Car Manufacturing in India: April 2019

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MarketLine Industry Profile
Car Manufacturing in
India
April 2019
Reference Code: 0102-2010
Publication Date: April 2019
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India - Car Manufacturing 0102 - 2010 - 2018
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EXECUTIVE SUMMARY
Market value
The Indian car manufacturing industry grew by 3.1% in 2018 to reach a value of $48.6 billion.
Market value forecast

In 2023, the Indian car manufacturing industry is forecast to have a value of $58.6 billion, an increase of 20.6% since
2018.
Market volume
The Indian car manufacturing industry grew by 5.5% in 2018 to reach a volume of 4,169.5 thousand units.
Market volume forecast

In 2023, the Indian car manufacturing industry is forecast to have a volume of 5,481.6 thousand units, an increase of
31.5% since 2018.
Geography segmentation
India accounts for 5.2% of the Asia-Pacific car manufacturing industry value.
Market share
Suzuki is the leading player in the Indian car manufacturing industry, generating a 39.6% share of the industry's value.
Market rivalry
Product differentiation, along with ongoing developments in technology, serves to reduce rivalry in the car manufacturing
industry. This is further reduced by a history of consolidation in the industry.

TABLE OF CONTENTS
Executive Summary......................................................................................................................................................... 2
Market value ................................................................................................................................................................ 2
Market value forecast .................................................................................................................................................. 2
Market volume ............................................................................................................................................................. 2
Market volume forecast ............................................................................................................................................... 2
Geography segmentation ............................................................................................................................................ 2
Market share................................................................................................................................................................ 2
Market rivalry ............................................................................................................................................................... 2
Market Overview.............................................................................................................................................................. 7
Market definition .......................................................................................................................................................... 7
Market analysis............................................................................................................................................................ 7
Market Data ..................................................................................................................................................................... 9
Market value ................................................................................................................................................................ 9
Market volume ........................................................................................................................................................... 10
Market Segmentation .................................................................................................................................................... 11
Geography segmentation .......................................................................................................................................... 11
Market share.............................................................................................................................................................. 12
Market Outlook .............................................................................................................................................................. 13
Market value forecast ................................................................................................................................................ 13
Market volume forecast ............................................................................................................................................. 14
Five Forces Analysis ..................................................................................................................................................... 15
Summary ................................................................................................................................................................... 15
Buyer power .............................................................................................................................................................. 16
Supplier power........................................................................................................................................................... 18
New entrants ............................................................................................................................................................. 20
Threat of substitutes .................................................................................................................................................. 22
Degree of rivalry ........................................................................................................................................................ 24
Leading Companies....................................................................................................................................................... 26

Hyundai Motor Company ........................................................................................................................................... 26
Mahindra & Mahindra Limited.................................................................................................................................... 29
Suzuki Motor Corporation .......................................................................................................................................... 33
Tata Motors Limited ................................................................................................................................................... 36
Macroeconomic Indicators............................................................................................................................................. 40
Country data .............................................................................................................................................................. 40
Methodology .................................................................................................................................................................. 42
Industry associations ................................................................................................................................................. 43
Related MarketLine research .................................................................................................................................... 43
Appendix........................................................................................................................................................................ 44
About MarketLine ...................................................................................................................................................... 44

