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Top automobile companies in India

Starting from the era when there was too slim of a variety of cars available in Indian
market, Indian automobile industry has come up a long way to have a diverse array of cars
these days. There are a number of top automobile companies running their operations in
India, which again have a range of models in different segments of cars. However, while
looking for top 10 automobile companies in India, one name that would always lead the list is
Maruti Suzuki India. Maruti Suzuki has consistently been the dominant leader in the Indian
automobile industry. However, there are also other big names like Tata Motors, Mahindra and
Mahindra, Hyundai Motors, Hindustan Motors etc.

During its early days, the most of the Indian car auto manufacturers banked upon
foreign technologies. But the scenario has changed over the years and currently, the Indian
auto manufacturers are using their own technology. Due to the growing pace of Indian
automobile market, a number of car manufacturers including the global leaders have locked
their horns in the Indian auto market.

After the recent setback due to the global recession, the Indian automobile market has
again started to grow up. Though the auto sales except commercial vehicles started creeping
up since the beginning of this financial year, it's only the month of September 2009 when the
market saw buoyant sales. It fuelled optimism in the industry. The retail trade also started
soaring up. The auto sales saw a 9.6% rise in the month of September with a sale of
1,092,262 units. The passenger vehicle sales also grew by 20.32%. The two wheeler market
was also augmented by 7.67% during the same period with a total sale of 838,150 units. The
same trade is applicable for the three-wheeler market, which saw a growth of 13.51% (with
sale of 41,137 units) during the same period.

List of Top 10 Automobile Companies in India (Figures in


Crores)
ET 500 Rank Company Turnover PAT MCRP CR Assets
7 Tata Motors Ltd. 123222.91 9273.62 56499.77 52209.48
21 Mahindra & Mahindra Ltd. 37026.37 3079.73 49945.17 36926.19
19 Maruti Suzuki India Ltd. 38140.69 2382.37 31475.63 14762.9
41 Hero MotoCorp Ltd. 19669.29 1927.9 40398.63 4447.22
46 Bajaj Auto Ltd. 17008.05 3454.89 46885.69 5154.96
67 Ashok Leyland Ltd. 11133.04 631.3 6653.15 6621.16
101 Sundaram Clayton Ltd. 7419.41 64.63 529.23 2428.87
110 TVS Motor Company Ltd. 6569.99 127.94 2985 1745.06
148 Eicher Motors Ltd. 5138.64 243.12 4448.27 474.14
396 Force Motors Ltd. 1574.05 58.62 730.05 583

About Top Automobile Companies in India

Tata Motors

Tata Motors is the largest automobile company of Asia headquartered in Mumbai,


India. Annual Projected revenue for 2010-11 is US$ 27.629 billion. It also occupies the
number one position in commercial car segment. Tata Motors enjoys 31.2% of market share
in the multi-utility vehicles, which in luxury car segment, it has 6.4% market share. Most of
the Tata Motors' vehicles are sold predominantly in India and over 4 million vehicles have
been produced domestically within India.

Tata sold 52,531 units of vehicles during September 2009, comparing to 49,647 units
during September 2008 (a growth of 6%). In domestic market, Tata Motors sold 49,650 units
during the same period, comparing to 45,234 units in September 2008

Maruti Suzuki India Limited (MSIL) -

Maruti Suzuki India is an undisputed leader in the Indian automobile industry. Started
its journey in February 1981 as Maurti Udyog Limited, the company created history in the
Indian automobile market with its hugely popular four-wheeler model Maruti 800. The
company became the first Indian automobile company to manufacture one million vehicles in
1994. The company became Maruti Suzuki India Limited on September 17, 2007.

Maruti's average revenue for the year ending 2010-11 is US$7.13 billion. Maruti sold
83,306 units of vehicles in September 2009, comparing to 71,000 units in the same month in
the previous year (with a growth rate of 17.3%). It also exported 11,712 units during
September 2009, comparing to 6,318 units in the same month in the previous year (with a
growth rate of 85.4%).

Hyundai Motor India Limited (HMIL) -

Hyundai Motor India Limited, founded in 1998 and a subsidiary of Korean auto giant
Hyundai Motor Company, is the second largest car manufacturer in India. It is also country's
largest passenger car exporter. Hyundai Motor came very close to the hearts of the Indian
auto lovers through its flagship model Santro.

