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Role of Automobile Industry in Indian Economy | India24
src: india24.xyz

The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in FY (fiscal year) 2015-16, following a growth of 2.57 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country's gross domestic product (GDP). The Two Wheelers segment, with 81 per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a young population. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has 13 per cent market share.

India is also a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014-15, automobile exports grew by 15 per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020.


Video Automotive industry in India



Market size

The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs), three wheelers (3W) and 2W in April-October 2015, as against 13.83 in April-October 2014, registering a marginal growth of 3.07 per cent, year-to-year.

The sales of PVs grew by 8.51 per cent in April-October 2015 over the same period in the previous year. The overall CVs segment registered a growth of 8.02 per cent in April-October 2015 as compared to same period last year. Medium and Heavy Commercial Vehicles (M&HCVs) registered very strong growth of 32.3 per cent while sales of Light Commercial Vehicles (LCVs) declined by 5.24 per cent during April-October 2015, year-to-year.

In April-October 2015, overall automobile exports grew by 5.78 per cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, 18.59 per cent and 3.22 per cent, respectively, in April-October 2015 over April-October 2014.


Maps Automotive industry in India



Investments

In order to keep up with the growing demand, several auto makers have started investing heavily in various segments of the industry during the last few months. The industry has attracted foreign direct investment (FDI) worth US$13.48 billion during the period April 2000 to June 2015, according to data released by Department of Industrial Policy and Promotion (DIPP).

Some of the major investments and developments in the automobile sector in India are as follows:

  • Global auto maker Ford plans to manufacture in India two families of engines by 2017, a 2.2 litre diesel engine code-named Panther, and a 1.2 litre petrol engine code-named Dragon, which are expected to power 270,000 Ford vehicles globally.
  • The world's largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and increasing capacity in India.
  • General Motors plans to invest US$1 billion in India by 2020, mainly to increase the capacity at the Talegaon plant in Maharashtra from 130,000 units a year to 220,000 by 2025.
  • US-based car maker Chrysler has planned to invest Rs 3,500 crore (US$525 million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
  • Mercedes Benz has decided to manufacture the GLA entry SUV in India. The company has doubled its India assembly capacity to 20,000 units per annum.
  • Germany-based luxury car maker Bayerische Motoren Werke AG's (BMW) local unit has announced to procure components from seven India-based auto parts makers.
  • Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent shares in France-based Peugeot Motorcycles (PMTC).

Automotive industry in India - Wikipedia
src: upload.wikimedia.org


Government Initiatives

The Government of India encourages foreign investment in the automobile sector and allows 100 per cent FDI under the automatic route.

Some of the major initiatives taken by the Government of India are:

  • The Government of India aims to make automobile manufacturing the main driver of "Make in India" initiative, as it expects the passenger vehicles market to triple to 9.4 million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.
  • In the Union budget of 2015-16, the Government has announced plans to provide credit of Rs 850,000 crore (US$127.5 billion) to farmers, which is expected to boost sales in the tractors segment.
  • The government plans to promote eco-friendly cars in the country--i.e. CNG-based vehicles, hybrid vehicles, and electric vehicles--and also to make mandatory 5 per cent ethanol blending in petrol.
  • The government has formulated a Scheme for Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India, under the National Electric Mobility Mission 2020, to encourage the progressive introduction of reliable, affordable, and efficient electric and hybrid vehicles into the country.
  • The Automobile Mission Plan (AMP) for the period 2006-2016, designed by the government is aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector.

Automotive Industry in India India is the automotive export hub in ...
src: bizimages.withfloats.com


History

In 1897, the first car ran on an Indian road. Through the 1930s, cars were imports only, and in small numbers.

An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was launched in 1942, long-time competitor Premier in 1944, building Chrysler, Dodge, and Fiat products respectively. Mahindra & Mahindra was established by two brothers in 1945, and began assembly of Jeep CJ-3A utility vehicles. Following 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. In 1953, an import substitution programme was launched, and the import of fully built-up cars began to be restricted.

