] Hyundai Motor India Limited and Mahindra and Mahindra are focusing expanding their footprint in the overseas market. Hero MotoCorp is occupying over 41% and sharing 26%[18] of the two-wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three-wheeler market. Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In 2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars. Steel is the major input used by manufacturers and the rise in price of steel is putting a cost pressure on manufacturers and cost is getting transferred to the end consumer. The price of oil and petrolaffect the driving habits of consumers and the type of car they buy. The key to success in the industry is to improve labour productivity, labour flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players. Utilising manufacturing plants to optimum level and understanding implications from the government policies are the essentials in the Automotive Industry of India. Both, Industry and Indian Government are obligated to intervene the Indian Automotive industry. The Indian government should facilitate infrastructure creation, create favourable and predictable business environment, attract investment and promote research and development. The role of Industry will primarily be in designing and manufacturing products of world-class quality establishing cost competitiveness and improving productivity in labour and in capital. With a combined effort, the Indian Automotive industry will emerge as the destination of choice in the world for design and manufacturing of automobiles.The Indian market offers endless possibilities for investors.[19]
[edit]History

The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small numbers. Embryonic automotive industry emerged in India in the 1940s. Mahindra & Mahindra was established by two brothers as a trading company in 1945, and began assembly of Jeep CJ-3A utility vehicles under license from Willys.[20] The company soon branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors.[21] Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the Indian private sector. Total restrictions for import of vehicles was set and after 1970 the automotive industry

started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanesemanufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies.[22] In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands. [22] Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which has attracted significant India-specific investment by multinational automobile manufacturers.[23] In February 2009, monthly sales of passenger cars in India exceeded 100,000 units[24] and has since grown rapidly to a record monthly high of 182,992 units in October 2009.[25] From 2003 to 2010, car sales in India have progressed at a CAGR of 13.7%, and with only 10% of Indian households owning a car in 2009 (whereas this figure reaches 80% in Switzerland for example)[26] this progression is unlikely to stop in the coming decade.[27] Congestion of Indian roads, more than market demand, will likely be the limiting factor. [28] SIAM is the apex industry body representing all the vehicle manufacturers, home-grown and international, in India.[29]
[edit]Industry

Definition

This class consists of units mainly engaged in manufacturing motor vehicles or motor vehicle engines. Products and Services The primary activities of this industry are: Motor cars manufacturing Motor vehicle engine manufacturing The major products and services in this industry are: Passenger motor vehicle manufacturing segment (Passenger Cars, Utility Vehicles & Multi Purpose Vehicles) Commercial Vehicles (Medium & Heavy and Light Commercial Vehicles) Two Wheelers Three Wheelers Supply Chain of Automobile Industry The supply chain of automotive industry in India is very similar to the supply chain of the automotive industry in Europe and America. The orders of the industry arise from the bottom of the supply chain i. e., from the

consumers and goes through the automakers and climbs up until the third tier suppliers. However, the products, as channelled in every traditional automotive industry, flow from the top of the supply chain to reach the consumers. Automakers in India are the key to the supply chain and are responsible for the products and innovation in the industry. The description and the role of each of the contributors to the supply chain are discussed below. Third Tier Suppliers: These companies provide basic products like rubber, glass, steel, plastic and aluminium to the second tier suppliers. Second Tier Suppliers: These companies design vehicle systems or bodies for First Tier Suppliers and OEMs. They work on designs provided by the first tier suppliers or OEMs. They also provide engineering resources for detailed designs. Some of their services may include welding, fabrication, shearing, bending etc. First Tier Suppliers: These companies provide major systems directly to assemblers. These companies have global coverage to follow their customers to various locations around the world. They design and innovate to provide "black-box" solutions for the requirements of their customers. Black-box solutions are solutions created by suppliers using their own technology to meet the performance and interface requirements set by assemblers. First tier suppliers are responsible not only for the assembly of parts into complete units like dashboard, brakes-axle-suspension, seats, or cockpit but also for the management of second-tier suppliers. Automakers/Vehicle Manufacturers/Original Equipment Manufacturers (OEMs): After researching consumers' wants and needs, automakers begin designing models which are tailored to consumers' demands. The design process normally takes five years. These companies have manufacturing units where engines are manufactured and parts supplied by first tier suppliers and second tier suppliers are assembled. Automakers are the key to the supply chain of the automotive industry. Examples of these companies are Tata Motors, Maruti Suzuki, Toyota, and Honda.Innovation, design capability and branding are the main focus of these companies. Dealers: Once the vehicles are ready they are shipped to the regional branch and from there, to the authorised dealers of the companies. The dealers then sell the vehicles to the end customers. Parts and Accessory: These companies provide products like tires, windshields, and air bags etc. to automakers and dealers or directly to customers. Service Providers: Some of the services to the customers include servicing of vehicles, repairing parts, or financing of vehicles. Many dealers provide these services but, customers can also choose to go to independent service providers.

[edit]Key

statistics

The production of automobiles has greatly increased in the last decade. It passed the 1 million mark during 2003-2004 and has more than doubled since.[30]
Year Car Production % Change Commercial % Change Total Vehicles Prodn. % Change

2010

2,814,584

29.39

722,199

54.86

3,536,783

33.89

2009

2,175,220

17.83

466,330

-4.10

2,641,550

13.25

2008

1,846,051

7.74

486,277

-9.99

2,332,328

3.35

2007

1,713,479

16.33

540,250

-1.20

2,253,999

10.39

2006

1,473,000

16.53

546,808

50.74

2,019,808

19.36

2005

1,264,000

7.27

362,755

9.00

1,628,755

7.22

2004

1,178,354

29.78

332,803

31.25

1,511,157

23.13

2003

907,968

28.98

253,555

32.86

1,161,523

22.96

2002

703,948

7.55

190,848

19.24

894,796

8.96

2001

654,557

26.37

160,054

-43.52

814,611

1.62

2000

517,957

-2.85

283,403

-0.58

801,360

-2.10

1999

533,149

285,044

818193

Year

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

Year

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

Motor Vehicle Production[18]

8,467,853

9,743,503

11,087,997

10,853,930

11,175,479

Industry Revenue USD Million[18] 24,379

26,969

30,507

32,383

33,342*

Exports (Units)[18]

629,544

806,222

1,011,529

1,238,333

1,530,660

Exports (Revenue)[18]

1,915

2,231

2,552

3,008

3,718*

[edit]Automobile

production
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Type of Vehicle

Passenger Vehicles[18]

1,209,876

1,309,300

1,545,223

1,777,583

1,838,697

Commercial Vehicles[18] 353,703

391,083

519,982

549,006

417,126

Three Wheelers[18]

374,445

434,423

556,126

500,660

501,030

Two Wheelers[18]

6,529,829

7,608,697

8,466,666

8,026,681

8,418,626

Total.

