Professional Documents
Culture Documents
This article has multiple issues. Please help improve it or discuss these issues on the talk
page.
This article contains content that is written like an advertisement. (December 2012)
This article is outdated. (August 2012)
Chennai is home to around 35-40% of India's total automobile industry and for this reason it is
known as the Detroit of Asia. It is on the way to becoming the world's largest Auto hub by 2016
with a capacity of over 3 million cars annually
Contents
1 Market Size
2 Investments
3 Government Initiatives
4 History
o 4.1 Restrictions under the license raj
o 4.2 Liberalisation
o 4.3 Slow export growth
o 4.4 Emission norms
o 4.5 Local manufacture encouraged
5 Manufacturing facilities
o 5.1 Gujarat
o 5.2 Haryana
o 5.3 Himachal Pradesh
o 5.4 Jharkhand
o 5.5 Karnataka
o 5.6 Kerala
o 5.7 Madhya Pradesh
o 5.8 Maharashtra
o 5.9 Punjab
o 5.10 Rajasthan
o 5.11 Tamil Nadu
o 5.12 Uttar Pradesh
o 5.13 Uttarakhand
o 5.14 West Bengal
6 Exports
o 6.1 Top 10 export destinations
11 See also
12 References
13 Bibliography
Market Size
The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs),
three wheelers (3W) and 2W in AprilOctober 2015, as against 13.83 in AprilOctober 2014,
registering a marginal growth of 3.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in AprilOctober 2015 over the same period in the
previous year. The overall CVs segment registered a growth of 8.02 per cent in AprilOctober
2015 as compared to same period last year. Medium & 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 AprilOctober 2015, year-to-year.
In AprilOctober 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 AprilOctober 2015 over AprilOctober 2014.[2]
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 worlds 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 AGs (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).[2]
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 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 20062016, designed by the
government is aimed at accelerating and sustaining growth in this sector. Also, the wellestablished Regulatory Framework under the Ministry of Shipping, Road Transport and
Highways, plays a part in providing a boost to this sector.[3]
History
The Hindustan Ambassador dominated India's automotive market from the 1960s until the mid80s
In 1897, the first car ran on an Indian road. Through the 1930s, cars were only imported, and in
very 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 GM and Fiat products
respectively.[4] 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.[4]
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.[6] 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.[7]
Emission norms
In 2000, in tune with international standards to reduce vehicular pollution, the central
government unveiled standards titled "India 2000", with later, upgraded guidelines to be known
as Bharat stages. These standards are quite similar to the stringent European standards, and have
been implemented in a phased manner, with the latest upgrade being implemented in 13 cities
and, later, in the rest of the nation. Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore,
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.
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 India operations of Ford, Hyundai, Renault,
Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun.[11][12]
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 Cars, Fiat, and Force Motors have assembly plants in the
area.[13][14]
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 PeugeotCitroen plants are also planned for Gujarat.[15]
Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are
other automotive manufacturing regions around the country.[16][17][18]
Gujarat
Passenger vehicles
Commercial vehicles
Haryana
Two wheelers
Suzuki Gurgaon[27]
Passenger vehicles
Himachal Pradesh
Two wheelers
Passenger vehicles
Commercial vehicles
Jharkhand
Commercial vehicles
Karnataka
Two wheelers
Passenger vehicles
Commercial vehicles
Volvo India
o Volvo Buses India Hosakote[35]
o Volvo Trucks India Hosakote[36]
o Volvo Construction Equipment India Hosakote[37]
Kerala
Commercial vehicles
Bharat Earth Movers Defense Products - produces Tatra Trucks 12x12, 10x10,8x8, 6x6,
4x4 & Variants
Madhya Pradesh
Two wheelers
Commercial vehicles
Maharashtra
Two wheelers
Passenger vehicles
Commercial vehicles
Punjab
Commercial vehicles
Rajasthan
Two Wheelers
Honda Motorcycle & Scooter India Tapukara[24]
Passenger vehicles
Commercial vehicles
Tamil Nadu
Two wheelers
Passenger vehicles
Mitsubishi Tiruvallur[40]
Commercial vehicles
BharatBenz Oragadam[73]
Uttar Pradesh
Two wheelers
LML Kanpur
Passenger vehicles
Commercial vehicles
Uttarakhand
Commercial vehicles
West Bengal
Passenger vehicles
Exports
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.[80]
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.[81]
Similarly, US automobile company, General Motors announced its plans to export about 50,000
cars manufactured in India by 2011.[82]
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.[83] The company said that the plant was a part of its plan to make India the
hub for its global production business.[84] Fiat Motors announced that it would source more than
US$1 billion worth auto components from India.[85]
In recent years, India has emerged as a leading center for the manufacture of small cars.