1947-1970

The 1952 Tariff Commission

In 1952, the government appointed the first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted their report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, with licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per demands, in the future. The Tariff Commission recommendations were implemented with new policies that would eventually exclude companies that only imported parts for assembly, as well as those with no Indian partner. In 1954, following the Tariff Commission implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants in Mumbai, decided to move out of India.

The Tariff commission policies, including similar restrictions that applied to other industries, came to be known as the "license raj", which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic red tape ended up causing demand to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.

Passenger Cars

  • Hindustan Motors, Calcutta - technical collaboration with Morris Motors to manufacture Morris Oxford models that would later become HM Ambassador.
  • Premier Automobiles, Bombay - technical collaboration with Chrysler to manufacture Dodge, Plymouth and Desoto models and with Fiat to manufacture the 1100D models which would later with Premier Padmini range.
  • Standard Motor Products of India, Madras - technical collaboration from Standard-Triumph to manufacture Standard Vanguard, Standard 8, 10 and later Standard Herald.

Utility and Light Commercial Vehicles

  • Vehicle Factory Jabalpur - started manufacturing Jonga Light Utility Vehicles and Vahan 1 Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the main troop carriers of the Indian Armed Forces and much powerful than any other vehicle of their class.
  • Mahindra & Mahindra, Bombay - technical collaboration with Willys to manufacture CJ Series Jeep.
  • Bajaj Tempo, Poona now Force Motors - technical collaboration with Tempo (company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.
  • Standard Motor Products of India - technical collaboration from Standard has licence to manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne pickup variants.

Medium and Heavy Commercial Vehicles

  • Vehicle Factory Jabalpur - started manufacturing Shaktiman trucks with technical assistance from MAN SE of Germany. The trucks were the main logistics vehicle of the Indian Army with several specialist variants. VFJ still is the sole supplier of B vehicles to the Indian Armed Forces.
  • Heavy Vehicles Factory - was established in 1965 in Avadi, near Chennai to produce tanks in India. Since its inception, HVF has produced all the tanks of India, including Vijayanta, Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only tank manufacturing facility of India.
  • Tata Motors, Poona, then known as TELCO - technical collaboration with Mercedes Benz to manufacture medium to heavy commercial vehicles both Bus and Trucks.
  • Ashok Motors, later Ashok Leyland, Madras - technical collaboration with Leyland Motors to manufacture medium to heavy commercial vehicles both Bus and Trucks. Ashok Motors also discontinued its Austin venture formed in 1948 to sell Austin A40 and retooled the factory to make trucks and buses.
  • Hindustan Motors - technical collaboration with General Motors to manufacture the Bedford range of medium lorry and bus chassis.
  • Premier Automobiles - technical collaboration with Chrysler to manufacture the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
  • Simpsons & Co, Madras - part of Amalgamations Group (TAFE Tractors)- technical collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise that option until the 1980s.

Scooters, Mopeds and Motorcycles

known as Bajaj Chetak, by Bajaj became the largest sold scooter in the world

  • Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after the tariff commission was enabled.
  • Royal Enfield (India), Madras - technical collaboration with Royal Enfield, UK to manufacture the Enfield Bullet range of motorcycles.
  • Bajaj Auto, Poona - technical collaboration with Piaggio, Italy to manufacture their best selling Vespa range of scooters and three wheelers with commercial option as well.
  • Automobile Products of India, Bombay (Better known for API Lambretta - technical collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of mopeds, scooters and three-wheelers. This company was actually the Rootes Group car plant that was bought over by M. A. Chidambaram family.
  • Mopeds India Limited, Tirupathi - technical collaboration with Motobécane, France to manufacture their best selling Mobylette mopeds.
  • Escorts Group, New Delhi - technical collaboration with CEKOP of Poland to manufacture the Rajdoot 175 motorcycle whose origin was DKW RT 125
  • Ideal Jawa, Mysore - in technical collaboration with CZ - Jawa of Czechoslovakia for its Jawa and Yezdi range of motorcycles.

