Automotive industry in India

The Automotive industry in India is one of the largest in the world and one of the fastest
growing globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4
wheeled) and exports about 2.33 million every year.[1] It is the world's second largest
manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009.[2] India's
passenger car and commercial vehicle manufacturing industry is the seventh largest in the world,
with an annual production of more than 3.7 million units in 2010.[3] According to recent reports,
India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the
world, growing 16-18 per cent to sell around three million units in the course of 2011-12.[4] In
2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South
Korea, and Thailand.[5]

As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million automotive
vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second
fastest growing automobile market in the world.[6][7] According to the Society of Indian
Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by
2015 and more than 9 million by 2020.[8] By 2050, the country is expected to top the world in car
volumes with approximately 611 million vehicles on the nation's roads.[9]

A chunk of India's car manufacturing industry is based in and around Chennai, also known as the
"Detroit of India"[10] with the India operations of BMW, Ford, Hyundai and Nissan
headquartered in the city. Chennai accounts for 60 per cent of the country's automotive exports.
[11]
Gurgaon and Manesar in Haryana are hubs where all of the Maruti Suzuki cars in India are
manufactured.[12] The Chakan corridor near Pune, Maharashtra is another vehicular production
hub with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata
Motors, Mercedes Benz, Fiat and Force Motors[13][14] having assembly plants in the area.
Ahmedabad with the Tata Nano plant, Halol with General Motors, Aurangabad with Audi,
Kolkatta with Hindustan Motors, Noida with Honda and Bengaluru with Toyota are some of the
other automotive manufacturing regions around the country

Overview

The Indian Automobile Industry is manufacturing over 11 million vehicles and exporting about
1.5 million every 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%[19]. 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[20]. The industry has attained
a turnover of more than USD 35 billion and provides direct and indirect employment to over 13
million people[21].

The supply chain of this industry in India is very similar to the supply chain of the automotive
industry in Europe and America. This may present its own set of opportunities and threats. 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.

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 is the sector is high and increasing
and the life cycle stage is growth. With a rapidly growing middle class, all the advantages of this
sector in India are yet to be leveraged.

Note that, with a high cost of developing production facilities, limited accessibility to new
technology and soaring competition, the barriers to enter the Indian Automotive sector are high
and these barriers are study. On the other hand, India has a well-developed 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%[22].

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[23] 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%[24].
Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%[25]. Hyundai
Motor India and Mahindra and Mahindra are focusing expanding their footprint in the overseas
market. Hero Honda Motors is occupying over 41% and sharing 26%[26]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 petrol affect 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.

[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.[27] The company soon branched out into the
manufacture of light commercial vehicles (LCVs) and agricultural tractors.[28]

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. 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. Japanese manufacturers entered the Indian market ultimately
leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures
with Indian companies.[29]

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.[29]

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.[30] In February 2009,
monthly sales of passenger cars in India exceeded 100,000 units[31] and has since grown rapidly
to a record monthly high of 182,992 units in October 2009.[32] 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 [33]) this progression is
unlikely to stop in the coming decade.[34] Congestion of Indian roads, more than market demand,
will likely be the limiting factor.[35]
SIAM is the apex industry body representing all the vehicle manufacturers, home-grown and
international, in India.[36]

[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

[edit] Supply Chain of Automobile Industry

Supply Chain of Indian Automobile Industry[1]

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.[1]

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, in order to follow their customers to various locations around
the world. They design and innovate in order 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, breaks-axel-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.[37]

Year Car % Commerci % Total Vehicles %

Production Change al Change 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 894796 8.96