LIST OF TABLES
Table 1: India car manufacturing industry value: $ billion, 2014–18................................................................................9
Table 2: India car manufacturing industry volume: thousand units, 2014–18 ...............................................................10
Table 3: India car manufacturing industry geography segmentation: $ billion, 2018.....................................................11
Table 4: India car manufacturing industry share: % share, by value, 2018...................................................................12
Table 5: India car manufacturing industry value forecast: $ billion, 2018–23................................................................13
Table 6: India car manufacturing industry volume forecast: thousand units, 2018–23..................................................14
Table 7: Hyundai Motor Company: key facts.................................................................................................................26
Table 8: Hyundai Motor Company: key financials ($)....................................................................................................27
Table 9: Hyundai Motor Company: key financials (KRW) .............................................................................................27
Table 10: Hyundai Motor Company: key financial ratios ...............................................................................................27
Table 11: Mahindra & Mahindra Limited: key facts .......................................................................................................29
Table 12: Mahindra & Mahindra Limited: key financials ($)...........................................................................................30
Table 13: Mahindra & Mahindra Limited: key financials (Rs.) .......................................................................................31
Table 14: Mahindra & Mahindra Limited: key financial ratios ........................................................................................31
Table 15: Suzuki Motor Corporation: key facts..............................................................................................................33
Table 16: Suzuki Motor Corporation: key financials ($).................................................................................................34
Table 17: Suzuki Motor Corporation: key financials (¥).................................................................................................34
Table 18: Suzuki Motor Corporation: key financial ratios ..............................................................................................34
Table 19: Tata Motors Limited: key facts.......................................................................................................................36
Table 20: Tata Motors Limited: key financials ($)..........................................................................................................37
Table 21: Tata Motors Limited: key financials (Rs.) ......................................................................................................38
Table 22: Tata Motors Limited: key financial ratios .......................................................................................................38
Table 23: India size of population (million), 2014–18 ....................................................................................................40
Table 24: India gdp (constant 2005 prices, $ billion), 2014–18 .....................................................................................40
Table 25: India gdp (current prices, $ billion), 2014–18 ................................................................................................40
Table 26: India inflation, 2014–18 ................................................................................................................................. 41
Table 27: India consumer price index (absolute), 2014–18...........................................................................................41
Table 28: India exchange rate, 2014–18 .......................................................................................................................41

LIST OF FIGURES
Figure 1: India car manufacturing industry value: $ billion, 2014–18 ..............................................................................9
Figure 2: India car manufacturing industry volume: thousand units, 2014–18 ..............................................................10
Figure 3: India car manufacturing industry geography segmentation: % share, by value, 2018 ...................................11
Figure 4: India car manufacturing industry share: % share, by value, 2018..................................................................12
Figure 5: India car manufacturing industry value forecast: $ billion, 2018–23...............................................................13
Figure 6: India car manufacturing industry volume forecast: thousand units, 2018–23 ................................................14
Figure 7: Forces driving competition in the car manufacturing industry in India, 2018..................................................15
Figure 8: Drivers of buyer power in the car manufacturing industry in India, 2018 .......................................................16
Figure 9: Drivers of supplier power in the car manufacturing industry in India, 2018....................................................18
Figure 10: Factors influencing the likelihood of new entrants in the car manufacturing industry in India, 2018............20
Figure 11: Factors influencing the threat of substitutes in the car manufacturing industry in India, 2018 .....................22
Figure 12: Drivers of degree of rivalry in the car manufacturing industry in India, 2018 ...............................................24
Figure 13: Hyundai Motor Company: revenues & profitability .......................................................................................28
Figure 14: Hyundai Motor Company: assets & liabilities ...............................................................................................28
Figure 15: Mahindra & Mahindra Limited: revenues & profitability ................................................................................31
Figure 16: Mahindra & Mahindra Limited: assets & liabilities ........................................................................................32
Figure 17: Suzuki Motor Corporation: revenues & profitability ......................................................................................35
Figure 18: Suzuki Motor Corporation: assets & liabilities ..............................................................................................35
Figure 19: Tata Motors Limited: revenues & profitability ...............................................................................................38
Figure 20: Tata Motors Limited: assets & liabilities .......................................................................................................39

