The Automotive industry in India is one of the largest

in the world and one of the fastest growing globally. India's passenger
car and commercial vehicle manufacturing industry is thesixth largest
in the world, with an annual production of more than 3.9 million units
in 2011.According to recent reports, India overtook Brazil and
became the sixth largest passenger vehicle producer in the
world (beating such old and new auto makers as Belgium, United
Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil),
growing 16 to 18 per cent to sell around three million units in the
course of 2011-12.In 2009, India emerged as Asia's fourth largest
exporter of passenger cars, behind Japan, South Korea, and
Thailand. In 2010, India beat Thailand to become Asia's third largest
exporter of passenger cars.
As of 2010, India is home to 40 million passenger vehicles. More than
3.7 million automotive vehicles were produced in India in 2010 (an
increase of 33.9%), making the country the second (after China)
fastest growing automobile market in the world. According to the
Society of Indian Automobile Manufacturers, annual vehicle sales are
projected to increase to 5 million by 2015 and more than 9 million by
2020. By 2050, the country is expected to top the world in car
volumes with approximately 611 million vehicles on the nation's
roads.
The majority of India's car manufacturing industry is based around
three clusters in the south, west and north. The southern cluster
consisting of Chennai and Bangalore is the biggest with 35% of the
revenue share. The western hub near Mumbai and Pune contributes
to 33% of the market and the northern cluster around the National
Capital Region contributes 32%. Chennai, is also referred to as the
"Detroit of
India"with
the
India
operations
ofFord, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan
Motors, Daimler, Caparo, andPSA Peugeot Citron is about to begin
their operations by 2014. Chennai accounts for 60% of the country's
automotive
exports. Gurgaon and Manesar in Haryana form
the
northern cluster where the country's largest car manufacturer, Maruti

Suzuki, is based.TheChakan corridor near Pune, Maharashtra is the

western
cluster
with
companies
like General
Motors, Volkswagen, Skoda, Mahindra
and
Mahindra, Tata
Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having
assembly
plants
in
the
area. Aurangabad withAudi, Skoda and Volkswagen also forms part
of the western cluster. Another emerging cluster is in the state
of Gujarat with manufacturing facility of General Motors in Halol and
further planned for Tata Nano at their plant in Sanand. Ford, Maruti
Suzuki and Peugeot-Citroen plants are also set to come up in
Gujarat.
Kolkata with Hindustan
Motors, Noida
with Honda and Bangalore with Toyota are some of the other
automotive manufacturing regions around the country.

Overview
The Indian Automobile Industry manufactures over 11 million vehicles
and exports about 1.5 million each year. The dominant products of
the industry are two-wheelers with a market share of over 75% and
passenger cars with a market share of about 16%.Commercial
vehicles and three-wheelers share about 9% of the market between
them. About 91% of the vehicles sold are used by households and
only about 9% for commercial purposes. The industry has a turnover
of more than USD $35 billion and provides direct and indirect
employment to over 13 million people?
The supply chain is similar to the supply chain of the automotive
industry in Europe and America.
Interestingly, the level of trade exports in this sector in India has been
medium and imports have been low. However, this is rapidly changing
and both exports and imports are increasing. The demand
determinants of the industry are factors like affordability, product
innovation, infrastructure and price of fuel. Also, the basis of
competition in the sector is high and increasing, and its life cycle
stage is growth. With a rapidly growing middle class, all the
advantages of this sector in India are yet to be leveraged.

With a high cost of developing production facilities, limited

accessibility to new technology, and increasing competition, the
barriers to enter the Indian Automotive sector are high. On the other
hand, India has a well-developed tax structure. The power to levy
taxes and duties is distributed among the three tiers of Government.
The cost structure of the industry is fairly traditional, but the
profitability of motor vehicle manufacturers has been rising over the
past five years. Major players, like Tata Motors and Maruti
Suzuki have material cost of about 80% but are recording profits after
tax of about 6% to 11%.
The level of technology change in the Motor vehicle Industry has
been high but, the rate of change in technology has been medium.
Investment in the technology by the producers has been high.
System-suppliers of integrated components and sub-systems have
become the order of the day. However, further investment in new
technologies will help the industry be more competitive. Over the past
few years, the industry has been volatile. Currently, India's increasing
per capita disposable income which is expected to rise by 106% by
2015 and growth in exports is playing a major role in the rise and
competitiveness of the industry.
Tata Motors is leading the commercial vehicle segment with a market
share of about 64%. Maruti Suzuki is leading the passenger vehicle
segment with a market share of 46%.Hyundai Motor India
Limited and Mahindra and Mahindra are focusing expanding their
footprint in the overseas market. Hero MotoCorp is occupying over
41% and sharing 26% of the two-wheeler market in India withBajaj
Auto. Bajaj Auto in itself is occupying about 58% of the three-wheeler
market.
Consumers are very important of the survival of the Motor
Vehicle manufacturing industry. In 2008-09, customer sentiment
dropped, which burned on the augmentation in demand of cars. Steel
is the major input used by manufacturers and the rise in price of steel
is putting a cost pressure on manufacturers and cost is getting
transferred to the end consumer. The price of oil and petrol affect the
driving habits of consumers and the type of car they buy.