2001 654,557 26.37 160,054 -43.52 814611 1.62

2000 517,957 -2.85 283,403 -0.58 801360 -2.10

1999 533,149 285,044 818193

2004- 2005- 2006- 2007- 2008-

Year
2005 2006 2007 2008 2009

Motor Vehicle 11,087,99 10,853,93 11,175,47

8,467,853 9,743,503
Production[38] 7 0 9

Industry Revenue[39] 24,379 26,969 30,507 32,383 33,342*

Exports (Units)[40] 629,544 806,222 1,011,529 1,238,333 1,530,660

Exports (Revenue)[41] 1,915 2,231 2,552 3,008 3,718*

[edit] Automobile Production

2004- 2005- 2006- 2007- 2008-
Type of Vehicle
2005 2006 2007 2008 2009

Passenger Vehicles
[42] 1,209,876 1,309,300 1,545,223 1,777,583 1,838,697

Commercial
353,703 391,083 519,982 549,006 417,126
Vehicles [43]
[44]
Three Wheelers 374,445 434,423 556,126 500,660 501,030
[45]
Two Wheelers 6,529,829 7,608,697 8,466,666 8,026,681 8,418,626

11,087,99 10,853,93 11,175,47

Total 8,467,853 9,743,503
7 0 9

[edit] Automobile Sales

Type of Vehicle 2004- 2005- 2006- 2007- 2008-
 2005 2006 2007 2008 2009

Passenger Vehicles
[46] 1,061,572 1,143,076 1,379,979 1,549,882 1,551,880

Commercial
318,430 351,041 467,765 490,494 384,122
Vehicles [47]
[48]
Three Wheelers 307,862 359,920 403,910 364,781 349,719
[49]
Two Wheelers 6,209,765 7,052,391 7,872,334 7,249,278 7,437,670

10,123,98
Total 7,897,629 8,906,428 9,654,435 9,723,391
8

[edit] Automobile Exports

2004- 2005- 2006- 2007- 2008-
Type of Vehicle
2005 2006 2007 2008 2009

Passenger Vehicles
[50] 166,402 175,572 198,452 218,401 335,739

Commercial
29,940 40,600 49,537 58,994 42,673
Vehicles [51]
[52]
Three Wheelers 66,795 76,881 143,896 141,225 148,074
[53]
Two Wheelers 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 two wheelers. 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.

2003- 2004- 2005- 2006- 2007-

Segment[54]
04 05 06 07 08

Passenger Car[55] (%) 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[56] (%) 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

2.37 2.51 2.33 2.73 2.53
Vehicles[57] (%)

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[58] (%) 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

Total Three Wheelers[59] (%) 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[60] (%) 78.76 78.63 79.18 77.73 75.57

Grand Total[61] (%) 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[62]. 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[63].

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

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

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, Bengaluru,
Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, 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 106,591,000. 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:Sate-wise motor vehicles registration in

India from 2001 - 2008
2001 2002 2003 2004 2005 2006 2007 2008
States\Year (in (in (in (in (in (in (in (in
'000) '000) '000) '000) '000) '000) '000) '000)

Andhra
3,966 4,389 5,002 5,720 6,446 7,232 8,042 8,989
Pradesh

Arunachal
21 21 21 21 21 21 21 21
Pradesh

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
217 244 269 289 329 375 421 480
Pradesh

Jammu &
330 364 399 439 493 556 628 719
Kashmir

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

Madhya 3,095 3,173 3,459 3,804 4,119 4,442 4,710 4,968

Pradesh

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 16,207

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

West Bengal 1,690 1,690 2,366 2,548 2,816 3,138 3,464 3,833

Andaman &
25 28 28 28 31 34 38 42
Nicobar Islands

Chandigarh 386 386 562 586 629 677 732 799

Dadra & Nagar

13 13 31 35 43 54 67 86
Haveli

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 4 5 5 5 6 7 7 8

Pondicherry 252 270 293 313 359 418 495 552

[edit] Geographical Segmentation: Category-wise number of registrations

in States of India
Type A Ar A B Ch G G H Hi Ja Jh K K M Ma M M M N O P R S T T Ut Ut W
of n u s ih ha o uj ar m m ar ar er a ha a eg iz a ri u aj i a ri ta ta es
Vehi d n s a tti ar y a m k n al d ra ni ha or g ss nj as k m p ra r t
 c
ac u h
hr h
h & y
a al il Pr B
al K h a al
Pr a Pr at p th k N u a e
Pr a sg a a Pr sh la a a a kh
cle a r a at n a ak a u a a i a r d n
[64] a m ar s n a tra ya m n b an
d a d a r n md a es g
d h h d d d d
es e u h al
es m es
h s
h ir h
h