MARKET OVERVIEW
Market definition
The passenger cars manufacturers industry value is calculated in terms of manufacturer selling price (MSP), and
excludes all taxes and levies.
The volume represents the quantity of completely built up (CBU) cars in the particular country/region.
Passenger cars are defined as motor vehicles with at least four wheels, used for the transport of passengers, and
comprising no more than eight seats in addition to the driver's seat. The market includes both petrol and diesel
passenger cars, as well as hybrid, electric, SUVs and pickup trucks. Any sort of commercial vehicles e.g. vans or HGVs
are excluded.
Market shares refer to the volume - not value - of built units in a particular country in the respective calendar year. Note
that this is respesentative of the number of cars manufactured, not necessarily sold.
Any currency conversions used in the creation of this report have been calculated using constant 2018 annual average
exchange rates.
Car manufacturing can be a highly concentrated industry, and in some countries there is only one significant
manufacturer. Forecasts made in this profile should not be interpreted as predictions of any individual company's
performance.
For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific, Middle
East, South Africa and Nigeria.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Peru.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.
Market analysis
The Indian car manufacturing industry has grown at a strong pace overall in recent years; this is expected to decelerate
over the forecast period.
The Indian car manufacturing industry had total revenues of $48.6bn in 2018, representing a compound annual growth
rate (CAGR) of 5.3% between 2014 and 2018. In comparison, the South Korean industry declined with a compound
annual rate of change (CARC) of -3.3%, and the Chinese industry increased with a CAGR of 0.3%, over the same
period, to reach respective values of $102.0bn and $502.9bn in 2018.
A key feature of the Indian industry during the historic period was the Indian government’s sudden decision to announce
demonetization. The economic alarm that was ignited as a consequence of the government’s actions ultimately struck
the country’s car manufacturing industry, as the sale of cars hit a 16-year low in December 2016. Though sales have
recovered, it was on the back of heavy discounts in order to boost demand. As such, even though volume consumption
levels recovered in the aftermath of the demonetization, the value of the market was not able to grow at the same pace.

Industry consumption volume increased with a CAGR of 7.2% between 2014 and 2018, to reach a total of 4.2 million
units in 2018. The industry's volume is expected to rise to 5.5 million units by the end of 2023, representing a CAGR of
5.6% for the 2018-2023 period.
Improving macroeconomic conditions, such as rising average annual wages and household consumption levels, coupled
with declining unemployment rates, bolstered the country’s middle class population. Their financial ability to purchase
cars has grown strongly in recent years, supporting volume consumption levels.
As technology improves the efficiency and price competitiveness of electric cars, demand for these vehicles will
undoubtedly increase. A number of major global car manufacturers such as Volvo, GM, Aston Martin, and Jaguar Land
Rover have announced plans to switch over to manufacturing only electric or hybrid cars at some point within the coming
decade. For new entrants looking to enter this industry, the electric cars segment will therefore be particularly interesting.
The performance of the industry is forecast to decelerate, with an anticipated CAGR of 3.8% for the five-year period
2018 - 2023, which is expected to drive the industry to a value of $58.6bn by the end of 2023. Comparatively, the South
Korean and Chinese industries will grow with CAGRs of 1.8% and 2.1% respectively, over the same period, to reach
respective values of $111.5bn and $557.2bn in 2023.
The Indian government is seeking to bolster domestic demand for electric cars via the FAME-India (Faster Adoption and
Manufacturing of (hybrid and) Electric vehicles in India) scheme. The government plans to attract foreign and domestic
car manufacturers to focus on this segment of the industry. Ultimately, it is the growth of the middle class that will boost
volume consumption levels in India. Increased road connectivity via the Bharatmala Pariyojana project, which will add
83,677km to the Indian road network, will also help to bolster demand.