The key to success in the industry is to improve labour productivity,

labour
flexibility,
and
capital
efficiency.
Having
quality
manpower,infrastructure improvements, and raw material availability
also play a major role. Access to latest and most efficient technology
and techniques will bring competitive advantage to the major players.
Utilising manufacturing plants to optimum level and understanding
implications from the government policies are the essentials in the
Automotive Industry of India.
Both, Industry and Indian Government are obligated to intervene the
Indian Automotive industry. The Indian government should facilitate
infrastructure creation, create favourable and predictable business
environment, attract investment and promote research and
development. The role of Industry will primarily be in designing and
manufacturing products of world-class quality establishing cost
competitiveness and improving productivity in labour and in capital.
With a combined effort, the Indian Automotive industry will emerge as
the destination of choice in the world for design and manufacturing of
automobiles.The Indian market offers endless possibilities for
investors.

History
The first car ran on India's roads in 1897. Until the 1930s, cars were
imported directly, but in very small numbers.
Embryonic
automotive
industry
emerged
in India in
the
1940s. Mahindra & Mahindra was established by two brothers as a
trading company in 1945, and began assembly of Jeep CJ-3A utility
vehicles under license from Willys. The company soon branched out
into the manufacture of light commercial vehicles (LCVs) and
agricultural tractors.
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. Total restrictions for import of vehicles were set
and 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 ofMaruti Udyog.
A number of foreign firms initiated joint ventures with Indian
companies.
In the 1980s, a number of Japanese manufacturers launched jointventures for building motorcycles and light commercial-vehicles. It
was at this time that the Indian government chose Suzuki for its jointventure to manufacture small cars. Following the economic
liberalization 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.
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, MarutiSuzuki and
Mahindra and Mahindra, expanded their domestic and international
operations. India's robust economic growth led to the further
expansion of its domestic automobile market which has attracted
significant India-specific investment by multinational automobile
manufacturers. In February 2009, monthly sales of passenger cars in
India exceeded 100,000 units and have since grown rapidly to a
record monthly high of 182,992 units in October 2009. From 2003 to
2010, car sales in India have progressed at a CAGR of 13.7%, and
with only 10% of Indian households owning a car in 2009 (whereas
this figure reaches 80% in Switzerland for example) this progression
is unlikely to stop in the coming decade.Congestion of Indian roads,
more than market demand, will likely be the limiting factor.
SIAM is the apex industry body representing all the vehicle
manufacturers, home-grown and international, in India

Industry Definition
This class consists of units mainly engaged in manufacturing motor
vehicles or motor vehicle engines.
Products and Services
The primary activities of this industry are:
Motor cars manufacturing Motor vehicle engine manufacturing
The major products and services in this industry are:
Passenger motor vehicle manufacturing segment (Passenger Cars,
Utility Vehicles & Multi Purpose Vehicles) Commercial Vehicles
(Medium & Heavy and Light Commercial Vehicles) Two Wheelers
Three Wheelers
Supply Chain of Automobile Industry
The supply chain of automotive industry in India is very similar to the
supply chain of the automotive industry in Europe and America. The
orders of the industry arise from the bottom of the supply chain i. e.,
from the consumers and go through the automakers and climbs up
until the third tier suppliers. However, the products, as channelled in
every traditional automotive industry, flow from the top of the supply
chain to reach the consumers. Automakers in India are the key to the
supply chain and are responsible for the products and innovation in
the industry.
The description and the role of each of the contributors to the supply
chain are discussed below.
Third Tier Suppliers: These companies provide basic products like
rubber, glass, steel, plastic and aluminium to the second tier
suppliers.
Second Tier Suppliers: These companies design vehicle systems or
bodies for First Tier Suppliers and OEMs. They work on designs
provided by the first tier suppliers or OEMs. They also provide
engineering resources for detailed designs. Some of their services
may include welding, fabrication, shearing, bending etc.

