Automotive industry in India
Automotive industry in India
The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in FY (fiscal year) 2015–16, following a growth of Two.57 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country’s gross domestic product (GDP). The Two Wheelers segment, with eighty one per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a youthfull population. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has thirteen per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014–15, automobile exports grew by fifteen per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020. [1]
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The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs), three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–October 2014, registering a marginal growth of Trio.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in April–October two thousand fifteen over the same period in the previous year. The overall CVs segment registered a growth of 8.02 per cent in April–October two thousand fifteen as compared to same period last year. Medium and Strenuous Commercial Vehicles (M&HCVs) registered very strong growth of 32.Three per cent while sales of Light Commercial Vehicles (LCVs) declined by Five.24 per cent during April–October 2015, year-to-year.
In April–October 2015, overall automobile exports grew by Five.78 per cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, Legal.59 per cent and Trio.22 per cent, respectively, in April–October two thousand fifteen over April–October 2014. [Two]
In order to keep up with the growing request, several auto makers have embarked investing strongly 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 two thousand 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 goes after:
- Global auto maker Ford plans to manufacture in India two families of engines by 2017, a Two.Two litre diesel engine code-named Panther, and a 1.Two litre petrol engine code-named Dragon, which are expected to power 270,000 Ford vehicles globally.
- The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and enlargening 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 Trio,500 crore (US$525 million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
- Mercedes Benz has determined 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 AG’s (BMW) local unit has announced to procure components from seven India-based auto parts makers.
- Mahindra Two Wheelers Limited (MTWL) acquired fifty one per cent shares in France-based Peugeot Motorcycles (PMTC). [Two]
The Government of India encourages foreign investment in the automobile sector and permits one hundred 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.Four 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.Five billion) to farmers, which is expected to boost sales in the tractors segment.
- The government plans to promote eco-friendly cars in the country—i.e. CNG-based vehicles, hybrid vehicles, and electrical vehicles—and also to make mandatory five per cent ethanol blending in petrol.
- The government has formulated a Scheme for Quicker Adoption and Manufacturing of Electrical and Hybrid Vehicles in India, under the National Electrified Mobility Mission 2020, to encourage the progressive introduction of reliable, affordable, and efficient electrified and hybrid vehicles into the country.
- The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the government is aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector. [Trio]
In 1897, the very first car ran on an Indian road. Through the 1930s, cars were imports only, and in petite numbers.
An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was launched in 1942, long-time competitor Premier in 1944, building Chrysler, Dodge, and Fiat products respectively. [Four] 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. [Four]
1947-1970 Edit
The one thousand nine hundred fifty two Tariff Commission Edit
In 1952, the government appointed the very first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted their report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, with licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per requests, in the future. The Tariff Commission recommendations were implemented with fresh policies that would eventually exclude companies that only imported parts for assembly, as well as those with no Indian playmate. In 1954, following the Tariff Commission implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants in Mumbai, determined to budge out of India. [Five]
The Tariff commission policies, including similar limitations that applied to other industries, came to be known as the “license raj”, which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic crimson gauze ended up causing request to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.
- Hindustan Motors, Calcutta – technical collaboration with Morris Motors to manufacture Morris Oxford models that would later become HM Ambassador.
- Premier Automobiles, Bombay – technical collaboration with Chrysler to manufacture Dodge, Plymouth and Desoto models and with Fiat to manufacture the 1100D models which would later with Premier Padmini range.
- Standard Motor Products of India, Madras – technical collaboration from Standard-Triumph to manufacture Standard Vanguard, Standard 8, ten and later Standard Herald.
Utility and Light Commercial Vehicles
- Vehicle Factory Jabalpur – began manufacturing Jonga Light Utility Vehicles and Vahan one Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the main troop carriers of the Indian Armed Compels and much powerful than any other vehicle of their class.
- Mahindra & Mahindra, Bombay – technical collaboration with Willys to manufacture CJ Series Jeep.
- Bajaj Tempo, Poona now Force Motors – technical collaboration with Tempo (company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.
- Standard Motor Products of India – technical collaboration from Standard has licence to manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne pickup variants.
Medium and Strong Commercial Vehicles
- Vehicle Factory Jabalpur – began manufacturing Shaktiman trucks with technical assistance from MAN SE of Germany. The trucks were the main logistics vehicle of the Indian Army with several specialist variants. VFJ still is the foot supplier of B vehicles to the Indian Armed Coerces.
- Strenuous Vehicles Factory – was established in one thousand nine hundred sixty five in Avadi, near Chennai to produce tanks in India. Since its inception, HVF has produced all the tanks of India, including Vijayanta, Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only tank manufacturing facility of India.
- Tata Motors, Poona, then known as TELCO – technical collaboration with Mercedes Benz to manufacture medium to powerful commercial vehicles both Bus and Trucks.
- Ashok Motors, later Ashok Leyland, Madras – technical collaboration with Leyland Motors to manufacture medium to powerful commercial vehicles both Bus and Trucks. Ashok Motors also discontinued its Austin venture formed in one thousand nine hundred forty eight to sell Austin A40 and retooled the factory to make trucks and buses.
- Hindustan Motors – technical collaboration with General Motors to manufacture the Bedford range of medium lorry and bus chassis.
- Premier Automobiles – technical collaboration with Chrysler to manufacture the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
- Simpsons & Co, Madras – part of Amalgamations Group (TAFE Tractors)- technical collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise that option until the 1980s.
Scooters, Mopeds and Motorcycles
known as Bajaj Chetak, by Bajaj became the largest sold scooter in the world
- Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after the tariff commission was enabled.
- Royal Enfield (India), Madras – technical collaboration with Royal Enfield, UK to manufacture the Enfield Bullet range of motorcycles.
- Bajaj Auto, Poona – technical collaboration with Piaggio, Italy to manufacture their best selling Vespa range of scooters and three wheelers with commercial option as well.
- Automobile Products of India, Bombay (Better known for API Lambretta – technical collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of mopeds, scooters and three-wheelers. This company was actually the Rootes Group car plant that was bought over by M. A. Chidambaram family.
- Mopeds India Limited, Tirupathi – technical collaboration with Motobécane, France to manufacture their best selling Mobylette mopeds.
- Escorts Group, Fresh Delhi – technical collaboration with CEKOP of Poland to manufacture the Rajdoot one hundred seventy five motorcycle whose origin was DKW RT 125
- Ideal Jawa, Mysore – in technical collaboration with CZ – Jawa of Czechoslovakia for its Jawa and Yezdi range of motorcycles.
1970 to one thousand nine hundred eighty three Edit
However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, hampered the growth of Indian private sector.
The beginning of the 1970s spotted some growth potential and most of the collaboration license agreements came to an end but with option to proceed manufacturing with renewed branding. Cars were still meant for the elite and Jeeps were largely used by government organizations and some rural belts. In commercial vehicle segments some developments were made by the end of the decade to cater improved goods movements. The two-wheeler segment remained unchanged except for to enlargened sales in urban among middle class. But more fillip was target towards farm tractors as India was embarking on a fresh Green Revolution. More Russian and eastern bloc imports were done to increase the request.
But after 1970, with confinements on the import of vehicles set, the automotive industry embarked to grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still remained a major luxury item. In the 1970s, price controls were eventually lifted, inserting a competitive element into the automobile market. [6] However, by the 1980s, the automobile market was still predominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers. [7] During the eighties, a few competitors began to arrive on the scene.
The OPEC oil crisis spotted increase need to installing or redesign some vehicle to fit diesel engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks on Pertol engines.
1984 to one thousand nine hundred ninety two Edit
From the end of the 1970s to the beginning of the 1980s witnessed no fresh models but the country continued with two decade old designs forcing government to encourage and let more manufacturers into fray.
In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory Medak, near Hyderabad. It commenced manufacturing Infantry Combat Vehicles christened as Sarath, the backbone of India’s mechanised infantry. OFMK is still the only manufacturing facility of ICVs in India. To manufacture the high-power engines used in ICVs and main battle tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The one thousand nine hundred eighty six Expo was a showcase for how the Indian automotive industry was absorbing fresh technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India. The nine-day demonstrate was attended by then Prime Minister Rajiv Gandhi.
Post-1992 liberalisation Edit
Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South Korea, were permitted to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the very first, and the most successful of these fresh entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s. [7] As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The diversity 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 twelve large automotive companies in the Indian market, most of them offshoots of global companies. [8]
Slow export growth Edit
Exports were slow to grow. Sales of petite numbers of vehicles to tertiary markets and neighbouring countries began early, and in one thousand nine hundred eighty seven Maruti Suzuki shipped four hundred eighty cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive. [9] This was not to last, and today India manufactures low-priced cars for markets across the globe. As of eighteen March 2013, global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis. [Ten]
Emission norms Edit
In 2000, in line with international standards to reduce vehicular pollution, the central government unveiled standards titled “India 2000”, with later, upgraded guidelines to be known as Bharat Stage emission standards. These standards are fairly similar to the stringent European emission standards and have been implemented in a phased manner. Bharat Stage IV (BS-IV), the most stringent so far, was implemented very first, in April 2010, in thirteen cities—Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra—and then, as of April 2017, the rest of the nation.
Local manufacture encouraged Edit
India levies an import tax of 125% on electrical cars, while the import tax on components such as gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in India rather than be imported as fully built units. [11]
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 operations of Intense Vehicles Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun. [12] [13]
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. [14] [15]
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 Peugeot-Citroen plants are also planned for Gujarat. [16]
Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are other automotive manufacturing regions around the country. [17] [Legal] [Nineteen]
Andhra Pradesh Edit
Gujarat Edit
Haryana Edit
Himachal Pradesh Edit
Jharkhand Edit
Karnataka Edit
- Bharat Earth Movers – Bengaluru
- Scania Commercial Vehicles India Private Limited – Bengaluru[35]
- TAFE Tractors – Doddaballapur[32]
- Tata Motors – Dharwad[21]
- Bharat Earth Movers – Mysuru
- Volvo India
- Volvo Buses India – Hosakote[36]
- Volvo Trucks India – Hosakote[37]
- Volvo Construction Equipment India – Hosakote[38]
Kerala Edit
Madhya Pradesh Edit
Maharashtra Edit
Punjab Edit
Rajasthan Edit
Tamil Nadu Edit
Telangana Edit
Uttar Pradesh Edit
Uttarakhand Edit
West Bengal Edit
India’s automobile exports have grown consistently and reached $Four.Five billion in 2009, with the United Kingdom being India’s largest export market, followed by Italy, Germany, Netherlands, and South Africa. [80]
According to the Fresh 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. [81]
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. [82] Similarly, US automobile company, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. [83]
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. [84] The company said that the plant was a part of its plan to make India the hub for its global production business. [85] Fiat Motors announced that it would source more than US$1 billion worth auto components from India. [86]
In two thousand nine 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). [87]
In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing € 700M in the operation. [88] PSA’s intention to utilise this production facility for export purposes however remains unclear as of December 2010.
In latest years, India has emerged as a leading center for the manufacture of puny cars. Hyundai, the fattest 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 puny cars for Nissan, which sells them in Europe. Nissan will also export puny cars from its fresh Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is preparing to sell electrical cars in Europe in 2010. The hard is planning to sell an electrical version of its affordable car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and petite 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 petite car project. [89] While the possibilities for the Indian automobile industry are incredible, there are challenges that could thwart future growth. Since the request for automobiles in latest years is directly linked to overall economic expansion and rising private incomes, industry growth will slow if the economy weakens. [89]
Top ten export destinations Edit
India exported $14.Five billion worth of automobiles in 2014. The ten countries below imported 47.8% of that total. [90]
Indian automotive companies Edit
Models presently manufactured by Indian companies Edit
- Chinkara Motors: [114] Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster
- Force Motors (earlier known as Tempo): One
- Hindustan Motors: [115]Ambassador
- Hradyesh: [116]Morris Street[117]
- ICML: [118] Rhino Rx
- Mahindra: [119]Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito Vibe, Genio, XUV500, e2o, TUV300, KUV100, NuvoSport.
- Premier Automobiles Limited: [120]Sigma, RiO
- San Motors: [121]Storm
- Maruti Suzuki (subsidiary of Japanese auto maker Suzuki) [122][123]Alto K10, Alto 800, WagonR, Swift, Swift DZire, Omni, Eeco, Gypsy, Ertiga, Celerio, Ciaz, Vitara Brezza, Baleno, Ignis, S-Cross.
- Tata Motors: [124]Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Movus, Venture, Safari, Xenon, Aria, Zest, Bolt, Tiago, Tigor.
Defunct Indian automotive companies Edit
Foreign automotive companies in India Edit
Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet (of General Motors), Toyota, Lamborghini, Jaguar, and Skoda are the foreign automotive companies that manufacture and market their products in India.
Vehicles presently manufactured or assembled in India Edit
- Audi India: A3, A4, A6, Q3, Q5.
- BMW India: [125]1 Series, three Series, three Series GT, five Series, seven Series, X1, X3, X5.
- Chevrolet: [126]Spark, Hit, Sail, Cruze, Tavera, Love.
- Fiat India: Punto, Linea, Avventura, Urban Cross.
- Jeep India: Compass.
- Ford India: [127]Figo, Ecosport, Endeavour, Figo Aspire.
- Datsun: Go, Go+, Redi-Go
- Honda Cars India Limited: [128]Brio, Jazz, Amaze, BR-V, City.
- Hyundai Motor India: [129]Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.
- Isuzu: [130][131]MU-7, V-Cross.
- Jaguar (Subsidiary of Tata Motors): [132]XE, XF, XJ.
- Land Rover (Subsidiary of Tata Motors): [133]Freelander, Range Rover Evoque.
- Mercedes-Benz India: [134]C-Class, E-Class, M-Class, GL-Class, S-Class.
- MINI: [135]Countryman.
- Mitsubishi[136] (in collaboration with Hindustan Motors): [137]Pajero.
- Nissan Motor India: [138]Micra, Sunny, Terrano.
- Renault India: [139][140][141]Pulse, Duster, Scala, Kwid, Lodgy.
- Škoda Auto India: [142][143]Rapid, Octavia, Yeti, Superb.
- Toyota Kirloskar: [144]Etios Liva, Etios, Corolla Altis, Innova Crysta, Fortuner, Camry.
- Volkswagen India: [145][146]Polo, Cross Polo, Vento, Jetta, Ameo, Tiguan .
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.
Vehicles presently imported into India Edit
- Aston Martin: [147]Vantage, Vanquish, Rapide, Virage, DB9, DBS, One-77.
- Audi: [148]A8 L, Q7, S5 Sportback, TT, RS seven Sportback, RS six Avant, RS5, R8.
- Bentley: [149][150]Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.
- BMW: [151]Five Series GT, six Series, seven Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.
- Bugatti: [152][153]Veyron.
- Chevrolet: Trailblazer.
- Ferrari: [154][155]California, four hundred fifty eight Italia, F12, FF.
- Fiat: Abarth five hundred ninety five Competizone
- Ford: [156]Mustang.
- General Motors: [126]Hummer H2, Hummer H3.
- Gumpert: [157]Apollo.
- Honda: [158][159]Accord Hybrid.
- Hyundai: [129]Santa Fe.
- Isuzu Motors India:D-Max
- Jaguar (Subsidiary of Tata Motors): [132]XJS, XK, F-Type.
- Koenigsegg: [160][161]CCX, CCXR, Agera.
- Lamborghini: [162]Huracan, Aventador.
- Land Rover (Subsidiary of Tata Motors): [133]Discovery Four, Range Rover Sport, Range Rover.
- Maserati: [163]Quattroporte, Ghibli.
- Mercedes-Benz: [164]Viano.
- MINI: [135]Cooper, Cooper S, Convertible.
- Mitsubishi: Montero.
- Nissan:GT-R.
- Porsche: [165][166]997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.
- Rolls Royce: [167]Ghost, Wraith, Phantom, Phantom Coupé, Phantom Drophead Coupé.
- SsangYong (subsidiary of Mahindra & Mahindra): [168]Rexton.
- Toyota: [144]Land Cruiser, Land Cruiser Prado, Prius.
- Volkswagen: [169]Beetle.
- Volvo: [170]V40, S60, S80, XC60,S90, XC90.
Indian brands Edit
Joint-venture (JV) brands Edit
- Ashok Leyland[176] – originally a JV inbetween Ashok Motors (possessed by the Hinduja Group) and Leyland Motors, now joint ventures inbetween Ashok Leyland and Nissan Motors (Japan) for LCV’s; and John Deere (USA) for construction equipment. [177]
- KaMAZ Vectra [178] – A JV inbetween Russia’s KaMAZ and the Vectra Group
- MAN Force – A JV inbetween Force Motors and MAN AG (Germany)
- SML Isuzu – originally, as Swaraj Mazda, a JV inbetween Punjab Tractors and Mazda, now 53.5% wielded by Sumitomo Group and with its current name since 2011. [179]
- Tatra Vectra Motors Ltd – (defunct) Initial truck partnership with India by Vectra. Substituted by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration with Bharat Earth Movers Limited.
- VE Commercial Vehicles Limited[180] – VE Commercial Vehicles limited – A JV inbetween Volvo Group and Eicher Motors Limited.
- Maruti Suzuki – A joint venture of Indian Maruti and Japanese Suzuki.
Foreign-owned brands Edit
- J. C. Bamford (JCB) (Wielded by British multinational corporation J. C. Bamford).
- BharatBenz (Possessed by Daimler AG of Germany and affiliated with Daimler’s Fuso and Mercedes-Benz brands) [181]
- Caterpillar Inc.[182]
- DAF[183]
- Hino[184]
- Isuzu[185]
- Iveco[186]
- MAN
- Mercedes-Benz[187] – manufactures luxury coaches in India.
- Piaggio[188]
- Rosenbauer. [189]
- Scania[190]
- Tatra. [191]
- Volvo. [192]
During April 2012, the Indian government planned to unveil the road map for the development of domestic electrified and hybrid vehicles (xEV) in the country. [193] A discussion inbetween the various stakeholders, including Government, industry, and academia, was expected to take place during 23–24 February. [193] The final contours of the policy would have been formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad framework for the sector. Along with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task. [193] The Government has also proposed to set up a Rs seven hundred forty crore research and development fund for the sector in the 12th five-year plan during 2012-17. [193] The idea is to reduce the high cost of key imported components such as the battery and electrical motor, and to develop such capabilities locally.
Automotive industry in India
Automotive industry in India
The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in FY (fiscal year) 2015–16, following a growth of Two.57 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country’s gross domestic product (GDP). The Two Wheelers segment, with eighty one per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a youthfull population. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has thirteen per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014–15, automobile exports grew by fifteen per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020. [1]
Contents
The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs), three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–October 2014, registering a marginal growth of Trio.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in April–October two thousand fifteen over the same period in the previous year. The overall CVs segment registered a growth of 8.02 per cent in April–October two thousand fifteen as compared to same period last year. Medium and Strong Commercial Vehicles (M&HCVs) registered very strong growth of 32.Trio per cent while sales of Light Commercial Vehicles (LCVs) declined by Five.24 per cent during April–October 2015, year-to-year.
In April–October 2015, overall automobile exports grew by Five.78 per cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, Legitimate.59 per cent and Trio.22 per cent, respectively, in April–October two thousand fifteen over April–October 2014. [Two]
In order to keep up with the growing request, several auto makers have embarked investing powerfully 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 two thousand 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 goes after:
- Global auto maker Ford plans to manufacture in India two families of engines by 2017, a Two.Two litre diesel engine code-named Panther, and a 1.Two litre petrol engine code-named Dragon, which are expected to power 270,000 Ford vehicles globally.
- The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and enhancing 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 Three,500 crore (US$525 million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
- Mercedes Benz has determined 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 AG’s (BMW) local unit has announced to procure components from seven India-based auto parts makers.
- Mahindra Two Wheelers Limited (MTWL) acquired fifty one per cent shares in France-based Peugeot Motorcycles (PMTC). [Two]
The Government of India encourages foreign investment in the automobile sector and permits one hundred 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.Four 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.Five billion) to farmers, which is expected to boost sales in the tractors segment.
- The government plans to promote eco-friendly cars in the country—i.e. CNG-based vehicles, hybrid vehicles, and electrified vehicles—and also to make mandatory five per cent ethanol blending in petrol.
- The government has formulated a Scheme for Quicker Adoption and Manufacturing of Electrical and Hybrid Vehicles in India, under the National Electrified Mobility Mission 2020, to encourage the progressive introduction of reliable, affordable, and efficient electrified and hybrid vehicles into the country.
- The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the government is aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector. [Three]
In 1897, the very first car ran on an Indian road. Through the 1930s, cars were imports only, and in puny numbers.
An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was launched in 1942, long-time competitor Premier in 1944, building Chrysler, Dodge, and Fiat products respectively. [Four] 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. [Four]
1947-1970 Edit
The one thousand nine hundred fifty two Tariff Commission Edit
In 1952, the government appointed the very first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted their report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, with licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per requests, in the future. The Tariff Commission recommendations were implemented with fresh policies that would eventually exclude companies that only imported parts for assembly, as well as those with no Indian fucking partner. In 1954, following the Tariff Commission implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants in Mumbai, determined to budge out of India. [Five]
The Tariff commission policies, including similar limitations that applied to other industries, came to be known as the “license raj”, which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic crimson gauze ended up causing request to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.
- Hindustan Motors, Calcutta – technical collaboration with Morris Motors to manufacture Morris Oxford models that would later become HM Ambassador.
- Premier Automobiles, Bombay – technical collaboration with Chrysler to manufacture Dodge, Plymouth and Desoto models and with Fiat to manufacture the 1100D models which would later with Premier Padmini range.
- Standard Motor Products of India, Madras – technical collaboration from Standard-Triumph to manufacture Standard Vanguard, Standard 8, ten and later Standard Herald.
Utility and Light Commercial Vehicles
- Vehicle Factory Jabalpur – began manufacturing Jonga Light Utility Vehicles and Vahan one Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the main troop carriers of the Indian Armed Compels and much powerful than any other vehicle of their class.
- Mahindra & Mahindra, Bombay – technical collaboration with Willys to manufacture CJ Series Jeep.
- Bajaj Tempo, Poona now Force Motors – technical collaboration with Tempo (company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.
- Standard Motor Products of India – technical collaboration from Standard has licence to manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne pickup variants.
Medium and Mighty Commercial Vehicles
- Vehicle Factory Jabalpur – embarked manufacturing Shaktiman trucks with technical assistance from MAN SE of Germany. The trucks were the main logistics vehicle of the Indian Army with several specialist variants. VFJ still is the foot supplier of B vehicles to the Indian Armed Compels.
- Strenuous Vehicles Factory – was established in one thousand nine hundred sixty five in Avadi, near Chennai to produce tanks in India. Since its inception, HVF has produced all the tanks of India, including Vijayanta, Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only tank manufacturing facility of India.
- Tata Motors, Poona, then known as TELCO – technical collaboration with Mercedes Benz to manufacture medium to powerful commercial vehicles both Bus and Trucks.
- Ashok Motors, later Ashok Leyland, Madras – technical collaboration with Leyland Motors to manufacture medium to strong commercial vehicles both Bus and Trucks. Ashok Motors also discontinued its Austin venture formed in one thousand nine hundred forty eight to sell Austin A40 and retooled the factory to make trucks and buses.
- Hindustan Motors – technical collaboration with General Motors to manufacture the Bedford range of medium lorry and bus chassis.
- Premier Automobiles – technical collaboration with Chrysler to manufacture the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
- Simpsons & Co, Madras – part of Amalgamations Group (TAFE Tractors)- technical collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise that option until the 1980s.
Scooters, Mopeds and Motorcycles
known as Bajaj Chetak, by Bajaj became the largest sold scooter in the world
- Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after the tariff commission was enabled.
- Royal Enfield (India), Madras – technical collaboration with Royal Enfield, UK to manufacture the Enfield Bullet range of motorcycles.
- Bajaj Auto, Poona – technical collaboration with Piaggio, Italy to manufacture their best selling Vespa range of scooters and three wheelers with commercial option as well.
- Automobile Products of India, Bombay (Better known for API Lambretta – technical collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of mopeds, scooters and three-wheelers. This company was actually the Rootes Group car plant that was bought over by M. A. Chidambaram family.
- Mopeds India Limited, Tirupathi – technical collaboration with Motobécane, France to manufacture their best selling Mobylette mopeds.
- Escorts Group, Fresh Delhi – technical collaboration with CEKOP of Poland to manufacture the Rajdoot one hundred seventy five motorcycle whose origin was DKW RT 125
- Ideal Jawa, Mysore – in technical collaboration with CZ – Jawa of Czechoslovakia for its Jawa and Yezdi range of motorcycles.
1970 to one thousand nine hundred eighty three Edit
However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, hampered the growth of Indian private sector.
The beginning of the 1970s spotted some growth potential and most of the collaboration license agreements came to an end but with option to proceed manufacturing with renewed branding. Cars were still meant for the elite and Jeeps were largely used by government organizations and some rural belts. In commercial vehicle segments some developments were made by the end of the decade to cater improved goods movements. The two-wheeler segment remained unchanged except for to enlargened sales in urban among middle class. But more fillip was target towards farm tractors as India was embarking on a fresh Green Revolution. More Russian and eastern bloc imports were done to increase the request.
But after 1970, with limitations on the import of vehicles set, the automotive industry embarked to grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still remained a major luxury item. In the 1970s, price controls were ultimately lifted, inserting a competitive element into the automobile market. [6] However, by the 1980s, the automobile market was still predominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers. [7] During the eighties, a few competitors began to arrive on the scene.
The OPEC oil crisis eyed increase need to installing or redesign some vehicle to fit diesel engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks on Pertol engines.
1984 to one thousand nine hundred ninety two Edit
From the end of the 1970s to the beginning of the 1980s spotted no fresh models but the country continued with two decade old designs forcing government to encourage and let more manufacturers into fray.
In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory Medak, near Hyderabad. It commenced manufacturing Infantry Combat Vehicles christened as Sarath, the backbone of India’s mechanised infantry. OFMK is still the only manufacturing facility of ICVs in India. To manufacture the high-power engines used in ICVs and main battle tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The one thousand nine hundred eighty six Expo was a showcase for how the Indian automotive industry was absorbing fresh technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India. The nine-day demonstrate was attended by then Prime Minister Rajiv Gandhi.
Post-1992 liberalisation Edit
Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South Korea, were permitted to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the very first, and the most successful of these fresh entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s. [7] As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The multitude 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 twelve large automotive companies in the Indian market, most of them offshoots of global companies. [8]
Slow export growth Edit
Exports were slow to grow. Sales of puny numbers of vehicles to tertiary markets and neighbouring countries began early, and in one thousand nine hundred eighty seven Maruti Suzuki shipped four hundred eighty cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive. [9] This was not to last, and today India manufactures low-priced cars for markets across the globe. As of eighteen March 2013, global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis. [Ten]
Emission norms Edit
In 2000, in line with international standards to reduce vehicular pollution, the central government unveiled standards titled “India 2000”, with later, upgraded guidelines to be known as Bharat Stage emission standards. These standards are fairly similar to the stringent European emission standards and have been implemented in a phased manner. Bharat Stage IV (BS-IV), the most stringent so far, was implemented very first, in April 2010, in thirteen cities—Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra—and then, as of April 2017, the rest of the nation.