8,467,853

9,743,503

11,087,997

10,853,930

11,175,479

[edit]Automobile

sales
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Type of Vehicle

Passenger Vehicles[18]

1,061,572

1,143,076

1,379,979

1,549,882

1,551,880

Commercial Vehicles[18] 318,430

351,041

467,765

490,494

384,122

Three Wheelers[18]

307,862

359,920

403,910

364,781

349,719

Type of Vehicle

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

Two Wheelers[18]

6,209,765

7,052,391

7,872,334

7,249,278

7,437,670

Total

7,897,629

8,906,428

10,123,988

9,654,435

9,723,391

[edit]Automobile

exports
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Type of Vehicle

Passenger Vehicles[18]

166,402

175,572

198,452

218,401

335,739

Commercial Vehicles[18] 29,940

40,600

49,537

58,994

42,673

Three Wheelers[18]

66,795

76,881

143,896

141,225

148,074

Two Wheelers[18]

366,407

513,169

619,644

819,713

1,004,174

Total

629,544

806,222

1,011,529

1,238,333

1,530,660

[edit]Product

and service segmentation

The automotive industry of India is categorised into passenger cars, two-wheelers, commercial vehicles and three-wheelers, with two-wheelers dominating the market. More than 75% of the vehicles sold are twowheelers. Nearly 59% of these two-wheelers sold were motorcycles and about 12% were scooters. Mopeds occupy a small portion in the two-wheeler market however; electric two-wheelers are yet to penetrate. The passenger vehicles are further categorised into passenger cars, utility vehicles and multi-purpose vehicles. All sedan, hatchback, station wagon and sports cars fall under passenger cars.Tata Nano, is the world's cheapest passenger car, manufactured by Tata Motors - a leading automaker of India. Multi-purpose vehicles or people-carriers are similar in shape to a van and are taller than a sedan, hatchback or a station wagon, and are designed for maximum interior room. Utility vehicles are designed for specific tasks. The passenger vehicles manufacturing account for about 15% of the market in India.

Commercial vehicles are categorised into heavy, medium and light. They account for about 5% of the market. Three-wheelers are categorised into passenger carriers and goods carriers. Three-wheelers account for about 4% of the market in India.
Segment[18] 2003-04 2004-05 2005-06 2006-07 2007-08

Passenger Car[18] (%)

10.22

10.39

9.91

10.65

12.42

Utility Vehicles (UVs) (%)

2.15

2.23

2.18

2.18

2.39

Multi Purpose Vehicles (MPVs) (%)

0.87

0.82

0.75

0.82

0.98

Total Passenger Vehicles[18] (%)

13.25

13.44

12.83

13.65

15.79

Passenger Carriers (%)

0.36

0.32

0.32

0.28

0.43

Goods Carriers (%)

2.01

2.19

2.01

2.44

2.10

Total Medium & Heavy Commercial Vehicles[18] (%) 2.37

2.51

2.33

2.73

2.53

Passenger Carriers (%)

0.28

0.25

0.25

0.24

0.32

Goods Carriers (%)

1.17

1.27

1.36

1.67

1.77

Total Light Commercial Vehicles (%)

1.45

1.52

1.61

1.90

2.10

Total Commercial Vehicles[18] (%)

3.82

4.03

3.94

4.63

4.63

Passenger Carriers (%)

2.56

2.17

2.39

2.34

2.51

Goods Carriers (%)

1.61

1.73

1.65

1.65

1.51

Segment[18]

2003-04

2004-05

2005-06

2006-07

2007-08

Total Three Wheelers[18] (%)

4.17

3.90

4.04

4.00

4.01

Scoters/Scooterettee (%)

13.01

11.68

10.21

9.31

11.57

Motorcycles/Step-Throughs (%)

61.24

62.86

65.24

64.83

59.35

Mopeds (%)

4.52

4.08

3.74

3.52

4.47

Electric Two Wheelers (%)

0.07

0.19

Total Two Wheelers[18] (%)

78.76

78.63

79.18

77.73

75.57

Grand Total[18] (%)

100.00

100.00

100.00

100.00

100.00

[edit]Vehicle

registration

India had over 100 million vehicles registered on its roads in the year 2008.[18] This is a growth of about 100% in the past 9 years. Over 77% and about 77 million of these vehicles are two-wheelers, about 14% and over 14 million are cars, jeeps and taxis. Over 5 million and over 1 million vehicles registered are goods vehicles and buses respectively.[18] Two-wheelers account a significant market share. Tata Motors with the launch of Tata Nano is trying to attract some of these two-wheeler buyers to buy a small, cheap and affordable passenger car.
[edit]Total

Number of Vehicle Registrations in India from 2001 to 2008

Two Wheelers (in '000) Cars, Jeeps and Taxis (in '000) Buses (in '000) Goods Vehicles (in '000) Other Vehicles (in '000)

Year

All Vehicles (in '000)

2001

54,991

38,556

7,058

634

2,948

5,795

2002

58,924

41,581

7,613

635

2,974

6,121

Year

All Vehicles (in '000)

Two Wheelers (in '000)

Cars, Jeeps and Taxis (in '000)

Buses (in '000)

Goods Vehicles (in '000)

Other Vehicles (in '000)

2003

67,007

47,519

8,599

721

3,492

6,676

2004

72,718

51,922

9,451

768

3,749

6,828

2005

80,045

57,417

10,460

822

4,053

7,337

2006

88,068

63,487

11,571

879

4,345

7,891

2007

96,808

70,141

12,810

936

4,652

8,464

2008

106,591

77,588

14,222

1,003

5,018

9,065

[edit]Emission

norms

See also: Bharat Stage emission standards In tune with international standards to reduce vehicular pollution, the central government unveiled the standards titled 'India 2000' in 2000 with later upgraded guidelines as 'Bharat Stage'. These standards are quite similar to the more stringent European standards and have been traditionally implemented in a phased manner, with the latest upgrade getting implemented in 13 cities and later, in the rest of the nation. Delhi(NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Luc know, Solapur, and Agra are the 13 cities where Bharat Stage IV has been imposed while the rest of the nation is still under Bharat Stage III.
[edit]Geographic

segmentation

The total number of new vehicles registered in the 28 states and 7 union territories of India in the year 2008 were about 106,591. The diagram above displays the registration of new vehicles in various states and union territories. About 16 states and 1 union territory had over a million new vehicles registered. Tamil Nadu had about 16 million new vehicles registered, Maharashtra had over 13 million, and Gujarat had over 10 million. About 91% of these vehicles are non-commercial vehicles purchased by households looking for a two-wheeler, or a car. Only about 9% of new vehicles registered are used for commercial purposes. Details of category wise

new vehicle registrations in the various states and union territories are displayed. The number of new vehicles registrations has grown by about 66% in the past five years.
[edit]Geographical

segmentation: state-wise motor vehicles registration in India from 2001 to 2008

2001 (in '000) 2002 (in '000) 2003 (in '000) 2004 (in '000) 2005 (in '000) 2006 (in '000) 2007 (in '000) 2008 (in '000)