1970 to 1983

However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, hampered the growth of Indian private sector.

The beginning of the 1970s saw some growth potential and most of the collaboration license agreements came to an end but with option to continue manufacturing with renewed branding. Cars were still meant for the elite and Jeeps were largely used by government organizations and some rural belts. In commercial vehicle segments some developments were made by the end of the decade to cater improved goods movements. The two-wheeler segment remained unchanged except for to increased sales in urban among middle class. But more fillip was target towards farm tractors as India was embarking on a new Green Revolution. More Russian and eastern bloc imports were done to increase the demand.

But after 1970, with restrictions on the import of vehicles set, the automotive industry started to grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still remained a major luxury item. In the 1970s, price controls were finally lifted, inserting a competitive element into the automobile market. However, by the 1980s, the automobile market was still dominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers. During the eighties, a few competitors began to arrive on the scene.

The OPEC oil crisis saw increase need to installing or redesign some vehicle to fit diesel engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks on Pertol engines.

1984 to 1992

From the end of the 1970s to the beginning of the 1980s saw no new models but the country continued with 2 decade old designs forcing government to encourage and let more manufacturers into fray.

In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory Medak, near Hyderabad. It started manufacturing Infantry Combat Vehicles christened as Sarath, the backbone of India's mechanised infantry. OFMK is still the only manufacturing facility of ICVs in India. To manufacture the high-power engines used in ICVs and main battle tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The 1986 Expo was a showcase for how the Indian automotive industry was absorbing new technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India. The nine-day show was attended by then Prime Minister Rajiv Gandhi.

Post-1992 liberalisation

Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South Korea, were allowed to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the first, and the most successful of these new entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s. As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The variety of options available to the consumer began to multiply in the nineties, whereas before there had usually only been one option in each price class. By 2000, there were 12 large automotive companies in the Indian market, most of them offshoots of global companies.

Slow export growth

Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets and neighbouring countries began early, and in 1987 Maruti Suzuki shipped 480 cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive. This was not to last, and today India manufactures low-priced cars for markets across the globe. As of 18 March 2013, global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis.

Emission norms

In 2000, in line with international standards to reduce vehicular pollution, the central government unveiled standards titled "India 2000", with later, upgraded guidelines to be known as Bharat Stage emission standards. These standards are quite similar to the stringent European emission standards and have been implemented in a phased manner. Bharat Stage IV (BS-IV), the most stringent so far, was implemented first, in April 2010, in 13 cities--Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra--and then, as of April 2017, the rest of the nation.

Local manufacture encouraged

India levies an import tax of 125% on electric cars, while the import tax on components such as gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in India rather than be imported as completely built units.


AUTOMOBILE INDUSTRY IN INDIA: New Production Paradigm - ppt video ...
src: slideplayer.com


Manufacturing facilities

The majority of India's car manufacturing industry is evenly divided into three "clusters". Around Chennai is the southernmost and largest, with a 35% revenue share, accounting for 60% of the country's automotive exports, and home of the operations of Heavy Vehicles Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun.

Near Mumbai, Maharashtra, along the Chakan corridor near Pune, is the western cluster, with a 33% share of the market. Audi, Volkswagen, and Skoda are located in Aurangabad. Mahindra and Mahindra has an SUV and engine assembly plant at Nashik. General Motors, Tata Motors, Mercedes Benz, Land Rover, Jaguar, Fiat, and Force Motors have assembly plants in the area.

The northern cluster is around the National Capital Region, and contributes 32%. Gurgaon and Manesar, in Haryana, are where the country's largest car manufacturer, Maruti Suzuki, is based.

An emerging cluster is the state of Gujarat, with a manufacturing facility of General Motors in Halol, and a facility for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki, and Peugeot-Citroen plants are also planned for Gujarat.

Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are other automotive manufacturing regions around the country.