Multi
axled
/Artic
2
ulate 8 3 2 4 2 4 1
14 18 14 10 5, 3, 17 7 6, 24
d 2, 3, 0, 40, 8, 1, 9, 62 73 77 24 14 1, 50 75 , 94
3, 2, 7, 0, 9 2 3, 6, 3 9,7 1,
Vehic 32 1 5 41 3 6 9 ,5 ,3 ,1 3,1 ,0 0 ,4 ,9 6 ,4
14 30 66 59 6 1 55 2 2 99 03
les/Tr 3 8 1 3 2 4 5 66 15 78 13 28 1 96 21 1 82
7 4 7 6 3 5 2 3 1 5
ucks 9 6 6 4 8 9 9
5
&
Lorri
es

Light
Moto 1 3 1
20 2, 13 25 1, 1, 9, 20
r 66 4, 2, 16, 58 2, 91 30 35 34 13 3 5 57
55 4, 3 6, 6, 2 2 2 4, 5,6
Vehic ,8 3 2 68 - ,3 2 - ,7 ,0 - ,5 ,6 ,6 5 9 ,6 -
5 33 4 18 08 0 5 4 31 62
les 91 1 9 6 25 7 55 30 43 45 01 3 5 81
6 0 1 2 6 5 3 4
(goo 7 6 2
ds)

1 1 2 7
4, 4, 2, 3, 1,
15 0, 0, 45 9, 0, 9, 29 67 24 49, 2, 8 13 18 55 4 6, 26 41
Buse 66 2,0 8 8 4 5 5 4,6
,4 2 9 ,6 36 1 53 ,7 ,2 ,6 09 82 4 ,9 ,5 ,9 0 9 ,4 ,3
s 5 43 6 7 0 0 9 26
98 8 6 69 9 3 9 10 06 26 2 7 0 66 79 36 6 0 37 85
8 2 3 5 6
6 1 9 7

1
1 1 1 1 4
8, 11 3, 4, 1
81 0, 4, 22, 40 14 4, 0, 21 40 61 10 3 5, 24 11 32 , 2 13, 30 67
29 2 4, 8 4 6,
Taxis ,6 3 0 00 ,1 ,9 9 3 ,8 ,8 ,4 2,4 6 03 ,6 ,9 ,8 9 5 38 ,1 ,9
9 7 24 6 4 3
27 6 0 5 00 90 7 2 14 39 24 75 3 0 14 82 68 4 7 5 93 18
3 5 4 8 7
8 0 0 5 7
3

Light 26 1, 2 9, 7,4 9, 27 37 2, 1 36 19 29 45 49 2, 2, 1, 8, 21 36 64 - 15 1 6,7 78 38

Moto 3, 43 9, 5 3 6, ,8 7 4, ,2 0, 4, ,1 3, 5 93 1 2 ,8 ,8 ,5 4, 2, ,0 ,2
r
Vehic
8 2 1
les 32 0 7 90 8 36 24 14 2 4 9 19
0 0 74 41 5 57 46 4 93 38 80 6 99 67 89
(pass 5 7 5 8 3 2 4 2 1 5 1 2
6 5 2
enge
r)

1
9 5 6 8 1, 1 1 6 7 2
Total 57 4 74 26 13 45 68 23 14 17 34 82 28 38
5, 7, 88, 0, 6, 6, 14 2, 24 0, 6, , 0, 40,
Com 0, 7, 9, 8, 0, 3, 5, 8, 6, 7, 0, 8, 6, 8,
27 2 62 8 6 9 3, 4 ,8 3 5 3 9 27
merci 48 9 31 19 17 26 19 40 51 96 53 02 86 62
2 8 1 4 0 4 90 5 19 1 0 2 3 1
al 8 6 7 2 6 2 1 4 2 5 7 1 0 7
0 2 9 9 4 6 9 6 5 1
6