States\Year

Andhra Pradesh

1111

4,389

5,002

5,720

6,446

7,232

8,042

8,989

Arunachal Pradesh

21

21

21

21

21

21

21

21

Assam

542

596

657

727

798

883

973

1,086

Bihar

949

1,024

1,121

751

726

694

647

593

Chhattisgarh

857

948

1,076

1,216

1,367

1,536

1,726

1,939

Goa

341

366

397

436

483

537

585

638

Gujarat

5,576

6,008

6,508

7,087

7,892

8,785

9,633

10,543

Haryana

1,949

2,122

2,279

2,548

2,883

3,267

3,689

4,164

Himachal Pradesh

217

244

269

289

329

375

421

480

Jammu & Kashmir

330

364

399

439

493

556

628

719

Jharkhand

909

984

1,101

1,217

1,341

1,479

1,630

1,796

Karnataka

3,537

3,636

3,738

3,977

4,338

4,717

5,036

5,360

Kerala

2,112

2,315

2,552

2,792

3,180

3,612

4,034

4,564

States\Year

2001 (in '000)

2002 (in '000)

2003 (in '000)

2004 (in '000)

2005 (in '000)

2006 (in '000)

2007 (in '000)

2008 (in '000)

Madhya Pradesh

3,095

3,173

3,459

3,804

4,119

4,442

4,710

4,968

Maharashtra

6,760

7,414

8,134

8,969

10,055

11,281

12,477

13,817

Manipur

77

90

97

106

114

123

134

145

Meghalaya

62

67

73

73

78

84

89

95

Mizoram

31

34

37

42

48

54

61

70

Nagaland

160

177

162

172

186

201

215

230

Orissa

1,096

1,215

1,359

1,525

1,717

1,936

2,159

2,417

Punjab

2,910

3,103

3,308

3,529

3,859

4,225

4,571

4,992

Rajasthan

2,943

3,197

3,487

3,834

4,285

4,791

5,281

5,815

Sikkim

12

13

15

17

19

21

23

25

Tamil Nadu

5,162

5,658

8,005

8,575

10,085

11,901

13,860

16,208

Tripura

50

57

66

76

85

95

105

117

Uttarakhand

364

406

457

516

580

651

732

822

Uttar Pradesh

4,921

5,171

5,928

6,460

7,271

8,144

8,970

9,919

States\Year

2001 (in '000)

2002 (in '000)

2003 (in '000)

2004 (in '000)

2005 (in '000)

2006 (in '000)

2007 (in '000)

2008 (in '000)

West Bengal

1,690

1,690

2,366

2,548

2,816

3,138

3,464

3,833

Andaman & Nicobar Islands

25

28

28

28

31

34

38

42

Chandigarh

386

386

562

586

629

677

732

799

Dadra & Nagar Haveli

13

13

31

35

43

54

67

86

Daman & Diu

37

41

44

48

55

63

71

79

Delhi

3,635

3,699

3,971

4,237

4,544

4,868

5,166

5,469

Lakshadweep

Pondicherry

252

270

293

313

359

418

495

552

[edit]Geographical

segmentation: category-wise number of registrations in states and union territories of

India
Light Mot or Vehi cles (goo ds)

State

Total noncomm ercial

Two Whe elers

Total Comm ercial

Car s

Multiaxled/Ar ticulated Vehicles/Truc ks & Lorries

Light Motor Vehicl es (passe nger)

Ta xis

Tract ors

Bu ses

Oth ers

Jee ps

O mn i Bu ses

Trail ers

Andhra Pradesh

5,149,432

4,543,28 570,488 3

397,73 143,147 8

6,689

263,325

81,62 62,363 7

15,49 8

4,500

58,114

36,54 9

46,885

Arunacha 15,872 l Pradesh

10,605

5,272

2,340

2,323

555

1,430

299

333

665

179

2,260

155

State

Total noncomm ercial

Two Whe elers

Total Comm ercial

Car s

Multiaxled/Ar ticulated Vehicles/Truc ks & Lorries

Light Mot or Vehi cles (goo ds)

Light Motor Vehicl es (passe nger)

Ta xis

Tract ors

Bu ses

Oth ers

Jee ps

O mn i Bu ses

Trail ers

Assam

578,853

418,780

147,966

106,06 83,189 3

14,317

29,806

10,36 10,280 8

10,28 6

20,724 14,266 0

8,740

Bihar

653,423

469,751

97,280

27,508 30,516

32,296

9,507

14,00 77,848 0

10,96 1

2,928

21,726 3,259

50,403

Chhattisg 1,127,124 991,022 arh

88,621

43,572 40,413

16,686

7,474

22,00 44,321 5

2,043

2,103

7,302

38,804

Goa

385,278

309,488

50,842

71,516 28,326

9,375

8,273 470

4,868

3,804

199,60 3

Gujarat

5,162,16 6,338,173 749,317 7

572,41 182,304 4

204,336 276,908

40,10 0 45,669 275,5 43

16,15 8

110,94 1,345 3

Haryana

2,279,718

1,526,40 268,192 4

272,89 147,667 5

58,325

37,841

14,99 373,373 9,369 0

17,078 87,203 2,765

62

Himachal 222,204 Pradesh

152,286

66,609

51,918 41,644

2,340

2,783

14,97 3,898 0

4,872

1,665

12,331 44

561

Jammu & 351,647 Kashmir

253,611

86,949

74,187 29,958

12,272

14,255

10,32 10,969 5

20,13 9

1,626

10,693 0

12,512

Jharkhan 1,086,782 937,745 d

130,176

92,171 62,566

36,257

21,81 15,136 4

9,539

5,799

23,419 0

120,18 5

Karnatak 2,732,67 3,523,322 453,262 a 4

418,18 100,596 1

91,755

190,362

40,83 29,71 119,340 9 0

55,405 41,024

36,51 3

1,913

State

Total noncomm ercial

Two Whe elers

Total Comm ercial

Car s

Multiaxled/Ar ticulated Vehicles/Truc ks & Lorries

Light Mot or Vehi cles (goo ds)

Light Motor Vehicl es (passe nger)

Ta xis

Tract ors

Bu ses

Oth ers

Jee ps

O mn i Bu ses

Trail ers

Kerala

2,106,883

1,595,80 685,191 8

378,91 73,315 2

136,181 294,244

114,2 9,004 45

67,20 6

19,102 71,656

30,48 8

164,93 3

Madhya Pradesh

3,565,124

2,876,19 238,404 1

148,03 77,178 0

30,030

45,146

61,42 24,62 328,380 4 6

11,308 36,282 0

190,62 8

Maharas 6,216,79 924,00 7,824,829 1,143,904 243,113 htra 4 6

256,082 493,142

102,4 49,09 201,940 75 2

16,111

262,74 12,60 1 9

580

Manipur

93,869

75,333

12,456

8,030

5,963

1,206

2,521

363

1,263

2,403

221

7,872

570

2,304

Meghala 48,563 ya

21,050

24,819

14,595 14,028

2,934

5,030 441

2,827

772

9,401

254

Mizoram 31,826

19,501

10,319

4,850

3,215

1,255

1,145

3,864 209

840

247

6,765

696

Nagaland 105,411

36,741

66,506

33,273 41,019

9,243

8,291

4,448 1,827

3,505

11,018 21,649 207

24,181

Orissa

1,378,470

1,223,57 146,512 3

62,553 50,496

35,543

21,893

24,61 30,592 4

13,96 6

8,806

26,527 2,238

410

Punjab

3,351,135

2,587,18 177,965 1

267,37 75,921 9

34,645

36,838

11,98 18,57 459,014 2 9

4,354

32,797 0

57,013

Rajastha n

3,493,269

2,692,17 340,537 5

203,99 173,552 1

13,601

64,580

32,86 55,93 407,523 8 6

4,511

128,05 0 6

Sikkim

9,911

4,682

7,325

1,870

1,619

353

4,947 9

406

2,863

487

39,910

State

Total noncomm ercial

Two Whe elers

Total Comm ercial

Car s

Multiaxled/Ar ticulated Vehicles/Truc ks & Lorries

Light Mot or Vehi cles (goo ds)

