The Automotive industry in India is one of the largest in the world and one of the fastest growing globally.

India manufactures over 11 million 2 and 4-wheeled vehicles and exports about 1.5 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 2.6 million units in 2009.[3] In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea and Thailand.[4] As of 2009, India is home to 40 million passenger vehicles and more than 2.6 million cars were sold in India in 2009 (an increase of 26%), making the country the second fastest growing automobile market in the world.[5][6] 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.[7] By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.[8] A chunk of India's car manufacturing industry is based in and around the city of Chennai, also known as the "Detroit of India".[9] with the Indian city accounting for 60 per cent of the country's automotive exports.[10] Gurgaon and Manesar near New Delhi are hubs where all of the Maruti Suzuki cars in India are manufactured.[11] The Chakan corridor near Pune, Maharashtra is another vehicular production hub with General Motors, Volkswagen/ Skoda, Mahindra and Mahindra in the process of setting up or already set up facilities.[12][13] Halol in Gujarat,Aurangabad in Maharashtra, Kolkatta in West Bengal are some of the other automotive manufacturing regions around the country.[14][15][16]
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[edit]History 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.[17] In February 2009, monthly sales of passenger cars in India exceeded 100,000 units [18] and has since grown rapidly to a record monthly high of 182,992 units in October 2009[19]. 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[20]) this progression is unlikely to stop in the coming

decade [21]. C factor

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The first car ran on India's roads in 1897. Until the 1930s, cars were imported directl . Embryonic automoti e industry emerged in India in the 1940s. 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.[23] In the 1980s, a number of Japanese manufacturers launched jointventures for building motorcycles and light commercial vehicles. It was at this time that the Indian government choseSuzuki 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.[23] [edit]Supply Chain of Automobile Industry

Supply Chain of Indian Automobile Industry 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 autom akers 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 resp onsible 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 secondtier 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]Production 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.[24] Year 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 Car Production 2,166,238 1,846,051 1,713,479 1,473,000 1,264,000 1,178,354 907,968 703,948 654,557 517,957 533,149 % Change 17.34 7.74 16.33 16.53 7.27 29.78 28.98 7.55 26.37 -2.85 Commercial 466,456 486,277 540,250 546,808 362, 755 332,803 253,555 190,848 160,054 283,403 285,044 % Change -4.08 -9.99 -1.20 50.74 9.00 31.25 32.86 19.24 -43.52 -0.58 Total Vehicles Prodn. 2,632,694 2,332,328 2,253,999 2,019,808 1,628,755 1,511,157 1,161,523 894796 814611 801360 818193 % Change 11.40 3.35 10.39 19.36 7.22 23.13 22.96 8.96 1.62 -2.10

[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]Exports

Mahindra Scorpio Jeep in service with the Italy's C SAS. 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.[25] India's automobile exports are expected to cross $12 billion by 2014.[26] According to New York Ti es, 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.[27] 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.[28] Similarly, General Motors announced its plans to export about 50,000 cars m anufactured in India by 2011.[29] 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.[30] The company said that the plant was a part of its plan to [31] make India the hub for its global production business. Fiat Motors also announced that it would source more than US$1 billion worth auto components from India.[32] In July 2010, The Economic Times reported that PSA Peugeot Citroen was planning to re [33] 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[34]. 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 carsafter 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.[4] 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 truck and small SUVmodels s 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.[35] 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 t e h [35] economy weakens. [edit]Passenger vehicles in India

See also: List of cars available i India This list is of cars that are currently officially available in India. While other cars can be imported to the country at a steep 110% import duty, car-makers such as Alfa Romeo[36],Maserati[37], Ferrari[38], McLaren[39], Aston Martin[40], Cadillac[41], Chrysler[42], SSC[43], MINI[44], Lexus[45], Infiniti[46], Acura[47], Koenigs egg[48], Saab[49], Spyker[50], Renault[51],PeugeotCitroen[52], Mazda,[53] SsangYong[54] and Kia[55] are in varying stages of official introduction to the Indian automobile market. [edit]Indi n automoti compani

Tata Indigo Manza.