MARKET DATA
Market value
The Indian car manufacturing industry grew by 3.1% in 2018 to reach a value of $48.6 billion.
The compound annual growth rate of the industry in the period 2014–18 was 5.3%.
Table 1: India car manufacturing industry value: $ billion, 2014–18
Year $ billion Rs. billion € billion % Growth

2014 39.6 2,707.2 33.5
2015 39.8 2,720.9 33.7 0.5%
2016 48.1 3,288.7 40.8 20.9%
2017 47.1 3,222.5 39.9 (2.0%)
2018 48.6 3,323.5 41.2 3.1%
CAGR: 2014–18 5.3%
SOURCE: MARKETLINE MARKETLINE
Figure 1: India car manufacturing industry value: $ billion, 2014–18

Market volume
The Indian car manufacturing industry grew by 5.5% in 2018 to reach a volume of 4,169.5 thousand units.
The compound annual growth rate of the industry in the period 2014–18 was 7.2%.
Table 2: India car manufacturing industry volume: thousand units, 2014–18
Year thousand units % Growth

2014 3,162.4
2015 3,378.1 6.8%
2016 3,677.6 8.9%
2017 3,952.6 7.5%
2018 4,169.5 5.5%
CAGR: 2014–18 7.2%
Figure 2: India car manufacturing industry volume: thousand units, 2014–18

MARKET SEGMENTATION
Geography segmentation
India accounts for 5.2% of the Asia-Pacific car manufacturing industry value.
China accounts for a further 54.2% of the Asia-Pacific industry.
Table 3: India car manufacturing industry geography segmentation: $ billion, 2018
Geography 2018 %
China 502.9 54.2
Japan 186.2 20.1
South Korea 102.0 11.0
India 48.6 5.2
Taiwan 5.9 0.6
Rest of Asia-Pacific 82.2 8.9
Total 927.8 100%
Figure 3: India car manufacturing industry geography segmentation: % share, by value, 2018

Market share
Suzuki is the leading player in the Indian car manufacturing industry, generating a 39.6% share of the industry's value.
Hyundai Kia Automotive Group accounts for a further 15% of the industry.
Table 4: India car manufacturing industry share: % share, by value, 2018
Company % Share
Suzuki 39.6%
Hyundai Kia Automotive Group 15.0%
Mahindra & Mahindra 11.0%
Tata Group 10.5%
Other 23.9%
Total 100%
Figure 4: India car manufacturing industry share: % share, by value, 2018

MARKET OUTLOOK
Market value forecast
In 2023, the Indian car manufacturing industry is forecast to have a value of $58.6 billion, an increase of 20.6% since
2018.
The compound annual growth rate of the industry in the period 2018–23 is predicted to be 3.8%.
Table 5: India car manufacturing industry value forecast: $ billion, 2018–23
Year $ billion Rs. billion € billion % Growth

2018 48.6 3,323.5 41.2 3.1%
2019 50.8 3,472.9 43.0 4.5%
2020 52.7 3,606.5 44.7 3.8%
2021 54.6 3,737.7 46.3 3.6%
2022 56.5 3,867.5 47.9 3.5%
2023 58.6 4,006.9 49.7 3.6%
CAGR: 2018–23 3.8%
Figure 5: India car manufacturing industry value forecast: $ billion, 2018–23

Market volume forecast
In 2023, the Indian car manufacturing industry is forecast to have a volume of 5,481.6 thousand units, an increase of
31.5% since 2018.
The compound annual growth rate of the industry in the period 2018–23 is predicted to be 5.6%.
Table 6: India car manufacturing industry volume forecast: thousand units, 2018–23
Year thousand units % Growth

2018 4,169.5 5.5%
2019 4,444.7 6.6%
2020 4,712.0 6.0%
2021 4,959.6 5.3%
2022 5,214.6 5.1%
2023 5,481.6 5.1%
CAGR: 2018–23 5.6%
Figure 6: India car manufacturing industry volume forecast: thousand units, 2018–23