Local manufacture encouraged Edit
India levies an import tax of 125% on electrical cars, while the import tax on components such as gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in India rather than be imported as totally built units. [11]
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 operations of Intense Vehicles Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun. [12] [13]
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. [14] [15]
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 Peugeot-Citroen plants are also planned for Gujarat. [16]
Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are other automotive manufacturing regions around the country. [17] [Eighteen] [Nineteen]
Andhra Pradesh Edit
Gujarat Edit
Haryana Edit
Himachal Pradesh Edit
Jharkhand Edit
Karnataka Edit
- Bharat Earth Movers – Bengaluru
- Scania Commercial Vehicles India Private Limited – Bengaluru[35]
- TAFE Tractors – Doddaballapur[32]
- Tata Motors – Dharwad[21]
- Bharat Earth Movers – Mysuru
- Volvo India
- Volvo Buses India – Hosakote[36]
- Volvo Trucks India – Hosakote[37]
- Volvo Construction Equipment India – Hosakote[38]
Kerala Edit
Madhya Pradesh Edit
Maharashtra Edit
Punjab Edit
Rajasthan Edit
Tamil Nadu Edit
Telangana Edit
Uttar Pradesh Edit
Uttarakhand Edit
West Bengal Edit
India’s automobile exports have grown consistently and reached $Four.Five billion in 2009, with the United Kingdom being India’s largest export market, followed by Italy, Germany, Netherlands, and South Africa. [80]
According to the Fresh 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. [81]
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. [82] Similarly, US automobile company, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. [83]
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. [84] The company said that the plant was a part of its plan to make India the hub for its global production business. [85] Fiat Motors announced that it would source more than US$1 billion worth auto components from India. [86]
In two thousand nine 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). [87]
In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing € 700M in the operation. [88] PSA’s intention to utilise this production facility for export purposes however remains unclear as of December 2010.
In latest years, India has emerged as a leading center for the manufacture of puny cars. Hyundai, the thickest 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 puny cars for Nissan, which sells them in Europe. Nissan will also export puny cars from its fresh Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is preparing to sell electrified cars in Europe in 2010. The stiff is planning to sell an electrical version of its affordable car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and petite 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 petite car project. [89] While the possibilities for the Indian automobile industry are epic, there are challenges that could thwart future growth. Since the request for automobiles in latest years is directly linked to overall economic expansion and rising individual incomes, industry growth will slow if the economy weakens. [89]
Top ten export destinations Edit
India exported $14.Five billion worth of automobiles in 2014. The ten countries below imported 47.8% of that total. [90]
Indian automotive companies Edit
Models presently manufactured by Indian companies Edit
- Chinkara Motors: [114] Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster
- Force Motors (earlier known as Tempo): One
- Hindustan Motors: [115]Ambassador
- Hradyesh: [116]Morris Street[117]
- ICML: [118] Rhino Rx
- Mahindra: [119]Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito Vibe, Genio, XUV500, e2o, TUV300, KUV100, NuvoSport.
- Premier Automobiles Limited: [120]Sigma, RiO
- San Motors: [121]Storm
- Maruti Suzuki (subsidiary of Japanese auto maker Suzuki) [122][123]Alto K10, Alto 800, WagonR, Swift, Swift DZire, Omni, Eeco, Gypsy, Ertiga, Celerio, Ciaz, Vitara Brezza, Baleno, Ignis, S-Cross.
- Tata Motors: [124]Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Movus, Venture, Safari, Xenon, Aria, Zest, Bolt, Tiago, Tigor.
Defunct Indian automotive companies Edit
Foreign automotive companies in India Edit
Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet (of General Motors), Toyota, Lamborghini, Jaguar, and Skoda are the foreign automotive companies that manufacture and market their products in India.
Vehicles presently manufactured or assembled in India Edit
- Audi India: A3, A4, A6, Q3, Q5.
- BMW India: [125]1 Series, three Series, three Series GT, five Series, seven Series, X1, X3, X5.
- Chevrolet: [126]Spark, Hammer, Sail, Cruze, Tavera, Love.
- Fiat India: Punto, Linea, Avventura, Urban Cross.
- Jeep India: Compass.
- Ford India: [127]Figo, Ecosport, Endeavour, Figo Aspire.
- Datsun: Go, Go+, Redi-Go
- Honda Cars India Limited: [128]Brio, Jazz, Amaze, BR-V, City.
- Hyundai Motor India: [129]Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.
- Isuzu: [130][131]MU-7, V-Cross.
- Jaguar (Subsidiary of Tata Motors): [132]XE, XF, XJ.
- Land Rover (Subsidiary of Tata Motors): [133]Freelander, Range Rover Evoque.
- Mercedes-Benz India: [134]C-Class, E-Class, M-Class, GL-Class, S-Class.
- MINI: [135]Countryman.
- Mitsubishi[136] (in collaboration with Hindustan Motors): [137]Pajero.
- Nissan Motor India: [138]Micra, Sunny, Terrano.
- Renault India: [139][140][141]Pulse, Duster, Scala, Kwid, Lodgy.
- Škoda Auto India: [142][143]Rapid, Octavia, Yeti, Superb.
- Toyota Kirloskar: [144]Etios Liva, Etios, Corolla Altis, Innova Crysta, Fortuner, Camry.
- Volkswagen India: [145][146]Polo, Cross Polo, Vento, Jetta, Ameo, Tiguan .
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.
Vehicles presently imported into India Edit
- Aston Martin: [147]Vantage, Vanquish, Rapide, Virage, DB9, DBS, One-77.
- Audi: [148]A8 L, Q7, S5 Sportback, TT, RS seven Sportback, RS six Avant, RS5, R8.
- Bentley: [149][150]Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.
- BMW: [151]Five Series GT, six Series, seven Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.
- Bugatti: [152][153]Veyron.
- Chevrolet: Trailblazer.
- Ferrari: [154][155]California, four hundred fifty eight Italia, F12, FF.
- Fiat: Abarth five hundred ninety five Competizone
- Ford: [156]Mustang.
- General Motors: [126]Hummer H2, Hummer H3.
- Gumpert: [157]Apollo.
- Honda: [158][159]Accord Hybrid.
- Hyundai: [129]Santa Fe.
- Isuzu Motors India:D-Max
- Jaguar (Subsidiary of Tata Motors): [132]XJS, XK, F-Type.
- Koenigsegg: [160][161]CCX, CCXR, Agera.
- Lamborghini: [162]Huracan, Aventador.
- Land Rover (Subsidiary of Tata Motors): [133]Discovery Four, Range Rover Sport, Range Rover.
- Maserati: [163]Quattroporte, Ghibli.
- Mercedes-Benz: [164]Viano.
- MINI: [135]Cooper, Cooper S, Convertible.
- Mitsubishi: Montero.
- Nissan:GT-R.
- Porsche: [165][166]997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.
- Rolls Royce: [167]Ghost, Wraith, Phantom, Phantom Coupé, Phantom Drophead Coupé.
- SsangYong (subsidiary of Mahindra & Mahindra): [168]Rexton.
- Toyota: [144]Land Cruiser, Land Cruiser Prado, Prius.
- Volkswagen: [169]Beetle.
- Volvo: [170]V40, S60, S80, XC60,S90, XC90.
Indian brands Edit
Joint-venture (JV) brands Edit
- Ashok Leyland[176] – originally a JV inbetween Ashok Motors (possessed by the Hinduja Group) and Leyland Motors, now joint ventures inbetween Ashok Leyland and Nissan Motors (Japan) for LCV’s; and John Deere (USA) for construction equipment. [177]
- KaMAZ Vectra [178] – A JV inbetween Russia’s KaMAZ and the Vectra Group
- MAN Force – A JV inbetween Force Motors and MAN AG (Germany)
- SML Isuzu – originally, as Swaraj Mazda, a JV inbetween Punjab Tractors and Mazda, now 53.5% wielded by Sumitomo Group and with its current name since 2011. [179]
- Tatra Vectra Motors Ltd – (defunct) Initial truck partnership with India by Vectra. Substituted by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration with Bharat Earth Movers Limited.
- VE Commercial Vehicles Limited[180] – VE Commercial Vehicles limited – A JV inbetween Volvo Group and Eicher Motors Limited.
- Maruti Suzuki – A joint venture of Indian Maruti and Japanese Suzuki.
Foreign-owned brands Edit
- J. C. Bamford (JCB) (Wielded by British multinational corporation J. C. Bamford).
- BharatBenz (Wielded by Daimler AG of Germany and affiliated with Daimler’s Fuso and Mercedes-Benz brands) [181]
- Caterpillar Inc.[182]
- DAF[183]
- Hino[184]
- Isuzu[185]
- Iveco[186]
- MAN
- Mercedes-Benz[187] – manufactures luxury coaches in India.
- Piaggio[188]
- Rosenbauer. [189]
- Scania[190]
- Tatra. [191]
- Volvo. [192]
During April 2012, the Indian government planned to unveil the road map for the development of domestic electrical and hybrid vehicles (xEV) in the country. [193] A discussion inbetween the various stakeholders, including Government, industry, and academia, was expected to take place during 23–24 February. [193] The final contours of the policy would have been formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad framework for the sector. Along with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task. [193] The Government has also proposed to set up a Rs seven hundred forty crore research and development fund for the sector in the 12th five-year plan during 2012-17. [193] The idea is to reduce the high cost of key imported components such as the battery and electrical motor, and to develop such capabilities locally.
Automotive industry in India
Automotive industry in India
The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in FY (fiscal year) 2015–16, following a growth of Two.57 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country’s gross domestic product (GDP). The Two Wheelers segment, with eighty one per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a youthful population. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has thirteen per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014–15, automobile exports grew by fifteen per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020. [1]
Contents
The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs), three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–October 2014, registering a marginal growth of Three.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in April–October two thousand fifteen over the same period in the previous year. The overall CVs segment registered a growth of 8.02 per cent in April–October two thousand fifteen as compared to same period last year. Medium and Strenuous Commercial Vehicles (M&HCVs) registered very strong growth of 32.Trio per cent while sales of Light Commercial Vehicles (LCVs) declined by Five.24 per cent during April–October 2015, year-to-year.
In April–October 2015, overall automobile exports grew by Five.78 per cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, Eighteen.59 per cent and Trio.22 per cent, respectively, in April–October two thousand fifteen over April–October 2014. [Two]
In order to keep up with the growing request, several auto makers have commenced investing intensely 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 two thousand 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 goes after:
- Global auto maker Ford plans to manufacture in India two families of engines by 2017, a Two.Two litre diesel engine code-named Panther, and a 1.Two litre petrol engine code-named Dragon, which are expected to power 270,000 Ford vehicles globally.
- The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and enlargening 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 Three,500 crore (US$525 million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
- Mercedes Benz has determined 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 AG’s (BMW) local unit has announced to procure components from seven India-based auto parts makers.
- Mahindra Two Wheelers Limited (MTWL) acquired fifty one per cent shares in France-based Peugeot Motorcycles (PMTC). [Two]
The Government of India encourages foreign investment in the automobile sector and permits one hundred 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.Four 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.Five billion) to farmers, which is expected to boost sales in the tractors segment.
- The government plans to promote eco-friendly cars in the country—i.e. CNG-based vehicles, hybrid vehicles, and electrical vehicles—and also to make mandatory five per cent ethanol blending in petrol.
- The government has formulated a Scheme for Swifter Adoption and Manufacturing of Electrified and Hybrid Vehicles in India, under the National Electrified Mobility Mission 2020, to encourage the progressive introduction of reliable, affordable, and efficient electrified and hybrid vehicles into the country.
- The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the government is aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector. [Trio]
In 1897, the very first car ran on an Indian road. Through the 1930s, cars were imports only, and in puny numbers.
An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was launched in 1942, long-time competitor Premier in 1944, building Chrysler, Dodge, and Fiat products respectively. [Four] 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. [Four]
1947-1970 Edit
The one thousand nine hundred fifty two Tariff Commission Edit
In 1952, the government appointed the very first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted their report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, with licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per requests, in the future. The Tariff Commission recommendations were implemented with fresh policies that would eventually exclude companies that only imported parts for assembly, as well as those with no Indian playmate. In 1954, following the Tariff Commission implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants in Mumbai, determined to stir out of India. [Five]
The Tariff commission policies, including similar confinements that applied to other industries, came to be known as the “license raj”, which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic crimson gauze ended up causing request to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.
- Hindustan Motors, Calcutta – technical collaboration with Morris Motors to manufacture Morris Oxford models that would later become HM Ambassador.
- Premier Automobiles, Bombay – technical collaboration with Chrysler to manufacture Dodge, Plymouth and Desoto models and with Fiat to manufacture the 1100D models which would later with Premier Padmini range.
- Standard Motor Products of India, Madras – technical collaboration from Standard-Triumph to manufacture Standard Vanguard, Standard 8, ten and later Standard Herald.
Utility and Light Commercial Vehicles
- Vehicle Factory Jabalpur – began manufacturing Jonga Light Utility Vehicles and Vahan one Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the main troop carriers of the Indian Armed Compels and much powerful than any other vehicle of their class.
- Mahindra & Mahindra, Bombay – technical collaboration with Willys to manufacture CJ Series Jeep.
- Bajaj Tempo, Poona now Force Motors – technical collaboration with Tempo (company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.
- Standard Motor Products of India – technical collaboration from Standard has licence to manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne pickup variants.
Medium and Intense Commercial Vehicles
- Vehicle Factory Jabalpur – commenced manufacturing Shaktiman trucks with technical assistance from MAN SE of Germany. The trucks were the main logistics vehicle of the Indian Army with several specialist variants. VFJ still is the foot supplier of B vehicles to the Indian Armed Compels.
- Strenuous Vehicles Factory – was established in one thousand nine hundred sixty five in Avadi, near Chennai to produce tanks in India. Since its inception, HVF has produced all the tanks of India, including Vijayanta, Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only tank manufacturing facility of India.
- Tata Motors, Poona, then known as TELCO – technical collaboration with Mercedes Benz to manufacture medium to strong commercial vehicles both Bus and Trucks.
- Ashok Motors, later Ashok Leyland, Madras – technical collaboration with Leyland Motors to manufacture medium to powerful commercial vehicles both Bus and Trucks. Ashok Motors also discontinued its Austin venture formed in one thousand nine hundred forty eight to sell Austin A40 and retooled the factory to make trucks and buses.
- Hindustan Motors – technical collaboration with General Motors to manufacture the Bedford range of medium lorry and bus chassis.
- Premier Automobiles – technical collaboration with Chrysler to manufacture the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
- Simpsons & Co, Madras – part of Amalgamations Group (TAFE Tractors)- technical collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise that option until the 1980s.
Scooters, Mopeds and Motorcycles
known as Bajaj Chetak, by Bajaj became the largest sold scooter in the world
- Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after the tariff commission was enabled.
- Royal Enfield (India), Madras – technical collaboration with Royal Enfield, UK to manufacture the Enfield Bullet range of motorcycles.
- Bajaj Auto, Poona – technical collaboration with Piaggio, Italy to manufacture their best selling Vespa range of scooters and three wheelers with commercial option as well.
- Automobile Products of India, Bombay (Better known for API Lambretta – technical collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of mopeds, scooters and three-wheelers. This company was actually the Rootes Group car plant that was bought over by M. A. Chidambaram family.
- Mopeds India Limited, Tirupathi – technical collaboration with Motobécane, France to manufacture their best selling Mobylette mopeds.
- Escorts Group, Fresh Delhi – technical collaboration with CEKOP of Poland to manufacture the Rajdoot one hundred seventy five motorcycle whose origin was DKW RT 125
- Ideal Jawa, Mysore – in technical collaboration with CZ – Jawa of Czechoslovakia for its Jawa and Yezdi range of motorcycles.
1970 to one thousand nine hundred eighty three Edit
However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, hampered the growth of Indian private sector.
The beginning of the 1970s witnessed some growth potential and most of the collaboration license agreements came to an end but with option to proceed manufacturing with renewed branding. Cars were still meant for the elite and Jeeps were largely used by government organizations and some rural belts. In commercial vehicle segments some developments were made by the end of the decade to cater improved goods movements. The two-wheeler segment remained unchanged except for to enlargened sales in urban among middle class. But more fillip was target towards farm tractors as India was embarking on a fresh Green Revolution. More Russian and eastern bloc imports were done to increase the request.
But after 1970, with confinements on the import of vehicles set, the automotive industry began to grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still remained a major luxury item. In the 1970s, price controls were ultimately lifted, inserting a competitive element into the automobile market. [6] However, by the 1980s, the automobile market was still predominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers. [7] During the eighties, a few competitors began to arrive on the scene.
The OPEC oil crisis witnessed increase need to installing or redesign some vehicle to fit diesel engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks on Pertol engines.
1984 to one thousand nine hundred ninety two Edit
From the end of the 1970s to the beginning of the 1980s spotted no fresh models but the country continued with two decade old designs forcing government to encourage and let more manufacturers into fray.
In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory Medak, near Hyderabad. It began manufacturing Infantry Combat Vehicles christened as Sarath, the backbone of India’s mechanised infantry. OFMK is still the only manufacturing facility of ICVs in India. To manufacture the high-power engines used in ICVs and main battle tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The one thousand nine hundred eighty six Expo was a showcase for how the Indian automotive industry was absorbing fresh technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India. The nine-day demonstrate was attended by then Prime Minister Rajiv Gandhi.
Post-1992 liberalisation Edit
Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South Korea, were permitted to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the very first, and the most successful of these fresh entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s. [7] As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The diversity 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 twelve large automotive companies in the Indian market, most of them offshoots of global companies. [8]
Slow export growth Edit
Exports were slow to grow. Sales of petite numbers of vehicles to tertiary markets and neighbouring countries began early, and in one thousand nine hundred eighty seven Maruti Suzuki shipped four hundred eighty cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive. [9] This was not to last, and today India manufactures low-priced cars for markets across the globe. As of eighteen March 2013, global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis. [Ten]
Emission norms Edit
In 2000, in line with international standards to reduce vehicular pollution, the central government unveiled standards titled “India 2000”, with later, upgraded guidelines to be known as Bharat Stage emission standards. These standards are fairly similar to the stringent European emission standards and have been implemented in a phased manner. Bharat Stage IV (BS-IV), the most stringent so far, was implemented very first, in April 2010, in thirteen cities—Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra—and then, as of April 2017, the rest of the nation.
Local manufacture encouraged Edit
India levies an import tax of 125% on electrified cars, while the import tax on components such as gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in India rather than be imported as entirely built units. [11]
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 operations of Strenuous Vehicles Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun. [12] [13]
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. [14] [15]
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 Peugeot-Citroen plants are also planned for Gujarat. [16]
Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are other automotive manufacturing regions around the country. [17] [Legal] [Nineteen]
Andhra Pradesh Edit
Gujarat Edit
Haryana Edit
Himachal Pradesh Edit
Jharkhand Edit
Karnataka Edit
- Bharat Earth Movers – Bengaluru
- Scania Commercial Vehicles India Private Limited – Bengaluru[35]
- TAFE Tractors – Doddaballapur[32]
- Tata Motors – Dharwad[21]
- Bharat Earth Movers – Mysuru
- Volvo India
- Volvo Buses India – Hosakote[36]
- Volvo Trucks India – Hosakote[37]
- Volvo Construction Equipment India – Hosakote[38]
Kerala Edit
Madhya Pradesh Edit
Maharashtra Edit
Punjab Edit
Rajasthan Edit
Tamil Nadu Edit
Telangana Edit
Uttar Pradesh Edit
Uttarakhand Edit
West Bengal Edit
India’s automobile exports have grown consistently and reached $Four.Five billion in 2009, with the United Kingdom being India’s largest export market, followed by Italy, Germany, Netherlands, and South Africa. [80]
According to the Fresh 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. [81]
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. [82] Similarly, US automobile company, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. [83]
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. [84] The company said that the plant was a part of its plan to make India the hub for its global production business. [85] Fiat Motors announced that it would source more than US$1 billion worth auto components from India. [86]
In two thousand nine 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). [87]
In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing € 700M in the operation. [88] PSA’s intention to utilise this production facility for export purposes however remains unclear as of December 2010.
In latest years, India has emerged as a leading center for the manufacture of puny cars. Hyundai, the largest 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 puny cars for Nissan, which sells them in Europe. Nissan will also export puny cars from its fresh Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is preparing to sell electrified cars in Europe in 2010. The hard is planning to sell an electrified version of its affordable car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and petite 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 puny car project. [89] While the possibilities for the Indian automobile industry are amazing, there are challenges that could thwart future growth. Since the request for automobiles in latest years is directly linked to overall economic expansion and rising individual incomes, industry growth will slow if the economy weakens. [89]
Top ten export destinations Edit
India exported $14.Five billion worth of automobiles in 2014. The ten countries below imported 47.8% of that total. [90]
Indian automotive companies Edit
Models presently manufactured by Indian companies Edit
- Chinkara Motors: [114] Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster
- Force Motors (earlier known as Tempo): One
- Hindustan Motors: [115]Ambassador
- Hradyesh: [116]Morris Street[117]
- ICML: [118] Rhino Rx
- Mahindra: [119]Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito Vibe, Genio, XUV500, e2o, TUV300, KUV100, NuvoSport.
- Premier Automobiles Limited: [120]Sigma, RiO
- San Motors: [121]Storm
- Maruti Suzuki (subsidiary of Japanese auto maker Suzuki) [122][123]Alto K10, Alto 800, WagonR, Swift, Swift DZire, Omni, Eeco, Gypsy, Ertiga, Celerio, Ciaz, Vitara Brezza, Baleno, Ignis, S-Cross.
- Tata Motors: [124]Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Movus, Venture, Safari, Xenon, Aria, Zest, Bolt, Tiago, Tigor.
Defunct Indian automotive companies Edit
Foreign automotive companies in India Edit
Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet (of General Motors), Toyota, Lamborghini, Jaguar, and Skoda are the foreign automotive companies that manufacture and market their products in India.
Vehicles presently manufactured or assembled in India Edit
- Audi India: A3, A4, A6, Q3, Q5.
- BMW India: [125]1 Series, three Series, three Series GT, five Series, seven Series, X1, X3, X5.
- Chevrolet: [126]Spark, Strike, Sail, Cruze, Tavera, Love.
- Fiat India: Punto, Linea, Avventura, Urban Cross.
- Jeep India: Compass.
- Ford India: [127]Figo, Ecosport, Endeavour, Figo Aspire.
- Datsun: Go, Go+, Redi-Go
- Honda Cars India Limited: [128]Brio, Jazz, Amaze, BR-V, City.
- Hyundai Motor India: [129]Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.
- Isuzu: [130][131]MU-7, V-Cross.
- Jaguar (Subsidiary of Tata Motors): [132]XE, XF, XJ.
- Land Rover (Subsidiary of Tata Motors): [133]Freelander, Range Rover Evoque.
- Mercedes-Benz India: [134]C-Class, E-Class, M-Class, GL-Class, S-Class.
- MINI: [135]Countryman.
- Mitsubishi[136] (in collaboration with Hindustan Motors): [137]Pajero.
- Nissan Motor India: [138]Micra, Sunny, Terrano.
- Renault India: [139][140][141]Pulse, Duster, Scala, Kwid, Lodgy.
- Škoda Auto India: [142][143]Rapid, Octavia, Yeti, Superb.
- Toyota Kirloskar: [144]Etios Liva, Etios, Corolla Altis, Innova Crysta, Fortuner, Camry.
- Volkswagen India: [145][146]Polo, Cross Polo, Vento, Jetta, Ameo, Tiguan .
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.
Vehicles presently imported into India Edit
- Aston Martin: [147]Vantage, Vanquish, Rapide, Virage, DB9, DBS, One-77.
- Audi: [148]A8 L, Q7, S5 Sportback, TT, RS seven Sportback, RS six Avant, RS5, R8.
- Bentley: [149][150]Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.
- BMW: [151]Five Series GT, six Series, seven Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.
- Bugatti: [152][153]Veyron.
- Chevrolet: Trailblazer.
- Ferrari: [154][155]California, four hundred fifty eight Italia, F12, FF.
- Fiat: Abarth five hundred ninety five Competizone
- Ford: [156]Mustang.
- General Motors: [126]Hummer H2, Hummer H3.
- Gumpert: [157]Apollo.
- Honda: [158][159]Accord Hybrid.
- Hyundai: [129]Santa Fe.
- Isuzu Motors India:D-Max
- Jaguar (Subsidiary of Tata Motors): [132]XJS, XK, F-Type.
- Koenigsegg: [160][161]CCX, CCXR, Agera.
- Lamborghini: [162]Huracan, Aventador.
- Land Rover (Subsidiary of Tata Motors): [133]Discovery Four, Range Rover Sport, Range Rover.
- Maserati: [163]Quattroporte, Ghibli.
- Mercedes-Benz: [164]Viano.
- MINI: [135]Cooper, Cooper S, Convertible.
- Mitsubishi: Montero.
- Nissan:GT-R.
- Porsche: [165][166]997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.
- Rolls Royce: [167]Ghost, Wraith, Phantom, Phantom Coupé, Phantom Drophead Coupé.
- SsangYong (subsidiary of Mahindra & Mahindra): [168]Rexton.
- Toyota: [144]Land Cruiser, Land Cruiser Prado, Prius.
- Volkswagen: [169]Beetle.
- Volvo: [170]V40, S60, S80, XC60,S90, XC90.
Indian brands Edit
Joint-venture (JV) brands Edit
- Ashok Leyland[176] – originally a JV inbetween Ashok Motors (possessed by the Hinduja Group) and Leyland Motors, now joint ventures inbetween Ashok Leyland and Nissan Motors (Japan) for LCV’s; and John Deere (USA) for construction equipment. [177]
- KaMAZ Vectra [178] – A JV inbetween Russia’s KaMAZ and the Vectra Group
- MAN Force – A JV inbetween Force Motors and MAN AG (Germany)
- SML Isuzu – originally, as Swaraj Mazda, a JV inbetween Punjab Tractors and Mazda, now 53.5% wielded by Sumitomo Group and with its current name since 2011. [179]
- Tatra Vectra Motors Ltd – (defunct) Initial truck partnership with India by Vectra. Substituted by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration with Bharat Earth Movers Limited.
- VE Commercial Vehicles Limited[180] – VE Commercial Vehicles limited – A JV inbetween Volvo Group and Eicher Motors Limited.
- Maruti Suzuki – A joint venture of Indian Maruti and Japanese Suzuki.
Foreign-owned brands Edit
- J. C. Bamford (JCB) (Wielded by British multinational corporation J. C. Bamford).
- BharatBenz (Possessed by Daimler AG of Germany and affiliated with Daimler’s Fuso and Mercedes-Benz brands) [181]
- Caterpillar Inc.[182]
- DAF[183]
- Hino[184]
- Isuzu[185]
- Iveco[186]
- MAN
- Mercedes-Benz[187] – manufactures luxury coaches in India.
- Piaggio[188]
- Rosenbauer. [189]
- Scania[190]
- Tatra. [191]
- Volvo. [192]
During April 2012, the Indian government planned to unveil the road map for the development of domestic electrified and hybrid vehicles (xEV) in the country. [193] A discussion inbetween the various stakeholders, including Government, industry, and academia, was expected to take place during 23–24 February. [193] The final contours of the policy would have been formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad framework for the sector. Along with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task. [193] The Government has also proposed to set up a Rs seven hundred forty crore research and development fund for the sector in the 12th five-year plan during 2012-17. [193] The idea is to reduce the high cost of key imported components such as the battery and electrical motor, and to develop such capabilities locally.