Andhra Pradesh

Commercial and passenger vehicles
  • Isuzu Motors India at Sri City, Andhra Pradesh
  • Kia Motors India at Anantapur District, Andhra Pradesh
Two wheelers
  • Hero MotoCorp at Satyavedu, Andhra Pradesh
Off-highway vehicles
  • Kobelco Cranes at Sricity, Andhra Pradesh

Gujarat

Passenger vehicles
  • General Motors India Private Limited
    • Chevrolet Sales India Private Limited - Halol
  • Tata Motors - Sanand
  • Ford India - Sanand.
  • Maruti Suzuki - Ahmedabad
Commercial vehicles
  • Asia Motor Works AMW - Bhuj

Haryana

Two wheelers
  • Harley-Davidson India, Bawal
  • Hero MotoCorp - Dharuhera, Gurgaon
  • Honda Motorcycle & Scooter India - Manesar
  • India Yamaha Motor - Faridabad, Manesar
  • Suzuki - Gurgaon
Passenger vehicles
  • Maruti Suzuki - Gurgaon, Manesar

Himachal Pradesh

Two wheelers
  • TVS Motor - Nalagarh
Passenger vehicles
  • ICML motors - Amb
Commercial vehicles
  • TAFE Tractors - Parwanoo

Jharkhand

Commercial vehicles
  • Tata Motors - Jamshedpur

Karnataka

Two wheelers
  • TVS Motor - Mysuru
  • Honda Motorcycle & Scooter India Pvt. Ltd. - Narsapura
Passenger vehicles
  • Mahindra Reva Electric Vehicles - Bengaluru
  • Toyota Kirloskar Motor Private Limited - Bidadi
Commercial vehicles
  • Bharat Earth Movers - Bengaluru
  • Scania Commercial Vehicles India Private Limited - Bengaluru
  • TAFE Tractors - Doddaballapur
  • Tata Motors - Dharwad
  • Bharat Earth Movers - Mysuru
  • Volvo India
    • Volvo Buses India - Hosakote
    • Volvo Trucks India - Hosakote
    • Volvo Construction Equipment India - Hosakote

Kerala

Commercial vehicles
  • Bharat Earth Movers Defense Products - produces Tatra Trucks 12x12, 10x10,8x8, 6x6, 4x4, and variants
  • Kerala Automobiles Limited

Madhya Pradesh

Two wheelers
  • Mahindra & Mahindra - Pithampur
Commercial vehicles
  • Vehicle Factory Jabalpur, Jabalpur
  • Eicher Motors - Pithampur
  • Hindustan Motors - Pithampur
  • Force Motors Private Limited - Pithampur
  • TAFE Tractors - Mandideep
  • John Deere Tractors - Dewas
  • CASE Construction Equipment - Pithampur

Maharashtra

Two wheelers
  • Bajaj Auto - Chakan (Pune), Waluj Aurangabad
  • KTM Sportmotorcycles - Chakan (Pune)
  • India Kawasaki Motors - Chakan (Pune)
  • Vespa Scooters - Baramati (Pune)
  • Kinetic Engineering - Pune, Ahmednagar
Passenger vehicles
  • Mahindra & Mahindra Automotive Division - Nashik, Chakan (Pune)
  • Ssangyong Motor Company - Chakan (Pune)
  • Tata Motors Limited
    • Tata Motors - Pimpri Chinchwad (Pune)
    • Jaguar Cars and Land Rover - Pune
  • Mercedes-Benz Passenger Cars - Chakan(Pune)
  • Fiat Automobiles and Jeep India - Ranjangaon (Pune)
  • General Motors India - Talegaon (Pune)
  • Volkswagen Group Sales India Private Limited
    • Volkswagen - Chakan (Pune)
    • Audi AG - Aurangabad
    • ?koda Auto - Aurangabad
  • Chinkara Motors - Karlekhind Alibag
  • Premier Automobiles Limited - Pimpri Chinchwad (Pune)
Commercial vehicles
  • Ashok Leyland - Bhandara
  • Bajaj Auto - Waluj Aurangabad
  • Force Motors - Pune
  • Mahindra Navistar - Chakan(Pune)
  • MAN Trucks India - Akurdi (Pune)
  • Piaggio Vehicles - Baramati (Pune)
  • Premier Automobiles Limited - Pimpri Chinchwad (Pune)
  • Eicher (VE Commercial Vehicles Ltd.) - Thane.
  • Sany India - Pune.
  • Hyundai Construction Equipment - Chakan (Pune).
  • Terex - Khed (Pune).