Light Motor Vehicl es (passe nger)

Ta xis

Tract ors

Bu ses

Oth ers

Jee ps

O mn i Bu ses

Trail ers

Tamil Nadu

7,747,220

6,734,20 828,021 5

731,38 276,235 0

204,314 154,192

116,3 90,886 73

76,90 7

76,895 53,987

19,95 7

1,015

Tripura

54,616

44,241

20,931

8,672

6,321

595

12,162

257

147

1,596

541

898

Uttarakh 475,711 and

391,251

40,271

42,220 9,799

5,662

6,799

13,38 31,981 5

4,626

2,122

6,452

787

10,021

Uttar Pradesh

6,173,338

4,922,04 286,860 7

391,44 94,482 3

57,681

78,067

30,19 26,43 718,082 3 7

19,188 97,821

14,73 6

West Bengal

2,159,336

1,581,32 388,627 6

494,50 241,035 5

38,289

67,91 48,341 8

41,38 5

35,164 0

Andama n& Nicobar Islands

25,258

2,174

3,198

1,693

1,519

784

436

261

459

461

1,033

67

Chandiga 574,565 rh

416,917

11,542

157,61 1,671 2

7,459

1,173 36

1,239

Dadra & Nagar Haveli

27,000

17,881

7,439

9,270

5,487

1,190

500

108

44

154

429

46

Daman & 43,281 Diu

30,351

5,019

12,278 1,896

1,829

890

43

165

361

30

295

38

124

Delhi

4,003,463

2,665,75 233,212 0

1,192, 389

75,601

75,947

20,893

24,71 4,851 2

36,05 9 9,705

122,28 8,386 3

99

State

Total noncomm ercial

Two Whe elers

Total Comm ercial

Car s

Multiaxled/Ar ticulated Vehicles/Truc ks & Lorries

Light Mot or Vehi cles (goo ds)

Light Motor Vehicl es (passe nger)

Ta xis

Tract ors

Bu ses

Oth ers

Jee ps

O mn i Bu ses

Trail ers

Lakshad weep

4,693

3,978

678

78

270

408

44

503

85

Pondiche 295,904 rry

235,438

17,046

47,642 6,588

2,923

4,283

1,421 318

1,831

4,541

3,838

2,545

1,582

Grand Total

65,305,50 51,902,4 7,267, 7,411,756 3 04 174

2,372,702

1,315,5 901,8 3,329,2 594,0 2,167,324 80 89 32 59

357,56 1,282, 9 113

173,5 34

974,58 4

[edit]Manufacturing [edit]Bihar

facilities

Commercial Vehicles

Tata Motors Jamshedpur[31]

[edit]Gujarat

Passenger Vehicles

General Motors India Private Limited

Chevrolet Sales India Private Limited Halol[32]

Tata Motors Sanand[31]

Commercial Vehicles

Asia Motor Works AMW Bhuj[33]

[edit]Haryana

Two wheelers

Hero Honda Dharuhera, Gurgaon[34] India Yamaha Motor Private Limited Faridabad[35] Honda Manesar[36] Suzuki Gurgaon[37]

Passenger Vehicles

Maruti Suzuki Gurgaon, Manesar[38] Pradesh

[edit]Himachal

Two wheelers

TVS Motors Nalagarh[39]

Passenger Vehicles

International Cars & Motors Limited Amb[40]

Commercial Vehicles

TAFE Tractors Parwanoo[41]

[edit]Karnataka

Two wheelers

TVS Motor Mysore[39]

Passenger Vehicles

Mahindra REVA Electric Vehicles Bangalore[42] Toyota Kirloskar Motor Private Limited Bidadi[43]

Commercial Vehicles

Scania Commercial Vehicles India Private Limited Bangalore[44] TAFE Tractors Doddaballapur[41] Tata Motors Dharwad[31] Volvo Buses India Private Limited Hoskote[45] Pradesh

[edit]Madhya

Two wheelers

Mahindra & Mahindra Pithampur[46]

Commercial Vehicles

Eicher Motors Pithampur[47] Hindustan Motors Pithampur[48] Force Motors Private Limited Pithampur[49]

TAFE Tractors Mandideep[41]

[edit]Maharashtra

Two wheelers

Bajaj Auto Waluj Aurangabad, Chakan[50] KTM Sportmotorcycles Chakan[51] Vespa Scooters Baramati Pune[52] Kinetic Engineering Ahmednagar, Pune[53]

Passenger Vehicles

Mahindra & Mahindra Automotive Division Chakan[54][55] Tata Motors Limited

Tata Motors Pimpri Chinchwad[56] Jaguar Cars and Land Rover Pune[57]

Mercedes-Benz Passenger Cars Chakan[58] Fiat Automobiles Ranjangaon Pune[59] Volkswagen Group Sales India Private Limited

Volkswagen Chakan[60] Audi AG Aurangabad[61] koda Auto Aurangabad[62]

Chinkara Motors Karlekhind Alibag[63] Premier Automobiles Limited Pimpri Chinchwad[64]

Commercial Vehicles

Ashok Leyland Bhandara[65] Bajaj Auto Waluj Aurangabad[50] Force Motors Pune[66] Mahindra Navistar Chakan[67] MAN Trucks India Akurdi Pune[68] Mercedes-Benz Buses India Chakan[69] Piaggio Vehicles Baramati Pune[70] Premier Automobiles Limited Pimpri Chinchwad[64]

[edit]Punjab

Commercial Vehicles

SML Isuzu Limited Nawanshahar[71]

[edit]Rajasthan

Passenger Vehicles

Honda Siel Cars India Tapukara[72]

Commercial Vehicles

Ashok Leyland Alwar[65] TAFE Tractors Alwar[41] Nadu

[edit]Tamil

Two wheelers

TVS Motor Hosur[39] Royal Enfield Chennai[73]

Passenger Vehicles

BMW India Chennai Ford India Private Limited Maraimalai Nagar[74] Hyundai Motor India Limited Sriperumbudur[75] Mitsubishi Tiruvallur[48] Renault Nissan Automotive India Private Limited

Nissan Motor India Private Limited Oragadam[76] Renault India Private Limited Oragadam[77]

Commercial Vehicles

Ashok Leyland Ennore, Hosur[65] BharatBenz Oragadam[78] Kamaz Vectra Motors Hosur[79] TAFE Tractors Chennai[41] TVS Motors Hosur[39]

[edit]Exports

Mahindra Scorpio Jeep in service with the Italy's CNSAS.