First Tier Suppliers: These companies provide major systems directly

to assemblers. These companies have global coverage to follow their
customers to various locations around the world. They design and
innovate to provide "black-box" solutions for the requirements of their
customers. Black-box solutions are solutions created by suppliers
using their own technology to meet the performance and interface
requirements set by assemblers.
First tier suppliers are responsible not only for the assembly of parts
into complete units like dashboard, brakes-axle-suspension,seats,
or cockpit but also for the management of second-tier suppliers.
Automakers/Vehicle
Manufacturers/Original
Equipment
Manufacturers (OEMs): After researching consumers' wants and
needs, automakers begin designing models which are tailored to
consumers' demands. The design process normally takes five years.
These companies have manufacturing units where engines are
manufactured and parts supplied by first tier suppliers and second tier
suppliers are assembled. Automakers are the key to the supply chain
of the automotive industry. Examples of these companies are Tata
Motors,Maruti
Suzuki, Toyota,
and Honda. Innovation, design
capability and branding are the main focus of these companies.
Dealers: Once the vehicles are ready they are shipped to the regional
branch and from there, to the authorised dealers of the companies.
The dealers then sell the vehicles to the end customers.
Parts and Accessory: These companies provide products
like tires, windshields, and air bags etc. to automakers and dealers or
directly to customers.
Service Providers: Some of the services to the customers include
servicing of vehicles, repairing parts, or financing of vehicles. Many
dealers provide these services but, customers can also choose to go
to independent service providers.

Automobile production

Type
of
Vehicle

20042005

20052006

20062007

20072008

20082009

20092010

20102011

Passenger
Vehiclels 1,209,87 1,309,30 1,545,22 1,777,58 1,838,69 2,357,4112,987,296
6
0
3
3
7

Commerc
ial
353,703 391,083 519,982 549,006 417,126 567,556 752,735
Vehicles
Three
374,445 434,423 556,126 500,660 501,030 619,194 799,553
Wheelers
Two
6,529,82 7,608,69 8,466,66 8,026,68 8,418,62 10,512,9 13,376,45
Wheeler 9
7
6
1
6
03
1

Total.

8,467,85 9,743,50 11,087,99 10,853,9 11,175,47 14,057,0 17,916,03

3
3
7
30
9
64
5

Automobile sales
Type of
Vehicle

20042005

20052006

20062007

20072008

20082009

20092010

20102011

Passenger 1,061,57 1,143,07

1,549,88 1,552,70
1,379,979
1,951,333 2,520,421
Vehicles 2
6
2
3
Commerc
ial
318,430 351,041 467,765 490,494 384,194 532,721 676,408
Vehicles
Three
307,862 359,920 403,910 364,781 349,727 440,392 526,022
Wheelers
Two
6,209,76 7,052,39
7,249,27 7,437,61
11,790,30
7,872,334
9,370,951
Wheelers 5
1
8
9
5

Total

15,593,15
7,897,62 8,906,42 10,123,98 9,654,43 9,724,24 12,295,39
6
9
8
8
5
3
7

Product and service segmentation

The automotive industry of India is categorised into passenger cars,
two-wheelers, commercial vehicles and three-wheelers, with twowheelers dominating the market. More than 75% of the vehicles sold
are two-wheelers. Nearly 59% of these two-wheelers sold
weremotorcycles and about 12% were scooters. Mopeds occupy a
small portion in the two-wheeler market however; electric twowheelers are yet to penetrate.
The passenger vehicles are further categorised into passenger cars,
utility vehicles and multi-purpose vehicles. All sedan, hatchback,
station wagon and sports cars fall under passenger cars. Tata Nano

is the world's cheapest passenger car, manufactured by Tata Motors a leading automaker of India. Multi-purpose vehicles or peoplecarriers are similar in shape to a van and are taller than a sedan,
hatchback or a station wagon, and are designed for maximum interior
room. Utility vehicles are designed for specific tasks. The passenger
vehicles manufacturing account for about 15% of the market in India.
Commercial vehicles are categorised into heavy, medium and light.
They account for about 5% of the market. Three-wheelers are
categorised into passenger carriers and goods carriers. Threewheelers account for about 4% of the market in India.
Segment

2003-04 2004-05 2005-06 2006-07 2007-08

Passenger Car (%)

10.22

10.39

9.91

10.65

12.42

Utility Vehicles (UVs) (%)

2.15

2.23

2.18

2.18

2.39

Multi
Purpose
(MPVs) (%)

0.87

0.82

0.75

0.82

0.98

Total Passenger Vehicles (%) 13.25

13.44

12.83

13.65

15.79

Passenger Carriers (%)