After the recession, Hyundai Motor saw a growth rate of 25% in the domestic market.
During September 2009, HMIL sold 53,804 units, comparing to 46,218 units during
September 2008. In the domestic market, it sold 27,803 units in September 2009, comparing
to 22,311 during September 2008. The overseas sales during the same period also grew up
9% as it sold 26,001 units in September 2009, comparing to 23,907 units during the same
month in the previous year.

Mahindra & Mahindra Limited (M&M)

Mahindra &Mahindra Limited is another auto-giant in India. A part of the Mahindra


Group, M&M is the largest SUV maker in the country. In September 2009, M&M registered
a domestic sale of record 26,921 units, comparing to 22,729 units in September 2008 (with an
increase of 18.4%). On the other hand, it sold 15,296 units of UV in the same period
comparing to 10,641 units in September 2008 (with a whooping growth of 43.7%).

General Motors India Private Limited (GM India)-

General Motors India Private Limited is another top player in Indian automobile
industry. A wholly-owned subsidiary of the auto giant General Motors, GM India saw a Y-o-
Y sales growth of 49% in September 2009 with a sale of 7,654 units, comparing to 5,154
units in September 2008.

Hero MotoCorp Limited

In 2010, When Honda decided to move out of the joint venture, Hero Group bought
the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero
MotoCorp with a new corporate identity.

Hero Honda Motors Limited, the joint venture between Hero Group and Honda, was
the biggest two-wheeler manufacturers in the world. It shook the Indian two-wheeler market
with its famous model Hero Honda Splendor, which became the largest selling motorcycle in
the world. It consistently sold more than 1 million units of Splendors every year.

In 2008-09, Hero Honda sold about 3.28 million bikes and registered a net profit of `
1281.7 crore. It sold 4,01,290 units of two-wheeler in September 2009, comparing to
3,85,262 in September 2008. It already sold 11,83,235 units of two-wheelers in Q2 of FY10
with a growth rate of 21.7% against the corresponding period of the previous year.

Bajaj Auto

Bajaj Auto is the second largest two-wheeler manufacturer in India. It is also the
fourth largest two and three-wheeler maker in the world. In September 2009, Bajaj Auto sold
249,795 units of two-wheelers, comparing to 218,494 units in September 2008 (with a growth
rate of 14.3%). During September 2009, it also registered a growth of 12.4% in the domestic
two-wheeler sales and 19.9% in two-wheeler export.

Honda Cars India Limited

Honda Siel Cars India Limited, a joint venture between the Japanese auto giant Honda Motor
Company Limited and the Indian company Siel Limited, started its operation in December
1995. In September 2009, HSCI sold 5,794 units, comparing to 3,104 units in September
2008 (with a growth rate of 86.7%).

Toyota Kirloskar Motor Private Limited (TKM)-

Toyota Kirloskar Motor Private Limited is another top Indian automobile company. A
joint venture between the Japanese auto giant Toyota Motor Corporation and Kirloskar
Group, TKM has a number of car models including Innova, Corolla, Fortuner, Camry and the
Land Cruiser Prado. It sold 7,657 units in December 2009..

Hindustan Motors

Hindustan Motors is another top automobile company in India. It was once country's
largest car manufacturer before Maruti Udyog overpowered it. Its popular model
'Ambassador' has been extensively used as government limousine as well as taxi cab in India.

Top 3 auto companies hold 70% market share

Being the top three automobile brands in India has its perks. India is the only country
in the world where the top three auto manufacturers increased their market share to 70% for
April-December 2015 compared to 67% in 2012, according to industry data. The pecking
order has largely remained unchanged in the last five years. Also, the share of the top 10
models in the total sales has remained more than 50% for the last three years. The only
change in the pecking order has been Mahindra & Mahindra moving into the third slot in
2013-14, ousting Tata Motors.

Auto marketers say this overwhelming dominance of a few players in a market, which
has 18 car and SUV manufacturers, is something peculiar to India alone. R S Kalsi, ED
(marketing & sales), Maruti Suzuki India, said, "There is no other example of this trend
anywhere else in the world and the highest marketshare by a single company, apart from
Maruti in India, is Toyota in Japan with around 30%."

