Professional Documents
Culture Documents
Industry in India
Indian Auto Industry – Size and
Composition
•The Indian automotive components industry’s annual turnover
(for FY 2003) was US$ 6.73 billion (global industry of US $737
billion)
Initial Years
Early to mid 90s
Manufacturing was licensed
•Seller’s market and long
•High Customs duty on import Mid 90s – Early 2000s
waiting periods
•Steep excise duties & •Buyers market
•Delicensing in 1993
•sales tax
•Increase in Indigenization
•Removal of capacity
•2 Major players:
restrictions
Premier Automobiles Ltd •Easy Auto finance
& Hindustan Motors
•Decrease in customs &
•Manufactures diversifying
excise
1980s into related activities:
finance lease, fleet
•Auto finance boom- more
•Entry of MUL, better product, management, insurance
players (foreign banks &
with government support and used car market
non banking companies,
better schemes.
•Seller’s Market
PASSENGER COMMERCIAL
2 WHEELER 3 WHEELER
VEHICLE VEHICLE
Mass Luxury
Production Cars
Dedicated
Generic
Specialised
Indian Automotive Industry
800,000 754,700
700,000 608,663
548,181
600,000 542,35
499,301
500,000
400,000
300,000
200,000
100,000
0
1999 2000 2001 2002 2003
Indian 2-Wheeler Market
Competitive Scenario
<1
50% 30% 13% 4% 1% 2% - <1%
%
<1
- 15% 28% - 2% 46% 9% -
%
10
- - 82% - - - 8% -
%