Automotive industry in India

The automobile industry in India is the seventh largest in the world with an annual production of over 2.6 million units in 2009. In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.

Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which attracted significant India-specific investment by multinational automobile manufacturers. In February 2009, monthly sales of passenger cars in India exceeded 100,000 units.

Embryonic automotive industry emerged in India in the 1940s. Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands.

Exports

India has emerged as one of the world's largest manufacturers of small cars. According to New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki.

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011. Similarly, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011.

In September 2009, Ford Motors announced its plans to setup a plant in India with an annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both for the Indian market and for export. The company said that the plant was a part of its plan to make India the hub for its global production business. Fiat Motors also announced that it would source more than US$1 billion worth auto components from India.

According to Bloomberg L.P., in 2009 India surpassed China as Asia's fourth largest exporter of cars.

Indian automobile companies

See also: List of cars available in India

Rankwise Largest Automobile Manufacturers in India by Sales

1. Maruti Suzuki
2. Hyundai
3. Tata
4. Mahindra
5. GM Chevrolet
6. Honda
7. Toyota
8. Ford
9. Fiat
10. Škoda

• Chinkara: Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster.
• Force
• Hindustan: Ambassador.
• Mahindra: Major, Xylo.
• Maruti Suzuki: 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Versa, Gypsy.
• Premier: Sigma, Roadster, RiO.
• San: Storm.
• Tata: Nano, Indica, Indigo, Sumo, Safari, TL, Aria.

Electric car companies in India

• Ajanta Group
• Mahindra
• Hero Electric
• REVA
• Tara International
• Tata Motors

Notable Multi-national automobile manufacturers

Locally manufactured Automobiles of Multi-national Companies

• Audi: A4, A6.
• BMW: 3 Series, 5 Series.
• Chevrolet: Spark, Beat, Aveo U-VA, Aveo, Optra, Cruze, Tavera.
• Fiat: Grande Punto, Linea.
• Ford: Ikon, Fiesta, Endeavour, Figo
• Honda: Jazz, City, Civic, Accord.
• Hyundai: Santro, i10, i20, Accent, Verna, Sonata.
• Mercedes-Benz: C-Class, E-Class
• Mitsubishi: Lancer, Lancer Cedia.
• Nissan: Micra
• Renault: Logan
• Škoda: Fabia, Octavia, Laura.
• Toyota: Corolla, Innova
• Volkswagen: Jetta, Passat, Polo

Cars sold in India as CBU (Completely Built Units)

• Audi: A8, TT, R8, Q5, Q7.
• Bentley: Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.
• BMW: 6 Series, 7 Series, X3, X5, X6, M3, M5, M6 and Z4.
• Chevrolet: Captiva
• Fiat: Nuova 500.
• Honda: Civic Hybrid, CR-V.
• Jaguar: XF, XJ, XK.
• Lamborghini: Gallardo, Murciélago.
• Land Rover: Range Rover, Range Rover Sport, Discovery 4, Freelander 2.
• Maybach: 57 and 62.
• Mercedes-Benz: CL-Class, CLS-Class, S-Class, SL-Class, SLK-Class, M-Class, Viano.
• Mitsubishi: Pajero, Montero, Outlander.
• Nissan: Teana, X-Trail, 370Z.
• Porsche: 911, Boxter, Panamera, Cayman, Cayenne.
• Rolls Royce: Ghost, Phantom, Phantom Coupé, Phantom Drophead Coupé.
• Škoda: Superb.
• Suzuki: Grand Vitara.
• Toyota: Camry, Land Cruiser, Land Cruiser Prado, Fortuner*, Prius.
• Volkswagen: Beetle, Touareg.
• Volvo: S80, S60, XC90.

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

Further reading

• Kamala, T.N. & Doreswamy, A.G. (2007). Strategies for Enhancing Competitiveness of Indian Auto Component Industries. Indian Institute of Management Kozhikode.
• Tiku, P. (2008). Six Sizzling Markets: How to Profit from Investing in Brazil, Russia, India, China, South Korea, and Mexico. United States of America: John Wiley & Sons, Inc. ISBN 978-0-470-17888-1.

Footnotes

The Automotive India