Automotive industry in India
Automotive industry in India
The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in FY (fiscal year) 2015–16, following a growth of Two.57 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country’s gross domestic product (GDP). The Two Wheelers segment, with eighty one per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a youthful population. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has thirteen per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014–15, automobile exports grew by fifteen per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020. [1]
Contents
The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs), three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–October 2014, registering a marginal growth of Three.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in April–October two thousand fifteen over the same period in the previous year. The overall CVs segment registered a growth of 8.02 per cent in April–October two thousand fifteen as compared to same period last year. Medium and Intense Commercial Vehicles (M&HCVs) registered very strong growth of 32.Three per cent while sales of Light Commercial Vehicles (LCVs) declined by Five.24 per cent during April–October 2015, year-to-year.
In April–October 2015, overall automobile exports grew by Five.78 per cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, Legitimate.59 per cent and Three.22 per cent, respectively, in April–October two thousand fifteen over April–October 2014. [Two]
In order to keep up with the growing request, several auto makers have began investing powerfully 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 two thousand 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 goes after:
- Global auto maker Ford plans to manufacture in India two families of engines by 2017, a Two.Two litre diesel engine code-named Panther, and a 1.Two litre petrol engine code-named Dragon, which are expected to power 270,000 Ford vehicles globally.
- The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and enhancing 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 Three,500 crore (US$525 million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
- Mercedes Benz has determined 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 AG’s (BMW) local unit has announced to procure components from seven India-based auto parts makers.
- Mahindra Two Wheelers Limited (MTWL) acquired fifty one per cent shares in France-based Peugeot Motorcycles (PMTC). [Two]
The Government of India encourages foreign investment in the automobile sector and permits one hundred 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.Four 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.Five billion) to farmers, which is expected to boost sales in the tractors segment.
- The government plans to promote eco-friendly cars in the country—i.e. CNG-based vehicles, hybrid vehicles, and electrical vehicles—and also to make mandatory five per cent ethanol blending in petrol.
- The government has formulated a Scheme for Swifter Adoption and Manufacturing of Electrical and Hybrid Vehicles in India, under the National Electrified Mobility Mission 2020, to encourage the progressive introduction of reliable, affordable, and efficient electrical and hybrid vehicles into the country.
- The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the government is aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector. [Three]
In 1897, the very first car ran on an Indian road. Through the 1930s, cars were imports only, and in petite numbers.
An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was launched in 1942, long-time competitor Premier in 1944, building Chrysler, Dodge, and Fiat products respectively. [Four] 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. [Four]
1947-1970 Edit
The one thousand nine hundred fifty two Tariff Commission Edit
In 1952, the government appointed the very first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted their report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, with licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per requests, in the future. The Tariff Commission recommendations were implemented with fresh policies that would eventually exclude companies that only imported parts for assembly, as well as those with no Indian fucking partner. In 1954, following the Tariff Commission implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants in Mumbai, determined to budge out of India. [Five]
The Tariff commission policies, including similar limitations that applied to other industries, came to be known as the “license raj”, which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic crimson gauze ended up causing request to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.
- Hindustan Motors, Calcutta – technical collaboration with Morris Motors to manufacture Morris Oxford models that would later become HM Ambassador.
- Premier Automobiles, Bombay – technical collaboration with Chrysler to manufacture Dodge, Plymouth and Desoto models and with Fiat to manufacture the 1100D models which would later with Premier Padmini range.
- Standard Motor Products of India, Madras – technical collaboration from Standard-Triumph to manufacture Standard Vanguard, Standard 8, ten and later Standard Herald.
Utility and Light Commercial Vehicles
- Vehicle Factory Jabalpur – began manufacturing Jonga Light Utility Vehicles and Vahan one Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the main troop carriers of the Indian Armed Coerces and much powerful than any other vehicle of their class.
- Mahindra & Mahindra, Bombay – technical collaboration with Willys to manufacture CJ Series Jeep.
- Bajaj Tempo, Poona now Force Motors – technical collaboration with Tempo (company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.
- Standard Motor Products of India – technical collaboration from Standard has licence to manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne pickup variants.
Medium and Strong Commercial Vehicles
- Vehicle Factory Jabalpur – embarked manufacturing Shaktiman trucks with technical assistance from MAN SE of Germany. The trucks were the main logistics vehicle of the Indian Army with several specialist variants. VFJ still is the foot supplier of B vehicles to the Indian Armed Compels.
- Mighty Vehicles Factory – was established in one thousand nine hundred sixty five in Avadi, near Chennai to produce tanks in India. Since its inception, HVF has produced all the tanks of India, including Vijayanta, Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only tank manufacturing facility of India.
- Tata Motors, Poona, then known as TELCO – technical collaboration with Mercedes Benz to manufacture medium to powerful commercial vehicles both Bus and Trucks.
- Ashok Motors, later Ashok Leyland, Madras – technical collaboration with Leyland Motors to manufacture medium to strong commercial vehicles both Bus and Trucks. Ashok Motors also discontinued its Austin venture formed in one thousand nine hundred forty eight to sell Austin A40 and retooled the factory to make trucks and buses.
- Hindustan Motors – technical collaboration with General Motors to manufacture the Bedford range of medium lorry and bus chassis.
- Premier Automobiles – technical collaboration with Chrysler to manufacture the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
- Simpsons & Co, Madras – part of Amalgamations Group (TAFE Tractors)- technical collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise that option until the 1980s.
Scooters, Mopeds and Motorcycles
known as Bajaj Chetak, by Bajaj became the largest sold scooter in the world
- Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after the tariff commission was enabled.
- Royal Enfield (India), Madras – technical collaboration with Royal Enfield, UK to manufacture the Enfield Bullet range of motorcycles.
- Bajaj Auto, Poona – technical collaboration with Piaggio, Italy to manufacture their best selling Vespa range of scooters and three wheelers with commercial option as well.
- Automobile Products of India, Bombay (Better known for API Lambretta – technical collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of mopeds, scooters and three-wheelers. This company was actually the Rootes Group car plant that was bought over by M. A. Chidambaram family.
- Mopeds India Limited, Tirupathi – technical collaboration with Motobécane, France to manufacture their best selling Mobylette mopeds.
- Escorts Group, Fresh Delhi – technical collaboration with CEKOP of Poland to manufacture the Rajdoot one hundred seventy five motorcycle whose origin was DKW RT 125
- Ideal Jawa, Mysore – in technical collaboration with CZ – Jawa of Czechoslovakia for its Jawa and Yezdi range of motorcycles.
1970 to one thousand nine hundred eighty three Edit
However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, hampered the growth of Indian private sector.
The beginning of the 1970s witnessed some growth potential and most of the collaboration license agreements came to an end but with option to proceed manufacturing with renewed branding. Cars were still meant for the elite and Jeeps were largely used by government organizations and some rural belts. In commercial vehicle segments some developments were made by the end of the decade to cater improved goods movements. The two-wheeler segment remained unchanged except for to enlargened sales in urban among middle class. But more fillip was target towards farm tractors as India was embarking on a fresh Green Revolution. More Russian and eastern bloc imports were done to increase the request.
But after 1970, with limitations on the import of vehicles set, the automotive industry embarked to grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still remained a major luxury item. In the 1970s, price controls were ultimately lifted, inserting a competitive element into the automobile market. [6] However, by the 1980s, the automobile market was still predominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers. [7] During the eighties, a few competitors began to arrive on the scene.
The OPEC oil crisis witnessed increase need to installing or redesign some vehicle to fit diesel engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks on Pertol engines.
1984 to one thousand nine hundred ninety two Edit
From the end of the 1970s to the beginning of the 1980s eyed no fresh models but the country continued with two decade old designs forcing government to encourage and let more manufacturers into fray.
In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory Medak, near Hyderabad. It embarked manufacturing Infantry Combat Vehicles christened as Sarath, the backbone of India’s mechanised infantry. OFMK is still the only manufacturing facility of ICVs in India. To manufacture the high-power engines used in ICVs and main battle tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The one thousand nine hundred eighty six Expo was a showcase for how the Indian automotive industry was absorbing fresh technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India. The nine-day demonstrate was attended by then Prime Minister Rajiv Gandhi.
Post-1992 liberalisation Edit
Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South Korea, were permitted to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the very first, and the most successful of these fresh entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s. [7] As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The multiplicity 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 twelve large automotive companies in the Indian market, most of them offshoots of global companies. [8]
Slow export growth Edit
Exports were slow to grow. Sales of puny numbers of vehicles to tertiary markets and neighbouring countries began early, and in one thousand nine hundred eighty seven Maruti Suzuki shipped four hundred eighty cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive. [9] This was not to last, and today India manufactures low-priced cars for markets across the globe. As of eighteen March 2013, global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis. [Ten]
Emission norms Edit
In 2000, in line with international standards to reduce vehicular pollution, the central government unveiled standards titled “India 2000”, with later, upgraded guidelines to be known as Bharat Stage emission standards. These standards are fairly similar to the stringent European emission standards and have been implemented in a phased manner. Bharat Stage IV (BS-IV), the most stringent so far, was implemented very first, in April 2010, in thirteen cities—Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra—and then, as of April 2017, the rest of the nation.
Local manufacture encouraged Edit
India levies an import tax of 125% on electrified cars, while the import tax on components such as gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in India rather than be imported as downright built units. [11]
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 operations of Powerful Vehicles Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun. [12] [13]
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. [14] [15]
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 Peugeot-Citroen plants are also planned for Gujarat. [16]
Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are other automotive manufacturing regions around the country. [17] [Legal] [Nineteen]
Andhra Pradesh Edit
Gujarat Edit
Haryana Edit
Himachal Pradesh Edit
Jharkhand Edit
Karnataka Edit
- Bharat Earth Movers – Bengaluru
- Scania Commercial Vehicles India Private Limited – Bengaluru[35]
- TAFE Tractors – Doddaballapur[32]
- Tata Motors – Dharwad[21]
- Bharat Earth Movers – Mysuru
- Volvo India
- Volvo Buses India – Hosakote[36]
- Volvo Trucks India – Hosakote[37]
- Volvo Construction Equipment India – Hosakote[38]
Kerala Edit
Madhya Pradesh Edit
Maharashtra Edit
Punjab Edit
Rajasthan Edit
Tamil Nadu Edit
Telangana Edit
Uttar Pradesh Edit
Uttarakhand Edit
West Bengal Edit
India’s automobile exports have grown consistently and reached $Four.Five billion in 2009, with the United Kingdom being India’s largest export market, followed by Italy, Germany, Netherlands, and South Africa. [80]
According to the Fresh 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. [81]
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. [82] Similarly, US automobile company, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. [83]
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. [84] The company said that the plant was a part of its plan to make India the hub for its global production business. [85] Fiat Motors announced that it would source more than US$1 billion worth auto components from India. [86]
In two thousand nine 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). [87]
In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing € 700M in the operation. [88] PSA’s intention to utilise this production facility for export purposes however remains unclear as of December 2010.
In latest years, India has emerged as a leading center for the manufacture of puny cars. Hyundai, the largest 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 petite cars for Nissan, which sells them in Europe. Nissan will also export petite cars from its fresh Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is preparing to sell electrified cars in Europe in 2010. The rigid is planning to sell an electrical version of its affordable car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and puny 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 petite car project. [89] While the possibilities for the Indian automobile industry are astounding, there are challenges that could thwart future growth. Since the request for automobiles in latest years is directly linked to overall economic expansion and rising private incomes, industry growth will slow if the economy weakens. [89]
Top ten export destinations Edit
India exported $14.Five billion worth of automobiles in 2014. The ten countries below imported 47.8% of that total. [90]
Indian automotive companies Edit
Models presently manufactured by Indian companies Edit
- Chinkara Motors: [114] Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster
- Force Motors (earlier known as Tempo): One
- Hindustan Motors: [115]Ambassador
- Hradyesh: [116]Morris Street[117]
- ICML: [118] Rhino Rx
- Mahindra: [119]Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito Vibe, Genio, XUV500, e2o, TUV300, KUV100, NuvoSport.
- Premier Automobiles Limited: [120]Sigma, RiO
- San Motors: [121]Storm
- Maruti Suzuki (subsidiary of Japanese auto maker Suzuki) [122][123]Alto K10, Alto 800, WagonR, Swift, Swift DZire, Omni, Eeco, Gypsy, Ertiga, Celerio, Ciaz, Vitara Brezza, Baleno, Ignis, S-Cross.
- Tata Motors: [124]Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Movus, Venture, Safari, Xenon, Aria, Zest, Bolt, Tiago, Tigor.
Defunct Indian automotive companies Edit
Foreign automotive companies in India Edit
Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet (of General Motors), Toyota, Lamborghini, Jaguar, and Skoda are the foreign automotive companies that manufacture and market their products in India.
Vehicles presently manufactured or assembled in India Edit
- Audi India: A3, A4, A6, Q3, Q5.
- BMW India: [125]1 Series, three Series, three Series GT, five Series, seven Series, X1, X3, X5.
- Chevrolet: [126]Spark, Strike, Sail, Cruze, Tavera, Love.
- Fiat India: Punto, Linea, Avventura, Urban Cross.
- Jeep India: Compass.
- Ford India: [127]Figo, Ecosport, Endeavour, Figo Aspire.
- Datsun: Go, Go+, Redi-Go
- Honda Cars India Limited: [128]Brio, Jazz, Amaze, BR-V, City.
- Hyundai Motor India: [129]Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.
- Isuzu: [130][131]MU-7, V-Cross.
- Jaguar (Subsidiary of Tata Motors): [132]XE, XF, XJ.
- Land Rover (Subsidiary of Tata Motors): [133]Freelander, Range Rover Evoque.
- Mercedes-Benz India: [134]C-Class, E-Class, M-Class, GL-Class, S-Class.
- MINI: [135]Countryman.
- Mitsubishi[136] (in collaboration with Hindustan Motors): [137]Pajero.
- Nissan Motor India: [138]Micra, Sunny, Terrano.
- Renault India: [139][140][141]Pulse, Duster, Scala, Kwid, Lodgy.
- Škoda Auto India: [142][143]Rapid, Octavia, Yeti, Superb.
- Toyota Kirloskar: [144]Etios Liva, Etios, Corolla Altis, Innova Crysta, Fortuner, Camry.
- Volkswagen India: [145][146]Polo, Cross Polo, Vento, Jetta, Ameo, Tiguan .
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.
Vehicles presently imported into India Edit
- Aston Martin: [147]Vantage, Vanquish, Rapide, Virage, DB9, DBS, One-77.
- Audi: [148]A8 L, Q7, S5 Sportback, TT, RS seven Sportback, RS six Avant, RS5, R8.
- Bentley: [149][150]Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.
- BMW: [151]Five Series GT, six Series, seven Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.
- Bugatti: [152][153]Veyron.
- Chevrolet: Trailblazer.
- Ferrari: [154][155]California, four hundred fifty eight Italia, F12, FF.
- Fiat: Abarth five hundred ninety five Competizone
- Ford: [156]Mustang.
- General Motors: [126]Hummer H2, Hummer H3.
- Gumpert: [157]Apollo.
- Honda: [158][159]Accord Hybrid.
- Hyundai: [129]Santa Fe.
- Isuzu Motors India:D-Max
- Jaguar (Subsidiary of Tata Motors): [132]XJS, XK, F-Type.
- Koenigsegg: [160][161]CCX, CCXR, Agera.
- Lamborghini: [162]Huracan, Aventador.
- Land Rover (Subsidiary of Tata Motors): [133]Discovery Four, Range Rover Sport, Range Rover.
- Maserati: [163]Quattroporte, Ghibli.
- Mercedes-Benz: [164]Viano.
- MINI: [135]Cooper, Cooper S, Convertible.
- Mitsubishi: Montero.
- Nissan:GT-R.
- Porsche: [165][166]997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.
- Rolls Royce: [167]Ghost, Wraith, Phantom, Phantom Coupé, Phantom Drophead Coupé.
- SsangYong (subsidiary of Mahindra & Mahindra): [168]Rexton.
- Toyota: [144]Land Cruiser, Land Cruiser Prado, Prius.
- Volkswagen: [169]Beetle.
- Volvo: [170]V40, S60, S80, XC60,S90, XC90.
Indian brands Edit
Joint-venture (JV) brands Edit
- Ashok Leyland[176] – originally a JV inbetween Ashok Motors (possessed by the Hinduja Group) and Leyland Motors, now joint ventures inbetween Ashok Leyland and Nissan Motors (Japan) for LCV’s; and John Deere (USA) for construction equipment. [177]
- KaMAZ Vectra [178] – A JV inbetween Russia’s KaMAZ and the Vectra Group
- MAN Force – A JV inbetween Force Motors and MAN AG (Germany)
- SML Isuzu – originally, as Swaraj Mazda, a JV inbetween Punjab Tractors and Mazda, now 53.5% wielded by Sumitomo Group and with its current name since 2011. [179]
- Tatra Vectra Motors Ltd – (defunct) Initial truck partnership with India by Vectra. Substituted by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration with Bharat Earth Movers Limited.
- VE Commercial Vehicles Limited[180] – VE Commercial Vehicles limited – A JV inbetween Volvo Group and Eicher Motors Limited.
- Maruti Suzuki – A joint venture of Indian Maruti and Japanese Suzuki.
Foreign-owned brands Edit
- J. C. Bamford (JCB) (Possessed by British multinational corporation J. C. Bamford).
- BharatBenz (Possessed by Daimler AG of Germany and affiliated with Daimler’s Fuso and Mercedes-Benz brands) [181]
- Caterpillar Inc.[182]
- DAF[183]
- Hino[184]
- Isuzu[185]
- Iveco[186]
- MAN
- Mercedes-Benz[187] – manufactures luxury coaches in India.
- Piaggio[188]
- Rosenbauer. [189]
- Scania[190]
- Tatra. [191]
- Volvo. [192]
During April 2012, the Indian government planned to unveil the road map for the development of domestic electrical and hybrid vehicles (xEV) in the country. [193] A discussion inbetween the various stakeholders, including Government, industry, and academia, was expected to take place during 23–24 February. [193] The final contours of the policy would have been formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad framework for the sector. Along with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task. [193] The Government has also proposed to set up a Rs seven hundred forty crore research and development fund for the sector in the 12th five-year plan during 2012-17. [193] The idea is to reduce the high cost of key imported components such as the battery and electrified motor, and to develop such capabilities locally.
Automotive industry in India
Automotive industry in India
The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in FY (fiscal year) 2015–16, following a growth of Two.57 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country’s gross domestic product (GDP). The Two Wheelers segment, with eighty one per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a youthfull population. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has thirteen per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014–15, automobile exports grew by fifteen per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020. [1]
Contents
The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs), three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–October 2014, registering a marginal growth of Three.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in April–October two thousand fifteen over the same period in the previous year. The overall CVs segment registered a growth of 8.02 per cent in April–October two thousand fifteen as compared to same period last year. Medium and Mighty Commercial Vehicles (M&HCVs) registered very strong growth of 32.Trio per cent while sales of Light Commercial Vehicles (LCVs) declined by Five.24 per cent during April–October 2015, year-to-year.
In April–October 2015, overall automobile exports grew by Five.78 per cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, Eighteen.59 per cent and Three.22 per cent, respectively, in April–October two thousand fifteen over April–October 2014. [Two]
In order to keep up with the growing request, several auto makers have began investing powerfully 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 two thousand 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 goes after:
- Global auto maker Ford plans to manufacture in India two families of engines by 2017, a Two.Two litre diesel engine code-named Panther, and a 1.Two litre petrol engine code-named Dragon, which are expected to power 270,000 Ford vehicles globally.
- The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and enlargening 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 Three,500 crore (US$525 million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
- Mercedes Benz has determined 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 AG’s (BMW) local unit has announced to procure components from seven India-based auto parts makers.
- Mahindra Two Wheelers Limited (MTWL) acquired fifty one per cent shares in France-based Peugeot Motorcycles (PMTC). [Two]
The Government of India encourages foreign investment in the automobile sector and permits one hundred 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.Four 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.Five billion) to farmers, which is expected to boost sales in the tractors segment.
- The government plans to promote eco-friendly cars in the country—i.e. CNG-based vehicles, hybrid vehicles, and electrical vehicles—and also to make mandatory five per cent ethanol blending in petrol.
- The government has formulated a Scheme for Swifter Adoption and Manufacturing of Electrical and Hybrid Vehicles in India, under the National Electrical Mobility Mission 2020, to encourage the progressive introduction of reliable, affordable, and efficient electrified and hybrid vehicles into the country.
- The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the government is aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector. [Trio]
In 1897, the very first car ran on an Indian road. Through the 1930s, cars were imports only, and in puny numbers.
An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was launched in 1942, long-time competitor Premier in 1944, building Chrysler, Dodge, and Fiat products respectively. [Four] 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. [Four]
1947-1970 Edit
The one thousand nine hundred fifty two Tariff Commission Edit
In 1952, the government appointed the very first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted their report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, with licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per requests, in the future. The Tariff Commission recommendations were implemented with fresh policies that would eventually exclude companies that only imported parts for assembly, as well as those with no Indian fucking partner. In 1954, following the Tariff Commission implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants in Mumbai, determined to stir out of India. [Five]
The Tariff commission policies, including similar confinements that applied to other industries, came to be known as the “license raj”, which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic crimson gauze ended up causing request to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.
- Hindustan Motors, Calcutta – technical collaboration with Morris Motors to manufacture Morris Oxford models that would later become HM Ambassador.
- Premier Automobiles, Bombay – technical collaboration with Chrysler to manufacture Dodge, Plymouth and Desoto models and with Fiat to manufacture the 1100D models which would later with Premier Padmini range.
- Standard Motor Products of India, Madras – technical collaboration from Standard-Triumph to manufacture Standard Vanguard, Standard 8, ten and later Standard Herald.
Utility and Light Commercial Vehicles
- Vehicle Factory Jabalpur – commenced manufacturing Jonga Light Utility Vehicles and Vahan one Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the main troop carriers of the Indian Armed Coerces and much powerful than any other vehicle of their class.
- Mahindra & Mahindra, Bombay – technical collaboration with Willys to manufacture CJ Series Jeep.
- Bajaj Tempo, Poona now Force Motors – technical collaboration with Tempo (company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.
- Standard Motor Products of India – technical collaboration from Standard has licence to manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne pickup variants.
Medium and Intense Commercial Vehicles
- Vehicle Factory Jabalpur – began manufacturing Shaktiman trucks with technical assistance from MAN SE of Germany. The trucks were the main logistics vehicle of the Indian Army with several specialist variants. VFJ still is the foot supplier of B vehicles to the Indian Armed Compels.
- Mighty Vehicles Factory – was established in one thousand nine hundred sixty five in Avadi, near Chennai to produce tanks in India. Since its inception, HVF has produced all the tanks of India, including Vijayanta, Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only tank manufacturing facility of India.
- Tata Motors, Poona, then known as TELCO – technical collaboration with Mercedes Benz to manufacture medium to powerful commercial vehicles both Bus and Trucks.
- Ashok Motors, later Ashok Leyland, Madras – technical collaboration with Leyland Motors to manufacture medium to strong commercial vehicles both Bus and Trucks. Ashok Motors also discontinued its Austin venture formed in one thousand nine hundred forty eight to sell Austin A40 and retooled the factory to make trucks and buses.
- Hindustan Motors – technical collaboration with General Motors to manufacture the Bedford range of medium lorry and bus chassis.
- Premier Automobiles – technical collaboration with Chrysler to manufacture the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
- Simpsons & Co, Madras – part of Amalgamations Group (TAFE Tractors)- technical collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise that option until the 1980s.
Scooters, Mopeds and Motorcycles
known as Bajaj Chetak, by Bajaj became the largest sold scooter in the world
- Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after the tariff commission was enabled.
- Royal Enfield (India), Madras – technical collaboration with Royal Enfield, UK to manufacture the Enfield Bullet range of motorcycles.
- Bajaj Auto, Poona – technical collaboration with Piaggio, Italy to manufacture their best selling Vespa range of scooters and three wheelers with commercial option as well.
- Automobile Products of India, Bombay (Better known for API Lambretta – technical collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of mopeds, scooters and three-wheelers. This company was actually the Rootes Group car plant that was bought over by M. A. Chidambaram family.
- Mopeds India Limited, Tirupathi – technical collaboration with Motobécane, France to manufacture their best selling Mobylette mopeds.
- Escorts Group, Fresh Delhi – technical collaboration with CEKOP of Poland to manufacture the Rajdoot one hundred seventy five motorcycle whose origin was DKW RT 125
- Ideal Jawa, Mysore – in technical collaboration with CZ – Jawa of Czechoslovakia for its Jawa and Yezdi range of motorcycles.
1970 to one thousand nine hundred eighty three Edit
However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, hampered the growth of Indian private sector.
The beginning of the 1970s witnessed some growth potential and most of the collaboration license agreements came to an end but with option to proceed manufacturing with renewed branding. Cars were still meant for the elite and Jeeps were largely used by government organizations and some rural belts. In commercial vehicle segments some developments were made by the end of the decade to cater improved goods movements. The two-wheeler segment remained unchanged except for to enlargened sales in urban among middle class. But more fillip was target towards farm tractors as India was embarking on a fresh Green Revolution. More Russian and eastern bloc imports were done to increase the request.
But after 1970, with limitations on the import of vehicles set, the automotive industry commenced to grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still remained a major luxury item. In the 1970s, price controls were eventually lifted, inserting a competitive element into the automobile market. [6] However, by the 1980s, the automobile market was still predominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers. [7] During the eighties, a few competitors began to arrive on the scene.
The OPEC oil crisis spotted increase need to installing or redesign some vehicle to fit diesel engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks on Pertol engines.
1984 to one thousand nine hundred ninety two Edit
From the end of the 1970s to the beginning of the 1980s spotted no fresh models but the country continued with two decade old designs forcing government to encourage and let more manufacturers into fray.
In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory Medak, near Hyderabad. It embarked manufacturing Infantry Combat Vehicles christened as Sarath, the backbone of India’s mechanised infantry. OFMK is still the only manufacturing facility of ICVs in India. To manufacture the high-power engines used in ICVs and main battle tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The one thousand nine hundred eighty six Expo was a showcase for how the Indian automotive industry was absorbing fresh technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India. The nine-day display was attended by then Prime Minister Rajiv Gandhi.
Post-1992 liberalisation Edit
Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South Korea, were permitted to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the very first, and the most successful of these fresh entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s. [7] As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The multiplicity 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 twelve large automotive companies in the Indian market, most of them offshoots of global companies. [8]
Slow export growth Edit
Exports were slow to grow. Sales of petite numbers of vehicles to tertiary markets and neighbouring countries began early, and in one thousand nine hundred eighty seven Maruti Suzuki shipped four hundred eighty cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive. [9] This was not to last, and today India manufactures low-priced cars for markets across the globe. As of eighteen March 2013, global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis. [Ten]
Emission norms Edit
In 2000, in line with international standards to reduce vehicular pollution, the central government unveiled standards titled “India 2000”, with later, upgraded guidelines to be known as Bharat Stage emission standards. These standards are fairly similar to the stringent European emission standards and have been implemented in a phased manner. Bharat Stage IV (BS-IV), the most stringent so far, was implemented very first, in April 2010, in thirteen cities—Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra—and then, as of April 2017, the rest of the nation.