Indeed, the top two's dominance of the market becomes obvious when one considers
that their incremental volumes are more than what some of their competitors sell in a year.
Rakesh Srivastava, senior VP (sales and marketing), Hyundai Motor India, said, "Last year,
our sales went up 16% to 4.76 lakh units in the domestic market and this incremental increase
is higher than the annual sales volume of 10 auto companies in India."
Experts say part of this is due to the early mover advantage and the ability to focus on
a solid distribution channel. Maruti Suzuki, for instance, has 1,750 showrooms and 3,000
workshops, while No. 2 player Hyundai has 1,070 showrooms, 370 used car outlets and 335
rural sales outlets.

But part of it also has to do with the existing car pool and the Indian customer's
comfort level with a product/brand that has strong resale value. Indeed the three years of
slowdown has reinforced the customer's tendency to go with what's tried and tested.
"Typically, Indian customers are willing to experiment during an economic growth phase, but
in a slowdown they stick to tested and trusted products," Srivastava said.
Indian automotive companies
Models currently manufactured by Indian companies

Maruti Swift in India. Maruti Suzuki is a subsidiary of Suzuki Motor Corporation of Japan Mahindra
XUV500, one of India's best selling indigenously developed SUV

Chinkara Motors: Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster

Force Motors (earlier known as Tempo): One

Hindustan Motors: Ambassador

Hradyesh: Morris Street

ICML: Rhino Rx

Mahindra: Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito Vibe, Genio, XUV500,
e2o, TUV300, KUV100, NuvoSport.

Premier Automobiles Limited: Sigma, RiO

San Motors: Storm

Maruti Suzuki (subsidiary of Japanese auto maker Suzuki) Alto K10, Alto 800, WagonR,
Swift, Swift DZire, Omni, Eeco, Gypsy, Ertiga, Celerio, Ciaz, Vitara Brezza, Baleno, Ignis,
S-Cross.

Tata Motors: Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo, Movus, Venture, Safari,
Xenon, Aria, Zest, Bolt, Tiago.

Defunct Indian automotive companies

Sipani Automobiles

Standard Motor Products of India

Foreign automotive companies in India

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 currently manufactured or assembled in India
Manufactured only in Chennai, India, the i10 is one of Hyundai's best selling globally exported cars.

Audi India: A3, A4, A6, Q3, Q5.

BMW India: 1 Series, 3 Series, 3 Series GT, 5 Series, 7 Series, X1, X3, X5.

Chevrolet: Spark, Beat, Sail, Cruze, Tavera, Enjoy.

Fiat India: Punto, Linea, Avventura, Urban Cross.

Ford India: Figo, Ecosport, Endeavour, Figo Aspire.

Datsun: Go, Go+, Redi-Go

Honda Cars India Limited: Brio, Jazz, Amaze, BR-V, City.

Hyundai Motor India: Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.

Isuzu: MU-7, V-Cross.

Jaguar (Subsidiary of Tata Motors): XE, XF, XJ.

Land Rover (Subsidiary of Tata Motors): Freelander, Range Rover Evoque.

Mercedes-Benz India: C-Class, E-Class, M-Class, GL-Class, S-Class.

MINI: Countryman.

Mitsubishi (in collaboration with Hindustan Motors): Pajero.

Nissan Motor India: Micra, Sunny, Terrano.

Renault India: Pulse, Duster, Scala, Kwid, Lodgy.

koda Auto India: Rapid, Octavia, Yeti, Superb.

Toyota Kirloskar: Etios Liva, Etios, Corolla Altis, Innova Crysta, Fortuner, Camry.

Volkswagen India: Polo, Cross Polo, Vento, Jetta.

Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle
servicing to existing Opel vehicle owners.

Vehicles currently imported into India


Suzuki Kizashi. Kizashis are sold by Maruti in the Indian market

Aston Martin: Vantage, Vanquish, Rapide, Virage, DB9, DBS, One-77.

Audi: A8 L, Q7, S5 Sportback, TT, RS 7 Sportback, RS 6 Avant, RS5, R8.


Bentley: Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne.