0.36

0.32

0.32

0.28

0.43

Goods Carriers (%)

2.01

2.19

2.01

2.44

2.10

Total Medium & Heavy

2.37
Commercial Vehicles (%)

2.51

2.33

2.73

2.53

Passenger Carriers (%)

0.25

0.25

0.24

0.32

Vehicles

0.28

Segment

2003-04 2004-05 2005-06 2006-07 2007-08

Goods Carriers (%)

1.17

1.27

1.36

1.67

1.77

Total Light
Vehicles (%)

1.45

1.52

1.61

1.90

2.10

Total Commercial Vehicles

3.82
(%)

4.03

3.94

4.63

4.63

Passenger Carriers (%)

2.56

2.17

2.39

2.34

2.51

Goods Carriers (%)

1.61

1.73

1.65

1.65

1.51

Total Three Wheelers (%)

4.17

3.90

4.04

4.00

4.01

Scoters/Scooterettee (%)

13.01

11.68

10.21

9.31

11.57

Motorcycles/Step-Throughs
(%)

61.24

62.86

65.24

64.83

59.35

Mopeds (%)

4.52

4.08

3.74

3.52

4.47

Electric Two Wheelers (%)

0.07

0.19

Total Two Wheelers (%)

78.76

78.63

79.18

77.73

75.57

Grand Total (%)

100.00

100.00

100.00

100.00

100.00

Commercial

Segment

2003-04 2004-05 2005-06 2006-07 2007-08

Maruti Suzuki India Limited

Type

Public

Traded as

BSE: 532500
NSE: MARUTI
BSE SENSEX Constituent

Industry

Automotive

Predecessor(s)

Maruti Udyog Limited

Founded

1981

Headquarters

New Delhi, India

Key people

ShinzoNakanishi
(CEO & MD)

Products

Automobiles

Revenue

37,522 crore (US$6.79 billion)(2010-11)

Net income

2,288 crore (US$414.13 million)(2010-11)

Employees

6,903 (2011)

Parent

Suzuki Motor Corporation

Website

www.marutisuzuki.com

Maruti Suzuki

is India and Nepal's leading automobile

manufacturer and the market leader in the car segment, both in terms
of volume of vehicles sold and revenue earned. Until recently,
18.28% of the company was owned by the Indian government, and
54.2% by Suzuki of Japan. The BJP-led government held an initial
public offering of 25% of the company in June 2003. As of 10 May
2007, the government of India sold its complete share to Indian
financial institutions and no longer has any stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981,
though the actual production commenced in 1983 with the Maruti
800, based on the Suzuki Alto kei car which at the time was the only
modern car available in India, its only competitors- the Hindustan
Ambassador and Premier Padmini were both around 25 years out of
date at that point. Through 2004, Maruti Suzuki has produced over 5
Million vehicles. Maruti Suzukis are sold in India and various several
other countries, depending upon export orders. Models similar to
Maruti Suzukis (but not manufactured by Maruti Udyog) are sold
by Suzuki Motor Corporation and manufactured in Pakistan and
otherSouth Asian countries.
The company exports more than 50,000 cars annually and has an
extremely large domestic market in India selling over 730,000 cars
annually. Maruti 800, till 2004, was the India's largest selling compact
car ever since it was launched in 1983. More than a million units of
this car have been sold worldwide so far. Currently, Maruti Suzuki
Alto tops the sales charts but Maruti Suzuki's Swift has taken over
this titles by 19000 models in April 2012.The company imports diesel
engines for all maruti Suzuki cars from the fiat motors the great Italian
company.The German car company Volkswagen has a 19.9% non-