Punjab

Commercial vehicles
  • SML Isuzu Limited - Nawanshahar (originally a Swaraj Mazda plant).
  • Preet Tractor, Nabha.
  • Sonalika Tractor Pvt Ltd, Hoshiarpur.

Rajasthan

Two Wheelers

Honda Motorcycle & Scooter India - Tapukara

Passenger vehicles
  • Honda Cars India Ltd. - Tapukara
Commercial vehicles
  • Ashok Leyland - Alwar
  • TAFE Tractors - Alwar

Tamil Nadu

Two wheelers
  • TVS Motor - Hosur
  • Royal Enfield - Chennai
  • India Yamaha Motor - Oragadam, Chennai
Passenger vehicles
  • BMW India - Mahindra World City, New Chennai
  • Ford India Private Limited - Maraimalai Nagar, Chennai
  • Hyundai Motor India Limited - Sriperumbudur, Chennai
  • Mitsubishi - Tiruvallur, Chennai
  • Renault Nissan Automotive India Private Limited
    • Nissan Motor India Private Limited - Oragadam, Chennai
    • Renault India Private Limited - Oragadam, Chennai
Commercial vehicles
  • Heavy Vehicles Factory, Avadi, Chennai
  • Engine Factory Avadi, Avadi, Chennai
  • Ashok Leyland - EnnoreChennai, Hosur
  • BharatBenz - Oragadam, Chennai
  • Kamaz Vectra Motors - Hosur
  • SAME Deutz-Fahr Tractors - Ranipet, Vellore
  • TAFE Tractors - Chennai
  • TVS Motor - Hosur

Telangana

Defence
  • Ordnance Factory Medak, Medak

Uttar Pradesh

Two wheelers
  • India Yamaha Motor - Greater Noida
  • LML - Kanpur
Passenger vehicles
  • Honda Cars India Ltd. - Greater Noida
  • J.S. Auto (P) LTD. - Kanpur
Commercial vehicles
  • Tata Motors - Lucknow

Uttarakhand

Commercial vehicles
  • Ashok Leyland - Pantnagar
  • Tata Motors - Pantnagar
  • Mahindra & Mahindra - Haridwar
Two wheelers
  • Hero MotoCorp - Haridwar
  • Bajaj Auto - Pantnagar

West Bengal

Passenger vehicles
  • Hindustan Motors Limited - Kolkata (Inactive)

IBEF report on the Indian automotive industry for FY 2015-16 ...
src: www.team-bhp.com


Exports

India's automobile exports have grown consistently and reached $4.5 billion in 2009, with the United Kingdom being India's largest export market, followed by Italy, Germany, Netherlands, and South Africa.

According to the 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, Nissan, Toyota, Volkswagen, and Maruti Suzuki.

In 2008, South Korean multinational 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. Similarly, US automobile company, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011.

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. The company said that the plant was a part of its plan to make India the hub for its global production business. Fiat Motors announced that it would source more than US$1 billion worth auto components from India.

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).

In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing EUR 700M in the operation. PSA's intention to utilise this production facility for export purposes however remains unclear as of December 2010.

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 Maruti Exports' shipments to Suzuki's other markets, 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 preparing to sell electric cars in Europe in 2010. The firm is planning to sell an electric version of its affordable car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and small SUV models in the U.S. market. Bajaj Auto is designing a low-cost car for 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. While the possibilities for the Indian automobile industry are impressive, there are challenges that could thwart future growth. 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.