India's automobile exports have grown consistently and reached $4.5 billion in 2009, with United Kingdom being India's largest export market followed by Italy, Germany, Netherlands and South Africa. [80] India's automobile exports are expected to cross $12 billion by 2014.[81] According to New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki.[82] In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011.[83] Similarly, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011.[84] In September 2009, Ford Motors announced its plans to set up a plant in India with an annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both for the Indian market and for export.[85] The company said that the plant was a part of its plan to make India the hub for its global production business.[86] Fiat Motors also announced that it would source more than US$1 billion worth auto components from India.[87] In July 2010, The Economic Times reported that PSA Peugeot Citron was planning to re-enter the Indian market and open a production plant in Andhra Pradesh with an annual capacity of 100,000 vehicles, investing EUR 700M in the operation.[88] PSA's intention to utilise this production facility for export purposes however remains unclear as of December 2010.

A Tata Safari on display in Poznan,Poland.

In 2009 India (0.23m) surpassed China (0.16m) as Asia's fourth largest exporter of cars after Japan (1.77m), Korea (1.12m) and Thailand (0.26m) by allowing foreign carmakers 100% ownership of factories in India, which China does not allow.[3] In recent years, India has emerged as a leading center for the manufacture of small cars. Hyundai, the biggest exporter from the country, now ships more than 250,000 cars annually from India. Apart from shipments to its parent Suzuki, Maruti Suzuki also manufactures small cars for Nissan, which sells them in Europe. Nissan will also export small cars from its new Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is in preparation to launch electric vehicles in Europe in 2010. The firm is also planning to launch an electric version of its low-cost car Nano in Europe and the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and small SUV models in the U.S. market. Bajaj Autois designing a lowcost car for the Renault Nissan Automotive India, which will market the product worldwide. Renault Nissan may also join domestic commercial vehicle manufacturer Ashok Leyland in another small car project.[89] While the possibilities are impressive, there are challenges that could thwart future growth of the Indian automobile industry. Since the demand for automobiles in recent years is directly linked to overall economic expansion and rising personal incomes, industry growth will slow if the economy weakens.[89]
[edit]Top

20 export destinations in 2007-2008 and growth from previous year

Country 2007-2008 (in USD Millions) 2008-2009 (in USD Millions) Percentage Growth

Rank

United States of America 593.64

525.24

-11.52

Italy

332.35

359.68

8.22

Rank

Country

2007-2008 (in USD Millions)

2008-2009 (in USD Millions)

Percentage Growth

Sri Lanka

249.14

216.11

-13.26

South Africa

224.93

188.57

-15.79

United Kingdom

165.57

246.32

48.77

United Arab Emirates

164.44

192.74

17.21

Algeria

147.34

265.63

80.28

Bangladesh

137.26

164.86

20.11

Egypt

134.43

143.54

5.99

10

Germany

133.52

409.63

206.8

11

Colombia

118.88

120.71

1.54

12

Nepal

111.33

98.13

-11.86

13

Mexico

93.80

94.10

0.32

14

Turkey

83.53

73.82

-11.63

15

Spain

81.01

56.96

-29.69

16

France

76.77

134.21

74.83

17

Nigeria

66.01

148.74

125.03

Rank

Country

2007-2008 (in USD Millions)

2008-2009 (in USD Millions)

Percentage Growth

18

Greece

65.75

127.63

94.1

19

Netherland

65.19

163.66

151.05

20

Ghana

59.91

38.30

-36.07

[edit]Passenger

vehicles in India

This list is of cars that are officially available and serviced in India. While other cars can be imported to the country at a steep 105%[90] import duty, car-makers such as Alfa Romeo,[91]McLaren,[92] Pagani, Cadillac,[93] Chrysler,[94] SSC,[95] Zenvo,[96] SEAT,[97] Smart,[98] Daihatsu,[99] Lexus ,[100] Infiniti,[101] Acura,[102] Saab,[103] Spyker,[104] Lotus,[105] Ariel,[106] Caterham,[107]PeugeotCitron,[108] Mazda,[109] Jeep,[110] SsangYong,[111] Kia,[112] GAZ[113] and Proton[114] are in varying stages of official introduction to the Indian automobile market.
[edit]Indian

automotive companies

Chinkara Motors:[115] Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster Force Motors: One Hindustan Motors:[116] Ambassador ICML:[117] Rhino Rx Mahindra:[118] Major, Xylo, Scorpio, Bolero, Thar, Verito, Genio, XUV500. Premier Automobiles Limited:[119] Sigma, RiO San Motors:[120] Storm Tata Motors:[121] Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Grande, Venture, Safari, Xenon, Aria

[edit]Foreign

automotive companies in India

[edit]Vehicles manufactured or assembled in India

Manufactured only in Chennai, India, thei10 is one of Hyundai's best selling globally exported cars.

Maruti Swift. Maruti Suzuki, a subsidiary of Japan's Suzuki Motor, is the largest automobile manufacturer in India.[122]

BMW India:[123] 3 Series, 5 Series, 7 Series X1, X3. Fiat India[124] (in collaboration with Tata Motors): Grande Punto, Linea. Ford India:[125] Figo, Fiesta Classic, Fiesta, Endeavour. General Motors India[126]

Chevrolet:[127] Spark, Beat, Aveo U-VA, Aveo, Optra, Cruze, Tavera.

Honda Siel:[128] Brio, Jazz, City, Civic, Accord. Hyundai Motor India:[129] Eon, Santro, i10, i20, Accent, Verna, Sonata. Land Rover:[130] Freelander 2

Maruti Suzuki:[131] 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Ertiga

Mercedes-Benz India:[132] C-Class, E-Class, M-Class, S-Class. Mitsubishi[133] (in collaboration with Hindustan Motors):[134] Lancer, Lancer Cedia, Pajero. Nissan Motor India:[135] Micra, Sunny, Evalia. Renault India:[136][137][138] Pulse, Duster, Fluence, Koleos. Toyota Kirloskar:[139] Etios Liva, Etios, Corolla Altis, Innova, Fortuner Volkswagen Group Sales India:

Audi India: A4, A6, Q3, Q5 koda Auto India:[140][141] Fabia, Rapid, Laura Volkswagen India:[142][143] Polo, Vento, Jetta, Passat
Opel was present in India until 2006. As of 2011, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.

[edit]Vehicles brought into India as CBUs

Aston Martin:[144] Vantage, Rapide, Virage, DB9, DBS, One-77. Audi:[145] A7, A8, S4, S6, S8, Q7, TT, R8, RS5. Bentley:[146][147] Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.