BMW: 5 Series GT, 6 Series, 7 Series, X5 M, X6, X6 M, M3, M5, M6 and Z4.

Bugatti: Veyron.

Chevrolet: Trailblazer.

Ferrari: California, 458 Italia, F12, FF.

Fiat: Abarth 595 Competizone

Ford: Mustang.

General Motors: Hummer H2, Hummer H3.

Gumpert: Apollo.

Honda: Accord Hybrid.

Honda civic MugenRR

Hyundai: Santa Fe.

Isuzu Motors India:D-Max

Jaguar (Subsidiary of Tata Motors): XJS, XK, F-Type.

Koenigsegg: CCX, CCXR, Agera.

Lamborghini: Huracan, Aventador.

Land Rover (Subsidiary of Tata Motors): Discovery 4, Range Rover Sport, Range Rover.

Maserati: Quattroporte, Ghibli.

Mercedes-Benz: A-Class, B-Class, CL-Class, GL-Class, R-Class, CLS-Class, SL-Class, SLK-


Class, Viano, G-Class, AMG.

MINI: Cooper, Cooper S, Convertible.

Mitsubishi: Montero.

Mitsubishi Lancer Evolution X

Nissan:GT-R.

Porsche: 997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.


Rolls Royce: Ghost, Wraith, Phantom, Phantom Coup, Phantom Drophead Coup.

SsangYong (subsidiary of Mahindra & Mahindra): Rexton.

Toyota: Land Cruiser, Land Cruiser Prado, Prius.

Volkswagen: Beetle.

Volvo: V40, S60, S80, XC60, XC90.

Commercial vehicle manufacturers in India

Indian brands

AMW

Eicher Motors

Force

Hindustan Motors

Mahindra & Mahindra

Premier

Tata Motors

Hero Motocorp

Bajaj Auto

TVS Motor

The Indian Automotive Market Positioning


for Growth
The automotive industry in India is one of the largest in the world with an annual production
of 23.37 million vehicles in FY 2014-15, following a growth of 8.68 per cent over the
previous year. The industry accounts for ~7% of the country's GDP. The 2-wheeler category
accounts for a significant portion of the automotive market with an ~80% market share, the
bikes being a popular choice amongst booming middle class families and youth. Moreover,
the growing interest of companies in exploring the rural markets further aided the growth of
that sector. The overall passenger vehicle (PV) segment has a 13 per cent market share and is
expected to grow as Indias large middle class transitions.

The auto industry produced a total 19.84 million vehicles in AprilJanuary 2016, including
passenger vehicles, commercial vehicles, three-wheelers and two-wheelers; up from 19.64
million in April-January 2015. Domestic sales of passenger vehicles grew by 8.13% in April
January 2016 as compared to the same period the year prior. Within the passenger vehicles
category, passenger cars rose by 10.18%, during AprilJanuary 2016 over AprilJanuary
2015.

The domestic sales of commercial vehicles increased by 9.43% in AprilJanuary 2016 as


compared to the previous year. Sales of medium & heavy commercial vehicles (M&HCVs)
increased by 30.19%.

India is a prominent auto exporter and has strong export growth expectations for the near
future. In FY 201415, automobile exports grew by 15% over the previous year.

The Government of India encourages foreign investment in the automobile sector and allows
100% FDI under the automatic route.

Some of the major initiatives taken by the Government of India include:

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 9.4
million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.

In the Union budget of 201516, the Government has announced plans to provide
credit of Rs 850,000 crore (US$127.5 billion) to farmers, which is expected to boost
sales in the tractors segment.

The government plans to promote eco-friendly cars in the countryi.e. CNG-based


vehicles, hybrid vehicles, and electric vehiclesand also mandate 5 per cent ethanol
blending in petrol.

The government has formulated a Scheme for Faster Adoption and Manufacturing of
Electric and Hybrid Vehicles in India, under the National Electric Mobility Mission
2020, to encourage the progressive introduction of reliable, affordable, and efficient
electric and hybrid vehicles into the country.