Hyundai, the biggest exporter from the country, now ships more than 250,000 cars annually from
India. Apart from Maruti Exports' shipments to Suzuki's other markets, Maruti Suzuki also
manufactures small cars for Nissan, which sells them in Europe. Nissan will also export small
cars from its new Indian assembly line. Tata Motors exports its passenger vehicles to Asian and
African markets, and is preparing to sell electric cars in Europe in 2010. The firm is planning to
sell an electric version of its low-cost car the Tata Nano in Europe and in the U.S. Mahindra &
Mahindra is preparing to introduce its pickup trucks and small SUV models in the U.S. market.
Bajaj Auto is designing a low-cost car for Renault Nissan Automotive India, which will market
the product worldwide. Renault Nissan may also join domestic commercial vehicle manufacturer
Ashok Leyland in another small car project.[88] While the possibilities for the Indian automobile
industry are impressive, there are challenges that could thwart future growth. Since the demand
for automobiles in recent years is directly linked to overall economic expansion and rising
personal incomes, industry growth will slow if the economy weakens.[88]
Country
United States
Mexico
South Africa
United Kingdom
Sri Lanka
Bangladesh
Turkey
Nigeria
United Arab Emirates
Colombia
Value (US$)
1.2 billion
$1 billion
$888.8 million
$637.4 million
$596.9 million
$592.1 million
$580.4 million
$546.8 million
$433.6 million
$428.9 million
Share
8.4%
6.9%
6.1%
4.4%
4.1%
4.1%
4%
3.8%
3%
3%
Maruti Swift in India. Maruti Suzuki is a subsidiary of Suzuki Motor Corporation of Japan
Hradyesh:[117]Morris Street[118]
ICML:[119] Rhino Rx
Mahindra:[120] Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito Vibe, Genio,
XUV500, e2o.
Maruti Suzuki (subsidiary of Japanese auto maker Suzuki)[123][124] 800, Alto, Alto800,
WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Ertiga,
Celerio, Ciaz
Tata Motors:[125] Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Grande, Venture,
Safari, Xenon, Aria, Zest, Bolt
Sipani Automobiles
Manufactured only in Chennai, India, the i10 is one of Hyundai's best selling globally exported
cars.
BMW India:[126] 1 Series, 3 Series, 3 Series GT, 5 Series, 7 Series, X1, X3, X5.
Ford India:[127] Figo, Fiesta Classic, Fiesta, Ecosport, Endeavour, Figo Aspire.
General Motors India(Chevrolet):[128] Spark, Beat, Aveo U-VA, Sail, Aveo, Optra, Cruze,
Tavera.
Honda Cars India Limited:[129] Brio, Jazz, Amaze, City, Civic, CR-V, Accord.
Hyundai Motor India:[130] Eon, Santro, i10, i20, Accent, Verna, Elantra, Sonata, Creta.
MINI:[136] Countryman.
Datsun: Datsun Go
Toyota Kirloskar:[145] Etios Liva, Etios, Corolla Altis, Innova, Fortuner, Camry.
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.
BMW:[152] 5 Series GT, 6 Series, 7 Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.
Bugatti:[153][154] Veyron.
Gumpert:[158] Apollo.
Land Rover (Subsidiary of Tata Motors):[134] Discovery 4, Range Rover Sport, Range
Rover.
Mercedes-Benz:[165] A-Class, B-Class, CL-Class, GL-Class, R-Class, CLS-Class, SLClass, SLK-Class, Viano, G-Class, AMG.
Rolls Royce:[169] Ghost, Wraith, Phantom, Phantom Coup, Phantom Drophead Coup.
AMW[173]
Eicher Motors[174]
Force[175]
Hindustan Motors[176]
Premier[121]
Tata Motors[177]
Hero Motocorp
Bajaj Auto
TVS Motor
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.[181]
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.
Foreign-owned brands
BharatBenz (Owned by Daimler AG of Germany and affiliated with Daimler's Fuso and
Mercedes-Benz brands)[183]
Caterpillar Inc.[184]
DAF[185]
Hino[186]
Isuzu[187]
Iveco[188]
MAN
Piaggio[190]
Rosenbauer.[191]
Scania[192]
Tatra.[193]
Volvo.[194]
Ajanta Group.[196]
Hero Electric.[197]
Mahindra.[198]
o REVA now Mahindra Reva Electric Vehicles.
Tara International.[199]
Tata Motors.[200]
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 twowheeler 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[203]
when the interests were sold to Mahindra.
Mopeds India Limited - produces the Suvega range of Mopeds under technical
collaboration with Motobcane 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,[204] 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.
See also
Automobile industry
References