FIVE FORCES ANALYSIS
The car manufacturing market will be analyzed taking car manufacturers as players. The key buyers will be taken as car
dealerships, and suppliers of commodities such as metals as the key suppliers.
Summary
Figure 7: Forces driving competition in the car manufacturing industry in India, 2018
Product differentiation, along with ongoing developments in technology, serves to reduce rivalry in the car manufacturing
industry. This is further reduced by a history of consolidation in the industry.
Car dealerships, which are the buyers in this industry, serve as intermediaries between car manufacturers and end
users, with car dealerships generally having exclusive contractual agreements with one particular manufacturer; this
reduces buyer power. Suppliers in this industry provide commodity items such as metals or technological pieces and
fabricated components. Typical suppliers are likely to sell to a wide variety of manufacturing companies, with the car
industry likely to be contributing only a small share of total supplier revenues, thus shifting power towards the supplier.
The Indian car manufacturing industry comprises Suzuki, Hyundai, Tata and Mahindra, which collectively constitute 77%
of the industry's total volume.
Brand strength, goodwill and reputation are exceptionally important in the car manufacturing industry, and it is therefore
quite difficult for new players to directly enter a particular country's industry. Where there is already a strong
manufacturing presence, it can be particularly off-putting for potential new entrants. Used cars and personal contract
purchase (PCP) related deals form the main substitutes to the car manufacturing industry; however, initiatives such as
scrappage schemes, which have been offered in many countries, have incentivized customers to purchase new cars.
This mitigating factor reduced the threat posed by used cars, although it was only a short-term solution.
Rivalry in the car manufacturing industry is reduced through differentiation, with several defined segments within the
industry, such as luxury and budget vehicles. Most companies service a number of different segments, either through
different models or through different brands, in order to diversify their product portfolio and reduce competition.

Buyer power
Figure 8: Drivers of buyer power in the car manufacturing industry in India, 2018
Car dealerships, which are the buyers in this industry, serve as intermediaries between car manufacturers and end users
(consumers). These dealerships tend to be relatively large and few in number, which increases buyer power.
However, these companies are usually linked to one specific manufacturer via exclusive contractual agreements,
meaning that the reliance on car manufacturers is increased. Therefore, buyer power is somewhat weakened as once
the dealership has agreed to sell a particular manufacturer’s cars, it is difficult to renege on that agreement: buyers can
attempt to negotiate withdrawal from the contract with the manufacturer or wait for the contract to expire. The cost of
switching between manufacturers is high as the return of old stock and the arrival of new stock could result in a difficult
transfer between buyers.
Buyers in this industry attempt to differentiate their products by offering new features (sat-nav, parking sensors or a stop-
start system). However, players generally offer a similar range of products; this reduces buyer power as undifferentiated
products can spark a price war between players (and suppliers).
In 2018, Donald Trump authorized new tariffs on imported steel and aluminum, both of which GM and Ford require,
leading to a $1bn hit in higher costs. These costs are going to inevitably be passed onto the consumers. As the largest
importer of cars across the globe, an increasingly protectionist US would result in foreign manufactured cars increasingly
becoming less competitive in terms of price against US manufactured cars. Subsequently, an increased number of cars
will stay behind in domestic industries, at least in the short term, till manufactures are able to reduce their manufacturing
output.
Customers in this industry tend not to be loyal. While they do buy cars that they know and trust or have been
recommended, the industry is largely feature driven; buyers are part of a price driven industry, which raises buyer power.
Companies in this industry usually partner with multi-national corporations (industry players) that have large financial
backing, while the price profit on new cars tends to be low; buyer power is raised by selling in bulk or on a long-term deal
(PCP deal). Conversely, buyer power is undermined, as while buyers are unlikely to backwards integrate due to a
dependence on manufacturers, industry players can potentially forward integrate to act as buyers. Buyers in the car
manufacturing industry are dependent on manufacturer’s products as operations would halt without them, which also
reduces buyer power.

Buyer power in the Indian car manufacturing industry is assessed as weak overall.