controlling
shareholding
in
Suzuki
Motor
Corporation.
tp://www.thehindubusinessline.com/companies/article3479445.ece|
title=Maruti sales fall 5% in May | date=01 jUNE2012}}
Due to the large number of Maruti 800s sold in the Indian market, the
term "Maruti" is commonly used to refer to this compact car model. Its
manufacturing
facilities
are
located
at
two
facilities Gurgaon and Manesar south of Delhi. Maruti Suzukis
Gurgaon facility has an installed capacity of 900,000 units per annum.
The Manesar facilities, launched in February 2007 comprise a vehicle
assembly plant with a capacity of 550,000 units per year and a Diesel
Engine plant with an annual capacity of 100,000 engines and
transmissions. Manesar and Gurgaon facilities have a combined
capability to produce over 14, 50,000 units annually. More than half
the cars sold in India are Maruti Suzuki cars. The company is a
subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per
cent of Maruti Suzuki. The rest is owned by public and financial
institutions. It is listed on the Bombay Stock Exchange and National
Stock Exchange of India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024
were exported. In all, over six million Maruti Suzuki cars are on Indian
roads since the first car was rolled out on 14 December 1983. Maruti
Suzuki offers 15 models, Maruti 800, Alto, WagonR, Estilo,Astar, Ritz, Swift, Swift
DZire, SX4, Omni, Eeco, Gypsy, Grand
Vitara, Kizashi and the newly launched Ertiga. Swift, Swift DZire, Astar and SX4 are manufactured in Manesar, Grand Vitara and Kizashi
are imported from Japan as completely built units(CBU), remaining all
models are manufactured in Maruti Suzuki's Gurgaon Plant. The
company is believed to be moving towards introduction of a new
version of Maruti 800 by November 2012, which will be more fuel
efficient, though slightly costlier than Alto and existing Maruti
800. Suzuki Motor Corporation, the parent company, is a global
leader in mini and compact cars for three decades. Suzukis technical
superiority lies in its ability to pack power and performance into a
compact, lightweight engine that is clean and fuel efficient. Nearly
75,000 people are employed directly by Maruti Suzuki and its

partners. It has been rated first in customer satisfaction among all car
makers in India from 1999 to 2009 by J D Power Asia Pacific. Maruti
Suzuki will be introducing new 800cc model by Diwali in 2012.The
model is supposed to be fuel efficient, hence more expensive

Joint venture related issues

Relationship between the Government of India, under the United
Front (India) coalition and Suzuki Motor Corporation over the joint
venture was a point of heated debate in the Indian media till Suzuki
Motor Corporation gained the controlling stake. This highly profitable
joint venture that had a near monopolistic trade in the
Indian automobile market and the nature of the partnership built up till
then was the underlying reason for most issues. The success of the
joint venture led Suzuki to increase its equity from 26% to 40% in
1987 and further to 50% in 1992. In 1982 both the venture partners
had entered into an agreement to nominate their candidate for the
post of Managing Director and every Managing Director will have
tenure of five years
R.C. Bhargava was the initial managing director of the company since
the inception of the joint venture. Till today he is regarded as
instrumental for the success of Maruti Suzuki. Joining in 1982 he held
several key positions in the company before heading the company as
Managing Director. Currently he is on the Board of Directors. After
completing his five year tenure, Mr. Bhargava later assumed the
office of Part-Time Chairman. The Government nominated Mr.
S.S.L.N. Bhaskarudu as the Managing Director on 27 August 1997.
Mr. Bhaskarudu had joined Maruti Suzuki in 1983 after spending 21
years in the Public sector undertaking Bharat Heavy Electricals
Limited as General Manager. In 1987 he was promoted as Chief
General Manager. In 1988 he was named Director, Productions and
Projects. The next year (1989) he was named Director of
Materials and in 1993 he became Joint Managing Director.
Suzuki Motor Corporation didn't attend the Annual General Meeting of
the Board with the reason of it being called on a short notice.Later
Suzuki Motor Corporation went on record to state that Bhaskarudu

was "incompetent" and wanted someone else. However, the Ministry

of Industries, Government of India refuted the charges. Media stated
from the Maruti Suzuki sources that Bhaskarudu was interested
to indigenise most of components for the models including gear
boxes especially for Maruti 800. Suzuki also felt that Bhaskarudu was
a proxy for the Government and would not let it increase its stake in
the venture.If Maruti Suzuki would have been able to indigenise gear
boxes then Maruti Suzuki would have been able to manufacture all
the models without the technical assistance from Suzuki. Till today
the issue of localization of gear boxes is highlighted in the press

Industrial relations
Since its founding in 1983, Maruti Udyog Limited experienced few
problems with its labour force. The Indian labour it hired readily
accepted Japanese work culture and the modern manufacturing
process. In 1997, there was a change in ownership, and Maruti
became predominantly government controlled. Shortly thereafter,
conflict between the United Front Government and Suzuki started.
Labour unrest started under management of Indian central
government. In 2000, a major industrial relations issue began and
employees of Maruti went on an indefinite strike, demanding among
other things, major revisions to their wages, incentives and pensions.
Employees used slowdown in October 2000, to press a revision to
their incentive-linked pay. In parallel, after elections and a new central
government led by NDA alliance, India pursued a disinvestments
policy. Along with many other government owned companies, the new
administration proposed to sell part of its stake in Maruti Suzuki in a
public offering. The worker's union opposed this sell-off plan on the
grounds that the company will lose a major business advantage of
being subsidised by the Government, and the union has better
protection while the company remains in control of the government.
The standoff between the union and the management continued
through 2001. The management refused union demands citing

increased competition and lower margins. The central government

prevailed and privatized Maruti in 2002. Suzuki became the majority
owner of Maruti Udyog Limited

