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Automobile Industry, India Automobile Industry

Following India's growing openness, the arrival of new and existing models, easy availability of finance at
relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the
demand for vehicles and a strong growth of the Indian automobile industry.
The data obtained from ministry of commerce and industry, shows high growth obtained since 2001- 02 in
automobile production continuing in the first three quarters of the 2004-05. Annual growth was 16.0 per cent in
April-December, 2004; the growth rate in 2003-04 was 15.1 per cent The automobile industry grew at a
compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997.
With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry exceeded Rs. 59,518 crore
in 2002-03. Including turnover of the auto-component sector, the automotive industry's turnover, which was
above Rs. 84,000 crore in 2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in
Automobile Dealers Network in India
In terms of Car dealer networks and authorized service stations, Maruti leads the pack with Dealer networks and
workshops across the country. The other leading automobile manufactures are also trying to cope up and are
opening their service stations and dealer workshops in all the metros and major cities of the country. Dealers
offer varying kind of discount of finances who in tern pass it on to the customers in the form of reduced interest
Major Manufacturers in Automobile Industry
Maruti Udyog Ltd.
General Motors India
Ford India Ltd.
Eicher Motors
Bajaj Auto
Daewoo Motors India
Hero Motors
Hindustan Motors
Hyundai Motor India Ltd.
Royal Enfield Motors
TVS Motors
DC Designs
Swaraj Mazda Ltd
Government has liberalized the norms for foreign investment and import of technology and that appears to have
benefited the...

The automotive industry in India is one of the larger markets in the world and had previously been one of the
fastest growing globally, but is now seeing flat or negative growth rates. 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. 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), grew 16 to 18 per cent to sell around three million units in the
course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan,
South Korea, and Thailand. 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 in that year. According to the Society of Indian Automobile
Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015. The majority of India's car
manufacturing industry is based around three clusters in the south, west and north. The southern cluster
consisting of Chennai 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%. Chennai, with the India operations
of Ford, 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. Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car
manufacturer, Maruti Suzuki, is based. 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, Jaguar Cars, Fiat and Force Motors having assembly plants in the area. Nashik has a major
base of Mahindra & Mahindra with a UV assembly unit and an Engine assembly
unit. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster. Another emerging
cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and further planned
for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up
in Gujarat. Kolkata with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other
automotive manufacturing regions around the country.
Overview of the Automobiles Industry
Industry performance in 2011-12
The cumulative production data for April-March 2012 shows production growth of 13.83 percent over same
period last year. In March 2012 as compared to March 2011, production grew at a single digit rate of 6.83
percent. In 2011-12, the industry produced 20,366,432 vehicles of which share of two wheelers, passenger
vehicles, three wheelers and commercial vehicles were 76 percent, 15 percent, 4 percent and 4 percent
respectively. Domestic Sales
The growth rate for overall domestic sales for 2011-12 was 12.24 percent amounting to 17,376,624 vehicles. In
the month of only March 2012, domestic sales grew at a rate of 10.11 percent as compared to March 2011.
Passenger Vehicles segment grew at 4.66 percent during April-March 2012 over same period last year.
Passenger Cars grew by 2.19 percent, Utility Vehicles grew by 16.47 percent and Vans by 10.01 percent during
this period. In March 2012, domestic sales of Passenger Cars grew by 19.66 percent over the same...