6,
4 4 3 1 2
4, 5, 1, 2, 1, 2, 7 1 3 1, 2, 2, 4 7 4 4, 1,
1 6 0 5 5 93 6,2
Two 54 10 99 16 52 73 59 87 5, 21 9, 6, 22 58 69 , 3 4, 39 92 58
8, 9, 9, 2, 3, 7, 16,
Whe 3, ,6 1,0 2, 6, 2, 5, 6, 3 ,0 5 7 3, 7, 2, 6 4, 2 1,2 2, 1,
7 7 4 2 6 74 79
elers 28 05 22 16 40 67 80 19 3 50 0 4 57 18 17 8 2 4 51 04 32
8 5 8 8 1 5 4
3 7 4 4 8 1 3 1 1 3 1 5 2 0 1 7 6
0 1 8 6 1
5

1
2 7 5 7 3 1
39 0 57 27 41 37 14 92 8, 4, 26 20 73 8, 39 49
2, 7, 43, 1, 1, 4, 92 14 3, 62 , 42,
7, 6, 2, 2, 8, 8, 8, 4, 0 8 7, 3, 1, 6 1, 4,
Cars 34 5 57 5 9 1 ,1 ,5 2 ,5 8 22
73 0 41 89 18 91 03 00 3 5 37 99 38 7 44 50
0 0 2 1 1 8 71 95 7 53 7 0
8 6 4 5 1 2 0 6 0 0 9 1 0 2 3 5
8 6 8 7 3 0
3

1 2 1 1 2 2
11 26 7, 6, 12
58 2, 4, 1, 87 2, 0, 23 41 71 36 9, 1, 26 32 , 53 97
7,3 0, 2, 8 7 8, 6,4
Jeeps ,1 26 2 7 - ,2 3 6 ,4 ,0 ,6 ,2 40 6 ,5 ,7 8 ,9 - ,8 -
02 94 74 7 6 05 52
14 0 6 2 03 3 9 19 24 56 82 1 4 27 97 6 87 21
3 1 2 5 6
6 6 1 3 9 3

3
3,
Omni 6, 1, 2, 36 30 12, 5 2 2, 4 19 14
2 4 78
Buse 5 - - - - 34 76 - - ,5 ,4 - 60 7 - - 0 23 - - 8 ,9 - ,7 -
5 4 7
s 4 5 5 13 88 9 0 7 8 7 57 36
9
9

Tract 62 33 1 7 44, 4 27 37 3, 1 15 11 9, 32 20 1, 44 2 1, 30 45 40 9 90 1 31, 7 48

ors ,3 3 0, 7, 32 7 5, 3, 8 0, ,1 9, 00 8, 1,9 2 1 0 8 ,5 9, 7, ,8 4 98 1 ,3
63 2 8 1 0 54 37 9 9 36 34 4 38 40 6 9 2 92 01 52 86 7 1 8, 41
8 4 3 3 8 6 0 0 3 7 4 3 0
0 8 9 8
 2

1 3
5 1 2
8, 9 12 16 19 2, 9
46 0, 38, 5 2, 1, 6 4, 57 1, 8 10,
Trailo 15 7 9, 0, 4, 0, 58 3 25 41 ,
,8 4 80 - 62 6 5 91 9 1 ,0 - 01 9 02 -
rs 5 4 6 18 93 62 0 0 4 0 9
85 0 4 1 1 3 6 8 13 5 8 1
0 0 5 3 8 4 1
3 2 1
3 0