Supplier power
Figure 9: Drivers of supplier power in the car manufacturing industry in India, 2018
The power of suppliers is mitigated by the number of existing potential suppliers in this industry, but switching costs are
high because establishing part designs and specifications requires a fair initial investment. Additionally, the threat of
forward integration from the suppliers is very unlikely. Auto manufacturers require inputs-labor, parts, raw materials and
services. The cost of these inputs can have a significant effect on profitability, leading to extremely high entry barriers.
These suppliers have to play by the rules set by the brands. In this way, the bargaining power of suppliers is
considerably low.
Key inputs required by car manufacturers are typically commodity items, such as metals, along with various other inputs
such as fabricated components or technical additions. These items are often produced by other companies rather than
being manufactured in-house, although some of the larger players do operate component production factories. Supplier
power is decreased when players operate their own manufacturing plants as they have a direct tie to the manufacturer
and can produce all the components specifically for their products, reducing the need for third party suppliers. Examples
of such backwards integration reduce supplier power to some extent.
With fairly low differentiation of raw materials, there is often little to distinguish between suppliers, which reduces supplier
power. This is further reduced by the potential of industry players switching between suppliers, which could spark a price
war. However, the importance of high quality raw materials and components to manufacturers (particularly in relation to
safety standard concerns) can increase supplier power.
Globally, prices of primary raw materials (such as steel and aluminum) have been fluctuating in the past few years,
placing pressure on manufacturers' margins. The prices for these raw materials will be further impacted globally by US
President Donald Trump’s decision to impose increased import tariffs on foreign aluminum and steel into the US. With
high quality steel and aluminum being key ingredients in the manufacturing process of cars, this increases supplier
power.
The upstream competitive landscape is relatively fragmented, although recent consolidation in the steel industry could
boost supplier power owing to there being fewer suppliers of specific materials. Typical suppliers are likely to sell to a
wide variety of manufacturing companies, with the car industry likely to be contributing only a small share of total supplier
revenues. This strengthens the position of suppliers.

Overall, supplier power is moderate.

New entrants
Figure 10: Factors influencing the likelihood of new entrants in the car manufacturing industry
in India, 2018
Brand strength and reputation are highly important in the Indian car manufacturing industry. As such, it is difficult for new
players to directly enter the industry, particularly given the dominance of incumbents such as Suzuki (Maruti) and Tata
Motors. Due to the high fixed costs in car design and manufacture, as well as the economies of scale gained from mass
production, new start-up companies are rare: the capital requirements for a manufacturing facility of feasible scale are
simply too high. The global economic downturn had a negative impact on car sales as consumers avoided such
expensive purchases, making new entrants to the industry increasingly unlikely. Scale is vastly important within this
industry as high financial is backing required for new entrants.
Domestic demand is driving production growth in India, but this is something of a waiting game for manufacturers, as low
incomes are unlikely to yield the kind of spending power required for a car purchase. The SAIC Motor Corporation, a
Chinese car manufacturer, has decided to set up shop in India and has registered a new company, MG Motor India,
through which it will sell its cars. MG is actually a British brand that is now owned by SAIC. In September 2017, MG
Motor India took over operations of the Halol car manufacturing plant in the state of Gujarat from General Motors. Silicon
Valley-based electric carmaker Tesla was mulling over the idea of entering the Indian industry in 2018, although it
remains to be seen if this entry materializes.
In order to keep up with the growing demand, several auto makers have started investing heavily in various segments of
the industry during the last few months. In recent years, India has emerged as a leading center for the manufacture of
small cars. While the possibilities for the Indian automobile industry are impressive, there are challenges that could
thwart future growth. Since demand for automobiles is directly linked to overall economic expansion and rising personal
incomes, industry growth will slow if the economy weakens. This could serve to decrease the threat of new entrants to
some extent.