Top 10 export destinations

India exported $14.5 billion worth of automobiles in 2014. The 10 countries below imported 47.8% of that total.


Demonetization's Impact on the Indian Automotive Sector â€
src: www.aranca.com


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% import duty, car-makers such as Alfa Romeo, McLaren, Pagani, Cadillac, Chrysler, SSC, Lincoln, Zenvo, SEAT, Smart, Daihatsu, Infiniti, Acura, Saab, Spyker, Lotus, Ariel, Caterham, Peugeot-Citroën, Mazda, Kia, GAZ, and Proton are in various stages of official introduction into the Indian automobile industry.

Indian automotive companies

Models currently manufactured by Indian companies

  • Chinkara Motors: Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster
  • Force Motors (earlier known as Tempo): One
  • Hindustan Motors: Ambassador
  • Hradyesh:Morris Street
  • ICML: Rhino Rx
  • Mahindra: Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito Vibe, Genio, XUV500, e2o, TUV300, KUV100, NuvoSport.
  • Premier Automobiles Limited: Sigma, RiO
  • San Motors: Storm
  • Maruti Suzuki (subsidiary of Japanese auto maker Suzuki) Alto K10, Alto 800, WagonR, Swift, Swift DZire, Omni, Eeco, Gypsy, Ertiga, Celerio, Ciaz, Vitara Brezza, Baleno, Ignis, S-Cross.
  • Tata Motors: Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Movus, Venture, Safari, Xenon, Aria, Zest, Bolt, Tiago, Tigor, Hexa.

Defunct Indian automotive companies

  • Sipani Automobiles
  • Standard Motor Products of India

Foreign automotive companies in India

Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet (of General Motors), Toyota, Lamborghini, Jaguar, and Skoda are the foreign automotive companies that manufacture and market their products in India.

Vehicles currently manufactured or assembled in India

  • Audi India: A3, A4, A6, Q3, Q5.
  • BMW India: 1 Series, 3 Series, 3 Series GT, 5 Series, 7 Series, X1, X3, X5.
  • Chevrolet: Spark, Beat, Sail, Cruze, Tavera, Enjoy.
  • Fiat India: Punto, Linea, Avventura, Urban Cross.
  • Jeep India: Compass.
  • Ford India: Figo, Ecosport, Endeavour, Figo Aspire.
  • Datsun: Go, Go+, Redi-Go
  • Honda Cars India Limited: Brio, Jazz, Amaze, BR-V, City.
  • Hyundai Motor India: Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.
  • Isuzu: MU-7, V-Cross.
  • Jaguar (Subsidiary of Tata Motors): XE, XF, XJ.
  • Land Rover (Subsidiary of Tata Motors): Freelander, Range Rover Evoque.
  • Mercedes-Benz India: C-Class, E-Class, M-Class, GL-Class, S-Class.
  • MINI: Countryman.
  • Mitsubishi (in collaboration with Hindustan Motors):Pajero.
  • Nissan Motor India: Micra, Sunny, Terrano.
  • Renault India: Pulse, Duster, Scala, Kwid, Lodgy.
  • ?koda Auto India: Rapid, Octavia, Yeti, Superb.
  • Toyota Kirloskar: Etios Liva, Etios, Corolla Altis, Innova Crysta, Fortuner, Camry.
  • Volkswagen India: Polo, Cross Polo, Vento, Jetta, Ameo, Tiguan .

Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.