Local manufacture encouraged Edit
India levies an import tax of 125% on electrical cars, while the import tax on components such as gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in India rather than be imported as fully built units. [11]
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 operations of Intense Vehicles Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun. [12] [13]
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. [14] [15]
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 Peugeot-Citroen plants are also planned for Gujarat. [16]
Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are other automotive manufacturing regions around the country. [17] [Legal] [Nineteen]
Andhra Pradesh Edit
Gujarat Edit
Haryana Edit
Himachal Pradesh Edit
Jharkhand Edit
Karnataka Edit
- Bharat Earth Movers – Bengaluru
- Scania Commercial Vehicles India Private Limited – Bengaluru[35]
- TAFE Tractors – Doddaballapur[32]
- Tata Motors – Dharwad[21]
- Bharat Earth Movers – Mysuru
- Volvo India
- Volvo Buses India – Hosakote[36]
- Volvo Trucks India – Hosakote[37]
- Volvo Construction Equipment India – Hosakote[38]
Kerala Edit
Madhya Pradesh Edit
Maharashtra Edit
Punjab Edit
Rajasthan Edit
Tamil Nadu Edit
Telangana Edit
Uttar Pradesh Edit
Uttarakhand Edit
West Bengal Edit
India’s automobile exports have grown consistently and reached $Four.Five billion in 2009, with the United Kingdom being India’s largest export market, followed by Italy, Germany, Netherlands, and South Africa. [80]
According to the Fresh 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. [81]
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. [82] Similarly, US automobile company, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. [83]
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. [84] The company said that the plant was a part of its plan to make India the hub for its global production business. [85] Fiat Motors announced that it would source more than US$1 billion worth auto components from India. [86]
In two thousand nine 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). [87]
In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing € 700M in the operation. [88] PSA’s intention to utilise this production facility for export purposes however remains unclear as of December 2010.
In latest years, India has emerged as a leading center for the manufacture of puny cars. Hyundai, the thickest 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 puny cars for Nissan, which sells them in Europe. Nissan will also export petite cars from its fresh Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is preparing to sell electrified cars in Europe in 2010. The rock-hard is planning to sell an electrical version of its affordable car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and puny 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 petite car project. [89] While the possibilities for the Indian automobile industry are epic, there are challenges that could thwart future growth. Since the request for automobiles in latest years is directly linked to overall economic expansion and rising individual incomes, industry growth will slow if the economy weakens. [89]
Top ten export destinations Edit
India exported $14.Five billion worth of automobiles in 2014. The ten countries below imported 47.8% of that total. [90]
Indian automotive companies Edit
Models presently manufactured by Indian companies Edit
- Chinkara Motors: [114] Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster
- Force Motors (earlier known as Tempo): One
- Hindustan Motors: [115]Ambassador
- Hradyesh: [116]Morris Street[117]
- ICML: [118] Rhino Rx
- Mahindra: [119]Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito Vibe, Genio, XUV500, e2o, TUV300, KUV100, NuvoSport.
- Premier Automobiles Limited: [120]Sigma, RiO
- San Motors: [121]Storm
- Maruti Suzuki (subsidiary of Japanese auto maker Suzuki) [122][123]Alto K10, Alto 800, WagonR, Swift, Swift DZire, Omni, Eeco, Gypsy, Ertiga, Celerio, Ciaz, Vitara Brezza, Baleno, Ignis, S-Cross.
- Tata Motors: [124]Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Movus, Venture, Safari, Xenon, Aria, Zest, Bolt, Tiago, Tigor.
Defunct Indian automotive companies Edit
Foreign automotive companies in India Edit
Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet (of General Motors), Toyota, Lamborghini, Jaguar, and Skoda are the foreign automotive companies that manufacture and market their products in India.
Vehicles presently manufactured or assembled in India Edit
- Audi India: A3, A4, A6, Q3, Q5.
- BMW India: [125]1 Series, three Series, three Series GT, five Series, seven Series, X1, X3, X5.
- Chevrolet: [126]Spark, Hammer, Sail, Cruze, Tavera, Love.
- Fiat India: Punto, Linea, Avventura, Urban Cross.
- Jeep India: Compass.
- Ford India: [127]Figo, Ecosport, Endeavour, Figo Aspire.
- Datsun: Go, Go+, Redi-Go
- Honda Cars India Limited: [128]Brio, Jazz, Amaze, BR-V, City.
- Hyundai Motor India: [129]Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.
- Isuzu: [130][131]MU-7, V-Cross.
- Jaguar (Subsidiary of Tata Motors): [132]XE, XF, XJ.
- Land Rover (Subsidiary of Tata Motors): [133]Freelander, Range Rover Evoque.
- Mercedes-Benz India: [134]C-Class, E-Class, M-Class, GL-Class, S-Class.
- MINI: [135]Countryman.
- Mitsubishi[136] (in collaboration with Hindustan Motors): [137]Pajero.
- Nissan Motor India: [138]Micra, Sunny, Terrano.
- Renault India: [139][140][141]Pulse, Duster, Scala, Kwid, Lodgy.
- Škoda Auto India: [142][143]Rapid, Octavia, Yeti, Superb.
- Toyota Kirloskar: [144]Etios Liva, Etios, Corolla Altis, Innova Crysta, Fortuner, Camry.
- Volkswagen India: [145][146]Polo, Cross Polo, Vento, Jetta, Ameo, Tiguan .
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.
Vehicles presently imported into India Edit
- Aston Martin: [147]Vantage, Vanquish, Rapide, Virage, DB9, DBS, One-77.
- Audi: [148]A8 L, Q7, S5 Sportback, TT, RS seven Sportback, RS six Avant, RS5, R8.
- Bentley: [149][150]Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.
- BMW: [151]Five Series GT, six Series, seven Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.
- Bugatti: [152][153]Veyron.
- Chevrolet: Trailblazer.
- Ferrari: [154][155]California, four hundred fifty eight Italia, F12, FF.
- Fiat: Abarth five hundred ninety five Competizone
- Ford: [156]Mustang.
- General Motors: [126]Hummer H2, Hummer H3.
- Gumpert: [157]Apollo.
- Honda: [158][159]Accord Hybrid.
- Hyundai: [129]Santa Fe.
- Isuzu Motors India:D-Max
- Jaguar (Subsidiary of Tata Motors): [132]XJS, XK, F-Type.
- Koenigsegg: [160][161]CCX, CCXR, Agera.
- Lamborghini: [162]Huracan, Aventador.
- Land Rover (Subsidiary of Tata Motors): [133]Discovery Four, Range Rover Sport, Range Rover.
- Maserati: [163]Quattroporte, Ghibli.
- Mercedes-Benz: [164]Viano.
- MINI: [135]Cooper, Cooper S, Convertible.
- Mitsubishi: Montero.
- Nissan:GT-R.
- Porsche: [165][166]997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.
- Rolls Royce: [167]Ghost, Wraith, Phantom, Phantom Coupé, Phantom Drophead Coupé.
- SsangYong (subsidiary of Mahindra & Mahindra): [168]Rexton.
- Toyota: [144]Land Cruiser, Land Cruiser Prado, Prius.
- Volkswagen: [169]Beetle.
- Volvo: [170]V40, S60, S80, XC60,S90, XC90.
Indian brands Edit
Joint-venture (JV) brands Edit
- Ashok Leyland[176] – originally a JV inbetween Ashok Motors (possessed by the Hinduja Group) and Leyland Motors, now joint ventures inbetween Ashok Leyland and Nissan Motors (Japan) for LCV’s; and John Deere (USA) for construction equipment. [177]
- KaMAZ Vectra [178] – A JV inbetween Russia’s KaMAZ and the Vectra Group
- MAN Force – A JV inbetween Force Motors and MAN AG (Germany)
- SML Isuzu – originally, as Swaraj Mazda, a JV inbetween Punjab Tractors and Mazda, now 53.5% wielded by Sumitomo Group and with its current name since 2011. [179]
- Tatra Vectra Motors Ltd – (defunct) Initial truck partnership with India by Vectra. Substituted by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration with Bharat Earth Movers Limited.
- VE Commercial Vehicles Limited[180] – VE Commercial Vehicles limited – A JV inbetween Volvo Group and Eicher Motors Limited.
- Maruti Suzuki – A joint venture of Indian Maruti and Japanese Suzuki.
Foreign-owned brands Edit
- J. C. Bamford (JCB) (Possessed by British multinational corporation J. C. Bamford).
- BharatBenz (Possessed by Daimler AG of Germany and affiliated with Daimler’s Fuso and Mercedes-Benz brands) [181]
- Caterpillar Inc.[182]
- DAF[183]
- Hino[184]
- Isuzu[185]
- Iveco[186]
- MAN
- Mercedes-Benz[187] – manufactures luxury coaches in India.
- Piaggio[188]
- Rosenbauer. [189]
- Scania[190]
- Tatra. [191]
- Volvo. [192]
During April 2012, the Indian government planned to unveil the road map for the development of domestic electrical and hybrid vehicles (xEV) in the country. [193] A discussion inbetween the various stakeholders, including Government, industry, and academia, was expected to take place during 23–24 February. [193] The final contours of the policy would have been formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad framework for the sector. Along with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task. [193] The Government has also proposed to set up a Rs seven hundred forty crore research and development fund for the sector in the 12th five-year plan during 2012-17. [193] The idea is to reduce the high cost of key imported components such as the battery and electrical motor, and to develop such capabilities locally.
Automotive industry in India
Automotive industry in India
The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in FY (fiscal year) 2015–16, following a growth of Two.57 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country’s gross domestic product (GDP). The Two Wheelers segment, with eighty one per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a youthful population. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has thirteen per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014–15, automobile exports grew by fifteen per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020. [1]
Contents
The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs), three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–October 2014, registering a marginal growth of Three.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in April–October two thousand fifteen over the same period in the previous year. The overall CVs segment registered a growth of 8.02 per cent in April–October two thousand fifteen as compared to same period last year. Medium and Powerful Commercial Vehicles (M&HCVs) registered very strong growth of 32.Trio per cent while sales of Light Commercial Vehicles (LCVs) declined by Five.24 per cent during April–October 2015, year-to-year.
In April–October 2015, overall automobile exports grew by Five.78 per cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, Eighteen.59 per cent and Three.22 per cent, respectively, in April–October two thousand fifteen over April–October 2014. [Two]
In order to keep up with the growing request, several auto makers have began investing strongly 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 two thousand 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 goes after:
- Global auto maker Ford plans to manufacture in India two families of engines by 2017, a Two.Two litre diesel engine code-named Panther, and a 1.Two litre petrol engine code-named Dragon, which are expected to power 270,000 Ford vehicles globally.
- The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and enhancing 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 Three,500 crore (US$525 million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
- Mercedes Benz has determined 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 AG’s (BMW) local unit has announced to procure components from seven India-based auto parts makers.
- Mahindra Two Wheelers Limited (MTWL) acquired fifty one per cent shares in France-based Peugeot Motorcycles (PMTC). [Two]
The Government of India encourages foreign investment in the automobile sector and permits one hundred 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.Four 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.Five billion) to farmers, which is expected to boost sales in the tractors segment.
- The government plans to promote eco-friendly cars in the country—i.e. CNG-based vehicles, hybrid vehicles, and electrical vehicles—and also to make mandatory five per cent ethanol blending in petrol.
- The government has formulated a Scheme for Swifter Adoption and Manufacturing of Electrical and Hybrid Vehicles in India, under the National Electrified Mobility Mission 2020, to encourage the progressive introduction of reliable, affordable, and efficient electrical and hybrid vehicles into the country.
- The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the government is aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector. [Trio]
In 1897, the very first car ran on an Indian road. Through the 1930s, cars were imports only, and in puny numbers.
An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was launched in 1942, long-time competitor Premier in 1944, building Chrysler, Dodge, and Fiat products respectively. [Four] 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. [Four]
1947-1970 Edit
The one thousand nine hundred fifty two Tariff Commission Edit
In 1952, the government appointed the very first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted their report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, with licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per requests, in the future. The Tariff Commission recommendations were implemented with fresh policies that would eventually exclude companies that only imported parts for assembly, as well as those with no Indian playmate. In 1954, following the Tariff Commission implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants in Mumbai, determined to stir out of India. [Five]
The Tariff commission policies, including similar confinements that applied to other industries, came to be known as the “license raj”, which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic crimson gauze ended up causing request to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.
- Hindustan Motors, Calcutta – technical collaboration with Morris Motors to manufacture Morris Oxford models that would later become HM Ambassador.
- Premier Automobiles, Bombay – technical collaboration with Chrysler to manufacture Dodge, Plymouth and Desoto models and with Fiat to manufacture the 1100D models which would later with Premier Padmini range.
- Standard Motor Products of India, Madras – technical collaboration from Standard-Triumph to manufacture Standard Vanguard, Standard 8, ten and later Standard Herald.
Utility and Light Commercial Vehicles
- Vehicle Factory Jabalpur – began manufacturing Jonga Light Utility Vehicles and Vahan one Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the main troop carriers of the Indian Armed Coerces and much powerful than any other vehicle of their class.
- Mahindra & Mahindra, Bombay – technical collaboration with Willys to manufacture CJ Series Jeep.
- Bajaj Tempo, Poona now Force Motors – technical collaboration with Tempo (company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.
- Standard Motor Products of India – technical collaboration from Standard has licence to manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne pickup variants.
Medium and Intense Commercial Vehicles
- Vehicle Factory Jabalpur – commenced manufacturing Shaktiman trucks with technical assistance from MAN SE of Germany. The trucks were the main logistics vehicle of the Indian Army with several specialist variants. VFJ still is the foot supplier of B vehicles to the Indian Armed Coerces.
- Strong Vehicles Factory – was established in one thousand nine hundred sixty five in Avadi, near Chennai to produce tanks in India. Since its inception, HVF has produced all the tanks of India, including Vijayanta, Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only tank manufacturing facility of India.
- Tata Motors, Poona, then known as TELCO – technical collaboration with Mercedes Benz to manufacture medium to strong commercial vehicles both Bus and Trucks.
- Ashok Motors, later Ashok Leyland, Madras – technical collaboration with Leyland Motors to manufacture medium to strong commercial vehicles both Bus and Trucks. Ashok Motors also discontinued its Austin venture formed in one thousand nine hundred forty eight to sell Austin A40 and retooled the factory to make trucks and buses.
- Hindustan Motors – technical collaboration with General Motors to manufacture the Bedford range of medium lorry and bus chassis.
- Premier Automobiles – technical collaboration with Chrysler to manufacture the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
- Simpsons & Co, Madras – part of Amalgamations Group (TAFE Tractors)- technical collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise that option until the 1980s.
Scooters, Mopeds and Motorcycles
known as Bajaj Chetak, by Bajaj became the largest sold scooter in the world
- Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after the tariff commission was enabled.
- Royal Enfield (India), Madras – technical collaboration with Royal Enfield, UK to manufacture the Enfield Bullet range of motorcycles.
- Bajaj Auto, Poona – technical collaboration with Piaggio, Italy to manufacture their best selling Vespa range of scooters and three wheelers with commercial option as well.
- Automobile Products of India, Bombay (Better known for API Lambretta – technical collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of mopeds, scooters and three-wheelers. This company was actually the Rootes Group car plant that was bought over by M. A. Chidambaram family.
- Mopeds India Limited, Tirupathi – technical collaboration with Motobécane, France to manufacture their best selling Mobylette mopeds.
- Escorts Group, Fresh Delhi – technical collaboration with CEKOP of Poland to manufacture the Rajdoot one hundred seventy five motorcycle whose origin was DKW RT 125
- Ideal Jawa, Mysore – in technical collaboration with CZ – Jawa of Czechoslovakia for its Jawa and Yezdi range of motorcycles.
1970 to one thousand nine hundred eighty three Edit
However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, hampered the growth of Indian private sector.
The beginning of the 1970s spotted some growth potential and most of the collaboration license agreements came to an end but with option to proceed manufacturing with renewed branding. Cars were still meant for the elite and Jeeps were largely used by government organizations and some rural belts. In commercial vehicle segments some developments were made by the end of the decade to cater improved goods movements. The two-wheeler segment remained unchanged except for to enhanced sales in urban among middle class. But more fillip was target towards farm tractors as India was embarking on a fresh Green Revolution. More Russian and eastern bloc imports were done to increase the request.
But after 1970, with confinements on the import of vehicles set, the automotive industry embarked to grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still remained a major luxury item. In the 1970s, price controls were eventually lifted, inserting a competitive element into the automobile market. [6] However, by the 1980s, the automobile market was still predominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers. [7] During the eighties, a few competitors began to arrive on the scene.
The OPEC oil crisis eyed increase need to installing or redesign some vehicle to fit diesel engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks on Pertol engines.
1984 to one thousand nine hundred ninety two Edit
From the end of the 1970s to the beginning of the 1980s eyed no fresh models but the country continued with two decade old designs forcing government to encourage and let more manufacturers into fray.
In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory Medak, near Hyderabad. It began manufacturing Infantry Combat Vehicles christened as Sarath, the backbone of India’s mechanised infantry. OFMK is still the only manufacturing facility of ICVs in India. To manufacture the high-power engines used in ICVs and main battle tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The one thousand nine hundred eighty six Expo was a showcase for how the Indian automotive industry was absorbing fresh technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India. The nine-day display was attended by then Prime Minister Rajiv Gandhi.
Post-1992 liberalisation Edit
Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South Korea, were permitted to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the very first, and the most successful of these fresh entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s. [7] As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The multitude 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 twelve large automotive companies in the Indian market, most of them offshoots of global companies. [8]
Slow export growth Edit
Exports were slow to grow. Sales of petite numbers of vehicles to tertiary markets and neighbouring countries began early, and in one thousand nine hundred eighty seven Maruti Suzuki shipped four hundred eighty cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive. [9] This was not to last, and today India manufactures low-priced cars for markets across the globe. As of eighteen March 2013, global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis. [Ten]
Emission norms Edit
In 2000, in line with international standards to reduce vehicular pollution, the central government unveiled standards titled “India 2000”, with later, upgraded guidelines to be known as Bharat Stage emission standards. These standards are fairly similar to the stringent European emission standards and have been implemented in a phased manner. Bharat Stage IV (BS-IV), the most stringent so far, was implemented very first, in April 2010, in thirteen cities—Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra—and then, as of April 2017, the rest of the nation.
Local manufacture encouraged Edit
India levies an import tax of 125% on electrified cars, while the import tax on components such as gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in India rather than be imported as downright built units. [11]
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 operations of Intense Vehicles Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun. [12] [13]
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. [14] [15]
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 Peugeot-Citroen plants are also planned for Gujarat. [16]
Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are other automotive manufacturing regions around the country. [17] [Eighteen] [Nineteen]
Andhra Pradesh Edit
Gujarat Edit
Haryana Edit
Himachal Pradesh Edit
Jharkhand Edit
Karnataka Edit
- Bharat Earth Movers – Bengaluru
- Scania Commercial Vehicles India Private Limited – Bengaluru[35]
- TAFE Tractors – Doddaballapur[32]
- Tata Motors – Dharwad[21]
- Bharat Earth Movers – Mysuru
- Volvo India
- Volvo Buses India – Hosakote[36]
- Volvo Trucks India – Hosakote[37]
- Volvo Construction Equipment India – Hosakote[38]
Kerala Edit
Madhya Pradesh Edit
Maharashtra Edit
Punjab Edit
Rajasthan Edit
Tamil Nadu Edit
Telangana Edit
Uttar Pradesh Edit
Uttarakhand Edit
West Bengal Edit
India’s automobile exports have grown consistently and reached $Four.Five billion in 2009, with the United Kingdom being India’s largest export market, followed by Italy, Germany, Netherlands, and South Africa. [80]
According to the Fresh 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. [81]
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. [82] Similarly, US automobile company, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. [83]
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. [84] The company said that the plant was a part of its plan to make India the hub for its global production business. [85] Fiat Motors announced that it would source more than US$1 billion worth auto components from India. [86]
In two thousand nine 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). [87]
In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing € 700M in the operation. [88] PSA’s intention to utilise this production facility for export purposes however remains unclear as of December 2010.
In latest years, India has emerged as a leading center for the manufacture of petite cars. Hyundai, the thickest 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 petite cars for Nissan, which sells them in Europe. Nissan will also export puny cars from its fresh Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is preparing to sell electrical cars in Europe in 2010. The rigid is planning to sell an electrical version of its affordable car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and puny 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 petite car project. [89] While the possibilities for the Indian automobile industry are amazing, there are challenges that could thwart future growth. Since the request for automobiles in latest years is directly linked to overall economic expansion and rising individual incomes, industry growth will slow if the economy weakens. [89]
Top ten export destinations Edit
India exported $14.Five billion worth of automobiles in 2014. The ten countries below imported 47.8% of that total. [90]
Indian automotive companies Edit
Models presently manufactured by Indian companies Edit
- Chinkara Motors: [114] Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster
- Force Motors (earlier known as Tempo): One
- Hindustan Motors: [115]Ambassador
- Hradyesh: [116]Morris Street[117]
- ICML: [118] Rhino Rx
- Mahindra: [119]Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito Vibe, Genio, XUV500, e2o, TUV300, KUV100, NuvoSport.
- Premier Automobiles Limited: [120]Sigma, RiO
- San Motors: [121]Storm
- Maruti Suzuki (subsidiary of Japanese auto maker Suzuki) [122][123]Alto K10, Alto 800, WagonR, Swift, Swift DZire, Omni, Eeco, Gypsy, Ertiga, Celerio, Ciaz, Vitara Brezza, Baleno, Ignis, S-Cross.
- Tata Motors: [124]Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Movus, Venture, Safari, Xenon, Aria, Zest, Bolt, Tiago, Tigor.
Defunct Indian automotive companies Edit
Foreign automotive companies in India Edit
Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet (of General Motors), Toyota, Lamborghini, Jaguar, and Skoda are the foreign automotive companies that manufacture and market their products in India.
Vehicles presently manufactured or assembled in India Edit
- Audi India: A3, A4, A6, Q3, Q5.
- BMW India: [125]1 Series, three Series, three Series GT, five Series, seven Series, X1, X3, X5.
- Chevrolet: [126]Spark, Strike, Sail, Cruze, Tavera, Love.
- Fiat India: Punto, Linea, Avventura, Urban Cross.
- Jeep India: Compass.
- Ford India: [127]Figo, Ecosport, Endeavour, Figo Aspire.
- Datsun: Go, Go+, Redi-Go
- Honda Cars India Limited: [128]Brio, Jazz, Amaze, BR-V, City.
- Hyundai Motor India: [129]Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.
- Isuzu: [130][131]MU-7, V-Cross.
- Jaguar (Subsidiary of Tata Motors): [132]XE, XF, XJ.
- Land Rover (Subsidiary of Tata Motors): [133]Freelander, Range Rover Evoque.
- Mercedes-Benz India: [134]C-Class, E-Class, M-Class, GL-Class, S-Class.
- MINI: [135]Countryman.
- Mitsubishi[136] (in collaboration with Hindustan Motors): [137]Pajero.
- Nissan Motor India: [138]Micra, Sunny, Terrano.
- Renault India: [139][140][141]Pulse, Duster, Scala, Kwid, Lodgy.
- Škoda Auto India: [142][143]Rapid, Octavia, Yeti, Superb.
- Toyota Kirloskar: [144]Etios Liva, Etios, Corolla Altis, Innova Crysta, Fortuner, Camry.
- Volkswagen India: [145][146]Polo, Cross Polo, Vento, Jetta, Ameo, Tiguan .
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.
Vehicles presently imported into India Edit
- Aston Martin: [147]Vantage, Vanquish, Rapide, Virage, DB9, DBS, One-77.
- Audi: [148]A8 L, Q7, S5 Sportback, TT, RS seven Sportback, RS six Avant, RS5, R8.
- Bentley: [149][150]Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.
- BMW: [151]Five Series GT, six Series, seven Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.
- Bugatti: [152][153]Veyron.
- Chevrolet: Trailblazer.
- Ferrari: [154][155]California, four hundred fifty eight Italia, F12, FF.
- Fiat: Abarth five hundred ninety five Competizone
- Ford: [156]Mustang.
- General Motors: [126]Hummer H2, Hummer H3.
- Gumpert: [157]Apollo.
- Honda: [158][159]Accord Hybrid.
- Hyundai: [129]Santa Fe.
- Isuzu Motors India:D-Max
- Jaguar (Subsidiary of Tata Motors): [132]XJS, XK, F-Type.
- Koenigsegg: [160][161]CCX, CCXR, Agera.
- Lamborghini: [162]Huracan, Aventador.
- Land Rover (Subsidiary of Tata Motors): [133]Discovery Four, Range Rover Sport, Range Rover.
- Maserati: [163]Quattroporte, Ghibli.
- Mercedes-Benz: [164]Viano.
- MINI: [135]Cooper, Cooper S, Convertible.
- Mitsubishi: Montero.
- Nissan:GT-R.
- Porsche: [165][166]997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.
- Rolls Royce: [167]Ghost, Wraith, Phantom, Phantom Coupé, Phantom Drophead Coupé.
- SsangYong (subsidiary of Mahindra & Mahindra): [168]Rexton.
- Toyota: [144]Land Cruiser, Land Cruiser Prado, Prius.
- Volkswagen: [169]Beetle.
- Volvo: [170]V40, S60, S80, XC60,S90, XC90.
Indian brands Edit
Joint-venture (JV) brands Edit
- Ashok Leyland[176] – originally a JV inbetween Ashok Motors (wielded by the Hinduja Group) and Leyland Motors, now joint ventures inbetween Ashok Leyland and Nissan Motors (Japan) for LCV’s; and John Deere (USA) for construction equipment. [177]
- KaMAZ Vectra [178] – A JV inbetween Russia’s KaMAZ and the Vectra Group
- MAN Force – A JV inbetween Force Motors and MAN AG (Germany)
- SML Isuzu – originally, as Swaraj Mazda, a JV inbetween Punjab Tractors and Mazda, now 53.5% possessed by Sumitomo Group and with its current name since 2011. [179]
- Tatra Vectra Motors Ltd – (defunct) Initial truck partnership with India by Vectra. Substituted by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration with Bharat Earth Movers Limited.
- VE Commercial Vehicles Limited[180] – VE Commercial Vehicles limited – A JV inbetween Volvo Group and Eicher Motors Limited.
- Maruti Suzuki – A joint venture of Indian Maruti and Japanese Suzuki.
Foreign-owned brands Edit
- J. C. Bamford (JCB) (Possessed by British multinational corporation J. C. Bamford).
- BharatBenz (Wielded by Daimler AG of Germany and affiliated with Daimler’s Fuso and Mercedes-Benz brands) [181]
- Caterpillar Inc.[182]
- DAF[183]
- Hino[184]
- Isuzu[185]
- Iveco[186]
- MAN
- Mercedes-Benz[187] – manufactures luxury coaches in India.
- Piaggio[188]
- Rosenbauer. [189]
- Scania[190]
- Tatra. [191]
- Volvo. [192]
During April 2012, the Indian government planned to unveil the road map for the development of domestic electrified and hybrid vehicles (xEV) in the country. [193] A discussion inbetween the various stakeholders, including Government, industry, and academia, was expected to take place during 23–24 February. [193] The final contours of the policy would have been formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad framework for the sector. Along with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task. [193] The Government has also proposed to set up a Rs seven hundred forty crore research and development fund for the sector in the 12th five-year plan during 2012-17. [193] The idea is to reduce the high cost of key imported components such as the battery and electrical motor, and to develop such capabilities locally.