The emergence of electric car technology and a push towards autonomous vehicles has recently given rise to the
prospect of major new entrants. Tesla Motors, an electric vehicle manufacturer in the US that may expand elsewhere,
has been a PR success for a number of years with a line of premium cars and it is looking to significantly increase its
industry share following the successful pre-order release of its cheaper Model 3 in 2016. However, current industry
players are also fighting for industry share within the new forms of technology; BMW, Jaguar, Nissan and Audi are
among a long list of established brands attempting to diversify their portfolio with electric cars, helping to mitigate the risk
of new entrants.
Although the production of electric vehicles is relatively easier than the expertise required for-fuel based engines, giving
rise to a number of new entrants, the capital requirements are still vast and incumbents are already shifting into this
segment. Players such as Volvo (Geely), General Motors, Aston Martin, and Jaguar Land Rover have all announced
plans to switch over to manufacturing only electric or hybrid cars at some point within the coming decade, meaning that
space for entry and growth in this segment is limited over the forecast period, somewhat reducing the threat of new
entrants in the long-term.
Self-driving technology is seeing an abundance of new entrants within the industry. Google have announced a
partnership with Fiat Chrysler Automobiles in 2016, Uber worked with Toyota in 2018 through a $500m deal and Amazon
purchased self-driving car company Aurora in 2019. Apple has also been rumored to be lining up a car manufacturing
project but this may only be in relation to infotainment systems for existing brands. The car manufacturing industry is
semi-differentiated due to the introduction of new technology and an increasing range of vehicles with varying levels of
features, in which more expensive vehicles tend to have the most features. Evidently, there are a number of firms looking
to capitalize on the industry, outside of the traditional industry players, thus increasing the risk of new entrants.
Slight diversification and healthy growth will increase the threat of new entrants to the Indian car manufacturing industry.
However, increasing consolidation in the car manufacturing industry in India serves to reduce the threat of new entrants
as manufacturers tend to work with a small range of suppliers and these are usually tied together with contractual
agreements that are costly to break. The same can be said for distribution channels. Manufacturers will attempt to hold
their share of the industry, preventing access to distributors and further reducing the potential threat. In fact, Suzuki
(Maruti) alone accounts for almost 50% of all cars that are manufactured in India.
Intellectual property (IP) in the original car manufacturing industry is strong and relies on the ideas generated by design
engineers. Financial protection is required to ensure designs and components are not copied unlawfully. The need for
this financial backing serves to weaken the threat of new entrants.
Overall, the threat of new entrants is weak.

Threat of substitutes
Figure 11: Factors influencing the threat of substitutes in the car manufacturing industry in
India, 2018
Used cars form the main substitute to the car manufacturing industry. Car dealerships which sell both new and used cars
are likely to have sold more of the latter during the global economic downturn as consumers avoided making big
purchases. Car manufacturers should be wary of the possibility of dealerships agreeing to sell cars from rival
manufacturers; car manufacturers that have long-standing contractual agreements with loyal car dealerships will be
better protected from this threat. However, those with short-term contracts or those where agreements are close to
expiry are more vulnerable.
It is, however, difficult for car dealers to switch between manufacturers due to the contractual agreements, along with
switching costs that involve completely re-branding the showroom and physically removing existing stock and replacing
it. Manufacturers can sometimes stipulate in contracts with dealers that only new cars may be sold, eliminating the threat
posed by used cars. It is important to keep in mind initiatives such as scrappage schemes, which have been offered in
many countries, have incentivized customers to purchase new cars. This mitigating factor has the potential to reduce the
threat posed by used cars, although it is only a short-term solution.
Increasing fuel prices have been pushing some urban drivers to use public transportation. Most vehicle owners still agree
that the convenience of using a personal vehicle offsets increases in fuel prices; however, if this trend continues and
automobile manufacturers are not able to provide a more cost-efficient solution, this threat will increase.
A growing indirect threat to this industry is being posed by the growth in the car sharing phenomenon. Whilst car sharing
companies utilize cars as their medium for operations, the sharing element involved results in a fewer number of cars
being consumed. According to a study conducted by UC Berkeley’s Transportation Sustainability Research Center
(TSRC), car2go car sharing led the number of cars in Washington DC to reduce by seven cars per car2go shared
vehicle. This figure stood at 11 cars in Calgary, highlighting the strong threat car sharing poses to the car manufacturing
industry. In India, car sharing companies such as BlaBlaCar and Zoomcar have been growing in popularity in recent
years.