Current Modals of Maruti Suzuki

1. 800 (Launched 1983)
2. Omni (Launched 1984)
3. Gypsy (launched 1985)
4. WagonR (Launched 1999)
5. Alto (Launched 1997)
6. Swift (Launched 2005)
7. Estilo (Launched 2007)
8. SX4 (Launched 2007)
9. Swift DZire (Launched 2008)
10.
A-star (Launched 2008)
11.
Ritz (Launched 2009)
12.
Eeco (Launched 2010)

Audi India
Type

Subsidiary

Industry

Automotive

Founded

2004

Headquarters

Mumbai, Maharashtra

Area served

India

Products

Luxury Vehicles

Parent

Audi

Website

Audi.in

History
Audi has been selling Luxury cars in India
the Audi India was established in March
ofVolkswagen Group Sales India. Audi is
countries worldwide and since 2004; Audi
products on the Indian market.

since 2004, however

2007 as a division
represented in 110
has been selling its

In March 2007, Audi set up its own sales company for India. By
establishing Audi India as a Division of Volkswagen Group Sales
India Pvt. Ltd. in Mumbai, Audi is making a clear long-term statement
in the country with ambitious growths plans. Audis goal is to become
the leading automobile luxury brand in the Indian market in the next
few years.

The Audi India strategy encompasses significant investments in

branding, marketing, exclusive dealerships and after sales service for
the upcoming years.
At present, Audi is assembling the Audi A6 and the Audi A4 for the
Indian market in Aurangabad.
Manufacturing facilities
Audi India uses koda Auto India Private Limited manufacturing
facilities
in Aurangabad, Maharashtra to
assemble
the Audi
A4 andAudi A6 models locally.

Audi productions at koda Auto, Aurangabad

Manufactured/assembled locally

Audi A4
Audi A6
Audi Q5

Imported

A8 (L
only)

BMW India Private

Limited

Audi A7
Audi
WB
Audi
2
FSI
only)
Audi

TT (3.
V6

RS5

V8
Audi

Type

Subsidiary

Industry

Automotive

Founded

2006

Headquarters

Gurgaon, India

Area served

India

Products

Automobiles

Employees

1400

Parent

BMW

Website

www.bmw.in

Audi R8
and
R8 V10
Audi Q7

BMWINDIA
BMW India is a 100% subsidiary of the BMW Group headquartered
at Gurgaon near New Delhi in the National Capital Region. BMW
India also has its own manufacturing facility inChennai.

Operations
Till date BMW Group has invested more than Rs 180 Crores in India.
The wide range of BMW activities in India include the establishment
of a production plant in Chennai, Tamil Nadu, parts warehouse in
Mumbai and development of a dealer organization across major
metropolitan centers of the country.
The BMW Plant at Chennai produces among others, the BMW 3
Series, BMW 5 Series, BMW X1 in petrol and diesel variants and the
BMW 7 series. The new BMW X3 is also produced. The BMW Plant
Chennai has the capacity to produce 11,000 units per year on a
double shift basi

Employees
The total number of employees at BMW India is 1400. Up to 1200
jobs will be created in the dealer and service network.
Dealerships
BMW India is the pioneer in bringing luxurious dealerships to India.
BMW India has set a decisive course by setting up BMW dealerships
of international standards across the country. BMW India has also set
very high standards in service quality and customer care.
By end of 2012, BMW India will aggressively expand its dealer
network by increasing the number of outlets to 40 across major

metropolitan centers and emerging markets in India (from the present

22 outlets).
Currently, BMW India is present at 22 locations in the Indian
market: Ahmedabad Parsoli
Motors, Bangalore Navnit
Motors,Bhubaneswar OSL
Prestige, Kozhikode Platino
Classic, Chandigarh Krishna
Automobiles, Chennai KUN
Exclusive, Coimbatore - KUN Exclusive, Delhi - Bird Automotive,
Deutsche Motoren, Goa - Bavaria Motors, Hyderabad - KUN
Exclusive, Indore - Infinity Cars,Jaipur - Sanghi Classic, Kochi Platino Classic, Kolkata - OSL Prestige, Ludhiana - Krishna
Automobiles, Mumbai - Infinity Cars, Navnit Motors, Nagpur - Munich
Motors, Pune - Bavaria Motors, Raipur - Munich Motors, Surat Parsoli Motors.