The Automobile Mission Plan (AMP) for the period 20062016, 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.

abas is positioned to serve Indian automotive clients


The majority of India's car manufacturing industry is evenly divided into three "clusters".
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 & Mahindra and have 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 same area.
This attracts lots of automotive suppliers in and around Pune to use sophisticated automotive
technology. Technology will enable this midsize market to communicate with automotive
leaders smoothly in their day-to-day manufacturing requirements.

Automotive Manufacturers (OEM) deal with tier 1, tier 2 or sometimes even with tier 3
suppliers depending on their procurement requirement. This requirement changes frequently
depending on market needs.

abas ERP offers seamless automotive utility to communicate procurement requirements from
automotive vendors to tier 1, tier 2 and tier 3 vendors.
The abas automotive tool addresses all following requirements for automotive vendors in
India.

EDI communication (monitor and converter via partner)

Standard processing: VDA, EDIFACT, ODETTE

Shipping papers according to the respective standards

Mapping of typical processes, such as:

o Forecast delivery schedule/JIT delivery schedule

o Administration of blanket orders

o Continuous change index administration

o Histories: Forecast delivery schedule history, delivery history, price history

o Invoices, credit notes, and payment advice notes in electronic form

o Packing materials management

o Container management with load carried account statement

o Shipping planning with picking

o ESP processing (consignment stock)

o Combined production
List of automotive plants in India

State Location Manufacturer Class

Andhra
satyavedu hero MotoCorp Two wheelers
Pradesh

Andhra Passenger & Commercial


Sri City Isuzu Motors
Pradesh vehicles

Commercial vehicles
Gujarat Bhuj Asia Motor Works AMW
modification

General Motors India Private


Gujarat Halol Passenger vehicles
Limited

Gujarat Sanand ford motors to be commission Passenger vehicles

Gujarat Sanand Tata Motors Passenger vehicles

Haryana Dharuhera Hero Honda Two wheelers bihar list

Haryana Faridabad JCB excavators

India Yamaha Motor Private


Haryana Faridabad Two wheelers
Limited

Haryana Gurgaon Harley-Davidson India Two wheelers

Haryana Gurgaon Maruti Suzuki Passenger vehicles

Haryana Gurgaon Hero Honda Two wheelers

Haryana Gurgaon Suzuki Two wheelers


List of automotive plants in India

State Location Manufacturer Class

Haryana Manesar Honda Two wheelers

Haryana Manesar Maruti Suzuki Passenger vehicles

Himachal International Cars & Motors


Amb Passenger vehicles
Pradesh Limited

Himachal
Nalagarh TVS Motors Two wheelers
Pradesh

Himachal
Parwanoo TAFE Tractors Commercial vehicles
Pradesh

Jharkhand Jamshedpur Tata Motors Commercial vehicles

Mahindra REVA Electric


Karnataka Bengaluru Passenger vehicles
Vehicles

Toyota Kirloskar Motor


Karnataka Bengaluru Passenger vehicles
Private Limited

Toyota Kirloskar Motor


Karnataka Bidadi Passenger vehicles
Private Limited

Karnataka Dharwada Tata Motors Commercial vehicles

Karnataka Doddaballapura TAFE Tractors Commercial vehicles

Volvo Buses India Private


Karnataka Hoskote Commercial vehicles
Limited

Karnataka Kolar Honda Motorcycles Two wheelers


List of automotive plants in India

State Location Manufacturer Class

Scania Commercial Vehicles


Karnataka Kolara Commercial vehicles
India Private Limited

Karnataka Mysore TVS Motor Two wheelers

Madhya
Mandideep TAFE Tractors Commercial vehicles
Pradesh

Madhya MAN Force Trucks Private


Pithampur Commercial vehicles
Pradesh Limited

Madhya Excavators,back hoe


Pithampur CNH Industrial
Pradesh loaders.