Vehicles currently imported into India

  • Aston Martin: Vantage, Vanquish, Rapide, Virage, DB9, DBS, One-77.
  • Audi: A8 L, Q7, S5 Sportback, TT, RS 7 Sportback, RS 6 Avant, RS5, R8.
  • Bentley: Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.
  • BMW: 5 Series GT, 6 Series, 7 Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.
  • Bugatti: Veyron.
  • Chevrolet: Trailblazer.
  • Ferrari: California, 458 Italia, F12, FF.
  • Fiat: Abarth 595 Competizone
  • Ford: Mustang.
  • General Motors: Hummer H2, Hummer H3.
  • Gumpert: Apollo.
  • Honda: Accord Hybrid.
  • Hyundai: Santa Fe.
  • Isuzu Motors India:D-Max
  • Jaguar (Subsidiary of Tata Motors): XJS, XK, F-Type.
  • Koenigsegg: CCX, CCXR, Agera.
  • Lamborghini: Huracan, Aventador.
  • Land Rover (Subsidiary of Tata Motors): Discovery 4, Range Rover Sport, Range Rover.
  • Maserati: Quattroporte, Ghibli.
  • Mercedes-Benz: Viano.
  • MINI: Cooper, Cooper S, Convertible.
  • Mitsubishi: Montero.
  • Nissan:GT-R.
  • Porsche: 997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.
  • Rolls Royce: Ghost, Wraith, Phantom, Phantom Coupé, Phantom Drophead Coupé.
  • SsangYong (subsidiary of Mahindra & Mahindra): Rexton.
  • Toyota: Land Cruiser, Land Cruiser Prado, Prius.
  • Volkswagen: Beetle.
  • Volvo: V40, S60, S80, XC60, S90, XC90.

autoDX
src: autodx.org


Commercial vehicle manufacturers in India

Indian brands

  • AMW
  • Eicher Motors
  • Force
  • Hindustan Motors
  • Mahindra & Mahindra
  • Premier
  • Tata Motors
  • Hero Motocorp
  • Bajaj Auto
  • TVS Motor

Joint-venture (JV) brands

  • Ashok Leyland - originally a JV between Ashok Motors (owned by the Hinduja Group) and Leyland Motors, now joint ventures between Ashok Leyland and Nissan Motors (Japan) for LCV's; and John Deere (USA) for construction equipment.
  • KaMAZ Vectra - A JV between Russia's KaMAZ and the Vectra Group
  • MAN Force - A JV between Force Motors and MAN AG (Germany)
  • SML Isuzu - originally, as Swaraj Mazda, a JV between Punjab Tractors and Mazda, now 53.5% owned by Sumitomo Group and with its current name since 2011.
  • Tatra Vectra Motors Ltd - (defunct) Initial truck partnership with India by Vectra. Replaced by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration with Bharat Earth Movers Limited.
  • VE Commercial Vehicles Limited - VE Commercial Vehicles limited - A JV between Volvo Group and Eicher Motors Limited.
  • Maruti Suzuki - A joint venture of Indian Maruti and Japanese Suzuki.

Foreign-owned brands

  • J. C. Bamford (JCB) (Owned by British multinational corporation J. C. Bamford).
  • BharatBenz (Owned by Daimler AG of Germany and affiliated with Daimler's Fuso and Mercedes-Benz brands)
  • Caterpillar Inc.
  • DAF
  • Hino
  • Isuzu
  • Iveco
  • MAN
  • Mercedes-Benz - manufactures luxury coaches in India.
  • Piaggio
  • Rosenbauer.
  • Scania
  • Tatra.
  • Volvo.

IBEF report on the Indian automotive industry for FY 2015-16 ...
src: www.team-bhp.com


Electric vehicle and Hybrid vehicle (xEV) industry

During April 2012, the Indian government planned to unveil the road map for the development of domestic electric and hybrid vehicles (xEV) in the country. A discussion between the various stakeholders, including Government, industry, and academia, was expected to take place during 23-24 February. The final contours of the policy would have been 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, auto industry executives, such as Anand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task. The Government has also proposed to set up a Rs 740 crore research and development fund for the sector in the 12th five-year plan during 2012-17. The idea is to reduce the high cost of key imported components such as the battery and electric motor, and to develop such capabilities locally.

Electric car manufacturers in India

  • Ajanta Group.
  • Hero Electric.
  • Mahindra.
    • Reva, now Mahindra Reva Electric Vehicles.
  • Tara International.
  • Tata Motors.