Automotive industry in India
Automotive industry in India
The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in FY (fiscal year) 2015–16, following a growth of Two.57 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country’s gross domestic product (GDP). The Two Wheelers segment, with eighty one per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a youthfull population. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has thirteen per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014–15, automobile exports grew by fifteen per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020. [1]
Contents
The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs), three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–October 2014, registering a marginal growth of Three.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in April–October two thousand fifteen over the same period in the previous year. The overall CVs segment registered a growth of 8.02 per cent in April–October two thousand fifteen as compared to same period last year. Medium and Strong Commercial Vehicles (M&HCVs) registered very strong growth of 32.Trio per cent while sales of Light Commercial Vehicles (LCVs) declined by Five.24 per cent during April–October 2015, year-to-year.
In April–October 2015, overall automobile exports grew by Five.78 per cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, Eighteen.59 per cent and Three.22 per cent, respectively, in April–October two thousand fifteen over April–October 2014. [Two]
In order to keep up with the growing request, several auto makers have commenced investing strenuously 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 two thousand 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 goes after:
- Global auto maker Ford plans to manufacture in India two families of engines by 2017, a Two.Two litre diesel engine code-named Panther, and a 1.Two litre petrol engine code-named Dragon, which are expected to power 270,000 Ford vehicles globally.
- The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and enlargening 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 Three,500 crore (US$525 million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
- Mercedes Benz has determined 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 AG’s (BMW) local unit has announced to procure components from seven India-based auto parts makers.
- Mahindra Two Wheelers Limited (MTWL) acquired fifty one per cent shares in France-based Peugeot Motorcycles (PMTC). [Two]
The Government of India encourages foreign investment in the automobile sector and permits one hundred 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.Four 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.Five billion) to farmers, which is expected to boost sales in the tractors segment.
- The government plans to promote eco-friendly cars in the country—i.e. CNG-based vehicles, hybrid vehicles, and electrical vehicles—and also to make mandatory five per cent ethanol blending in petrol.
- The government has formulated a Scheme for Quicker Adoption and Manufacturing of Electrical and Hybrid Vehicles in India, under the National Electrified Mobility Mission 2020, to encourage the progressive introduction of reliable, affordable, and efficient electrical and hybrid vehicles into the country.
- The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the government is aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector. [Three]
In 1897, the very first car ran on an Indian road. Through the 1930s, cars were imports only, and in puny numbers.
An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was launched in 1942, long-time competitor Premier in 1944, building Chrysler, Dodge, and Fiat products respectively. [Four] 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. [Four]
1947-1970 Edit
The one thousand nine hundred fifty two Tariff Commission Edit
In 1952, the government appointed the very first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted their report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, with licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per requests, in the future. The Tariff Commission recommendations were implemented with fresh policies that would eventually exclude companies that only imported parts for assembly, as well as those with no Indian playmate. In 1954, following the Tariff Commission implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants in Mumbai, determined to stir out of India. [Five]
The Tariff commission policies, including similar limitations that applied to other industries, came to be known as the “license raj”, which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic crimson gauze ended up causing request to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.
- Hindustan Motors, Calcutta – technical collaboration with Morris Motors to manufacture Morris Oxford models that would later become HM Ambassador.
- Premier Automobiles, Bombay – technical collaboration with Chrysler to manufacture Dodge, Plymouth and Desoto models and with Fiat to manufacture the 1100D models which would later with Premier Padmini range.
- Standard Motor Products of India, Madras – technical collaboration from Standard-Triumph to manufacture Standard Vanguard, Standard 8, ten and later Standard Herald.
Utility and Light Commercial Vehicles
- Vehicle Factory Jabalpur – began manufacturing Jonga Light Utility Vehicles and Vahan one Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the main troop carriers of the Indian Armed Compels and much powerful than any other vehicle of their class.
- Mahindra & Mahindra, Bombay – technical collaboration with Willys to manufacture CJ Series Jeep.
- Bajaj Tempo, Poona now Force Motors – technical collaboration with Tempo (company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.
- Standard Motor Products of India – technical collaboration from Standard has licence to manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne pickup variants.
Medium and Mighty Commercial Vehicles
- Vehicle Factory Jabalpur – commenced manufacturing Shaktiman trucks with technical assistance from MAN SE of Germany. The trucks were the main logistics vehicle of the Indian Army with several specialist variants. VFJ still is the foot supplier of B vehicles to the Indian Armed Coerces.
- Strenuous Vehicles Factory – was established in one thousand nine hundred sixty five in Avadi, near Chennai to produce tanks in India. Since its inception, HVF has produced all the tanks of India, including Vijayanta, Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only tank manufacturing facility of India.
- Tata Motors, Poona, then known as TELCO – technical collaboration with Mercedes Benz to manufacture medium to mighty commercial vehicles both Bus and Trucks.
- Ashok Motors, later Ashok Leyland, Madras – technical collaboration with Leyland Motors to manufacture medium to intense commercial vehicles both Bus and Trucks. Ashok Motors also discontinued its Austin venture formed in one thousand nine hundred forty eight to sell Austin A40 and retooled the factory to make trucks and buses.
- Hindustan Motors – technical collaboration with General Motors to manufacture the Bedford range of medium lorry and bus chassis.
- Premier Automobiles – technical collaboration with Chrysler to manufacture the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
- Simpsons & Co, Madras – part of Amalgamations Group (TAFE Tractors)- technical collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise that option until the 1980s.
Scooters, Mopeds and Motorcycles
known as Bajaj Chetak, by Bajaj became the largest sold scooter in the world
- Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after the tariff commission was enabled.
- Royal Enfield (India), Madras – technical collaboration with Royal Enfield, UK to manufacture the Enfield Bullet range of motorcycles.
- Bajaj Auto, Poona – technical collaboration with Piaggio, Italy to manufacture their best selling Vespa range of scooters and three wheelers with commercial option as well.
- Automobile Products of India, Bombay (Better known for API Lambretta – technical collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of mopeds, scooters and three-wheelers. This company was actually the Rootes Group car plant that was bought over by M. A. Chidambaram family.
- Mopeds India Limited, Tirupathi – technical collaboration with Motobécane, France to manufacture their best selling Mobylette mopeds.
- Escorts Group, Fresh Delhi – technical collaboration with CEKOP of Poland to manufacture the Rajdoot one hundred seventy five motorcycle whose origin was DKW RT 125
- Ideal Jawa, Mysore – in technical collaboration with CZ – Jawa of Czechoslovakia for its Jawa and Yezdi range of motorcycles.
1970 to one thousand nine hundred eighty three Edit
However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, hampered the growth of Indian private sector.
The beginning of the 1970s eyed some growth potential and most of the collaboration license agreements came to an end but with option to proceed manufacturing with renewed branding. Cars were still meant for the elite and Jeeps were largely used by government organizations and some rural belts. In commercial vehicle segments some developments were made by the end of the decade to cater improved goods movements. The two-wheeler segment remained unchanged except for to enhanced sales in urban among middle class. But more fillip was target towards farm tractors as India was embarking on a fresh Green Revolution. More Russian and eastern bloc imports were done to increase the request.
But after 1970, with confinements on the import of vehicles set, the automotive industry began to grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still remained a major luxury item. In the 1970s, price controls were ultimately lifted, inserting a competitive element into the automobile market. [6] However, by the 1980s, the automobile market was still predominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers. [7] During the eighties, a few competitors began to arrive on the scene.
The OPEC oil crisis spotted increase need to installing or redesign some vehicle to fit diesel engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks on Pertol engines.
1984 to one thousand nine hundred ninety two Edit
From the end of the 1970s to the beginning of the 1980s spotted no fresh models but the country continued with two decade old designs forcing government to encourage and let more manufacturers into fray.
In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory Medak, near Hyderabad. It commenced manufacturing Infantry Combat Vehicles christened as Sarath, the backbone of India’s mechanised infantry. OFMK is still the only manufacturing facility of ICVs in India. To manufacture the high-power engines used in ICVs and main battle tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The one thousand nine hundred eighty six Expo was a showcase for how the Indian automotive industry was absorbing fresh technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India. The nine-day display was attended by then Prime Minister Rajiv Gandhi.
Post-1992 liberalisation Edit
Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South Korea, were permitted to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the very first, and the most successful of these fresh entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s. [7] As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The multitude 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 twelve large automotive companies in the Indian market, most of them offshoots of global companies. [8]
Slow export growth Edit
Exports were slow to grow. Sales of puny numbers of vehicles to tertiary markets and neighbouring countries began early, and in one thousand nine hundred eighty seven Maruti Suzuki shipped four hundred eighty cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive. [9] This was not to last, and today India manufactures low-priced cars for markets across the globe. As of eighteen March 2013, global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis. [Ten]
Emission norms Edit
In 2000, in line with international standards to reduce vehicular pollution, the central government unveiled standards titled “India 2000”, with later, upgraded guidelines to be known as Bharat Stage emission standards. These standards are fairly similar to the stringent European emission standards and have been implemented in a phased manner. Bharat Stage IV (BS-IV), the most stringent so far, was implemented very first, in April 2010, in thirteen cities—Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra—and then, as of April 2017, the rest of the nation.
Local manufacture encouraged Edit
India levies an import tax of 125% on electrical cars, while the import tax on components such as gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in India rather than be imported as fully built units. [11]
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 operations of Intense Vehicles Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun. [12] [13]
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. [14] [15]
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 Peugeot-Citroen plants are also planned for Gujarat. [16]
Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are other automotive manufacturing regions around the country. [17] [Eighteen] [Nineteen]
Andhra Pradesh Edit
Gujarat Edit
Haryana Edit
Himachal Pradesh Edit
Jharkhand Edit
Karnataka Edit
- Bharat Earth Movers – Bengaluru
- Scania Commercial Vehicles India Private Limited – Bengaluru[35]
- TAFE Tractors – Doddaballapur[32]
- Tata Motors – Dharwad[21]
- Bharat Earth Movers – Mysuru
- Volvo India
- Volvo Buses India – Hosakote[36]
- Volvo Trucks India – Hosakote[37]
- Volvo Construction Equipment India – Hosakote[38]
Kerala Edit
Madhya Pradesh Edit
Maharashtra Edit
Punjab Edit
Rajasthan Edit
Tamil Nadu Edit
Telangana Edit
Uttar Pradesh Edit
Uttarakhand Edit
West Bengal Edit
India’s automobile exports have grown consistently and reached $Four.Five billion in 2009, with the United Kingdom being India’s largest export market, followed by Italy, Germany, Netherlands, and South Africa. [80]
According to the Fresh 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. [81]
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. [82] Similarly, US automobile company, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. [83]
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. [84] The company said that the plant was a part of its plan to make India the hub for its global production business. [85] Fiat Motors announced that it would source more than US$1 billion worth auto components from India. [86]
In two thousand nine 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). [87]
In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing € 700M in the operation. [88] PSA’s intention to utilise this production facility for export purposes however remains unclear as of December 2010.
In latest years, India has emerged as a leading center for the manufacture of puny cars. Hyundai, the fattest 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 puny cars for Nissan, which sells them in Europe. Nissan will also export petite cars from its fresh Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is preparing to sell electrical cars in Europe in 2010. The rigid is planning to sell an electrical version of its affordable car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and puny 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 puny car project. [89] While the possibilities for the Indian automobile industry are exceptional, there are challenges that could thwart future growth. Since the request for automobiles in latest years is directly linked to overall economic expansion and rising private incomes, industry growth will slow if the economy weakens. [89]
Top ten export destinations Edit
India exported $14.Five billion worth of automobiles in 2014. The ten countries below imported 47.8% of that total. [90]
Indian automotive companies Edit
Models presently manufactured by Indian companies Edit
- Chinkara Motors: [114] Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster
- Force Motors (earlier known as Tempo): One
- Hindustan Motors: [115]Ambassador
- Hradyesh: [116]Morris Street[117]
- ICML: [118] Rhino Rx
- Mahindra: [119]Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito Vibe, Genio, XUV500, e2o, TUV300, KUV100, NuvoSport.
- Premier Automobiles Limited: [120]Sigma, RiO
- San Motors: [121]Storm
- Maruti Suzuki (subsidiary of Japanese auto maker Suzuki) [122][123]Alto K10, Alto 800, WagonR, Swift, Swift DZire, Omni, Eeco, Gypsy, Ertiga, Celerio, Ciaz, Vitara Brezza, Baleno, Ignis, S-Cross.
- Tata Motors: [124]Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Movus, Venture, Safari, Xenon, Aria, Zest, Bolt, Tiago, Tigor.
Defunct Indian automotive companies Edit
Foreign automotive companies in India Edit
Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet (of General Motors), Toyota, Lamborghini, Jaguar, and Skoda are the foreign automotive companies that manufacture and market their products in India.
Vehicles presently manufactured or assembled in India Edit
- Audi India: A3, A4, A6, Q3, Q5.
- BMW India: [125]1 Series, three Series, three Series GT, five Series, seven Series, X1, X3, X5.
- Chevrolet: [126]Spark, Strike, Sail, Cruze, Tavera, Love.
- Fiat India: Punto, Linea, Avventura, Urban Cross.
- Jeep India: Compass.
- Ford India: [127]Figo, Ecosport, Endeavour, Figo Aspire.
- Datsun: Go, Go+, Redi-Go
- Honda Cars India Limited: [128]Brio, Jazz, Amaze, BR-V, City.
- Hyundai Motor India: [129]Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.
- Isuzu: [130][131]MU-7, V-Cross.
- Jaguar (Subsidiary of Tata Motors): [132]XE, XF, XJ.
- Land Rover (Subsidiary of Tata Motors): [133]Freelander, Range Rover Evoque.
- Mercedes-Benz India: [134]C-Class, E-Class, M-Class, GL-Class, S-Class.
- MINI: [135]Countryman.
- Mitsubishi[136] (in collaboration with Hindustan Motors): [137]Pajero.
- Nissan Motor India: [138]Micra, Sunny, Terrano.
- Renault India: [139][140][141]Pulse, Duster, Scala, Kwid, Lodgy.
- Škoda Auto India: [142][143]Rapid, Octavia, Yeti, Superb.
- Toyota Kirloskar: [144]Etios Liva, Etios, Corolla Altis, Innova Crysta, Fortuner, Camry.
- Volkswagen India: [145][146]Polo, Cross Polo, Vento, Jetta, Ameo, Tiguan .
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.
Vehicles presently imported into India Edit
- Aston Martin: [147]Vantage, Vanquish, Rapide, Virage, DB9, DBS, One-77.
- Audi: [148]A8 L, Q7, S5 Sportback, TT, RS seven Sportback, RS six Avant, RS5, R8.
- Bentley: [149][150]Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.
- BMW: [151]Five Series GT, six Series, seven Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.
- Bugatti: [152][153]Veyron.
- Chevrolet: Trailblazer.
- Ferrari: [154][155]California, four hundred fifty eight Italia, F12, FF.
- Fiat: Abarth five hundred ninety five Competizone
- Ford: [156]Mustang.
- General Motors: [126]Hummer H2, Hummer H3.
- Gumpert: [157]Apollo.
- Honda: [158][159]Accord Hybrid.
- Hyundai: [129]Santa Fe.
- Isuzu Motors India:D-Max
- Jaguar (Subsidiary of Tata Motors): [132]XJS, XK, F-Type.
- Koenigsegg: [160][161]CCX, CCXR, Agera.
- Lamborghini: [162]Huracan, Aventador.
- Land Rover (Subsidiary of Tata Motors): [133]Discovery Four, Range Rover Sport, Range Rover.
- Maserati: [163]Quattroporte, Ghibli.
- Mercedes-Benz: [164]Viano.
- MINI: [135]Cooper, Cooper S, Convertible.
- Mitsubishi: Montero.
- Nissan:GT-R.
- Porsche: [165][166]997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.
- Rolls Royce: [167]Ghost, Wraith, Phantom, Phantom Coupé, Phantom Drophead Coupé.
- SsangYong (subsidiary of Mahindra & Mahindra): [168]Rexton.
- Toyota: [144]Land Cruiser, Land Cruiser Prado, Prius.
- Volkswagen: [169]Beetle.
- Volvo: [170]V40, S60, S80, XC60,S90, XC90.
Indian brands Edit
Joint-venture (JV) brands Edit
- Ashok Leyland[176] – originally a JV inbetween Ashok Motors (possessed by the Hinduja Group) and Leyland Motors, now joint ventures inbetween Ashok Leyland and Nissan Motors (Japan) for LCV’s; and John Deere (USA) for construction equipment. [177]
- KaMAZ Vectra [178] – A JV inbetween Russia’s KaMAZ and the Vectra Group
- MAN Force – A JV inbetween Force Motors and MAN AG (Germany)
- SML Isuzu – originally, as Swaraj Mazda, a JV inbetween Punjab Tractors and Mazda, now 53.5% wielded by Sumitomo Group and with its current name since 2011. [179]
- Tatra Vectra Motors Ltd – (defunct) Initial truck partnership with India by Vectra. Substituted by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration with Bharat Earth Movers Limited.
- VE Commercial Vehicles Limited[180] – VE Commercial Vehicles limited – A JV inbetween Volvo Group and Eicher Motors Limited.
- Maruti Suzuki – A joint venture of Indian Maruti and Japanese Suzuki.
Foreign-owned brands Edit
- J. C. Bamford (JCB) (Wielded by British multinational corporation J. C. Bamford).
- BharatBenz (Possessed by Daimler AG of Germany and affiliated with Daimler’s Fuso and Mercedes-Benz brands) [181]
- Caterpillar Inc.[182]
- DAF[183]
- Hino[184]
- Isuzu[185]
- Iveco[186]
- MAN
- Mercedes-Benz[187] – manufactures luxury coaches in India.
- Piaggio[188]
- Rosenbauer. [189]
- Scania[190]
- Tatra. [191]
- Volvo. [192]
During April 2012, the Indian government planned to unveil the road map for the development of domestic electrified and hybrid vehicles (xEV) in the country. [193] A discussion inbetween the various stakeholders, including Government, industry, and academia, was expected to take place during 23–24 February. [193] The final contours of the policy would have been formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad framework for the sector. Along with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task. [193] The Government has also proposed to set up a Rs seven hundred forty crore research and development fund for the sector in the 12th five-year plan during 2012-17. [193] The idea is to reduce the high cost of key imported components such as the battery and electrified motor, and to develop such capabilities locally.
Automotive industry in India
Automotive industry in India
The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in FY (fiscal year) 2015–16, following a growth of Two.57 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country’s gross domestic product (GDP). The Two Wheelers segment, with eighty one per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a youthful population. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has thirteen per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014–15, automobile exports grew by fifteen per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020. [1]
Contents
The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs), three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–October 2014, registering a marginal growth of Three.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in April–October two thousand fifteen over the same period in the previous year. The overall CVs segment registered a growth of 8.02 per cent in April–October two thousand fifteen as compared to same period last year. Medium and Strenuous Commercial Vehicles (M&HCVs) registered very strong growth of 32.Three per cent while sales of Light Commercial Vehicles (LCVs) declined by Five.24 per cent during April–October 2015, year-to-year.
In April–October 2015, overall automobile exports grew by Five.78 per cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, Legitimate.59 per cent and Three.22 per cent, respectively, in April–October two thousand fifteen over April–October 2014. [Two]
In order to keep up with the growing request, several auto makers have began investing powerfully 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 two thousand 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 goes after:
- Global auto maker Ford plans to manufacture in India two families of engines by 2017, a Two.Two litre diesel engine code-named Panther, and a 1.Two litre petrol engine code-named Dragon, which are expected to power 270,000 Ford vehicles globally.
- The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and enlargening 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 Three,500 crore (US$525 million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
- Mercedes Benz has determined 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 AG’s (BMW) local unit has announced to procure components from seven India-based auto parts makers.
- Mahindra Two Wheelers Limited (MTWL) acquired fifty one per cent shares in France-based Peugeot Motorcycles (PMTC). [Two]
The Government of India encourages foreign investment in the automobile sector and permits one hundred 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.Four 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.Five billion) to farmers, which is expected to boost sales in the tractors segment.
- The government plans to promote eco-friendly cars in the country—i.e. CNG-based vehicles, hybrid vehicles, and electrified vehicles—and also to make mandatory five per cent ethanol blending in petrol.
- The government has formulated a Scheme for Swifter Adoption and Manufacturing of Electrified and Hybrid Vehicles in India, under the National Electrified Mobility Mission 2020, to encourage the progressive introduction of reliable, affordable, and efficient electrified and hybrid vehicles into the country.
- The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the government is aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector. [Three]
In 1897, the very first car ran on an Indian road. Through the 1930s, cars were imports only, and in petite numbers.
An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was launched in 1942, long-time competitor Premier in 1944, building Chrysler, Dodge, and Fiat products respectively. [Four] 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. [Four]
1947-1970 Edit
The one thousand nine hundred fifty two Tariff Commission Edit
In 1952, the government appointed the very first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted their report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, with licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per requests, in the future. The Tariff Commission recommendations were implemented with fresh policies that would eventually exclude companies that only imported parts for assembly, as well as those with no Indian playmate. In 1954, following the Tariff Commission implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants in Mumbai, determined to stir out of India. [Five]
The Tariff commission policies, including similar confinements that applied to other industries, came to be known as the “license raj”, which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic crimson gauze ended up causing request to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.
- Hindustan Motors, Calcutta – technical collaboration with Morris Motors to manufacture Morris Oxford models that would later become HM Ambassador.
- Premier Automobiles, Bombay – technical collaboration with Chrysler to manufacture Dodge, Plymouth and Desoto models and with Fiat to manufacture the 1100D models which would later with Premier Padmini range.
- Standard Motor Products of India, Madras – technical collaboration from Standard-Triumph to manufacture Standard Vanguard, Standard 8, ten and later Standard Herald.
Utility and Light Commercial Vehicles
- Vehicle Factory Jabalpur – embarked manufacturing Jonga Light Utility Vehicles and Vahan one Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the main troop carriers of the Indian Armed Coerces and much powerful than any other vehicle of their class.
- Mahindra & Mahindra, Bombay – technical collaboration with Willys to manufacture CJ Series Jeep.
- Bajaj Tempo, Poona now Force Motors – technical collaboration with Tempo (company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.
- Standard Motor Products of India – technical collaboration from Standard has licence to manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne pickup variants.
Medium and Mighty Commercial Vehicles
- Vehicle Factory Jabalpur – embarked manufacturing Shaktiman trucks with technical assistance from MAN SE of Germany. The trucks were the main logistics vehicle of the Indian Army with several specialist variants. VFJ still is the foot supplier of B vehicles to the Indian Armed Compels.
- Mighty Vehicles Factory – was established in one thousand nine hundred sixty five in Avadi, near Chennai to produce tanks in India. Since its inception, HVF has produced all the tanks of India, including Vijayanta, Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only tank manufacturing facility of India.
- Tata Motors, Poona, then known as TELCO – technical collaboration with Mercedes Benz to manufacture medium to strenuous commercial vehicles both Bus and Trucks.
- Ashok Motors, later Ashok Leyland, Madras – technical collaboration with Leyland Motors to manufacture medium to strong commercial vehicles both Bus and Trucks. Ashok Motors also discontinued its Austin venture formed in one thousand nine hundred forty eight to sell Austin A40 and retooled the factory to make trucks and buses.
- Hindustan Motors – technical collaboration with General Motors to manufacture the Bedford range of medium lorry and bus chassis.
- Premier Automobiles – technical collaboration with Chrysler to manufacture the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
- Simpsons & Co, Madras – part of Amalgamations Group (TAFE Tractors)- technical collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise that option until the 1980s.
Scooters, Mopeds and Motorcycles
known as Bajaj Chetak, by Bajaj became the largest sold scooter in the world
- Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after the tariff commission was enabled.
- Royal Enfield (India), Madras – technical collaboration with Royal Enfield, UK to manufacture the Enfield Bullet range of motorcycles.
- Bajaj Auto, Poona – technical collaboration with Piaggio, Italy to manufacture their best selling Vespa range of scooters and three wheelers with commercial option as well.
- Automobile Products of India, Bombay (Better known for API Lambretta – technical collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of mopeds, scooters and three-wheelers. This company was actually the Rootes Group car plant that was bought over by M. A. Chidambaram family.
- Mopeds India Limited, Tirupathi – technical collaboration with Motobécane, France to manufacture their best selling Mobylette mopeds.
- Escorts Group, Fresh Delhi – technical collaboration with CEKOP of Poland to manufacture the Rajdoot one hundred seventy five motorcycle whose origin was DKW RT 125
- Ideal Jawa, Mysore – in technical collaboration with CZ – Jawa of Czechoslovakia for its Jawa and Yezdi range of motorcycles.
1970 to one thousand nine hundred eighty three Edit
However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, hampered the growth of Indian private sector.
The beginning of the 1970s spotted some growth potential and most of the collaboration license agreements came to an end but with option to proceed manufacturing with renewed branding. Cars were still meant for the elite and Jeeps were largely used by government organizations and some rural belts. In commercial vehicle segments some developments were made by the end of the decade to cater improved goods movements. The two-wheeler segment remained unchanged except for to enhanced sales in urban among middle class. But more fillip was target towards farm tractors as India was embarking on a fresh Green Revolution. More Russian and eastern bloc imports were done to increase the request.
But after 1970, with limitations on the import of vehicles set, the automotive industry commenced to grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still remained a major luxury item. In the 1970s, price controls were ultimately lifted, inserting a competitive element into the automobile market. [6] However, by the 1980s, the automobile market was still predominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers. [7] During the eighties, a few competitors began to arrive on the scene.
The OPEC oil crisis spotted increase need to installing or redesign some vehicle to fit diesel engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks on Pertol engines.
1984 to one thousand nine hundred ninety two Edit
From the end of the 1970s to the beginning of the 1980s eyed no fresh models but the country continued with two decade old designs forcing government to encourage and let more manufacturers into fray.
In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory Medak, near Hyderabad. It commenced manufacturing Infantry Combat Vehicles christened as Sarath, the backbone of India’s mechanised infantry. OFMK is still the only manufacturing facility of ICVs in India. To manufacture the high-power engines used in ICVs and main battle tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The one thousand nine hundred eighty six Expo was a showcase for how the Indian automotive industry was absorbing fresh technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India. The nine-day showcase was attended by then Prime Minister Rajiv Gandhi.
Post-1992 liberalisation Edit
Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South Korea, were permitted to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the very first, and the most successful of these fresh entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s. [7] As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The multiplicity 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 twelve large automotive companies in the Indian market, most of them offshoots of global companies. [8]
Slow export growth Edit
Exports were slow to grow. Sales of puny numbers of vehicles to tertiary markets and neighbouring countries began early, and in one thousand nine hundred eighty seven Maruti Suzuki shipped four hundred eighty cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive. [9] This was not to last, and today India manufactures low-priced cars for markets across the globe. As of eighteen March 2013, global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis. [Ten]
Emission norms Edit
In 2000, in line with international standards to reduce vehicular pollution, the central government unveiled standards titled “India 2000”, with later, upgraded guidelines to be known as Bharat Stage emission standards. These standards are fairly similar to the stringent European emission standards and have been implemented in a phased manner. Bharat Stage IV (BS-IV), the most stringent so far, was implemented very first, in April 2010, in thirteen cities—Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra—and then, as of April 2017, the rest of the nation.