Madhya
Pithampur Mahindra & Mahindra Two wheelers
Pradesh

Madhya
Pithampur Eicher Motors Commercial vehicles
Pradesh

Madhya
Pithampur Hindustan Motors Commercial vehicles
Pradesh

Maharashtra Aurangabad Audi India Passenger vehicles

Skoda Auto India Private


Maharashtra Aurangabad Passenger vehicles
Limited

Maharashtra Baramati (Pune) Piaggio & C. SpA Two wheelers


List of automotive plants in India

State Location Manufacturer Class

Maharashtra Baramati (Pune) Aprilia Two wheelers

Maharashtra Bhandara Ashok Leyland Commercial vehicles

Maharashtra Chakan JCB excavators

Hyundai construction
Maharashtra Chakan excavators
equipments

Maharashtra Chakan Foton Motor (proposed) trucks

Maharashtra Chakan (Pune) Mercedes-Benz India Passenger vehicles

Volkswagen India Private


Maharashtra Chakan (Pune) Passenger vehicles
Limited

Maharashtra Chakan (Pune) Force Motors Commercial vehicles

Maharashtra Chakan (Pune) Force Motors Commercial vehicles

Maharashtra Chakan (Pune) Mahindra Navistar Commercial vehicles

Passenger vehicles, Farm


Maharashtra Kandivali, Mumbai Mahindra & Mahindra
Tractors

Maharashtra khed (pune) hyosung two wheelers

Maharashtra khed (pune) Benelli two wheelers

Maharashtra Nagpur Mahindra & Mahindra Farm Tractors


List of automotive plants in India

State Location Manufacturer Class

Maharashtra Nashik Mahindra & Mahindra Passenger vehicles

Pimpri Chinchwad
Maharashtra Kawasaki two wheelers
(Pune)

Pimpri Chinchwad
Maharashtra KTM two wheelers
(Pune)

Pimpri Chinchwad
Maharashtra Premier Automobiles Limited Commercial vehicles
(Pune)

Pimpri-Chinchwad
Maharashtra Bajaj Auto Commercial vehicles
(Pune)

Pimpri-Chinchwad
Maharashtra Premier Automobiles Limited Passenger vehicles
(Pune)

Pimpri-Chinchwad
Maharashtra Jaguar & Land Rover Passenger vehicles
(Pune)

Fiat India Automobiles


Maharashtra Pune Passenger vehicles
Limited

Maharashtra Pune, Ahmednagar Kinetic Engineering Limited Two wheelers

Maharashtra Ranjangaon Jeep Passenger vehicles

Maharashtra Ranjangaon Tata Motors Passenger vehicles


List of automotive plants in India

State Location Manufacturer Class

Maharashtra Sanaswadi John Deere Agriculture equipments

General Motors India Private


Maharashtra Talegaon Dabhade Passenger vehicles
Limited

CASE NEW HOLLAND Agriculture


Maharashtra Talegaon Dabhade
INDIA Equipment,combines

Hitachi Automotive Systems


Maharashtra Yewlewadi(Pune) Automotive Products
India

Farm Tractors & Agri


Punjab Barnala Standard Tractors Limited
Equipments

International Tractors Limited Farm Tractors & Agri


Punjab Hoshiarpur
(Sonalika Group) Equipments

Punjab Tractors Limited Farm Tractors & Agri


Punjab Mohali
(Mahindra Group) Equipments

Punjab Morinda Class India Limited Agri Equipments

Farm Tractors & Agri


Punjab Nabha Preet Tractors Limited
Equipments

Punjab Nawanshahar SML Isuzu Limited Commercial vehicles

Punjab Patiala John deere India Limited Agri Equipments

Rajasthan Alwar Ashok Leyland Limited Commercial vehicles

Rajasthan Alwar TAFE Tractors Commercial vehicles


List of automotive plants in India

State Location Manufacturer Class

Rajasthan Jaipur Mahindra & Mahindra Farm Tractors

Rajasthan Neemrana Hero MotoCorp Two wheelers

Rajasthan Tapukara Honda Cars India Passenger vehicles

Rajasthan Tapukara Honda Two wheelers

Tamil Nadu Chennai Yamaha Two wheelers

Manufactures trucks and


Tamil Nadu Chennai Daimler
buses

Tamil Nadu Chennai BMW India Passenger vehicles

Tamil Nadu Chennai Royal Enfield Two wheelers

Tamil Nadu Chennai TAFE Tractors Commercial vehicles

Tamil Nadu Ennore, Chennai Ashok Leyland Commercial vehicles

Tamil Nadu Hosur Ashok Leyland Commercial vehicles

Tamil Nadu Hosur Kamaz Vectra Motors Limited Commercial vehicles

Tamil Nadu Hosur TVS Motor Two wheelers


List of automotive plants in India

State Location Manufacturer Class

Tamil Nadu Hosur TVS Motor Commercial vehicles

Tamil Nadu Kalladipatti TAFE Tractors Commercial vehicles

Maraimalai
Tamil Nadu Ford India Private Limited Passenger vehicles
Nagar, Chennai