BMW:[148] 5 Series GT, 6 Series, 7 Series, X5, X6, X6 M, M3, M5, M6 and Z4. Bugatti:[149][150] Veyron. Chevrolet: Captiva. Ferrari[151][152]: California, 458 Italia, 599 GTB Fiorano, FF. Fiat[124]: 500, Bravo. General Motors:[126] Hummer H2, Hummer H3. Gumpert:[153] Apollo. Honda:[154][155] Civic Hybrid, CR-V. Hyundai:[129] Santa Fe. Jaguar:[156] XF, XJ, XK.

Koenigsegg:[157][158] CCX, CCXR, Agera. Lamborghini:[159] Gallardo, Aventador. Land Rover:[160] Discovery 4, Range Rover Evoque, Range Rover Sport, Range Rover. Maserati:[161] Quattroporte, GranTurismo, GranCabrio. Maybach:[162] 57, 62. Mercedes-Benz:[163] CL-Class, GL-Class, R-Class, CLS-Class, SL-Class, SLKClass, Viano, G-Class, SLS.

MINI:[164] Cooper, Cooper S, Convertible, Countryman. Mitsubishi: Montero, Outlander, Evo X. Nissan:[165] Teana, X-Trail, 370Z, GT-R. Porsche:[166][167] 997, Boxster, Panamera, Cayman, Cayenne, Carrera GT. Rolls Royce:[168] Ghost, Phantom, Phantom Coup, Phantom Drophead Coup. koda:[140] Yeti, Superb. Suzuki: Grand Vitara, Kizashi. Toyota:[139] Prius, Camry, Land Cruiser, Land Cruiser Prado. Volkswagen:[169] Beetle, Tiguan, Touareg, Phaeton. Volvo:[170] S60, S80, XC60, XC90.

[edit]Commercial [edit]Indian

vehicle manufacturers in India

brands

Force[171] Hindustan Motors[172] Premier[119] Tata[173] AMW [174] Eicher Motors[175] Venture Brands

[edit]Joint

VE Commercial Vehicles Limited[176] - VE Commercial Vehicles limited - A JV between Volvo Groups & Eicher Motors Limited.

Ashok Leyland[177] - originally a JV between Ashok Motors and Leyland Motors, now 51% owned by Hinduja Group

Mahindra Navistar[178] - a 51:49 JV between Mahindra Group and Navistar International

Swaraj Mazda[179] - originally a JV between Punjab Tractors and Mazda, now 53.5% owned by Sumitomo Group

Kamaz Vectra[180] - A JV between Russia's KaMAZ and the Vectra Group brands

[edit]Foreign

Volvo[181] Tatra[182] MAN[183] Mercedes-Benz[184] - manufactures luxury coaches in India. Daimler AG[185] - manufactures BharatBenz, a brand of trucks based on the Fuso and the Mercedes Benz truck platforms, which Daimler AG owns.

Rosenbauer[186] Scania[187] Iveco[188] Hino[189] DAF[190] Isuzu[191] Piaggio[192] Caterpillar Inc.[193]

[edit]Electric

car manufacturers in India

Ajanta Group[194] Mahindra[195] Hero Electric[196] REVA Tara International[197] Tata[198]

[edit]Electric

vehicle and Hybrid vehicle (xEV) industry

During April 2012 Indian Government has planned to unveil the roadmap for the development of the domestic electric and hybrid vehicles (xEV) in the country. [199] A discussion between the various stakeholders including Government, industry and the academia is expected to take place during February 2324.[199] The final contours of the policy will be formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport and Power are involved in developing a broad framework for the sector.

Along with these ministries big auto industry names such as MrAnand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Mr Vikram Kirloskar (ViceChairman, Toyota Kirloskar) are also involved in this task.[199] Government has also proposed to set up a Rs 740 crore R&D fund for the sector in the 12th five year plan during 201217.[199] The idea is to reduce the high cost of key imported components such as the battery and electric motor and develop such capabilities locally.
[edit]Market [edit]Market

characteristics

size

The Indian Automotive Industry after de-licensing in July 1991 has grown at a spectacular rate on an average of 17% for last few years. The industry has attained a turnover of USD $35.8 billion, (INR 165,000 crores) and an investment of USD 10.9 billion.[18] The industry has provided direct and indirect employment to 13.1 million people. Automobile industry is currently contributing about 5% of the total GDP of India. India's current GDP is about $1.4 trillion and is expected to grow to $3.75 trillion by 2020.[18] The projected size in 2016 of the Indian automotive industry varies between $122 billion and $159 billion including USD 35 billion in exports. This translates into a contribution of 10% to 11% towards India's GDP by 2016, which is more than double the current contribution.[18]
[edit]Demand

determinants

Determinants of demand for this industry include vehicle prices (which are determined largely by wage, material and equipment costs) and exchange rates, preferences, the running cost of a vehicle (mainly determined by the price of petrol), income, interest rates, scrapping rates, and product innovation. Exchange Rate: Movement in the value of Rupee determines the attractiveness of Indian products overseas and the price of import for domestic consumption. Affordability: Movement in income determine the affordability of new motor vehicles. Allowing unrestricted Foreign Direct Investment (FDI) led to increase in competition in the domestic market hence, making better vehicles available at affordable prices. Product Innovation is an important determinant as it allows better models to be available each year and also encourages manufacturing of environmental friendly cars. Demographics: It is evident that high population of India has been one of the major reasons for large size of automobile industry in India. Factors that may be augment demand include rising population and an increasing proportion of young persons in the population that will be

more inclined to use and replace cars. Also, increase in people with lesser dependency on traditional single family income structure is likely to add value to vehicle demand. Infrastructure: Longer-term determinants of demand include development in Indian's infrastructure. India's banking giant State Bank of India and Australia's Macquarie Group has launched an infrastructure fund to rise up to USD 3 billion for infrastructure improvements. India needs about $500 billion to repair its infrastructure such as ports, roads, and power units. These investments have been made with an aim to generate long-term cash flow from automobile, power, and telecom industries. (Source: Silicon India) Price of Petrol: Movement in oil prices also have an impact on demand for large cars in India. During periods of high fuel cost as experienced in 2007 and the first half of 2008, demand for large cars declined in favour of smaller, more fuel-efficient vehicles. The changing patterns in customer preferences for smaller, more fuel-efficient vehicles led to the launch of Tata Motor's Nano one of the world's smallest and cheapest cars. Surprisingly, when overall passenger car sales have run into problems, the sales of luxury cars and SUVs, which are significantly more expensive in India than abroad due to high import taxes, have experienced encouraging growth. The Indian unit of BMW had to raise capacity at its factory four times during 2011, while sales of the high-end Jaguar Land Rover model owned by Tata Motors rose impressively during a period when more affordable passenger car sales were experiencing a downturn.[200]
[edit]International