India Vs Pakistan : Automobile Industry - YouTube
src: i.ytimg.com


Defunct motor vehicle manufacturers of India

  • Automobile Products of India or API - founded in 1949 at Bombay (now Mumbai), by the British company Rootes Group, and later bought over by M. A. Chidambaram of the MAC Group from Madras (now Chennai). The company manufactured Lambretta scooters, API Three Wheelers under licence from Innocenti of Italy and Automobile ancillaries, notably Clutch and Braking systems. API's registered offices were earlier in Mumbai, later shifted to Chennai, in Tamil Nadu. The manufacturing facilities were located in Mumbai and Aurangabad in Maharashtra and in Ambattur, Chennai. The company has not been operational since 2002.
  • Escorts Yamaha - in 1984 Escorts formed a joint venture with Yamaha to manufacture motorcycles. In 2008 became India Yamaha Motor.
  • Hero Motors is a former moped and scooter manufacturer based in Delhi, India. It is a part of multinational company Hero Group, which also currently owns Hero Motocorp (formerly Hero Honda) and Hero Cycles, among others. Hero Motors was started in the 1960s to manufacture 50 cc two-stroke mopeds but gradually diversified into making larger mopeds, mokicks and scooters in the 1980s and the 1990s. Noteworthy collaborators and technical partners were Puch of Austria and Malaguti of Italy. Due to tightening emission regulations and poor sales, Hero motors have discontinued the manufacture of all gasoline powered vehicles and transformed itself into an electric two-wheeler and auto parts manufacturer.
  • Ideal Jawa - motorcycle company based in Mysore, sold licensed Jawa and ?Z motorcycles beginning in 1960 under the brand name Jawa and later Yezdi.
  • Kinetic Honda - a joint venture between Kinetic Engineering Limited, India and Honda Motor Company, Japan. The JV operated during 1984 - 1998, manufacturing 2-stroke scooters in India. In 1998, the joint venture was terminated after which Kinetic Engineering continued to sell the models under the brand name Kinetic until 2008 when the interests were sold to Mahindra.
  • Mopeds India Limited - produces the Suvega range of Mopeds under technical collaboration with Motobécane of France.
  • Standard - produced by Standard Motor Products in Madras from 1949 to 1988. Indian Standards were variations of vehicles made in the U.K. by Standard-Triumph. Standard Motor Products of India Ltd. (SMPI) was incorporated in 1948, and their first product was the Vanguard, which began to be assembled in 1949. The company was dissolved in 2006 and the old plant torn down.

Upbeat Indian auto component industry targets 8-10% growth in FY16
src: www.autocarpro.in


See also

  • Media related to Automobile manufacturers of India at Wikimedia Commons
  • Automobile industry
  • Automotive Industry Standards, the automotive regulations of India
  • Electric vehicle industry in India
  • Electronics and semiconductor manufacturing industry in India
  • Lists of automobile-related articles
  • List of car brands
  • List of truck manufacturers
  • List of motorcycle manufacturers (Category)
  • List of scooters - List of scooter manufacturers
  • List of countries by motor vehicle production
  • List of countries by vehicles per capita
  • List of Asian cars
  • List of automobile manufacturers of China
  • List of Japanese cars
  • List of vehicle plants in India

THE MADE IN PAKISTAN - FLYING AUTOMOTIVE INDUSTRY - INDIA ...
src: i.ytimg.com


References


Promising Future for India's Automotive Industry Through 2021 by ...
src: mms.businesswire.com


Bibliography

  • Gupta, Sadanand (2012), Automobile Industry in India: A Cluster Approach, Ruby Press & Co., ISBN 978-81-922182-6-7 
  • Kamala, T.N. & Doreswamy, A.G. (2007). Strategies for Enhancing Competitiveness of Indian Auto Component Industries. Indian Institute of Management Kozhikode.
  • Piplai, Tapas (2001-07-28). "Automobile Industry: Shifting Strategic Focus". Economic and Political Weekly. Mumbai, India: Sameeksha Trust. 36 (30): 2892-2897. 
  • 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. 

Source of the article : Wikipedia

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