Automobile industry is booming in this century. India is one of the key players in the international automobile
market. One of the fastest growing sectors in India is the automobile industry. High demand for cars, two
wheelers and other vehicles has driven the growth of the automobile sector. The list below gives the name of the
best automobile companies in India. Bajaj Auto Ltd :
It is market leader among the automobile companies in India. The Bajaj Group's flagship company is Bajaj
Auto. It is the fourth largest two-wheeler and four-wheeler manufacturer in the world. The Bajaj Brand is
renowned in countries like US, Europe, Latin America etc. It is also among the top Ten Indian Companies in
market capitalization. The company has products in the segments like scooters, mopeds, motorcycles, three
Tata Motors:
Initially known as TELCO, Tata Motors is the largest manufacturer of commercial vehicle in India and also the
largest private sector company. The company produces light commercial vehicles, passenger cars, commercial
vehicles and multi-utility vehicles. The most popular vehicles are Indica, Safari, Estate, Sierra etc. The latest
innovation of the Tata Motors is the Nano car which is called the people's car. This one lakh car has created a
revolution in the history of the automobile industry across the world. Ford Motor Company:
This company entered the Indian automobile industry by a tie up with Mahindra Motors to manufacture the
awesome Ford Escort. The company's models made for India are manufactured keeping in mind the Indian
conditions. The company has sold about more than 260,000,000 vehicles across the globe. The eminent brands
of the company are Jaguar, Mercury, Ford, Lincoln. The company also ranks among the best five industrial
corporations in the globe and is found in about 200 countries. Hero Honda Motors Ltd :

The company is the result of the amalgamation between Japanese Honda Motors...

Indian automobile industry has grown leaps and bounds since 1898, a time when a car had touched the Indian
streets for the first time. At present it holds a promising tenth position in the entire world with being # 2 in two
wheelers and # 4 in commercial vehicles. Withstanding a growth rate of 18% per annum and an annual
production of more than 2 million units, it may not be an exaggeration to say that this industry in the coming
years will soon touch a figure of 10 million units per year.
Reasons of Growth
Economic liberalization, increase in per capita income, various tax relief policies, easy accessibility of finance,
launch of new models and exciting discount offers made by dealers all together have resulted in to a stupendous
growth of India automobile industry.
Automobile industry of India can be broadly classified under passenger vehicles, commercial vehicles, three
wheelers and two wheelers, with two wheelers having a maximum market share of more than 75%. Automobile
companies of India, Korea, Europe and Japan have a significant hold on the Indian market share. Tata Motors
produces maximum numbers of mid and large size commercial vehicles, holding more that 60% of the market
share. Motorcycles top the charts of two wheelers with Hero Honda being the key player. Bajaj by far is the
number one manufacturer of three wheelers in India.
Passenger vehicle section is majorly ruled by the car manufacturers capturing over 82% of the total market
share. Maruti since long has been the biggest car manufacturer and holds more that 50% of the entire market.
Global recession has impacted, the Indian automobile industry also and can be seen clearly in the sales figures
of the last financial year. Even then this industry has high hopes in 2009-2010, as banks have reduced loan
interest rates and the major chuck of automobile customers belong to the middle income group who are
becoming economically stronger with every passing day.
* The first automobile in India rolled in 1897 in Bombay. * India is being recognized as potential emerging auto
market. * Foreign players are adding to their investments in Indian auto industry. * Within two-wheelers,
motorcycles contribute 80% of the segment size. * 2/3rd of auto component production is consumed directly by
OEMs. * India is the largest three-wheeler market in the world. * India is the largest two-wheeler manufacturer
in the world. * India is the second largest tractor manufacturer in the world. * India is the fifth largest
commercial vehicle manufacturer in the world. * The number one global motorcycle manufacturer is in India.
* India is the fourth largest car market in Asia - recently crossed the 1 million mark.
Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda contributes 50%
motorcycles to the market. In it Honda holds 46% share in scooter and TVS makes 82% of the mopeds in the
40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market share. Among
the passenger transport, Bajaj is the leader by making 68% of the three-wheelers.
Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger cars and is a
complete monopoly in multi purpose vehicles.
In utility vehicles Mahindra holds 42% share.
In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata Motors is also the
world's fifth largest medium & heavy commercial vehicle manufacturer

Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the country by the second
half of 2008. It would be set up by city-based Prajay Engineers Syndicate in area of more than 35 acres. This
'Autopolis' would have facilities for automobile financing institutions and insurance services to create a...