Local manufacture encouraged Edit
India levies an import tax of 125% on electrified cars, while the import tax on components such as gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in India rather than be imported as entirely built units. [11]
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 operations of Intense Vehicles Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun. [12] [13]
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. [14] [15]
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 Peugeot-Citroen plants are also planned for Gujarat. [16]
Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are other automotive manufacturing regions around the country. [17] [Eighteen] [Nineteen]
Andhra Pradesh Edit
Gujarat Edit
Haryana Edit
Himachal Pradesh Edit
Jharkhand Edit
Karnataka Edit
- Bharat Earth Movers – Bengaluru
- Scania Commercial Vehicles India Private Limited – Bengaluru[35]
- TAFE Tractors – Doddaballapur[32]
- Tata Motors – Dharwad[21]
- Bharat Earth Movers – Mysuru
- Volvo India
- Volvo Buses India – Hosakote[36]
- Volvo Trucks India – Hosakote[37]
- Volvo Construction Equipment India – Hosakote[38]
Kerala Edit
Madhya Pradesh Edit
Maharashtra Edit
Punjab Edit
Rajasthan Edit
Tamil Nadu Edit
Telangana Edit
Uttar Pradesh Edit
Uttarakhand Edit
West Bengal Edit
India’s automobile exports have grown consistently and reached $Four.Five billion in 2009, with the United Kingdom being India’s largest export market, followed by Italy, Germany, Netherlands, and South Africa. [80]
According to the Fresh 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. [81]
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. [82] Similarly, US automobile company, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. [83]
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. [84] The company said that the plant was a part of its plan to make India the hub for its global production business. [85] Fiat Motors announced that it would source more than US$1 billion worth auto components from India. [86]
In two thousand nine 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). [87]
In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing € 700M in the operation. [88] PSA’s intention to utilise this production facility for export purposes however remains unclear as of December 2010.
In latest years, India has emerged as a leading center for the manufacture of petite cars. Hyundai, the largest 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 puny cars for Nissan, which sells them in Europe. Nissan will also export puny cars from its fresh Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is preparing to sell electrical cars in Europe in 2010. The rigid is planning to sell an electrical version of its affordable car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and puny 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 petite car project. [89] While the possibilities for the Indian automobile industry are incredible, there are challenges that could thwart future growth. Since the request for automobiles in latest years is directly linked to overall economic expansion and rising private incomes, industry growth will slow if the economy weakens. [89]
Top ten export destinations Edit
India exported $14.Five billion worth of automobiles in 2014. The ten countries below imported 47.8% of that total. [90]
Indian automotive companies Edit
Models presently manufactured by Indian companies Edit
- Chinkara Motors: [114] Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster
- Force Motors (earlier known as Tempo): One
- Hindustan Motors: [115]Ambassador
- Hradyesh: [116]Morris Street[117]
- ICML: [118] Rhino Rx
- Mahindra: [119]Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito Vibe, Genio, XUV500, e2o, TUV300, KUV100, NuvoSport.
- Premier Automobiles Limited: [120]Sigma, RiO
- San Motors: [121]Storm
- Maruti Suzuki (subsidiary of Japanese auto maker Suzuki) [122][123]Alto K10, Alto 800, WagonR, Swift, Swift DZire, Omni, Eeco, Gypsy, Ertiga, Celerio, Ciaz, Vitara Brezza, Baleno, Ignis, S-Cross.
- Tata Motors: [124]Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Movus, Venture, Safari, Xenon, Aria, Zest, Bolt, Tiago, Tigor.
Defunct Indian automotive companies Edit
Foreign automotive companies in India Edit
Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet (of General Motors), Toyota, Lamborghini, Jaguar, and Skoda are the foreign automotive companies that manufacture and market their products in India.
Vehicles presently manufactured or assembled in India Edit
- Audi India: A3, A4, A6, Q3, Q5.
- BMW India: [125]1 Series, three Series, three Series GT, five Series, seven Series, X1, X3, X5.
- Chevrolet: [126]Spark, Hit, Sail, Cruze, Tavera, Love.
- Fiat India: Punto, Linea, Avventura, Urban Cross.
- Jeep India: Compass.
- Ford India: [127]Figo, Ecosport, Endeavour, Figo Aspire.
- Datsun: Go, Go+, Redi-Go
- Honda Cars India Limited: [128]Brio, Jazz, Amaze, BR-V, City.
- Hyundai Motor India: [129]Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.
- Isuzu: [130][131]MU-7, V-Cross.
- Jaguar (Subsidiary of Tata Motors): [132]XE, XF, XJ.
- Land Rover (Subsidiary of Tata Motors): [133]Freelander, Range Rover Evoque.
- Mercedes-Benz India: [134]C-Class, E-Class, M-Class, GL-Class, S-Class.
- MINI: [135]Countryman.
- Mitsubishi[136] (in collaboration with Hindustan Motors): [137]Pajero.
- Nissan Motor India: [138]Micra, Sunny, Terrano.
- Renault India: [139][140][141]Pulse, Duster, Scala, Kwid, Lodgy.
- Škoda Auto India: [142][143]Rapid, Octavia, Yeti, Superb.
- Toyota Kirloskar: [144]Etios Liva, Etios, Corolla Altis, Innova Crysta, Fortuner, Camry.
- Volkswagen India: [145][146]Polo, Cross Polo, Vento, Jetta, Ameo, Tiguan .
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.
Vehicles presently imported into India Edit
- Aston Martin: [147]Vantage, Vanquish, Rapide, Virage, DB9, DBS, One-77.
- Audi: [148]A8 L, Q7, S5 Sportback, TT, RS seven Sportback, RS six Avant, RS5, R8.
- Bentley: [149][150]Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.
- BMW: [151]Five Series GT, six Series, seven Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.
- Bugatti: [152][153]Veyron.
- Chevrolet: Trailblazer.
- Ferrari: [154][155]California, four hundred fifty eight Italia, F12, FF.
- Fiat: Abarth five hundred ninety five Competizone
- Ford: [156]Mustang.
- General Motors: [126]Hummer H2, Hummer H3.
- Gumpert: [157]Apollo.
- Honda: [158][159]Accord Hybrid.
- Hyundai: [129]Santa Fe.
- Isuzu Motors India:D-Max
- Jaguar (Subsidiary of Tata Motors): [132]XJS, XK, F-Type.
- Koenigsegg: [160][161]CCX, CCXR, Agera.
- Lamborghini: [162]Huracan, Aventador.
- Land Rover (Subsidiary of Tata Motors): [133]Discovery Four, Range Rover Sport, Range Rover.
- Maserati: [163]Quattroporte, Ghibli.
- Mercedes-Benz: [164]Viano.
- MINI: [135]Cooper, Cooper S, Convertible.
- Mitsubishi: Montero.
- Nissan:GT-R.
- Porsche: [165][166]997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.
- Rolls Royce: [167]Ghost, Wraith, Phantom, Phantom Coupé, Phantom Drophead Coupé.
- SsangYong (subsidiary of Mahindra & Mahindra): [168]Rexton.
- Toyota: [144]Land Cruiser, Land Cruiser Prado, Prius.
- Volkswagen: [169]Beetle.
- Volvo: [170]V40, S60, S80, XC60,S90, XC90.
Indian brands Edit
Joint-venture (JV) brands Edit
- Ashok Leyland[176] – originally a JV inbetween Ashok Motors (wielded by the Hinduja Group) and Leyland Motors, now joint ventures inbetween Ashok Leyland and Nissan Motors (Japan) for LCV’s; and John Deere (USA) for construction equipment. [177]
- KaMAZ Vectra [178] – A JV inbetween Russia’s KaMAZ and the Vectra Group
- MAN Force – A JV inbetween Force Motors and MAN AG (Germany)
- SML Isuzu – originally, as Swaraj Mazda, a JV inbetween Punjab Tractors and Mazda, now 53.5% wielded by Sumitomo Group and with its current name since 2011. [179]
- Tatra Vectra Motors Ltd – (defunct) Initial truck partnership with India by Vectra. Substituted by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration with Bharat Earth Movers Limited.
- VE Commercial Vehicles Limited[180] – VE Commercial Vehicles limited – A JV inbetween Volvo Group and Eicher Motors Limited.
- Maruti Suzuki – A joint venture of Indian Maruti and Japanese Suzuki.
Foreign-owned brands Edit
- J. C. Bamford (JCB) (Possessed by British multinational corporation J. C. Bamford).
- BharatBenz (Possessed by Daimler AG of Germany and affiliated with Daimler’s Fuso and Mercedes-Benz brands) [181]
- Caterpillar Inc.[182]
- DAF[183]
- Hino[184]
- Isuzu[185]
- Iveco[186]
- MAN
- Mercedes-Benz[187] – manufactures luxury coaches in India.
- Piaggio[188]
- Rosenbauer. [189]
- Scania[190]
- Tatra. [191]
- Volvo. [192]
During April 2012, the Indian government planned to unveil the road map for the development of domestic electrical and hybrid vehicles (xEV) in the country. [193] A discussion inbetween the various stakeholders, including Government, industry, and academia, was expected to take place during 23–24 February. [193] The final contours of the policy would have been formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad framework for the sector. Along with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task. [193] The Government has also proposed to set up a Rs seven hundred forty crore research and development fund for the sector in the 12th five-year plan during 2012-17. [193] The idea is to reduce the high cost of key imported components such as the battery and electrified motor, and to develop such capabilities locally.
Automotive industry in India
Automotive industry in India
The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in FY (fiscal year) 2015–16, following a growth of Two.57 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country’s gross domestic product (GDP). The Two Wheelers segment, with eighty one per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a youthful population. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has thirteen per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014–15, automobile exports grew by fifteen per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020. [1]
Contents
The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs), three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–October 2014, registering a marginal growth of Trio.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in April–October two thousand fifteen over the same period in the previous year. The overall CVs segment registered a growth of 8.02 per cent in April–October two thousand fifteen as compared to same period last year. Medium and Strong Commercial Vehicles (M&HCVs) registered very strong growth of 32.Trio per cent while sales of Light Commercial Vehicles (LCVs) declined by Five.24 per cent during April–October 2015, year-to-year.
In April–October 2015, overall automobile exports grew by Five.78 per cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, Eighteen.59 per cent and Three.22 per cent, respectively, in April–October two thousand fifteen over April–October 2014. [Two]
In order to keep up with the growing request, several auto makers have began investing powerfully 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 two thousand 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 goes after:
- Global auto maker Ford plans to manufacture in India two families of engines by 2017, a Two.Two litre diesel engine code-named Panther, and a 1.Two litre petrol engine code-named Dragon, which are expected to power 270,000 Ford vehicles globally.
- The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and enlargening 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 Trio,500 crore (US$525 million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
- Mercedes Benz has determined 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 AG’s (BMW) local unit has announced to procure components from seven India-based auto parts makers.
- Mahindra Two Wheelers Limited (MTWL) acquired fifty one per cent shares in France-based Peugeot Motorcycles (PMTC). [Two]
The Government of India encourages foreign investment in the automobile sector and permits one hundred 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.Four 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.Five billion) to farmers, which is expected to boost sales in the tractors segment.
- The government plans to promote eco-friendly cars in the country—i.e. CNG-based vehicles, hybrid vehicles, and electrical vehicles—and also to make mandatory five per cent ethanol blending in petrol.
- The government has formulated a Scheme for Quicker Adoption and Manufacturing of Electrical and Hybrid Vehicles in India, under the National Electrified Mobility Mission 2020, to encourage the progressive introduction of reliable, affordable, and efficient electrified and hybrid vehicles into the country.
- The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the government is aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector. [Trio]
In 1897, the very first car ran on an Indian road. Through the 1930s, cars were imports only, and in puny numbers.
An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was launched in 1942, long-time competitor Premier in 1944, building Chrysler, Dodge, and Fiat products respectively. [Four] 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. [Four]
1947-1970 Edit
The one thousand nine hundred fifty two Tariff Commission Edit
In 1952, the government appointed the very first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted their report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, with licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per requests, in the future. The Tariff Commission recommendations were implemented with fresh policies that would eventually exclude companies that only imported parts for assembly, as well as those with no Indian playmate. In 1954, following the Tariff Commission implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants in Mumbai, determined to stir out of India. [Five]
The Tariff commission policies, including similar limitations that applied to other industries, came to be known as the “license raj”, which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic crimson gauze ended up causing request to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.
- Hindustan Motors, Calcutta – technical collaboration with Morris Motors to manufacture Morris Oxford models that would later become HM Ambassador.
- Premier Automobiles, Bombay – technical collaboration with Chrysler to manufacture Dodge, Plymouth and Desoto models and with Fiat to manufacture the 1100D models which would later with Premier Padmini range.
- Standard Motor Products of India, Madras – technical collaboration from Standard-Triumph to manufacture Standard Vanguard, Standard 8, ten and later Standard Herald.
Utility and Light Commercial Vehicles
- Vehicle Factory Jabalpur – commenced manufacturing Jonga Light Utility Vehicles and Vahan one Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the main troop carriers of the Indian Armed Coerces and much powerful than any other vehicle of their class.
- Mahindra & Mahindra, Bombay – technical collaboration with Willys to manufacture CJ Series Jeep.
- Bajaj Tempo, Poona now Force Motors – technical collaboration with Tempo (company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.
- Standard Motor Products of India – technical collaboration from Standard has licence to manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne pickup variants.
Medium and Powerful Commercial Vehicles
- Vehicle Factory Jabalpur – began manufacturing Shaktiman trucks with technical assistance from MAN SE of Germany. The trucks were the main logistics vehicle of the Indian Army with several specialist variants. VFJ still is the foot supplier of B vehicles to the Indian Armed Coerces.
- Intense Vehicles Factory – was established in one thousand nine hundred sixty five in Avadi, near Chennai to produce tanks in India. Since its inception, HVF has produced all the tanks of India, including Vijayanta, Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only tank manufacturing facility of India.
- Tata Motors, Poona, then known as TELCO – technical collaboration with Mercedes Benz to manufacture medium to strong commercial vehicles both Bus and Trucks.
- Ashok Motors, later Ashok Leyland, Madras – technical collaboration with Leyland Motors to manufacture medium to mighty commercial vehicles both Bus and Trucks. Ashok Motors also discontinued its Austin venture formed in one thousand nine hundred forty eight to sell Austin A40 and retooled the factory to make trucks and buses.
- Hindustan Motors – technical collaboration with General Motors to manufacture the Bedford range of medium lorry and bus chassis.
- Premier Automobiles – technical collaboration with Chrysler to manufacture the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
- Simpsons & Co, Madras – part of Amalgamations Group (TAFE Tractors)- technical collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise that option until the 1980s.
Scooters, Mopeds and Motorcycles
known as Bajaj Chetak, by Bajaj became the largest sold scooter in the world
- Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after the tariff commission was enabled.
- Royal Enfield (India), Madras – technical collaboration with Royal Enfield, UK to manufacture the Enfield Bullet range of motorcycles.
- Bajaj Auto, Poona – technical collaboration with Piaggio, Italy to manufacture their best selling Vespa range of scooters and three wheelers with commercial option as well.
- Automobile Products of India, Bombay (Better known for API Lambretta – technical collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of mopeds, scooters and three-wheelers. This company was actually the Rootes Group car plant that was bought over by M. A. Chidambaram family.
- Mopeds India Limited, Tirupathi – technical collaboration with Motobécane, France to manufacture their best selling Mobylette mopeds.
- Escorts Group, Fresh Delhi – technical collaboration with CEKOP of Poland to manufacture the Rajdoot one hundred seventy five motorcycle whose origin was DKW RT 125
- Ideal Jawa, Mysore – in technical collaboration with CZ – Jawa of Czechoslovakia for its Jawa and Yezdi range of motorcycles.
1970 to one thousand nine hundred eighty three Edit
However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, hampered the growth of Indian private sector.
The beginning of the 1970s witnessed some growth potential and most of the collaboration license agreements came to an end but with option to proceed manufacturing with renewed branding. Cars were still meant for the elite and Jeeps were largely used by government organizations and some rural belts. In commercial vehicle segments some developments were made by the end of the decade to cater improved goods movements. The two-wheeler segment remained unchanged except for to enhanced sales in urban among middle class. But more fillip was target towards farm tractors as India was embarking on a fresh Green Revolution. More Russian and eastern bloc imports were done to increase the request.
But after 1970, with confinements on the import of vehicles set, the automotive industry commenced to grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still remained a major luxury item. In the 1970s, price controls were eventually lifted, inserting a competitive element into the automobile market. [6] However, by the 1980s, the automobile market was still predominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers. [7] During the eighties, a few competitors began to arrive on the scene.
The OPEC oil crisis eyed increase need to installing or redesign some vehicle to fit diesel engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks on Pertol engines.
1984 to one thousand nine hundred ninety two Edit
From the end of the 1970s to the beginning of the 1980s witnessed no fresh models but the country continued with two decade old designs forcing government to encourage and let more manufacturers into fray.
In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory Medak, near Hyderabad. It embarked manufacturing Infantry Combat Vehicles christened as Sarath, the backbone of India’s mechanised infantry. OFMK is still the only manufacturing facility of ICVs in India. To manufacture the high-power engines used in ICVs and main battle tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The one thousand nine hundred eighty six Expo was a showcase for how the Indian automotive industry was absorbing fresh technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India. The nine-day display was attended by then Prime Minister Rajiv Gandhi.
Post-1992 liberalisation Edit
Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South Korea, were permitted to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the very first, and the most successful of these fresh entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s. [7] As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The multitude 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 twelve large automotive companies in the Indian market, most of them offshoots of global companies. [8]
Slow export growth Edit
Exports were slow to grow. Sales of puny numbers of vehicles to tertiary markets and neighbouring countries began early, and in one thousand nine hundred eighty seven Maruti Suzuki shipped four hundred eighty cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive. [9] This was not to last, and today India manufactures low-priced cars for markets across the globe. As of eighteen March 2013, global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis. [Ten]
Emission norms Edit
In 2000, in line with international standards to reduce vehicular pollution, the central government unveiled standards titled “India 2000”, with later, upgraded guidelines to be known as Bharat Stage emission standards. These standards are fairly similar to the stringent European emission standards and have been implemented in a phased manner. Bharat Stage IV (BS-IV), the most stringent so far, was implemented very first, in April 2010, in thirteen cities—Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra—and then, as of April 2017, the rest of the nation.
Local manufacture encouraged Edit
India levies an import tax of 125% on electrified cars, while the import tax on components such as gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in India rather than be imported as totally built units. [11]
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 operations of Strenuous Vehicles Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun. [12] [13]
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. [14] [15]
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 Peugeot-Citroen plants are also planned for Gujarat. [16]
Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are other automotive manufacturing regions around the country. [17] [Legal] [Nineteen]
Andhra Pradesh Edit
Gujarat Edit
Haryana Edit
Himachal Pradesh Edit
Jharkhand Edit
Karnataka Edit
- Bharat Earth Movers – Bengaluru
- Scania Commercial Vehicles India Private Limited – Bengaluru[35]
- TAFE Tractors – Doddaballapur[32]
- Tata Motors – Dharwad[21]
- Bharat Earth Movers – Mysuru
- Volvo India
- Volvo Buses India – Hosakote[36]
- Volvo Trucks India – Hosakote[37]
- Volvo Construction Equipment India – Hosakote[38]
Kerala Edit
Madhya Pradesh Edit
Maharashtra Edit
Punjab Edit
Rajasthan Edit
Tamil Nadu Edit
Telangana Edit
Uttar Pradesh Edit
Uttarakhand Edit
West Bengal Edit
India’s automobile exports have grown consistently and reached $Four.Five billion in 2009, with the United Kingdom being India’s largest export market, followed by Italy, Germany, Netherlands, and South Africa. [80]
According to the Fresh 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. [81]
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. [82] Similarly, US automobile company, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. [83]
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. [84] The company said that the plant was a part of its plan to make India the hub for its global production business. [85] Fiat Motors announced that it would source more than US$1 billion worth auto components from India. [86]
In two thousand nine 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). [87]
In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing € 700M in the operation. [88] PSA’s intention to utilise this production facility for export purposes however remains unclear as of December 2010.
In latest years, India has emerged as a leading center for the manufacture of puny cars. Hyundai, the fattest 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 petite cars for Nissan, which sells them in Europe. Nissan will also export petite cars from its fresh Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is preparing to sell electrical cars in Europe in 2010. The rigid is planning to sell an electrified version of its affordable car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and puny 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 petite car project. [89] While the possibilities for the Indian automobile industry are epic, there are challenges that could thwart future growth. Since the request for automobiles in latest years is directly linked to overall economic expansion and rising individual incomes, industry growth will slow if the economy weakens. [89]
Top ten export destinations Edit
India exported $14.Five billion worth of automobiles in 2014. The ten countries below imported 47.8% of that total. [90]
Indian automotive companies Edit
Models presently manufactured by Indian companies Edit
- Chinkara Motors: [114] Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster
- Force Motors (earlier known as Tempo): One
- Hindustan Motors: [115]Ambassador
- Hradyesh: [116]Morris Street[117]
- ICML: [118] Rhino Rx
- Mahindra: [119]Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito Vibe, Genio, XUV500, e2o, TUV300, KUV100, NuvoSport.
- Premier Automobiles Limited: [120]Sigma, RiO
- San Motors: [121]Storm
- Maruti Suzuki (subsidiary of Japanese auto maker Suzuki) [122][123]Alto K10, Alto 800, WagonR, Swift, Swift DZire, Omni, Eeco, Gypsy, Ertiga, Celerio, Ciaz, Vitara Brezza, Baleno, Ignis, S-Cross.
- Tata Motors: [124]Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Movus, Venture, Safari, Xenon, Aria, Zest, Bolt, Tiago, Tigor.
Defunct Indian automotive companies Edit
Foreign automotive companies in India Edit
Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet (of General Motors), Toyota, Lamborghini, Jaguar, and Skoda are the foreign automotive companies that manufacture and market their products in India.
Vehicles presently manufactured or assembled in India Edit
- Audi India: A3, A4, A6, Q3, Q5.
- BMW India: [125]1 Series, three Series, three Series GT, five Series, seven Series, X1, X3, X5.
- Chevrolet: [126]Spark, Hammer, Sail, Cruze, Tavera, Love.
- Fiat India: Punto, Linea, Avventura, Urban Cross.
- Jeep India: Compass.
- Ford India: [127]Figo, Ecosport, Endeavour, Figo Aspire.
- Datsun: Go, Go+, Redi-Go
- Honda Cars India Limited: [128]Brio, Jazz, Amaze, BR-V, City.
- Hyundai Motor India: [129]Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.
- Isuzu: [130][131]MU-7, V-Cross.
- Jaguar (Subsidiary of Tata Motors): [132]XE, XF, XJ.
- Land Rover (Subsidiary of Tata Motors): [133]Freelander, Range Rover Evoque.
- Mercedes-Benz India: [134]C-Class, E-Class, M-Class, GL-Class, S-Class.
- MINI: [135]Countryman.
- Mitsubishi[136] (in collaboration with Hindustan Motors): [137]Pajero.
- Nissan Motor India: [138]Micra, Sunny, Terrano.
- Renault India: [139][140][141]Pulse, Duster, Scala, Kwid, Lodgy.
- Škoda Auto India: [142][143]Rapid, Octavia, Yeti, Superb.
- Toyota Kirloskar: [144]Etios Liva, Etios, Corolla Altis, Innova Crysta, Fortuner, Camry.
- Volkswagen India: [145][146]Polo, Cross Polo, Vento, Jetta, Ameo, Tiguan .
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.
Vehicles presently imported into India Edit
- Aston Martin: [147]Vantage, Vanquish, Rapide, Virage, DB9, DBS, One-77.
- Audi: [148]A8 L, Q7, S5 Sportback, TT, RS seven Sportback, RS six Avant, RS5, R8.
- Bentley: [149][150]Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.
- BMW: [151]Five Series GT, six Series, seven Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.
- Bugatti: [152][153]Veyron.
- Chevrolet: Trailblazer.
- Ferrari: [154][155]California, four hundred fifty eight Italia, F12, FF.
- Fiat: Abarth five hundred ninety five Competizone
- Ford: [156]Mustang.
- General Motors: [126]Hummer H2, Hummer H3.
- Gumpert: [157]Apollo.
- Honda: [158][159]Accord Hybrid.
- Hyundai: [129]Santa Fe.
- Isuzu Motors India:D-Max
- Jaguar (Subsidiary of Tata Motors): [132]XJS, XK, F-Type.
- Koenigsegg: [160][161]CCX, CCXR, Agera.
- Lamborghini: [162]Huracan, Aventador.
- Land Rover (Subsidiary of Tata Motors): [133]Discovery Four, Range Rover Sport, Range Rover.
- Maserati: [163]Quattroporte, Ghibli.
- Mercedes-Benz: [164]Viano.
- MINI: [135]Cooper, Cooper S, Convertible.
- Mitsubishi: Montero.
- Nissan:GT-R.
- Porsche: [165][166]997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.
- Rolls Royce: [167]Ghost, Wraith, Phantom, Phantom Coupé, Phantom Drophead Coupé.
- SsangYong (subsidiary of Mahindra & Mahindra): [168]Rexton.
- Toyota: [144]Land Cruiser, Land Cruiser Prado, Prius.
- Volkswagen: [169]Beetle.
- Volvo: [170]V40, S60, S80, XC60,S90, XC90.
Indian brands Edit
Joint-venture (JV) brands Edit
- Ashok Leyland[176] – originally a JV inbetween Ashok Motors (wielded by the Hinduja Group) and Leyland Motors, now joint ventures inbetween Ashok Leyland and Nissan Motors (Japan) for LCV’s; and John Deere (USA) for construction equipment. [177]
- KaMAZ Vectra [178] – A JV inbetween Russia’s KaMAZ and the Vectra Group
- MAN Force – A JV inbetween Force Motors and MAN AG (Germany)
- SML Isuzu – originally, as Swaraj Mazda, a JV inbetween Punjab Tractors and Mazda, now 53.5% wielded by Sumitomo Group and with its current name since 2011. [179]
- Tatra Vectra Motors Ltd – (defunct) Initial truck partnership with India by Vectra. Substituted by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration with Bharat Earth Movers Limited.
- VE Commercial Vehicles Limited[180] – VE Commercial Vehicles limited – A JV inbetween Volvo Group and Eicher Motors Limited.
- Maruti Suzuki – A joint venture of Indian Maruti and Japanese Suzuki.
Foreign-owned brands Edit
- J. C. Bamford (JCB) (Possessed by British multinational corporation J. C. Bamford).
- BharatBenz (Wielded by Daimler AG of Germany and affiliated with Daimler’s Fuso and Mercedes-Benz brands) [181]
- Caterpillar Inc.[182]
- DAF[183]
- Hino[184]
- Isuzu[185]
- Iveco[186]
- MAN
- Mercedes-Benz[187] – manufactures luxury coaches in India.
- Piaggio[188]
- Rosenbauer. [189]
- Scania[190]
- Tatra. [191]
- Volvo. [192]
During April 2012, the Indian government planned to unveil the road map for the development of domestic electrified and hybrid vehicles (xEV) in the country. [193] A discussion inbetween the various stakeholders, including Government, industry, and academia, was expected to take place during 23–24 February. [193] The final contours of the policy would have been formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad framework for the sector. Along with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task. [193] The Government has also proposed to set up a Rs seven hundred forty crore research and development fund for the sector in the 12th five-year plan during 2012-17. [193] The idea is to reduce the high cost of key imported components such as the battery and electrified motor, and to develop such capabilities locally.