2 1 7
2, 3, 1, 1,
4, 0, 16 17 5, 55 19 11 16, 2 2 1, 8, 4, 4, 6, 5 19 35
Other 17 9 2,1 8 6 6 77 2,1
50 7 ,1 ,0 79 ,4 ,1 ,3 11 2 4 0 80 35 51 - 8 4 ,1 ,1
s 9 2 03 0 6 2 2 22
0 2 58 78 9 05 02 08 1 1 7 1 6 4 1 9 1 88 64
8 4 5 6
4 8 5

5 6 3 2 3 1
Total 5, 6, 2, 1, 3, 2, 3, 7, 9 3 1, 3, 3, 9 7, 5 6, 2,
7 5 1,1 8 2 5 0
non- 14 15 33 27 08 52 10 56 82 3, 48 1, 37 35 49 , 74 4, 47 17 15
8, 3, 27, 5, 2, 1, 5,
com 9, ,8 8, 9, 6, 3, 6, 5, 4, 8 ,5 8 8, 1, 3, 9 7, 6 5,7 3, 9,
8 4 12 2 2 6 4
merci 43 72 17 71 78 32 88 12 82 6 63 2 47 13 26 1 22 1 11 33 33
5 2 4 7 0 4 1
al 2 3 8 2 2 3 4 9 9 6 0 5 9 1 0 6 8 6
3 3 8 4 7 1

[edit] Geographical Segmentation: Category-wise registration in Union

Territories of India
Dadra
Andama
& Dama
n& Chandiga Lakshadwe Pondicher
Type of Vehicle Nagar n & Delhi
Nicobar rh ep ry
Haveli Diu
Islands

Multiaxled/Articulat
ed Vehicles/Trucks 1,519 1,671 5,487 1,896 75,601 - 6,588
& Lorries

Light Motor Vehicles

- 7,459 1,190 1,829 75,947 270 2,923
(goods)

Buses 459 1,239 154 361 36,059 - 1,831

Taxis 436 1,173 108 43 24,712 - 1,421

Light Motor Vehicles

784 - 500 890 20,893 408 4,283
(passenger)

Total Commercial 3,198 11,542 7,439 5,019 233,212 678 17,046

Two Wheelers 21,743 416,917 17,881 30,35 2,665,7 3,978 235,438

 1 50

12,27 1,192,3
Cars 1,693 157,612 9,270 78 47,642
8 89

Jeeps 1,033 - 429 295 122,283 85 3,838

Omni Buses - - 6 38 8,386 5 2,545

Tractors 261 36 44 165 4,851 44 318

Trailors 67 - 46 124 99 - 1,582

Others 461 - - 30 9,705 503 4,541

Total non- 43,28 4,003,4

25,258 574,565 27,676 4,693 295,904
commercial 1 63

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.[65] India's automobile exports are expected to cross $12 billion by 2014.[66]

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.[67]

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.[68] Similarly, General Motors
announced its plans to export about 50,000 cars manufactured in India by 2011.[69]

In September 2009, Ford Motors announced its plans to setup 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.[70] The company said that the plant was a part of its plan to make India the
hub for its global production business.[71] Fiat Motors also announced that it would source more
than US$1 billion worth auto components from India.[72]

In July 2010, The Economic Times reported that PSA Peugeot Citroen 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.[73] 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.[5]

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 Auto is
designing a low-cost 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.[74] 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.[74]

[edit] Top 20 Export destinations in 2007-2008 and growth from previous

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

United States of
1 593.64 525.24 -11.52
America

2 Italy 332.35 359.68 8.22

3 Sri Lanka 249.14 216.11 -13.26

4 South Africa 224.93 188.57 -15.79

5 United Kingdom 165.57 246.32 48.77

United Arab
6 164.44 192.74 17.21
Emirates

7 Algeria 147.34 265.63 80.28

8 Bangladesh 137.26 164.86 20.11

9 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

18 Greece 65.75 127.63 94.1

19 Netherland 65.19 163.66 151.05

20 Ghana 59.91 38.30 -36.07