Models
BMW India produces the following models at its factory in Chennai
BMW 3 Series (BMW 320i, BMW 320d, BMW 320d Dynamic, BMW
320d Exclusive)
BMW 5 Series (BMW 523i, BMW 520d, BMW 525d, BMW 530d)
BMW X1 (BMW X1 sDrive18i, BMW X1 sDrive20d, BMW X1
sDrive20d Exclusive)
BMW X (X3 xDrive30d, X3 xDrive20d)
It imports the following CBU manufactured models in India:
BMW 3 Series (BMW 330d Convertible)
BMW 5 Series (BMW 535i)
BMW Gran Turismo
BMW Financial Services India
BMW Financial Services India is a 100% subsidiary of the BMW
Group and is headquartered in Gurgaon (National Capital Region).
BMW Financial Services operates as a Non-Banking Finance

Company (NBFC) in India. BMW Financial Services operates with its

three business lines: Retail Finance, Commercial Finance and
Insurance Solutions (through cooperation partners). The services
offered through BMW Financial Services are significantly valuable to
the premium clientele in India who require exclusive and flexible
financial solution

International Purchase Office

The International Purchasing Office (IPO) established at BMW Indias
Headquarters in Gurgaon identifies and assesses potential suppliers
for BMW, MINI, and BMW Motorcycles taking into account BMW
Groups requirements for quality, technology and logistics. The IPO
strongly focuses on increasing the sourcing of production material
(components) as well as IT and engineering services from India to the
BMW Group International Production Network.

The BMW Group

The BMW Group is one of the most successful manufacturers of
automobiles and motorcycles in the world with its BMW, MINI and
Rolls-Royce brands. As a global company, the BMW Group operates
25 production and assembly facilities in 14 countries and has a global
sales network in more than 140 countries.
During the financial year 2010, the BMW Group sold 1.46 million cars
and more than 110,000 motorcycles worldwide. The profit before tax
for 2010 was euro 4.8 billion on revenues amounting to euro 60.5
billion. At 31 December 2010, the BMW Group had a workforce of
approximately 95,500 employees.
The success of the BMW Group has always been built on long-term
thinking and responsible action. The company has therefore
established ecological and social sustainability throughout the value
chain, comprehensive product responsibility and a clear commitment
to conserving resources as an integral part of its strategy. As a result

of its efforts, the BMW Group has been ranked industry leader in
the Dow Jones Sustainability Indexes for the last seven years.

Mercedes-Benz India
Mercedes-Benz India Pvt. Ltd.

Type

Subsidiary

Industry

Automotive

Founded

1994

Headquarters

Pune, Maharashtra, India

Key people

Peter T. Honegg

Products

Luxury
Vehicles
Commercial Vehicles

Employees

800 (2007)

Parent

Daimler AG

Website

www.mercedes-benz.co.in

Mercedes-Benz India is a subsidiary of Daimler AG based in India.

History
Daimler entered the Indian market and set up Mercedes-Benz India
Ltd in 1994. The company was later renamed DaimlerChrysler India
Private Ltd after the merger of parent company Daimler with Chrysler.
After DaimlerChrysler sold off most of its equity interests
in Chrysler in 2007, it changed its name to Daimler AG. As a result,
DaimlerChrysler India was renamed Mercedes-Benz India once
again.
Mercedes-Benz India is a 100%-owned subsidiary of Daimler AG.
The company is based in Pune. Mercedes-Benz reached the top 100
most trusted brands of India published by The Brand Trust
Report and also won the Best Brand Award by Auto India Best Brand
Awards 2011.
Mercedes-Benz launched its third generation M-Class sports utility
vehicle (SUV) on 15 May 2012, in New Delhi.
Manufacturing facilities
Daimler has a commercial vehicle plant outside of Chennai which it is
currently upgrading with an investment of 700 million Euros. The
passenger cars manufacturing plant is located in Pune.
Models
The C-Class and E-Class are assembled locally while others are fully
imported from Germany.

Vehicles Manufactured/assembled locally

Mercedes-Benz C-Class (Sedan only)

Mercedes-Benz E-Class (Sedan, Coupe, and Cabrio)

Imported

Mercedes-Benz CL-Class
Mercedes-Benz CLS-Class
Mercedes-Benz GL-Class
Mercedes-Benz M-Class
Mercedes-Benz R-Class
Mercedes-Benz S-Class
Mercedes-Benz SL-Class
Mercedes-Benz SLK-Class

Hyundai Motor India Limited

Hyundai
Limited

Hyundai
India
a
wholly
subsidiary
the Hyunda
Company i
the
2nd
automobile Type

Motor

India

Subsidiary

Industry

Automotive

Founded

6 May 1996

Headquarters

Chennai, India

Key people

Mr. Bo Shin Seo (MD)

Products

Automobiles

Parent

Hyundai Motor Company

Website

www.hyundai.co.in

Motor
Limited is
owned
of
i
Motor
n India. It is
largest

manufacturer in India after Maruti Suzuki.