markets analysis

The Indian automotive industry embarked a new journey in 1991 with de-licensing of the sector and subsequent opening up for 100% foreign direct investment (FDI). Since then almost all global majors have set up their facilities in Indian taking the level of production from 2 million in 1991 to over 10 million in recent years.[18] The exports in automotive sector have grown on an average compound annual growth rate of 30% per year for the last seven years. The export earnings from this sector are over USD 6 billion.[18] Even with this rapid growth, the Indian automotive industry's contribution in global terms is very low. This is evident from the fact that even thought passenger and commercial vehicles have crossed the production figures of 2.3 million in the year 2008,[18] yet India's share is about 3.28% of world production of 70.53 million passenger and commercial vehicles. India's automotive exports constitute only about 0.3% of global automotive trade.[18]
[edit]Life

cycle

The life cycle stage is growth. Life Cycle Reasons The market for manufacturing motor vehicles is consistently increasing. The products manufactured by this industry are profitable. Companies have been consistently opening new plats and employing over the past five years. Japanese and European manufacturers of motor vehicles have entered the market. Industry value added has been rising, along with the rise in GDP. Life Cycle Analysis General improvement in availability of trained manpower and good infrastructure is required for sustainable growth of the industry. Keeping this in view, the Indian Government has launched a unique initiative of National Automotive Testing and R&D Infrastructure Project (NATRIP) to provide specialised facilities for Testing, Certification and Homologation to the industry. A similar initiative is required for creating specialised institutions in automotive sector for education, training and development. The auto industry has grown in the clusters of interconnected companies which are linked by commonalities and complementarities. The major clusters are in and around Manesar in North, Pune in West, Chennai in South, Jamshedpur-Kolkata in East and Indore in Central India. The Government is planning to create a National Level Specialises Education and Training Institute for Automotive Sector and to enhance the transportation, communication and export infrastructure facilities. The contribution of automotive sector in the GDP of India is expected to double by 2016[18] through major spotlight on export of small cars, Multi-Utility Vehicles, Two- and Three-wheelers.
[edit]Industry

assistance

The automobile industry has a defined its target in the Automotive Mission Plan as To emerge as the destination of choice in the world for design and manufacture of automobiles with output reaching a level of USD 145 billion accounting more than 10% of GDP and providing additional employment to 25 million people by 2016.[18] In order to achieve this plan interventions are required from both Industry and Indian Government. The Indian Government would play a key enabling role in facilitating infrastructure creation, promote the country's capabilities, create a favourable and predictable business environment, attract investment and promote research & development. The role of Industry will primarily be in designing and manufacturing products of world-class quality standards, establishing cost competitiveness, improving productivity of both labour and capital, achieving scale and R&D enhancing capability and showcasing India's products in potential markets.

In order to achieve these goals the following key recommendations have been made in the Automotive Mission Plan to the Indian Government and Industry: Manufacturing and export of small cars, multi-utility vehicles, two- and threewheelers, tractors, components to be promoted Care to be taken of negative like and rules of the country with current negotiation of Free Trade Agreement and Regional Trade agreement with countries like Thailand, Singapore, Malaysia, China, Korea, Egypt, Gulf etc. Attractive Tariff Policy which may follow attractive investment. Specific measures will be taken for expansion of domestic market. Incremental investment of USD 35 to 40 billion to Automotive Industry during the next 10 years. National Road Safety Board to act as the coordinating body for promoting safety. Inspection and Certification system to be strengthened by encouraging public-private partnership. National level Automotive Institute for training on automobile at International Training Institutes (ITIs) and Automotive Training Institute (ATIs) to be set up. An Auto Design Centre to be established at National Institute of Design, Ahmadabad.National Automotive Testing and R&D Implementation Project (NATRIP) to act as Centre of Excellence for Technical Design Data. Integration of Information Technology in manufacturing to be promoted. R&D for product, process and technology to be incentivised. Road Map for Auto Fuel Policy beyond 2010 would be drawn. The profitability of motor vehicle manufacturers has been rising over the past five years, mainly due to rising demand and growth of Indian middle class. Major players of the industry, like Maruti Suzuki India and Tata Motors have been recording profits of 6% to 11% from the past five years. Whereas, earlier profit margins in the industry were only 1.5% to 3%. Cost of material has reduced from over 85% in the year 2001-2002 to under 80% in the year2008-2009.[18] Wages and salary as a percentage of revenue has been declining and with the increasing labour productivity this is expected to decline further in the coming years.
[edit]Capital

and labour intensity

The level of Capital Intensity is high The level of Labour intensity in medium The motor vehicle manufacturing industry requires significant level of capital investment. Value is added through the automated manufacturing and assembly of costly components. Labour input is required in the manufacturing, assembly, and finishing processes. In order to achieve and retain competitiveness, vehicle manufacturing industry depends on its capacity and speed to innovate and upgrade. The most imperative indices for competitiveness in the industry are productivity in both labour and capital.

Technology and Systems The level of technology change is high The rate of change in technology is medium Investment in technology by producers has been on the rise. The automobile industry in India has seen an enormous development in the engines which are being used. Carburettor engines have become obsolete and Multi Point Fuel Injection (MPFI) engines are the order of the days in patrol cars. The Diesel engines have also undergone a sea change from the time Rudolf Diesel invented it way back in the 1892. Today Common Rail Direct Injection (CRDI) is the order of the day. Multi Point Fuel injection (MPFI) The fuel injects were used to meet stricter emission norms as it keeps pollutants to bare minimum and drives the maximum performance out of a vehicle by squeezing out the maximum mileage even from the last drop of fuel that goes into the engine. MPFI system injects fuel into individual cylinders after receiving command from the on board engine management system computer or Engine Control Unit (ECU). This technology results in superior fuel combustion, better fuel management, engine performance and reduced pollution. To get the maximum out from these types of engine one should use Premium petrol like XTRA Premium, Speed, and Power. Common Rail Direct Injection (CRDI) CRDI engine cars offer 25% more power than the normal direct injection engine with a superior pickup and torque, offering sometimes up to 70% more power than the conventional diesel engines. They are smooth, less strident, and immensely fuel efficient giving around 24 kilometres to a litre of Diesel. The fact that Diesel is cheaper than petrol in India further attributes greatness to the engine. In a CRDI engine, a tube or a common rail connects all the injectors and contains fuel at a constant pressure. The high pressure in the common rail ensures that when injected, the fuel breaks up into small particles and mixes evenly with the air, thereby leaving little un-burnt fuel thus reducing pollution. The common rail principle has been used to reduce the noise which used to be a downside with earlier Diesel engines; the technology has been pioneered by the Fiat group, only to be adopted by other automobile companies around the world. However, these engines are 25% more costly than the conventional engines. They also require higher degree of maintenance and spares are also expensive.