Automotive industry in India
Automotive industry in India
The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in FY (fiscal year) 2015–16, following a growth of Two.57 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country’s gross domestic product (GDP). The Two Wheelers segment, with eighty one per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a youthful population. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has thirteen per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014–15, automobile exports grew by fifteen per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020. [1]
Contents
The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs), three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–October 2014, registering a marginal growth of Three.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in April–October two thousand fifteen over the same period in the previous year. The overall CVs segment registered a growth of 8.02 per cent in April–October two thousand fifteen as compared to same period last year. Medium and Strong Commercial Vehicles (M&HCVs) registered very strong growth of 32.Three per cent while sales of Light Commercial Vehicles (LCVs) declined by Five.24 per cent during April–October 2015, year-to-year.
In April–October 2015, overall automobile exports grew by Five.78 per cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, Legitimate.59 per cent and Trio.22 per cent, respectively, in April–October two thousand fifteen over April–October 2014. [Two]
In order to keep up with the growing request, several auto makers have embarked investing powerfully 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 two thousand 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 goes after:
- Global auto maker Ford plans to manufacture in India two families of engines by 2017, a Two.Two litre diesel engine code-named Panther, and a 1.Two litre petrol engine code-named Dragon, which are expected to power 270,000 Ford vehicles globally.
- The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and enhancing 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 Three,500 crore (US$525 million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
- Mercedes Benz has determined 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 AG’s (BMW) local unit has announced to procure components from seven India-based auto parts makers.
- Mahindra Two Wheelers Limited (MTWL) acquired fifty one per cent shares in France-based Peugeot Motorcycles (PMTC). [Two]
The Government of India encourages foreign investment in the automobile sector and permits one hundred 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.Four 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.Five billion) to farmers, which is expected to boost sales in the tractors segment.
- The government plans to promote eco-friendly cars in the country—i.e. CNG-based vehicles, hybrid vehicles, and electrical vehicles—and also to make mandatory five per cent ethanol blending in petrol.
- The government has formulated a Scheme for Swifter Adoption and Manufacturing of Electrical and Hybrid Vehicles in India, under the National Electrified Mobility Mission 2020, to encourage the progressive introduction of reliable, affordable, and efficient electrical and hybrid vehicles into the country.
- The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the government is aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector. [Three]
In 1897, the very first car ran on an Indian road. Through the 1930s, cars were imports only, and in petite numbers.
An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was launched in 1942, long-time competitor Premier in 1944, building Chrysler, Dodge, and Fiat products respectively. [Four] 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. [Four]
1947-1970 Edit
The one thousand nine hundred fifty two Tariff Commission Edit
In 1952, the government appointed the very first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted their report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, with licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per requests, in the future. The Tariff Commission recommendations were implemented with fresh policies that would eventually exclude companies that only imported parts for assembly, as well as those with no Indian fucking partner. In 1954, following the Tariff Commission implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants in Mumbai, determined to stir out of India. [Five]
The Tariff commission policies, including similar confinements that applied to other industries, came to be known as the “license raj”, which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic crimson gauze ended up causing request to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.
- Hindustan Motors, Calcutta – technical collaboration with Morris Motors to manufacture Morris Oxford models that would later become HM Ambassador.
- Premier Automobiles, Bombay – technical collaboration with Chrysler to manufacture Dodge, Plymouth and Desoto models and with Fiat to manufacture the 1100D models which would later with Premier Padmini range.
- Standard Motor Products of India, Madras – technical collaboration from Standard-Triumph to manufacture Standard Vanguard, Standard 8, ten and later Standard Herald.
Utility and Light Commercial Vehicles
- Vehicle Factory Jabalpur – embarked manufacturing Jonga Light Utility Vehicles and Vahan one Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the main troop carriers of the Indian Armed Compels and much powerful than any other vehicle of their class.
- Mahindra & Mahindra, Bombay – technical collaboration with Willys to manufacture CJ Series Jeep.
- Bajaj Tempo, Poona now Force Motors – technical collaboration with Tempo (company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.
- Standard Motor Products of India – technical collaboration from Standard has licence to manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne pickup variants.
Medium and Intense Commercial Vehicles
- Vehicle Factory Jabalpur – embarked manufacturing Shaktiman trucks with technical assistance from MAN SE of Germany. The trucks were the main logistics vehicle of the Indian Army with several specialist variants. VFJ still is the foot supplier of B vehicles to the Indian Armed Compels.
- Strong Vehicles Factory – was established in one thousand nine hundred sixty five in Avadi, near Chennai to produce tanks in India. Since its inception, HVF has produced all the tanks of India, including Vijayanta, Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only tank manufacturing facility of India.
- Tata Motors, Poona, then known as TELCO – technical collaboration with Mercedes Benz to manufacture medium to intense commercial vehicles both Bus and Trucks.
- Ashok Motors, later Ashok Leyland, Madras – technical collaboration with Leyland Motors to manufacture medium to powerful commercial vehicles both Bus and Trucks. Ashok Motors also discontinued its Austin venture formed in one thousand nine hundred forty eight to sell Austin A40 and retooled the factory to make trucks and buses.
- Hindustan Motors – technical collaboration with General Motors to manufacture the Bedford range of medium lorry and bus chassis.
- Premier Automobiles – technical collaboration with Chrysler to manufacture the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
- Simpsons & Co, Madras – part of Amalgamations Group (TAFE Tractors)- technical collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise that option until the 1980s.
Scooters, Mopeds and Motorcycles
known as Bajaj Chetak, by Bajaj became the largest sold scooter in the world
- Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after the tariff commission was enabled.
- Royal Enfield (India), Madras – technical collaboration with Royal Enfield, UK to manufacture the Enfield Bullet range of motorcycles.
- Bajaj Auto, Poona – technical collaboration with Piaggio, Italy to manufacture their best selling Vespa range of scooters and three wheelers with commercial option as well.
- Automobile Products of India, Bombay (Better known for API Lambretta – technical collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of mopeds, scooters and three-wheelers. This company was actually the Rootes Group car plant that was bought over by M. A. Chidambaram family.
- Mopeds India Limited, Tirupathi – technical collaboration with Motobécane, France to manufacture their best selling Mobylette mopeds.
- Escorts Group, Fresh Delhi – technical collaboration with CEKOP of Poland to manufacture the Rajdoot one hundred seventy five motorcycle whose origin was DKW RT 125
- Ideal Jawa, Mysore – in technical collaboration with CZ – Jawa of Czechoslovakia for its Jawa and Yezdi range of motorcycles.
1970 to one thousand nine hundred eighty three Edit
However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, hampered the growth of Indian private sector.
The beginning of the 1970s eyed some growth potential and most of the collaboration license agreements came to an end but with option to proceed manufacturing with renewed branding. Cars were still meant for the elite and Jeeps were largely used by government organizations and some rural belts. In commercial vehicle segments some developments were made by the end of the decade to cater improved goods movements. The two-wheeler segment remained unchanged except for to enlargened sales in urban among middle class. But more fillip was target towards farm tractors as India was embarking on a fresh Green Revolution. More Russian and eastern bloc imports were done to increase the request.
But after 1970, with confinements on the import of vehicles set, the automotive industry began to grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still remained a major luxury item. In the 1970s, price controls were ultimately lifted, inserting a competitive element into the automobile market. [6] However, by the 1980s, the automobile market was still predominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers. [7] During the eighties, a few competitors began to arrive on the scene.
The OPEC oil crisis spotted increase need to installing or redesign some vehicle to fit diesel engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks on Pertol engines.
1984 to one thousand nine hundred ninety two Edit
From the end of the 1970s to the beginning of the 1980s eyed no fresh models but the country continued with two decade old designs forcing government to encourage and let more manufacturers into fray.
In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory Medak, near Hyderabad. It embarked manufacturing Infantry Combat Vehicles christened as Sarath, the backbone of India’s mechanised infantry. OFMK is still the only manufacturing facility of ICVs in India. To manufacture the high-power engines used in ICVs and main battle tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The one thousand nine hundred eighty six Expo was a showcase for how the Indian automotive industry was absorbing fresh technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India. The nine-day display was attended by then Prime Minister Rajiv Gandhi.
Post-1992 liberalisation Edit
Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South Korea, were permitted to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the very first, and the most successful of these fresh entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s. [7] As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The diversity 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 twelve large automotive companies in the Indian market, most of them offshoots of global companies. [8]
Slow export growth Edit
Exports were slow to grow. Sales of puny numbers of vehicles to tertiary markets and neighbouring countries began early, and in one thousand nine hundred eighty seven Maruti Suzuki shipped four hundred eighty cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive. [9] This was not to last, and today India manufactures low-priced cars for markets across the globe. As of eighteen March 2013, global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis. [Ten]
Emission norms Edit
In 2000, in line with international standards to reduce vehicular pollution, the central government unveiled standards titled “India 2000”, with later, upgraded guidelines to be known as Bharat Stage emission standards. These standards are fairly similar to the stringent European emission standards and have been implemented in a phased manner. Bharat Stage IV (BS-IV), the most stringent so far, was implemented very first, in April 2010, in thirteen cities—Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra—and then, as of April 2017, the rest of the nation.
Local manufacture encouraged Edit
India levies an import tax of 125% on electrified cars, while the import tax on components such as gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in India rather than be imported as totally built units. [11]
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 operations of Strong Vehicles Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun. [12] [13]
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. [14] [15]
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 Peugeot-Citroen plants are also planned for Gujarat. [16]
Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are other automotive manufacturing regions around the country. [17] [Legal] [Nineteen]
Andhra Pradesh Edit
Gujarat Edit
Haryana Edit
Himachal Pradesh Edit
Jharkhand Edit
Karnataka Edit
- Bharat Earth Movers – Bengaluru
- Scania Commercial Vehicles India Private Limited – Bengaluru[35]
- TAFE Tractors – Doddaballapur[32]
- Tata Motors – Dharwad[21]
- Bharat Earth Movers – Mysuru
- Volvo India
- Volvo Buses India – Hosakote[36]
- Volvo Trucks India – Hosakote[37]
- Volvo Construction Equipment India – Hosakote[38]
Kerala Edit
Madhya Pradesh Edit
Maharashtra Edit
Punjab Edit
Rajasthan Edit
Tamil Nadu Edit
Telangana Edit
Uttar Pradesh Edit
Uttarakhand Edit
West Bengal Edit
India’s automobile exports have grown consistently and reached $Four.Five billion in 2009, with the United Kingdom being India’s largest export market, followed by Italy, Germany, Netherlands, and South Africa. [80]
According to the Fresh 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. [81]
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. [82] Similarly, US automobile company, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. [83]
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. [84] The company said that the plant was a part of its plan to make India the hub for its global production business. [85] Fiat Motors announced that it would source more than US$1 billion worth auto components from India. [86]
In two thousand nine 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). [87]
In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing € 700M in the operation. [88] PSA’s intention to utilise this production facility for export purposes however remains unclear as of December 2010.
In latest years, India has emerged as a leading center for the manufacture of puny cars. Hyundai, the largest 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 petite cars for Nissan, which sells them in Europe. Nissan will also export puny cars from its fresh Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is preparing to sell electrical cars in Europe in 2010. The stiff is planning to sell an electrical version of its affordable car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and puny 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 puny car project. [89] While the possibilities for the Indian automobile industry are awesome, there are challenges that could thwart future growth. Since the request for automobiles in latest years is directly linked to overall economic expansion and rising private incomes, industry growth will slow if the economy weakens. [89]
Top ten export destinations Edit
India exported $14.Five billion worth of automobiles in 2014. The ten countries below imported 47.8% of that total. [90]
Indian automotive companies Edit
Models presently manufactured by Indian companies Edit
- Chinkara Motors: [114] Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster
- Force Motors (earlier known as Tempo): One
- Hindustan Motors: [115]Ambassador
- Hradyesh: [116]Morris Street[117]
- ICML: [118] Rhino Rx
- Mahindra: [119]Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito Vibe, Genio, XUV500, e2o, TUV300, KUV100, NuvoSport.
- Premier Automobiles Limited: [120]Sigma, RiO
- San Motors: [121]Storm
- Maruti Suzuki (subsidiary of Japanese auto maker Suzuki) [122][123]Alto K10, Alto 800, WagonR, Swift, Swift DZire, Omni, Eeco, Gypsy, Ertiga, Celerio, Ciaz, Vitara Brezza, Baleno, Ignis, S-Cross.
- Tata Motors: [124]Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Movus, Venture, Safari, Xenon, Aria, Zest, Bolt, Tiago, Tigor, Hexa.
Defunct Indian automotive companies Edit
Foreign automotive companies in India Edit
Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet (of General Motors), Toyota, Lamborghini, Jaguar, and Skoda are the foreign automotive companies that manufacture and market their products in India.
Vehicles presently manufactured or assembled in India Edit
- Audi India: A3, A4, A6, Q3, Q5.
- BMW India: [125]1 Series, three Series, three Series GT, five Series, seven Series, X1, X3, X5.
- Chevrolet: [126]Spark, Hammer, Sail, Cruze, Tavera, Love.
- Fiat India: Punto, Linea, Avventura, Urban Cross.
- Jeep India: Compass.
- Ford India: [127]Figo, Ecosport, Endeavour, Figo Aspire.
- Datsun: Go, Go+, Redi-Go
- Honda Cars India Limited: [128]Brio, Jazz, Amaze, BR-V, City.
- Hyundai Motor India: [129]Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.
- Isuzu: [130][131]MU-7, V-Cross.
- Jaguar (Subsidiary of Tata Motors): [132]XE, XF, XJ.
- Land Rover (Subsidiary of Tata Motors): [133]Freelander, Range Rover Evoque.
- Mercedes-Benz India: [134]C-Class, E-Class, M-Class, GL-Class, S-Class.
- MINI: [135]Countryman.
- Mitsubishi[136] (in collaboration with Hindustan Motors): [137]Pajero.
- Nissan Motor India: [138]Micra, Sunny, Terrano.
- Renault India: [139][140][141]Pulse, Duster, Scala, Kwid, Lodgy.
- Škoda Auto India: [142][143]Rapid, Octavia, Yeti, Superb.
- Toyota Kirloskar: [144]Etios Liva, Etios, Corolla Altis, Innova Crysta, Fortuner, Camry.
- Volkswagen India: [145][146]Polo, Cross Polo, Vento, Jetta, Ameo, Tiguan .
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.
Vehicles presently imported into India Edit
- Aston Martin: [147]Vantage, Vanquish, Rapide, Virage, DB9, DBS, One-77.
- Audi: [148]A8 L, Q7, S5 Sportback, TT, RS seven Sportback, RS six Avant, RS5, R8.
- Bentley: [149][150]Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.
- BMW: [151]Five Series GT, six Series, seven Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.
- Bugatti: [152][153]Veyron.
- Chevrolet: Trailblazer.
- Ferrari: [154][155]California, four hundred fifty eight Italia, F12, FF.
- Fiat: Abarth five hundred ninety five Competizone
- Ford: [156]Mustang.
- General Motors: [126]Hummer H2, Hummer H3.
- Gumpert: [157]Apollo.
- Honda: [158][159]Accord Hybrid.
- Hyundai: [129]Santa Fe.
- Isuzu Motors India:D-Max
- Jaguar (Subsidiary of Tata Motors): [132]XJS, XK, F-Type.
- Koenigsegg: [160][161]CCX, CCXR, Agera.
- Lamborghini: [162]Huracan, Aventador.
- Land Rover (Subsidiary of Tata Motors): [133]Discovery Four, Range Rover Sport, Range Rover.
- Maserati: [163]Quattroporte, Ghibli.
- Mercedes-Benz: [164]Viano.
- MINI: [135]Cooper, Cooper S, Convertible.
- Mitsubishi: Montero.
- Nissan:GT-R.
- Porsche: [165][166]997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.
- Rolls Royce: [167]Ghost, Wraith, Phantom, Phantom Coupé, Phantom Drophead Coupé.
- SsangYong (subsidiary of Mahindra & Mahindra): [168]Rexton.
- Toyota: [144]Land Cruiser, Land Cruiser Prado, Prius.
- Volkswagen: [169]Beetle.
- Volvo: [170]V40, S60, S80, XC60,S90, XC90.
Indian brands Edit
Joint-venture (JV) brands Edit
- Ashok Leyland[176] – originally a JV inbetween Ashok Motors (possessed by the Hinduja Group) and Leyland Motors, now joint ventures inbetween Ashok Leyland and Nissan Motors (Japan) for LCV’s; and John Deere (USA) for construction equipment. [177]
- KaMAZ Vectra [178] – A JV inbetween Russia’s KaMAZ and the Vectra Group
- MAN Force – A JV inbetween Force Motors and MAN AG (Germany)
- SML Isuzu – originally, as Swaraj Mazda, a JV inbetween Punjab Tractors and Mazda, now 53.5% wielded by Sumitomo Group and with its current name since 2011. [179]
- Tatra Vectra Motors Ltd – (defunct) Initial truck partnership with India by Vectra. Substituted by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration with Bharat Earth Movers Limited.
- VE Commercial Vehicles Limited[180] – VE Commercial Vehicles limited – A JV inbetween Volvo Group and Eicher Motors Limited.
- Maruti Suzuki – A joint venture of Indian Maruti and Japanese Suzuki.
Foreign-owned brands Edit
- J. C. Bamford (JCB) (Wielded by British multinational corporation J. C. Bamford).
- BharatBenz (Wielded by Daimler AG of Germany and affiliated with Daimler’s Fuso and Mercedes-Benz brands) [181]
- Caterpillar Inc.[182]
- DAF[183]
- Hino[184]
- Isuzu[185]
- Iveco[186]
- MAN
- Mercedes-Benz[187] – manufactures luxury coaches in India.
- Piaggio[188]
- Rosenbauer. [189]
- Scania[190]
- Tatra. [191]
- Volvo. [192]
During April 2012, the Indian government planned to unveil the road map for the development of domestic electrified and hybrid vehicles (xEV) in the country. [193] A discussion inbetween the various stakeholders, including Government, industry, and academia, was expected to take place during 23–24 February. [193] The final contours of the policy would have been formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad framework for the sector. Along with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task. [193] The Government has also proposed to set up a Rs seven hundred forty crore research and development fund for the sector in the 12th five-year plan during 2012-17. [193] The idea is to reduce the high cost of key imported components such as the battery and electrified motor, and to develop such capabilities locally.
Automotive industry in India
Automotive industry in India
The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in FY (fiscal year) 2015–16, following a growth of Two.57 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country’s gross domestic product (GDP). The Two Wheelers segment, with eighty one per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a youthfull population. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has thirteen per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014–15, automobile exports grew by fifteen per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020. [1]
Contents
The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs), three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–October 2014, registering a marginal growth of Three.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in April–October two thousand fifteen over the same period in the previous year. The overall CVs segment registered a growth of 8.02 per cent in April–October two thousand fifteen as compared to same period last year. Medium and Strenuous Commercial Vehicles (M&HCVs) registered very strong growth of 32.Trio per cent while sales of Light Commercial Vehicles (LCVs) declined by Five.24 per cent during April–October 2015, year-to-year.
In April–October 2015, overall automobile exports grew by Five.78 per cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, Eighteen.59 per cent and Three.22 per cent, respectively, in April–October two thousand fifteen over April–October 2014. [Two]
In order to keep up with the growing request, several auto makers have commenced investing powerfully 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 two thousand 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 goes after:
- Global auto maker Ford plans to manufacture in India two families of engines by 2017, a Two.Two litre diesel engine code-named Panther, and a 1.Two litre petrol engine code-named Dragon, which are expected to power 270,000 Ford vehicles globally.
- The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and enhancing 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 Three,500 crore (US$525 million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
- Mercedes Benz has determined 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 AG’s (BMW) local unit has announced to procure components from seven India-based auto parts makers.
- Mahindra Two Wheelers Limited (MTWL) acquired fifty one per cent shares in France-based Peugeot Motorcycles (PMTC). [Two]
The Government of India encourages foreign investment in the automobile sector and permits one hundred 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.Four 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.Five billion) to farmers, which is expected to boost sales in the tractors segment.
- The government plans to promote eco-friendly cars in the country—i.e. CNG-based vehicles, hybrid vehicles, and electrified vehicles—and also to make mandatory five per cent ethanol blending in petrol.
- The government has formulated a Scheme for Swifter Adoption and Manufacturing of Electrified and Hybrid Vehicles in India, under the National Electrified Mobility Mission 2020, to encourage the progressive introduction of reliable, affordable, and efficient electrified and hybrid vehicles into the country.
- The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the government is aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector. [Trio]
In 1897, the very first car ran on an Indian road. Through the 1930s, cars were imports only, and in petite numbers.
An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was launched in 1942, long-time competitor Premier in 1944, building Chrysler, Dodge, and Fiat products respectively. [Four] 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. [Four]
1947-1970 Edit
The one thousand nine hundred fifty two Tariff Commission Edit
In 1952, the government appointed the very first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted their report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, with licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per requests, in the future. The Tariff Commission recommendations were implemented with fresh policies that would eventually exclude companies that only imported parts for assembly, as well as those with no Indian playmate. In 1954, following the Tariff Commission implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants in Mumbai, determined to stir out of India. [Five]
The Tariff commission policies, including similar limitations that applied to other industries, came to be known as the “license raj”, which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic crimson gauze ended up causing request to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.
- Hindustan Motors, Calcutta – technical collaboration with Morris Motors to manufacture Morris Oxford models that would later become HM Ambassador.
- Premier Automobiles, Bombay – technical collaboration with Chrysler to manufacture Dodge, Plymouth and Desoto models and with Fiat to manufacture the 1100D models which would later with Premier Padmini range.
- Standard Motor Products of India, Madras – technical collaboration from Standard-Triumph to manufacture Standard Vanguard, Standard 8, ten and later Standard Herald.
Utility and Light Commercial Vehicles
- Vehicle Factory Jabalpur – commenced manufacturing Jonga Light Utility Vehicles and Vahan one Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the main troop carriers of the Indian Armed Coerces and much powerful than any other vehicle of their class.
- Mahindra & Mahindra, Bombay – technical collaboration with Willys to manufacture CJ Series Jeep.
- Bajaj Tempo, Poona now Force Motors – technical collaboration with Tempo (company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.
- Standard Motor Products of India – technical collaboration from Standard has licence to manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne pickup variants.
Medium and Intense Commercial Vehicles
- Vehicle Factory Jabalpur – commenced manufacturing Shaktiman trucks with technical assistance from MAN SE of Germany. The trucks were the main logistics vehicle of the Indian Army with several specialist variants. VFJ still is the foot supplier of B vehicles to the Indian Armed Compels.
- Strong Vehicles Factory – was established in one thousand nine hundred sixty five in Avadi, near Chennai to produce tanks in India. Since its inception, HVF has produced all the tanks of India, including Vijayanta, Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only tank manufacturing facility of India.
- Tata Motors, Poona, then known as TELCO – technical collaboration with Mercedes Benz to manufacture medium to powerful commercial vehicles both Bus and Trucks.
- Ashok Motors, later Ashok Leyland, Madras – technical collaboration with Leyland Motors to manufacture medium to strenuous commercial vehicles both Bus and Trucks. Ashok Motors also discontinued its Austin venture formed in one thousand nine hundred forty eight to sell Austin A40 and retooled the factory to make trucks and buses.
- Hindustan Motors – technical collaboration with General Motors to manufacture the Bedford range of medium lorry and bus chassis.
- Premier Automobiles – technical collaboration with Chrysler to manufacture the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
- Simpsons & Co, Madras – part of Amalgamations Group (TAFE Tractors)- technical collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise that option until the 1980s.
Scooters, Mopeds and Motorcycles
known as Bajaj Chetak, by Bajaj became the largest sold scooter in the world
- Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after the tariff commission was enabled.
- Royal Enfield (India), Madras – technical collaboration with Royal Enfield, UK to manufacture the Enfield Bullet range of motorcycles.
- Bajaj Auto, Poona – technical collaboration with Piaggio, Italy to manufacture their best selling Vespa range of scooters and three wheelers with commercial option as well.
- Automobile Products of India, Bombay (Better known for API Lambretta – technical collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of mopeds, scooters and three-wheelers. This company was actually the Rootes Group car plant that was bought over by M. A. Chidambaram family.
- Mopeds India Limited, Tirupathi – technical collaboration with Motobécane, France to manufacture their best selling Mobylette mopeds.
- Escorts Group, Fresh Delhi – technical collaboration with CEKOP of Poland to manufacture the Rajdoot one hundred seventy five motorcycle whose origin was DKW RT 125
- Ideal Jawa, Mysore – in technical collaboration with CZ – Jawa of Czechoslovakia for its Jawa and Yezdi range of motorcycles.
1970 to one thousand nine hundred eighty three Edit
However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, hampered the growth of Indian private sector.
The beginning of the 1970s spotted some growth potential and most of the collaboration license agreements came to an end but with option to proceed manufacturing with renewed branding. Cars were still meant for the elite and Jeeps were largely used by government organizations and some rural belts. In commercial vehicle segments some developments were made by the end of the decade to cater improved goods movements. The two-wheeler segment remained unchanged except for to enhanced sales in urban among middle class. But more fillip was target towards farm tractors as India was embarking on a fresh Green Revolution. More Russian and eastern bloc imports were done to increase the request.
But after 1970, with confinements on the import of vehicles set, the automotive industry commenced to grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still remained a major luxury item. In the 1970s, price controls were eventually lifted, inserting a competitive element into the automobile market. [6] However, by the 1980s, the automobile market was still predominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers. [7] During the eighties, a few competitors began to arrive on the scene.
The OPEC oil crisis spotted increase need to installing or redesign some vehicle to fit diesel engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks on Pertol engines.
1984 to one thousand nine hundred ninety two Edit
From the end of the 1970s to the beginning of the 1980s spotted no fresh models but the country continued with two decade old designs forcing government to encourage and let more manufacturers into fray.
In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory Medak, near Hyderabad. It began manufacturing Infantry Combat Vehicles christened as Sarath, the backbone of India’s mechanised infantry. OFMK is still the only manufacturing facility of ICVs in India. To manufacture the high-power engines used in ICVs and main battle tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The one thousand nine hundred eighty six Expo was a showcase for how the Indian automotive industry was absorbing fresh technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India. The nine-day demonstrate was attended by then Prime Minister Rajiv Gandhi.
Post-1992 liberalisation Edit
Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South Korea, were permitted to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the very first, and the most successful of these fresh entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s. [7] As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The multiplicity 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 twelve large automotive companies in the Indian market, most of them offshoots of global companies. [8]
Slow export growth Edit
Exports were slow to grow. Sales of petite numbers of vehicles to tertiary markets and neighbouring countries began early, and in one thousand nine hundred eighty seven Maruti Suzuki shipped four hundred eighty cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive. [9] This was not to last, and today India manufactures low-priced cars for markets across the globe. As of eighteen March 2013, global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis. [Ten]
Emission norms Edit
In 2000, in line with international standards to reduce vehicular pollution, the central government unveiled standards titled “India 2000”, with later, upgraded guidelines to be known as Bharat Stage emission standards. These standards are fairly similar to the stringent European emission standards and have been implemented in a phased manner. Bharat Stage IV (BS-IV), the most stringent so far, was implemented very first, in April 2010, in thirteen cities—Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra—and then, as of April 2017, the rest of the nation.