HISTORY
HMIL's first car, the Hyundai Santro was launched in 23 September
1998 and was a runaway success. Within a few months of its
inception HMIL became the second largest automobile manufacturer
and the largest automobile exporter in India.Hyundai Motor India
Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company (HMC), South Korea and is the largest passenger car
exporter and the second largest car manufacturer in India. HMIL

presently markets 6 models of passenger cars across segments. The

A2 segment includes the Santro, i10 and the i20, the A3 segment
includes the Accent and the Verna, the A5 segment includes the
Sonata Transform and the SUV segment includes the Santa Fe.
HMILs manufacturing plant near Chennai claims to have the most
advanced production, quality and testing capabilities in the
country. To cater to rising demand, HMIL commissioned its second
plant in February 2008, which produces an additional 300,000 units
per annum, raising HMILs total production capacity to 600,000 units
per annum.
HMIL has set up a research and development facility in the cyber city
of Hyderabad.
As HMCs global export hub for compact cars, HMIL is the first
automotive company in India to achieve the export of 10 lakh cars in
just over a decade. HMIL currently exports cars to more than 110
countries across EU, Africa, Middle East, Latin America, Asia and
Australia. It has been the number one exporter of passenger car of
the country for the sixth year in a row.
To support its growth and expansion plans, HMIL currently has a 307
strong dealer network and 627 strong service points across India,
which will see further expansion in 2010. In July 2012, Arvind
Saxena, the Director of Marketing and Sales stepped down from the
position after serving the company for 7 long years.
Hyundai Fluidic Verna

Manufactured locally
1. Hyundai Accent Executive (Launched 2011)
2. Hyundai Santro Xing (Launched 2003)
3. Hyundai Uber Cool i20 (Launched 2008)
4. Hyundai Next Gen i10 (Launched 2010)
5. Hyundai Fluidic Verna (Launched 2011)
6. Hyundai EON (Launched 2011)

Imported
1. Hyundai Terracan (20032007)
2. Hyundai Elantra (20042007)
3. Hyundai Tucson (20052010)
4. Hyundai Sonata Transform (20102011)

Honda Siel Cars India

Honda Siel Cars India Limited

Type

Joint venture

Industry

Automotive

Founded

December 1995

Headquarters Greater Noida, Uttar Pradesh

Number
locations

of Greater Noida, Uttar Pradesh

Bhiwadi, Rajasthan

Key people

Mr.
Takashi
Nagai, Presidentand CEO[1]

Products

Automobiles

Parent

Honda Motor Company

Website

www.hondacarindia.com

Honda Siel Cars India Limited (HSCI) is a joint venture between

the Honda Motor Company of Japan and Siel Limited for the
production, marketing and export of passenger cars in India. It began
operations in December 1995.
It operates production facilities at Greater Noida in Uttar Pradesh and
at Bhiwadi inRajasthan. The company's total investment in its
production facilities in India as of 2010 was over 16.2 billion.

Facilities
HSCI's first manufacturing unit at Greater Noida commenced
operations in 1997. Setup at an initial investment of over 4.5 billion,
the plant is spread over 150 acres (0.61 km2). The initial capacity of
the plant was 30,000 cars per annum, which was thereafter increased
to 50,000 cars on a two-shift basis. The capacity has further been
enhanced to 100,000 units annually as of 2008. This expansion led to
an increase in the covered area in the plant from 107,000 m to over
130,000 m.
The company invested 7.8 billion in Bhiwadi for its second
production plant with an annual production capacity of 50,000 units. It
operates under the ISO 9001 standard for quality management and
ISO 14001 for environment management.
8th Generation Honda Accord
HSCI produces the following vehicles in India for local and export
markets:

Honda City (Launched 1998)

Honda Accord (Launched 2001)
Honda Civic (Launched 2006)
Honda Jazz (Launched 2009)
Honda Brio (Launched 2011)

It also imports the Honda CR-V for sale in the local market.

Sales
HSCI has 127 dealerships across 79 cities in 20 states and 3 Union
Territories of India.
It sold 55,884 units during the period April '09 - February '10 as
against 45,052 units during the same period a year ago, recording an
increase of over 24%. Honda jazz is known as Honda fit in other
countries.