Tamil Nadu Oragadam, Chennai BharatBenz Commercial vehicles

Tamil Nadu Oragadam, Chennai Renault India Private Limited Passenger vehicles

Nissan Motor India Private


Tamil Nadu Oragadam, Chennai Passenger vehicles
Limited

Tamil Nadu Sriperumbudur, Chennai Hyundai Motor India Limited Passenger vehicles

Tamil Nadu Thiruvallur, Chennai Hindustan Motors Passenger vehicles

Tamil Nadu Thiruvallur, Chennai Caterpillar India Pvt. Ltd. Commercial vehicles

Tamil Nadu Tiruvallur, Chennai Mitsubishi Passenger vehicles

Kodakachani, Medak
Telangana Deccan Auto Bus Manufacturing Plant
District

Telangana Zahirabad Mahindra & Mahindra Commercial vehicles

Uttar Pradesh Greater Noida Honda Siel Cars India Passenger vehicles

Uttar Pradesh Greater Noida New Holland Agriculture / TACTORS


List of automotive plants in India

State Location Manufacturer Class

CHN

India Yamaha Motor Private


Uttar Pradesh Greater Noida Two wheelers
Limited

Uttar Pradesh Lucknow Tata Motors Commercial vehicles

Uttarakhand Haridwar Mahindra & Mahindra Commercial vehicles

Uttarakhand Haridwar Hero Honda Two wheelers

Uttarakhand Pantnagar Bajaj Auto Two wheelers

Uttarakhand Pantnagar Ashok Leyland Commercial vehicles

Uttarakhand Pantnagar Tata Motors Commercial vehicles

West Bengal Hindmotor Hindustan Motors Passenger/Commercial

Demand Factors

1. Financing Options
Auto industry observers cite car loans as the biggest driving factor for the
expansion of the Compact Car segment. At present, almost 85 per cent of all new
car sales are backed by auto finance, compared to 65 per cent five years ago.

Interest rates on car loans have come down drastically in the past four or five
years, which helps prospective buyers take the plunge. The growth of the CC-
segment in the past few years can be mainly credited to factors such as rise in
income levels leading to increased affordability and simultaneous reduction in
interest rates leading to lower EMIs. The drop in interest rates usually helps very
few people to probably shift from the base model to a deluxe model. A larger
shift happens if people are willing to take long-term loans, like five years instead
of the earlier three-year loans.

2. Advertising And Marketing


Due to the advertising techniques adopted by all the manufacturers in the CC-
Segment the sales have risen drastically. It is all due to because the companies
now a days are using even aggressive selling techniques for which they are even
coping with the Film celebrities and Cricket stars, like Maruti has contracted Irfan
Pathan as the brand ambassador of Zen and for Santro Hyundai has contracted
for Shah Rukh Khan.

And the companies are even trying to approach to the customer as to there
demand for a vehicle at special interest loans, etc. They are using data according
to the customers return and earning capacity for attracting the customers for
there vehicles.

3. Price Of The Car


One of the major factors that affect the demand of any commodity in the market
is the price of the commodity. As the law of demand also states that with an
increase in price the demand of the commodity decreases and vice versa.

Since, in the compact car segment market even there are very less competitors
there is stiff price competition. Like the price of Zen in 2001 was Rs. 3.93 lacs
which increased to Rs. 4.01 lacs in 2005, but still the sale of the Maruti brand
keeps on increasing it was due to the companys reputation with the customers.

4. Income Of Consumer / Buyer


The income of the consumer or buyer of the car is a very important factor
of demand. In recent time we have seen that due to increase in the Income of
the general public, there has been a shift from the Lower CC-segment cars to the
Upper CC-segment cars.
Due to the recent increase in the number of multinationals in India, the income
level of the employees have risen drastically and has made CC-segment cars an
entry level car for a lot of people. The average age of a CC-segment car owner
has also dropped from 35 years to 31 years in India.