The Indian automotive industry is in the mindset of a major structural transformation in today's globalised scenario. System Supplies of integrated components and sub-systems has become the order of the day, with individual small components being supplied to the system integrators instead of vehicle manufacturers. In this process most of the Small Scale Industrial units, manufacturing smaller individual components, have become tier 2 and tier 3 suppliers, while the large companies including most Multi National Companies are being transformed into tier 1 companies who purchase from tier 2 and tier 3, and sell to the auto manufacturers. (Source: Department of Heavy Industry) Investment in new technology such as supply-chain management and collaborative forecasting (where members of the supply chain share forecasting data to reduce bottlenecks) will help make industry more competitive.
[edit]Industry

volatility

The level of volatility is medium. Over the past few years, the Motor Vehicle Manufacturing industry has become more volatile. This has been the result of fluctuations in metal prices and fuel prices, as well as changes in legislation and assistance packages. India's increasing per capita disposable income and growth in exports is playing a major role in the rise and the competitiveness of the industry. As per the BRIC report India's per capita disposable income from current year will rise by 106% in 2015. This increase in the spending power has been a forefront of the economic development. According to the Economic Times of India, economic liberalization allowing unrestricted Foreign Direct Investment (FDI) and removing foreign currency neutralisation and export obligations has been also been one of the key to India's automotive volatility.
[edit]Key [edit]Tata

competitors
Motors

Market Share: Commercial Vehicles 63.94%, Passenger Vehicles 16.45%[18] Tata Motors Limited is India's largest automobile company, with consolidated revenues of USD 14 billion in 2008-09. It is the leader in commercial vehicles and among the top three in passenger vehicles. Tata Motors has winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer with over 24,000 employees. Since first rolled out in 1954, Tata Motors as has produced and sold over 4 million vehicles in India.

Tata Motors is the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the United Kingdom, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two British brands which was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in bodybuilding for buses and coaches to manufacture fully built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors is also expanding its international footprint by franchises and joint ventures assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa. With over 3,000 engineers and scientists, the company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, a development which signifies a first for the global automobile industry. Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at USD 2,200 or Rs.100,000 (excluding VAT and transportation cost). The Tata Nano has been subsequently launched as planned, in India in March 2009.[18]

[edit]Maruti

Suzuki India

Market Share: Passenger Vehicles 46.07% Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for over 45% of the domestic car market. The company offers a complete range of cars from entry level Maruti-800 and Alto, to stylish hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara. Since inception in 1983, Maruti Suzuki India has produced and sold over 10 million vehicles in India and exported over 500,000 units to Europe and other countries. The company's revenue for the fiscal 2010-2011 stood over Rs 375,224 million and Profits After Tax at over Rs. 22,886 million.[201]
[edit]Hyundai

Motor India

Market Share: Passenger Vehicles 14.15% Hyundai Motor India Limited is a wholly owned subsidiary of world's fifth largest automobile company, Hyundai Motor Company, South Korea, and is the largest passenger car exporter. Hyundai Motor presently markets 49 variants of passenger cars across segments. These includes the Santro in the B segment, the i10, the premium hatchback i20 in the B+ segment, the Accent and the Verna in the C segment, the Sonata Transform in the E segment. Hyundai Motor, continuing its tradition of being the fastest growing passenger car manufacturer, registered total sales of 559,880 vehicles in the year 2009, an increase of 14.4% over 2008. In the domestic market it clocked a growth of 18.1% as compared to 2008 with 289,863 units, while overseas sales grew by 10.7%, with export of 270,017 units. Hyundai Motor currently exports cars to more than 110 countries across European Union, Africa, Middle East, Latin America and Asia. It has been the number one exporter of passenger car of the country for the sixth year in a row. In a little over a decade since Hyundai has been present in India, it has become the leading exporter of passenger cars with a market share of 66% of the total exports of passenger cars from India, making it a significant contributor to the Indian automobile industry. In 2009, in spite of a global slowdown, Hyundai Motor India's exports grew by 10.7%.[18] In 2010 Hyundai plans to add 10 new markets with Australia being the latest entrant to the list. The first shipment to Australia is of 500 units of the i20 and the total i20 exports to Australia are expected to be in the region of 15,000 per annum.
[edit]Mahindra

& Mahindra

Market Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three Wheelers 1.31% Mahindra & Mahindra is mainly engaged in the Multi Utility Vehicle and Three Wheeler segments directly. The company competes in the Light Commercial Vehicle segment through its joint venture subsidiary Mahindra Navistar Automotives Limited and in the passenger car segment through another joint venture subsidiary Mahindra Renault. In the year 2009, on the domestic sales front, the Company along with its subsidiaries sold a total of 220,213 vehicles (including 44,533 three-wheelers, 8,603 Light Commercial Vehicles through Mahindra Navistar Automotives and 13,423 cars through Mahindra Renault), recording a growth of 0.6% over the previous year.[18] The company's domestic Multi Utility Vehicle sales volumes increased by 3.3%, as against a decline of 7.4% for industry Multi Utility Vehicle sales. A record number of 153,653 Multi Utility Vehicles were sold in the domestic market in 2009 compared to 148,761 MUVs in the previous year. Hence, Mahindra & Mahindra further strengthened its domination of the domestic Multi Utility Vehicle sub-segment during the year, increasing its market share to 57.2% over the previous year's market share of 51.3%.[18] Mahindra & Mahindra is expanding its footprint in the overseas market. In 2009 the Xylo was launched in South Africa. The company formed a new joint venture Mahindra Automotive Australia Pty. Limited, to focus on the Australian Market.
[edit]Ashok

Leyland

Market Share: Commercial Vehicles 22%[18] Against the backdrop of the sharp slump in demand for commercial vehicles, during 2008-09, Ashok Leyland registered sales of 47,118 medium and heavy commercial vehicles (M&HCV), 37.5% less than in the previous year. This includes 16,049 M&HCV buses and 31,069 M&HCV trucks respectively, 8.7% and 46.3% less than in the previous year. The company lost 1.8% market share in the Indian medium and heavy commercial vehicle market during the financial year 2008-09,[18] mainly due to loss of sales in the truck segment. This was because the Eastern Region, where the Company's presence had been historically weak, was relatively stable, whilst the market declined sharply in other regions. While total industry volume of the medium and heavy duty buses declined by about 8.7%, the Company's market share grew marginally and Ashok Leyland retained its number one position in this segment.

The Company sold 6,812 vehicles in the overseas markets during 2008-09. This represents a decrease of approximately 6.5% over the previous year. Total industry volume related to overseas markets to which the Company exports (such as Sri Lanka, the Middle East) witnessed a reduction of about 25% over the previous year.[18] To combat the impact of decline in CV sales, the Company focused on non-cyclical businesses in the portfolio. The Company produced in all 54,049 vehicles during the year. To contain costs and conserve cash, the Company worked only about 50% of the working days in all its manufacturing units during the second half of the year.
[edit]See

also

Automobile industry List of countries by motor vehicle production List of countries by vehicles per capita Lists of automobiles List of cars List of Asian cars List of automobile manufacturers of China List of Japanese cars Future car technologies List of truck manufacturers List of motorcycle manufacturers (Category) List of scooters - List of scooter manufacturers

[edit]Further

reading

Kamala, T.N. & Doreswamy, A.G. (2007). Strategies for Enhancing Competitiveness of Indian Auto Component Industries. Indian Institute of Management Kozhikode.

Tiku, Pran (2008). Six Sizzling Markets: How to Profit from Investing in Brazil, Russia, India, China, South Korea, and Mexico. John Wiley & Sons. ISBN 978-0-470-17888-1.

[edit]Footnotes