Local manufacture encouraged Edit
India levies an import tax of 125% on electrical cars, while the import tax on components such as gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in India rather than be imported as downright built units. [11]
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 operations of Strenuous Vehicles Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun. [12] [13]
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. [14] [15]
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 Peugeot-Citroen plants are also planned for Gujarat. [16]
Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are other automotive manufacturing regions around the country. [17] [Eighteen] [Nineteen]
Andhra Pradesh Edit
Gujarat Edit
Haryana Edit
Himachal Pradesh Edit
Jharkhand Edit
Karnataka Edit
- Bharat Earth Movers – Bengaluru
- Scania Commercial Vehicles India Private Limited – Bengaluru[35]
- TAFE Tractors – Doddaballapur[32]
- Tata Motors – Dharwad[21]
- Bharat Earth Movers – Mysuru
- Volvo India
- Volvo Buses India – Hosakote[36]
- Volvo Trucks India – Hosakote[37]
- Volvo Construction Equipment India – Hosakote[38]
Kerala Edit
Madhya Pradesh Edit
Maharashtra Edit
Punjab Edit
Rajasthan Edit
Tamil Nadu Edit
Telangana Edit
Uttar Pradesh Edit
Uttarakhand Edit
West Bengal Edit
India’s automobile exports have grown consistently and reached $Four.Five billion in 2009, with the United Kingdom being India’s largest export market, followed by Italy, Germany, Netherlands, and South Africa. [80]
According to the Fresh 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. [81]
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. [82] Similarly, US automobile company, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. [83]
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. [84] The company said that the plant was a part of its plan to make India the hub for its global production business. [85] Fiat Motors announced that it would source more than US$1 billion worth auto components from India. [86]
In two thousand nine 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). [87]
In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing € 700M in the operation. [88] PSA’s intention to utilise this production facility for export purposes however remains unclear as of December 2010.
In latest years, India has emerged as a leading center for the manufacture of puny cars. Hyundai, the fattest 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 petite cars for Nissan, which sells them in Europe. Nissan will also export petite cars from its fresh Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is preparing to sell electrified cars in Europe in 2010. The rock-hard is planning to sell an electrical version of its affordable car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and petite 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 petite car project. [89] While the possibilities for the Indian automobile industry are exceptional, there are challenges that could thwart future growth. Since the request for automobiles in latest years is directly linked to overall economic expansion and rising private incomes, industry growth will slow if the economy weakens. [89]
Top ten export destinations Edit
India exported $14.Five billion worth of automobiles in 2014. The ten countries below imported 47.8% of that total. [90]
Indian automotive companies Edit
Models presently manufactured by Indian companies Edit
- Chinkara Motors: [114] Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster
- Force Motors (earlier known as Tempo): One
- Hindustan Motors: [115]Ambassador
- Hradyesh: [116]Morris Street[117]
- ICML: [118] Rhino Rx
- Mahindra: [119]Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito Vibe, Genio, XUV500, e2o, TUV300, KUV100, NuvoSport.
- Premier Automobiles Limited: [120]Sigma, RiO
- San Motors: [121]Storm
- Maruti Suzuki (subsidiary of Japanese auto maker Suzuki) [122][123]Alto K10, Alto 800, WagonR, Swift, Swift DZire, Omni, Eeco, Gypsy, Ertiga, Celerio, Ciaz, Vitara Brezza, Baleno, Ignis, S-Cross.
- Tata Motors: [124]Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Movus, Venture, Safari, Xenon, Aria, Zest, Bolt, Tiago, Tigor, Hexa.
Defunct Indian automotive companies Edit
Foreign automotive companies in India Edit
Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet (of General Motors), Toyota, Lamborghini, Jaguar, and Skoda are the foreign automotive companies that manufacture and market their products in India.
Vehicles presently manufactured or assembled in India Edit
- Audi India: A3, A4, A6, Q3, Q5.
- BMW India: [125]1 Series, three Series, three Series GT, five Series, seven Series, X1, X3, X5.
- Chevrolet: [126]Spark, Hit, Sail, Cruze, Tavera, Love.
- Fiat India: Punto, Linea, Avventura, Urban Cross.
- Jeep India: Compass.
- Ford India: [127]Figo, Ecosport, Endeavour, Figo Aspire.
- Datsun: Go, Go+, Redi-Go
- Honda Cars India Limited: [128]Brio, Jazz, Amaze, BR-V, City.
- Hyundai Motor India: [129]Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.
- Isuzu: [130][131]MU-7, V-Cross.
- Jaguar (Subsidiary of Tata Motors): [132]XE, XF, XJ.
- Land Rover (Subsidiary of Tata Motors): [133]Freelander, Range Rover Evoque.
- Mercedes-Benz India: [134]C-Class, E-Class, M-Class, GL-Class, S-Class.
- MINI: [135]Countryman.
- Mitsubishi[136] (in collaboration with Hindustan Motors): [137]Pajero.
- Nissan Motor India: [138]Micra, Sunny, Terrano.
- Renault India: [139][140][141]Pulse, Duster, Scala, Kwid, Lodgy.
- Škoda Auto India: [142][143]Rapid, Octavia, Yeti, Superb.
- Toyota Kirloskar: [144]Etios Liva, Etios, Corolla Altis, Innova Crysta, Fortuner, Camry.
- Volkswagen India: [145][146]Polo, Cross Polo, Vento, Jetta, Ameo, Tiguan .
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.
Vehicles presently imported into India Edit
- Aston Martin: [147]Vantage, Vanquish, Rapide, Virage, DB9, DBS, One-77.
- Audi: [148]A8 L, Q7, S5 Sportback, TT, RS seven Sportback, RS six Avant, RS5, R8.
- Bentley: [149][150]Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.
- BMW: [151]Five Series GT, six Series, seven Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.
- Bugatti: [152][153]Veyron.
- Chevrolet: Trailblazer.
- Ferrari: [154][155]California, four hundred fifty eight Italia, F12, FF.
- Fiat: Abarth five hundred ninety five Competizone
- Ford: [156]Mustang.
- General Motors: [126]Hummer H2, Hummer H3.
- Gumpert: [157]Apollo.
- Honda: [158][159]Accord Hybrid.
- Hyundai: [129]Santa Fe.
- Isuzu Motors India:D-Max
- Jaguar (Subsidiary of Tata Motors): [132]XJS, XK, F-Type.
- Koenigsegg: [160][161]CCX, CCXR, Agera.
- Lamborghini: [162]Huracan, Aventador.
- Land Rover (Subsidiary of Tata Motors): [133]Discovery Four, Range Rover Sport, Range Rover.
- Maserati: [163]Quattroporte, Ghibli.
- Mercedes-Benz: [164]Viano.
- MINI: [135]Cooper, Cooper S, Convertible.
- Mitsubishi: Montero.
- Nissan:GT-R.
- Porsche: [165][166]997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.
- Rolls Royce: [167]Ghost, Wraith, Phantom, Phantom Coupé, Phantom Drophead Coupé.
- SsangYong (subsidiary of Mahindra & Mahindra): [168]Rexton.
- Toyota: [144]Land Cruiser, Land Cruiser Prado, Prius.
- Volkswagen: [169]Beetle.
- Volvo: [170]V40, S60, S80, XC60,S90, XC90.
Indian brands Edit
Joint-venture (JV) brands Edit
- Ashok Leyland[176] – originally a JV inbetween Ashok Motors (wielded by the Hinduja Group) and Leyland Motors, now joint ventures inbetween Ashok Leyland and Nissan Motors (Japan) for LCV’s; and John Deere (USA) for construction equipment. [177]
- KaMAZ Vectra [178] – A JV inbetween Russia’s KaMAZ and the Vectra Group
- MAN Force – A JV inbetween Force Motors and MAN AG (Germany)
- SML Isuzu – originally, as Swaraj Mazda, a JV inbetween Punjab Tractors and Mazda, now 53.5% possessed by Sumitomo Group and with its current name since 2011. [179]
- Tatra Vectra Motors Ltd – (defunct) Initial truck partnership with India by Vectra. Substituted by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration with Bharat Earth Movers Limited.
- VE Commercial Vehicles Limited[180] – VE Commercial Vehicles limited – A JV inbetween Volvo Group and Eicher Motors Limited.
- Maruti Suzuki – A joint venture of Indian Maruti and Japanese Suzuki.
Foreign-owned brands Edit
- J. C. Bamford (JCB) (Wielded by British multinational corporation J. C. Bamford).
- BharatBenz (Wielded by Daimler AG of Germany and affiliated with Daimler’s Fuso and Mercedes-Benz brands) [181]
- Caterpillar Inc.[182]
- DAF[183]
- Hino[184]
- Isuzu[185]
- Iveco[186]
- MAN
- Mercedes-Benz[187] – manufactures luxury coaches in India.
- Piaggio[188]
- Rosenbauer. [189]
- Scania[190]
- Tatra. [191]
- Volvo. [192]
During April 2012, the Indian government planned to unveil the road map for the development of domestic electrical and hybrid vehicles (xEV) in the country. [193] A discussion inbetween the various stakeholders, including Government, industry, and academia, was expected to take place during 23–24 February. [193] The final contours of the policy would have been formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad framework for the sector. Along with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task. [193] The Government has also proposed to set up a Rs seven hundred forty crore research and development fund for the sector in the 12th five-year plan during 2012-17. [193] The idea is to reduce the high cost of key imported components such as the battery and electrical motor, and to develop such capabilities locally.
Automotive industry in India
Automotive industry in India
The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in FY (fiscal year) 2015–16, following a growth of Two.57 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country’s gross domestic product (GDP). The Two Wheelers segment, with eighty one per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a youthfull population. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has thirteen per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014–15, automobile exports grew by fifteen per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020. [1]
Contents
The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs), three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–October 2014, registering a marginal growth of Three.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in April–October two thousand fifteen over the same period in the previous year. The overall CVs segment registered a growth of 8.02 per cent in April–October two thousand fifteen as compared to same period last year. Medium and Mighty Commercial Vehicles (M&HCVs) registered very strong growth of 32.Trio per cent while sales of Light Commercial Vehicles (LCVs) declined by Five.24 per cent during April–October 2015, year-to-year.
In April–October 2015, overall automobile exports grew by Five.78 per cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, Legitimate.59 per cent and Three.22 per cent, respectively, in April–October two thousand fifteen over April–October 2014. [Two]
In order to keep up with the growing request, several auto makers have began investing intensely 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 two thousand 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 goes after:
- Global auto maker Ford plans to manufacture in India two families of engines by 2017, a Two.Two litre diesel engine code-named Panther, and a 1.Two litre petrol engine code-named Dragon, which are expected to power 270,000 Ford vehicles globally.
- The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and enhancing 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 Three,500 crore (US$525 million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
- Mercedes Benz has determined 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 AG’s (BMW) local unit has announced to procure components from seven India-based auto parts makers.
- Mahindra Two Wheelers Limited (MTWL) acquired fifty one per cent shares in France-based Peugeot Motorcycles (PMTC). [Two]
The Government of India encourages foreign investment in the automobile sector and permits one hundred 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.Four 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.Five billion) to farmers, which is expected to boost sales in the tractors segment.
- The government plans to promote eco-friendly cars in the country—i.e. CNG-based vehicles, hybrid vehicles, and electrical vehicles—and also to make mandatory five per cent ethanol blending in petrol.
- The government has formulated a Scheme for Quicker Adoption and Manufacturing of Electrical and Hybrid Vehicles in India, under the National Electrified Mobility Mission 2020, to encourage the progressive introduction of reliable, affordable, and efficient electrified and hybrid vehicles into the country.
- The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the government is aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector. [Trio]
In 1897, the very first car ran on an Indian road. Through the 1930s, cars were imports only, and in petite numbers.
An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was launched in 1942, long-time competitor Premier in 1944, building Chrysler, Dodge, and Fiat products respectively. [Four] 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. [Four]
1947-1970 Edit
The one thousand nine hundred fifty two Tariff Commission Edit
In 1952, the government appointed the very first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted their report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, with licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per requests, in the future. The Tariff Commission recommendations were implemented with fresh policies that would eventually exclude companies that only imported parts for assembly, as well as those with no Indian playmate. In 1954, following the Tariff Commission implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants in Mumbai, determined to stir out of India. [Five]
The Tariff commission policies, including similar limitations that applied to other industries, came to be known as the “license raj”, which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic crimson gauze ended up causing request to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.
- Hindustan Motors, Calcutta – technical collaboration with Morris Motors to manufacture Morris Oxford models that would later become HM Ambassador.
- Premier Automobiles, Bombay – technical collaboration with Chrysler to manufacture Dodge, Plymouth and Desoto models and with Fiat to manufacture the 1100D models which would later with Premier Padmini range.
- Standard Motor Products of India, Madras – technical collaboration from Standard-Triumph to manufacture Standard Vanguard, Standard 8, ten and later Standard Herald.
Utility and Light Commercial Vehicles
- Vehicle Factory Jabalpur – began manufacturing Jonga Light Utility Vehicles and Vahan one Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the main troop carriers of the Indian Armed Coerces and much powerful than any other vehicle of their class.
- Mahindra & Mahindra, Bombay – technical collaboration with Willys to manufacture CJ Series Jeep.
- Bajaj Tempo, Poona now Force Motors – technical collaboration with Tempo (company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.
- Standard Motor Products of India – technical collaboration from Standard has licence to manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne pickup variants.
Medium and Mighty Commercial Vehicles
- Vehicle Factory Jabalpur – commenced manufacturing Shaktiman trucks with technical assistance from MAN SE of Germany. The trucks were the main logistics vehicle of the Indian Army with several specialist variants. VFJ still is the foot supplier of B vehicles to the Indian Armed Coerces.
- Strong Vehicles Factory – was established in one thousand nine hundred sixty five in Avadi, near Chennai to produce tanks in India. Since its inception, HVF has produced all the tanks of India, including Vijayanta, Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only tank manufacturing facility of India.
- Tata Motors, Poona, then known as TELCO – technical collaboration with Mercedes Benz to manufacture medium to intense commercial vehicles both Bus and Trucks.
- Ashok Motors, later Ashok Leyland, Madras – technical collaboration with Leyland Motors to manufacture medium to powerful commercial vehicles both Bus and Trucks. Ashok Motors also discontinued its Austin venture formed in one thousand nine hundred forty eight to sell Austin A40 and retooled the factory to make trucks and buses.
- Hindustan Motors – technical collaboration with General Motors to manufacture the Bedford range of medium lorry and bus chassis.
- Premier Automobiles – technical collaboration with Chrysler to manufacture the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
- Simpsons & Co, Madras – part of Amalgamations Group (TAFE Tractors)- technical collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise that option until the 1980s.
Scooters, Mopeds and Motorcycles
known as Bajaj Chetak, by Bajaj became the largest sold scooter in the world
- Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after the tariff commission was enabled.
- Royal Enfield (India), Madras – technical collaboration with Royal Enfield, UK to manufacture the Enfield Bullet range of motorcycles.
- Bajaj Auto, Poona – technical collaboration with Piaggio, Italy to manufacture their best selling Vespa range of scooters and three wheelers with commercial option as well.
- Automobile Products of India, Bombay (Better known for API Lambretta – technical collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of mopeds, scooters and three-wheelers. This company was actually the Rootes Group car plant that was bought over by M. A. Chidambaram family.
- Mopeds India Limited, Tirupathi – technical collaboration with Motobécane, France to manufacture their best selling Mobylette mopeds.
- Escorts Group, Fresh Delhi – technical collaboration with CEKOP of Poland to manufacture the Rajdoot one hundred seventy five motorcycle whose origin was DKW RT 125
- Ideal Jawa, Mysore – in technical collaboration with CZ – Jawa of Czechoslovakia for its Jawa and Yezdi range of motorcycles.
1970 to one thousand nine hundred eighty three Edit
However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, hampered the growth of Indian private sector.
The beginning of the 1970s witnessed some growth potential and most of the collaboration license agreements came to an end but with option to proceed manufacturing with renewed branding. Cars were still meant for the elite and Jeeps were largely used by government organizations and some rural belts. In commercial vehicle segments some developments were made by the end of the decade to cater improved goods movements. The two-wheeler segment remained unchanged except for to enlargened sales in urban among middle class. But more fillip was target towards farm tractors as India was embarking on a fresh Green Revolution. More Russian and eastern bloc imports were done to increase the request.
But after 1970, with confinements on the import of vehicles set, the automotive industry embarked to grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still remained a major luxury item. In the 1970s, price controls were eventually lifted, inserting a competitive element into the automobile market. [6] However, by the 1980s, the automobile market was still predominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers. [7] During the eighties, a few competitors began to arrive on the scene.
The OPEC oil crisis witnessed increase need to installing or redesign some vehicle to fit diesel engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks on Pertol engines.
1984 to one thousand nine hundred ninety two Edit
From the end of the 1970s to the beginning of the 1980s eyed no fresh models but the country continued with two decade old designs forcing government to encourage and let more manufacturers into fray.
In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory Medak, near Hyderabad. It began manufacturing Infantry Combat Vehicles christened as Sarath, the backbone of India’s mechanised infantry. OFMK is still the only manufacturing facility of ICVs in India. To manufacture the high-power engines used in ICVs and main battle tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The one thousand nine hundred eighty six Expo was a showcase for how the Indian automotive industry was absorbing fresh technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India. The nine-day showcase was attended by then Prime Minister Rajiv Gandhi.
Post-1992 liberalisation Edit
Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South Korea, were permitted to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the very first, and the most successful of these fresh entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s. [7] As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The multitude 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 twelve large automotive companies in the Indian market, most of them offshoots of global companies. [8]
Slow export growth Edit
Exports were slow to grow. Sales of puny numbers of vehicles to tertiary markets and neighbouring countries began early, and in one thousand nine hundred eighty seven Maruti Suzuki shipped four hundred eighty cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive. [9] This was not to last, and today India manufactures low-priced cars for markets across the globe. As of eighteen March 2013, global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis. [Ten]
Emission norms Edit
In 2000, in line with international standards to reduce vehicular pollution, the central government unveiled standards titled “India 2000”, with later, upgraded guidelines to be known as Bharat Stage emission standards. These standards are fairly similar to the stringent European emission standards and have been implemented in a phased manner. Bharat Stage IV (BS-IV), the most stringent so far, was implemented very first, in April 2010, in thirteen cities—Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra—and then, as of April 2017, the rest of the nation.
Local manufacture encouraged Edit
India levies an import tax of 125% on electrified cars, while the import tax on components such as gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in India rather than be imported as entirely built units. [11]
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 operations of Strenuous Vehicles Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun. [12] [13]
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. [14] [15]
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 Peugeot-Citroen plants are also planned for Gujarat. [16]
Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are other automotive manufacturing regions around the country. [17] [Legal] [Nineteen]
Andhra Pradesh Edit
Gujarat Edit
Haryana Edit
Himachal Pradesh Edit
Jharkhand Edit
Karnataka Edit
- Bharat Earth Movers – Bengaluru
- Scania Commercial Vehicles India Private Limited – Bengaluru[35]
- TAFE Tractors – Doddaballapur[32]
- Tata Motors – Dharwad[21]
- Bharat Earth Movers – Mysuru
- Volvo India
- Volvo Buses India – Hosakote[36]
- Volvo Trucks India – Hosakote[37]
- Volvo Construction Equipment India – Hosakote[38]
Kerala Edit
Madhya Pradesh Edit
Maharashtra Edit
Punjab Edit
Rajasthan Edit
Tamil Nadu Edit
Telangana Edit
Uttar Pradesh Edit
Uttarakhand Edit
West Bengal Edit
India’s automobile exports have grown consistently and reached $Four.Five billion in 2009, with the United Kingdom being India’s largest export market, followed by Italy, Germany, Netherlands, and South Africa. [80]
According to the Fresh 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. [81]
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. [82] Similarly, US automobile company, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. [83]
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. [84] The company said that the plant was a part of its plan to make India the hub for its global production business. [85] Fiat Motors announced that it would source more than US$1 billion worth auto components from India. [86]
In two thousand nine 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). [87]
In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing € 700M in the operation. [88] PSA’s intention to utilise this production facility for export purposes however remains unclear as of December 2010.
In latest years, India has emerged as a leading center for the manufacture of puny cars. Hyundai, the fattest 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 puny cars for Nissan, which sells them in Europe. Nissan will also export petite cars from its fresh Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is preparing to sell electrified cars in Europe in 2010. The rock hard is planning to sell an electrical version of its affordable car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and puny 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 puny car project. [89] While the possibilities for the Indian automobile industry are astounding, there are challenges that could thwart future growth. Since the request for automobiles in latest years is directly linked to overall economic expansion and rising individual incomes, industry growth will slow if the economy weakens. [89]
Top ten export destinations Edit
India exported $14.Five billion worth of automobiles in 2014. The ten countries below imported 47.8% of that total. [90]
Indian automotive companies Edit
Models presently manufactured by Indian companies Edit
- Chinkara Motors: [114] Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster
- Force Motors (earlier known as Tempo): One
- Hindustan Motors: [115]Ambassador
- Hradyesh: [116]Morris Street[117]
- ICML: [118] Rhino Rx
- Mahindra: [119]Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito Vibe, Genio, XUV500, e2o, TUV300, KUV100, NuvoSport.
- Premier Automobiles Limited: [120]Sigma, RiO
- San Motors: [121]Storm
- Maruti Suzuki (subsidiary of Japanese auto maker Suzuki) [122][123]Alto K10, Alto 800, WagonR, Swift, Swift DZire, Omni, Eeco, Gypsy, Ertiga, Celerio, Ciaz, Vitara Brezza, Baleno, Ignis, S-Cross.
- Tata Motors: [124]Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Movus, Venture, Safari, Xenon, Aria, Zest, Bolt, Tiago, Tigor, Hexa.
Defunct Indian automotive companies Edit
Foreign automotive companies in India Edit
Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet (of General Motors), Toyota, Lamborghini, Jaguar, and Skoda are the foreign automotive companies that manufacture and market their products in India.
Vehicles presently manufactured or assembled in India Edit
- Audi India: A3, A4, A6, Q3, Q5.
- BMW India: [125]1 Series, three Series, three Series GT, five Series, seven Series, X1, X3, X5.
- Chevrolet: [126]Spark, Hammer, Sail, Cruze, Tavera, Love.
- Fiat India: Punto, Linea, Avventura, Urban Cross.
- Jeep India: Compass.
- Ford India: [127]Figo, Ecosport, Endeavour, Figo Aspire.
- Datsun: Go, Go+, Redi-Go
- Honda Cars India Limited: [128]Brio, Jazz, Amaze, BR-V, City.
- Hyundai Motor India: [129]Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.
- Isuzu: [130][131]MU-7, V-Cross.
- Jaguar (Subsidiary of Tata Motors): [132]XE, XF, XJ.
- Land Rover (Subsidiary of Tata Motors): [133]Freelander, Range Rover Evoque.
- Mercedes-Benz India: [134]C-Class, E-Class, M-Class, GL-Class, S-Class.
- MINI: [135]Countryman.
- Mitsubishi[136] (in collaboration with Hindustan Motors): [137]Pajero.
- Nissan Motor India: [138]Micra, Sunny, Terrano.
- Renault India: [139][140][141]Pulse, Duster, Scala, Kwid, Lodgy.
- Škoda Auto India: [142][143]Rapid, Octavia, Yeti, Superb.
- Toyota Kirloskar: [144]Etios Liva, Etios, Corolla Altis, Innova Crysta, Fortuner, Camry.
- Volkswagen India: [145][146]Polo, Cross Polo, Vento, Jetta, Ameo, Tiguan .
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.
Vehicles presently imported into India Edit
- Aston Martin: [147]Vantage, Vanquish, Rapide, Virage, DB9, DBS, One-77.
- Audi: [148]A8 L, Q7, S5 Sportback, TT, RS seven Sportback, RS six Avant, RS5, R8.
- Bentley: [149][150]Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.
- BMW: [151]Five Series GT, six Series, seven Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.
- Bugatti: [152][153]Veyron.
- Chevrolet: Trailblazer.
- Ferrari: [154][155]California, four hundred fifty eight Italia, F12, FF.
- Fiat: Abarth five hundred ninety five Competizone
- Ford: [156]Mustang.
- General Motors: [126]Hummer H2, Hummer H3.
- Gumpert: [157]Apollo.
- Honda: [158][159]Accord Hybrid.
- Hyundai: [129]Santa Fe.
- Isuzu Motors India:D-Max
- Jaguar (Subsidiary of Tata Motors): [132]XJS, XK, F-Type.
- Koenigsegg: [160][161]CCX, CCXR, Agera.
- Lamborghini: [162]Huracan, Aventador.
- Land Rover (Subsidiary of Tata Motors): [133]Discovery Four, Range Rover Sport, Range Rover.
- Maserati: [163]Quattroporte, Ghibli.
- Mercedes-Benz: [164]Viano.
- MINI: [135]Cooper, Cooper S, Convertible.
- Mitsubishi: Montero.
- Nissan:GT-R.
- Porsche: [165][166]997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.
- Rolls Royce: [167]Ghost, Wraith, Phantom, Phantom Coupé, Phantom Drophead Coupé.
- SsangYong (subsidiary of Mahindra & Mahindra): [168]Rexton.
- Toyota: [144]Land Cruiser, Land Cruiser Prado, Prius.
- Volkswagen: [169]Beetle.
- Volvo: [170]V40, S60, S80, XC60,S90, XC90.
Indian brands Edit
Joint-venture (JV) brands Edit
- Ashok Leyland[176] – originally a JV inbetween Ashok Motors (wielded by the Hinduja Group) and Leyland Motors, now joint ventures inbetween Ashok Leyland and Nissan Motors (Japan) for LCV’s; and John Deere (USA) for construction equipment. [177]
- KaMAZ Vectra [178] – A JV inbetween Russia’s KaMAZ and the Vectra Group
- MAN Force – A JV inbetween Force Motors and MAN AG (Germany)
- SML Isuzu – originally, as Swaraj Mazda, a JV inbetween Punjab Tractors and Mazda, now 53.5% possessed by Sumitomo Group and with its current name since 2011. [179]
- Tatra Vectra Motors Ltd – (defunct) Initial truck partnership with India by Vectra. Substituted by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration with Bharat Earth Movers Limited.
- VE Commercial Vehicles Limited[180] – VE Commercial Vehicles limited – A JV inbetween Volvo Group and Eicher Motors Limited.
- Maruti Suzuki – A joint venture of Indian Maruti and Japanese Suzuki.
Foreign-owned brands Edit
- J. C. Bamford (JCB) (Possessed by British multinational corporation J. C. Bamford).
- BharatBenz (Possessed by Daimler AG of Germany and affiliated with Daimler’s Fuso and Mercedes-Benz brands) [181]
- Caterpillar Inc.[182]
- DAF[183]
- Hino[184]
- Isuzu[185]
- Iveco[186]
- MAN
- Mercedes-Benz[187] – manufactures luxury coaches in India.
- Piaggio[188]
- Rosenbauer. [189]
- Scania[190]
- Tatra. [191]
- Volvo. [192]
During April 2012, the Indian government planned to unveil the road map for the development of domestic electrical and hybrid vehicles (xEV) in the country. [193] A discussion inbetween the various stakeholders, including Government, industry, and academia, was expected to take place during 23–24 February. [193] The final contours of the policy would have been formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad framework for the sector. Along with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task. [193] The Government has also proposed to set up a Rs seven hundred forty crore research and development fund for the sector in the 12th five-year plan during 2012-17. [193] The idea is to reduce the high cost of key imported components such as the battery and electrical motor, and to develop such capabilities locally.
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