5. Increase In Affordability
The demand for passenger cars is driven mainly by greater affordability, which in
turn increases the aspiration level of the customers. Today with high amount of
disposable income in the hand of Indian youth, who forms major portion of the
population, PV market has larger addressable market.

6. Demographic Drivers
Cars being aspiration products, purchase decisions are influenced by the overall

economic environment. Increase in per capita income increases the consumption


tendency of the customer. Growth in per capita income and rising aspirations and
changing lifestyle is leading to increased preference for cars over two-wheelers,
which is also having a positive rub off on car demand.

7. Availability Of Easy Financing Options


A majority of PV purchases are financed through financial institutions. Over the
past 4-5 years car industry has been benefited through significant increase in
affordability due to the decrease in EMIs. Car finance rates dropped from 17% in
2000-01 to 11% in 2005-06. However it has increased and averaged at 13.75% in
2006-07. The current hardening of interest rates is expected to affect demand by
reducing affordability.

8.New Offerings
9.Car sales increase when a new model hits the market. Due to escalation in
competition in Indian car market, frequency of new model launches has
increased. In the past one year only the Indian car market has seen many
launches namely SX4, Swift Diesel, Zen Estilo, Spark, Logan, etc.
10. Exports
The share of exports from domestic production is currently at 12-13%, which is
much lower than current export hubs. Currently, Indias share of global
passenger cars export volume stands at less than 1%. But India is fast emerging
as a manufacturing hub for leading global car makers, and several
manufacturers have already firmed up plans for setting up manufacturing bases
in India, which will also be used for exports.

Supply Factors
1. Presence Across Segments
Manufacturers with presence across various product segments can ensure higher
volume and better capacity utilization by using the common manufacturing
capacity. Typically a customer upgrades from one segment to higher segment
and the presence across various segments ensures that the company retains its
existing customers.

2. Efficient Operations
Competition in PV segment is very intense and this requires the existing players
to initiate steps to reduce their cost of production. Effective and successful
operation methods like platform commonality, reduction in vendor base and
workforce rationalization can help a company immensely

3. Wide Dealer Network And Availability Of Finance


A wide dealer network helps the company serve customers over wide
geographical area. For e.g. Maruti has used its available wide service network as
point of difference over competitors. The companies are tying up with the
financial institutions having rural presence to provide additional financing options
to customers in such areas.

4. Access To Latest Technologies


Indian PV segment is highly competitive with as many a 14 players operating in
it and more than 80 models on the offering. But still any new model launch
meets with increase in sales volume for the company. Moreover in a time when a
substantial portion of Indian customer is looking to upgrade in higher segment,
companies with latest technologies and latest models will catch more attentions

5. Price Of The Car


Price of the car is one of the major factors that affect the supply as well as the
demand of a car. If the price of the car is high in the market, the manufacturer or
the supplier will want to supply more units in the market so he can earn more
profits.

In the automotive industry where the market type is oligopoly, if one company
drops its price for the car, there is a huge impact on the sales of the other cars
as well as the same car. In the market the price of one car is inter-related to the
price of the other cars in the same segment. The best solution is that market
equilibrium should be achieved so that the amount of the quantity demanded
should be equal to the amount of the quantity supplied to achieve maximum
profits.

A Market Equilibrium is achieved at the point of intersection of the demand line


and the supply line. The point is the equilibrium point where the quantity
demanded is equal to the quantity supplied.

6. Factors Of Production
There are some factors of production which influence the supply of a car like

Cost of Raw Material

Labour Cost

Machinery

Input Cost

These factors influence the supply of a car largely. If the cost of the raw material
(Steel, Spare Parts, Rubber) increases there will be an increase in the cost of
production leading to decrease in profit margins. Costs like labour costs,
machinery and input costs also influence the supply with the increase or
decrease in these costs.

7. Government Policies And Taxes


If there is a change in the government policies regarding the increase in the road
tax charged or the tax which is to be paid per unit sold, the supply of a car will
fluctuate with the nature of the change.

Recently the government has reduced the custom duty on inputs and raw
material from 20% to 15% which has increased the supply.