      

Chinkara Motors[56]: Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster Hindustan Motors[57]: Ambassador ICML[58]: Rhino Rx Mahindra[59]: Major, Xylo, Scorpio, Bolero, Thar Premier Automobiles Limited[60]: Sigma, Ri San Motors[61]: Storm Tata Motors[62]: Nano, Indica, Indica Vista, Indigo, Indigo Manza, Indigo CS, Sumo, Safari, Xenon, Aria

[edit]Forei n automoti e companies in India [edit]Vehicles manufactured or assembled in India

Manufactured only in Chennai, India, thei10 is one of Hyundai's best selling globally exported cars.

Maruti Swift. Maruti Suzuki, a subsidiary of Japan's Suzuki Motor, is the largest automobile manufacturer in India.[63]
   

BMW India[64]: 1 Series, 3 Series, 5 Series. Fiat India[65] (in collaboration with Tata Motors): Grande Punto, Linea, Palio Stile. Ford India[66]: Ford Figo, Ikon, Fiesta, Endeavour. General Motors India[67]
  

Chevrolet (CSPIL)[68]: Spark, Beat, Aveo U-VA, Aveo, Optra, Cruze, Tavera.

Honda Siel[69]: Jazz, City, Civic, Accord. Hyundai Motor India[70]: Santro, i10, i20, Accent, Verna Transform, Sonata Transform. Mahindra Renault[71]: Logan Maruti Suzuki[72]: 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Versa, Eeco, Gypsy, Grand Vitara Mercedes-Benz India: C-Class, E-Class. Mitsubishi[73] (in collaboration with Hindustan Motors)[74]: Lancer, Lancer Cedia, Pajero Nissan Motor India[75]: Micra. Toyota Kirloskar[76]: Etios, Corolla, Innova, Camry. Volkswagen India[77][78]: Polo, Vento, Jetta, Passat.


 

 

  

Audi India: A4, A6, Q5.

koda Auto India[79][80]: Fabia, Octavia, Laura, Superb. [edit]Vehicles imported to India
 

Audi[81]: A8, S4, S6, S8, TT, R8, Q5, Q7. Bentley[82][83]: Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne. BMW[84]: 5 Series GT, 6 Series, 7 Series, X1, X3, X5, X6, X6 M, M3, M5, M6 and Z4. Bugatti[85]: Veyron Chevrolet: Captiva. Fiat[65]: 500, Bravo. General Motors[67]: Hummer H2, Hummer H3. Honda[86][87]: Civic Hybrid, CR-V. Hyundai[70]: Santa Fe. Jaguar[88]: XF, XJ, XK. Lamborghini [89] : Gallardo, Murcilago. Land Rover[90]: Range Rover, Range Rover Sport, Discovery 4, Freelander 2. Maybach[91]: 57 and 62. Mercedes-Benz[92] : CL-Class, GL-Class, M-Class, R-Class, CLS-Class, SClass, SL-Class, SLK-Class, Viano, SLS. Mitsubishi: Montero, Outlander, Evo X. Nissan[93]: Teana, X-Trail, 370Z, GT-R. Porsche[94][95]: 911, Boxster, Panamera, Cayman, Cayenne. Rolls Royce[96] : Ghost, Phantom, Phantom Coup, Phantom Drophead Coup. koda[79] : Yeti, Superb. Suzuki: Grand Vitara. Toyota[76]: Land Cruiser, Land Cruiser Prado, Fortuner*, Prius. Volkswagen[97]: Beetle, Tiguan, Touareg, Phaeton. Volvo[98]: S60, S80, XC60, XC90.

        

 

   

    

* Toyota Fortuner is imported from Toyota Motor Thailand Company Limited as CKD

[edit]Commercial vehicle manufacturers in India

[edit]Indian brands

    

Force[99] Hindustan Motors[100] Premier[60] Tata[101] AMW[102]

[edit]Joint Venture Brands



Ashok Leyland [103] - originally a JV between Ashok Motors and Leyland Motors, now 51% owned by Hinduja Group Mahindra Navistar[104] - a 51:49 JV between Mahindra Group and Navistar International Swaraj Mazda[105] - originally a JV between Punjab Tractors and Mazda, now 53.5% owned by Sumitomo Group

