Automobile Industry

Automobile Industry
The Indian automobile industry is the tenth largest in the world with an annual production of

Passengers Vehicles From April- From April- Total Market The Net Total number of
(PVS) November 04- November 05- Share (in %) Change exports in April
05 06 between the 05-06
period
(in %)

Maruti Udyog 2,69360 2,91,182 52.2 8.1 23,043

Hyundai Motors India89,075 1,07, 066 19.2 20.2 68,374

Ltd.

Tata Motors 95,402 24,348 16.6 -2.7 12,105

HondaSiel cars India23,186 24,348 4.4 5.1 31

Ltd.

Ford India Pvt. Ltd 15,026 10,512 1.9 -30% 9,928

approximately 2 million units. Indian auto industry, promises to become the major automotive
industry in the upcoming years and the industry experts are hopeful that it will touch 10 million
units mark.
Indian automobile industry is involved in design, development, manufacture, marketing, and
sale of motor vehicles. There are a number of global automotive giants that are upbeat about
the expansion plans and collaboration with domestic companies to produce automobiles in
India.
The major car manufacturers in India are Maruti Udyog, Hyundai Motors India Ltd., General
Motors India Pvt. Ltd., Honda Siel Cars India Ltd., Toyota Kirloskar Motor Ltd., Hindustan
Motors etc.
The two-wheeler manufacturers in India are Honda Motorcycle & Scooter India (Pvt.) Ltd., TVS,
Hero Honda, Yamaha, Bajaj, etc. The heavy motors including buses, trucks, auto rickshaws and
multi-utility vehicles are manufactured by Tata-Telco, Eicher Motors, Bajaj, Mahindra and
Mahindra, etc.
Quick Facts:
• First Indian to own a car in India was Jamshedji Tata.
• First woman to drive a car in India was Mrs. Suzanne RD Tata.
• The passenger car and motorcycle segment in the Indian auto industry is growing by 8-9
percent.
• Commercial vehicle will grow by 5.2 per cent.
• The first automobile in India was rolled in 1897 in Bombay.
• India is a potential emerging auto market.
• Motorcycles contribute 80% of the two-wheeler industry.
• Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
• India is the largest two-wheeler manufacturer in the world.
• India's motorcycle segment will grow by 8-9 percent in the coming years. 11. India is the
fifth largest commercial vehicle manufacturer in the world. 12. India has the number one
global motorcycle manufacturer. 13. In Asia, India is the fourth largest car market.
Used car Market
The new chapter in the automobile industry is that of used cars. The massive demand of used
cars indicates that cars are becoming increasingly popular. Those who can't afford the luxury
cars and their high prices are opting for used cars. In today's time, customers are conscious and
diligently investing on car dealership. Car buyers are investing heavily a lot of time for both to
sell a car and buy car. There's also a number of car websites that have offering detailed
information on new car prices, used cars, car reviews, Chevrolet cars, jaguar cars and luxury
cars.
Market Share
At present major Indian, European, Korean, Japanese automobile companies are holding
significant market shares. In commercial vehicle, Tata Motors dominates over 60% of the Indian
commercial vehicle market. Tata Motors is the largest medium and heavy commercial vehicle
manufacturer.
Among the two-wheeler segment, including scooters and mopeds- motorcycles have- major
share in the market. Hero Honda contributes 50% motorcycles to the market in which Honda
holds 46% share in scooter and TVS makes 82% of the mopeds in the country. In the three
wheeler industry in India, Piaggio holds 40% of the market share. Bajaj is the leader by making
68% of the three-wheelers.
Car manufacturers in India dominate the passenger vehicle market by 79%. Maruti Suzuki is the
largest car producer in India and has 52% share in passenger cars and is a complete monopoly
in multi purpose vehicles. In utility vehicles Mahindra holds 42% share. Hyundai and Tata
Motors is the second and third car producer in India.
 Figure-4: Indian Automobile Industry size

Figure-5: Indian Automobile Industry Products

Automobile Industry in India is still in its infancy but growing rapidly. The opportunities in the
automobile industry in India are attracting big names with the big purse and they are investing
vigorously in infrastructure, design and development, and marketing. Automobile industry in
India is today poised for the big leap.

• India is the 2nd largest two wheeler manufacturer in the world

• Second largest tractor manufacturer in the world

• 5th largest commercial manufacturer in the world

• 3rd largest car market in Asia, surpassing China in the process