[edit]Foreign brands
        

Volvo[106] makes Trucks and Buses in Bangalore, Karnataka Tatra[107] MAN[108] - as a JV with Force Motors, makes MAN Trucks in India Mercedes-Benz[109] sells luxury buses in India Scania[110] Iveco[111] Hino[112] Isuzu[113] Piaggio [114]

[edit]Electric car manufacturers in India Ajanta Group[115] Mahindra[116] Hero Electric[117] REVA Tara International[118] Tata[119]

     

FACTS: The Automotive Industry in India is one of the largest industries and a key sector of the economy. The Indian automotive industry started from 1991with the governments de-licensing of the sector and subsequent opening up for 100 per cent FDI through automatic route. Since then many large global companies have set up their facilities in India taking the production of vehicle from 2 million in 1991 to 9.7 million in 2006. At present, India is the world's
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Largest tractor and three-wheel vehicle producer. Second largest two-wheel vehicle producer. Fourth largest commercial vehicle producer. Eleventh largest passenger car producer.

Production: According to the Society of Indian Automobile Manufacturers, the Indian automobile industry has reached double -digit growth for the past three years in a row. In 2006, the industry produced 10.9 million vehicles, an increase of 16.22% over 2005. In 2005, production grew 14.5% over the previous year. The production of the automotive industry is expected to achieve a growth rate of over 20 per cent in 2006-07 and about 15 per cent in 2007-08. Exports: the cumulative annual growth rate of automotive exports during the period 2000-01 to 2005-06 was 32.92 per cent. Exports during 20062006 and 2007-2008 are expected to grow over 20 per cent. Imports: Europe is the biggest importer of cars from India, while African nations largely account for the import of buses and trucks. China is most recently making inroads into this market. The South-East Asian region is the prime destination for Indian two wheelers. Sales:
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Passenger Vehicles: Growth in sales of passenger vehicles was 18.45% in 2006. This was almost three times the growth witnessed

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in 2005. Sale of passenger cars expanded by 20.0%. Export of passenger vehicles increased by 12.9% Utility Vehicles: 12.4% Two-wheelers, commercial vehicles and three-wheelers: Export growth at a rate of 24%, 26% and 72% respectively.

Investment: Among the car companies that are investing in India are US automakers General Motors and Ford, Germany's BMW and DaimlerChrysler AG, France's Renault, Japan's Suzuki, Toyota and Honda, and South Korea's Hyundai. There is also a boom in auto ancillary companies. India is an attractive outsourcing destination for global auto companies because of its strong engineering skills and low costs. Sourcing parts from India is 10 -20% cheaper for US auto makers and about 50% cheaper for their European counterparts. Auto Components: This industry grew by over 28 percent between 1995 and 1998, and has been sustaining double digit growth, clocking 16 percent in 2004 -05, and 15 percent in 2005-06. The Indian auto component industry is quite comprehensive with around 500 firms in the organized sector produc ing practically all automotive components; there are more than 10,000 firms total. Indias component industry now has the capability to manufacture the entire range of auto-components, for example, engine parts, drive, transmission parts, suspension and br aking parts, electricals, body and chassis parts, equipment, etc The Industry's Challenge: Even though the automotive industry is robust, car manufacturers are complaining that the government's frequent change in policies is not encouraging the industry. Changing the policies and guidelines frequently severely hurts the companies plans. It also affects investment decisions in the country

Future Plans: The Government has prepared a ten-year Automotive Mission Plan (AMP) to draw a future plan of action and remove obstacles in the way of

competition, such as that required infrastructure be put in place well in time to alleviate its constraining impact on t he growth. The plan envisages a tax holiday for the industry on investments exceeding $225,000, 100% tax deductions of export profits, and deductions of 50% on foreign-exchange earnings. It also calls for a one stop clearance for foreign-direct-investment proposals in the sector and deductions of 30% of net income for 10 years for new industrial undertakings. To bring down the cost of power and fuel, which accounts for 6% of the manufacturing costs in the auto sector, captive power generation would be encouraged to enable industries to access reliable, quality and cost effective power.

Quick Facts:

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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 segme nt 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.