A secondary substitute to the car manufacturing industry is the recent implementation of part time deals such as the PCP
deals for new cars. These tie customers into a three-year deal paying a monthly fee for the vehicle in question with a
lump sum at the end of the deal or to renegotiate the deal for a newer vehicle. The ability to keep customers and
potentially increase customer loyalty through long term deals increases the threat of substitutes as customers will see
the long-term deal as a price saving option; however, at the end of the deal they will not own the vehicle, and have the
potential to return it to the dealership. Dealerships are therefore able to continue re-leasing the same vehicle to
numerous customers (generally in the region of two to three different customers) increasing the possible profit margins
per vehicle. PCP deals are offered by a range of car manufacturers such as Ford, General Motors, Renault, Toyota and
Fiat Chrysler, which serve a diverse range of countries globally.
Overall, the threat of substitutes is weak.

Degree of rivalry
Figure 12: Drivers of degree of rivalry in the car manufacturing industry in India, 2018
With the rise of international competitors, rivalry in the automotive industry has become far more intense as firms
compete on both price and non-price dimensions. Different companies are providing distinct incentives to attract
customers to purchase their own vehicles. The major player in this industry, Suzuki (Maruti), accounts for almost 40% of
all cars that are manufactured in India. This strongly reduces the degree of rivalry as incumbents are well established,
and the chance of new entrants and increased competition is reduced due to their consolidated position in the industry.
Exit barriers for the industry players are high, making it difficult to leave, which increases rivalry. Even if the product fails,
the heavy initial investment in research and design, alongside the production of the car, means that it is extremely
difficult to end the production and transition into a new product. Additionally, the production line is often taken up by a
new model, which has incurred large costs to be achieved. The heavy investment and focus upon a single model further
increases rivalry, as competitors cannot simply exit.
Increasing consumer warranties or service is very common these days. To maintain low costs, companies consistently
have to make manufacturing improvements to keep the business competitive. This requires additional capital
expenditure which tends to eat up a company's earnings. On the other hand, if no one else can provide
products/services the way the company does, they have a monopoly. For example, the Tato NANO enjoyed the
monopoly of a small car which appealed to motocyclists, of which there are no competitors in this segment. As such,
they were able to maintain the same model throughout its life span without having to invest a large chunk of their capital
on research and development.
The ability to switch between manufacturers is an expensive prospect, reducing rivalry between players; predominantly
this is down to costs associated with returning old stock and the arrival of new stock which could present a significant
financial upheaval.
Rivalry is reduced slightly by a degree of differentiation, as there are several segments within the industry, including
luxury and budget. However, some companies service multiple segments, such as Toyota, which manufactures luxury
cars under the Lexus brand, alongside its core offering of more economical vehicles. Players are unable to easily exit
this industry as they act in a specialized manner relying on a strong technical knowledge of niche products. A lack of
diversity and similarity between players raises rivalry.

Domestic demand is driving production growth in India, but this is something of a waiting game for manufacturers as low
incomes are unlikely to yield the kind of spending power required for a car purchase. This intensifies rivalry to some
extent.
Expected growth over the forecast period should lower the degree of rivalry; however, the deceleration of this growth,
among other factors, might cause rivalry to increase instead. In the immediate aftermath of the Indian government's
decision to enforce demonetization on the country in November 2016, car sales plummeted. Total sales of cars hit a 16
year low in December 2016. The industry has recovered since then, but value growth has not been as impressive as
volume growth. This scenario results in a slightly higher degree of rivalry.
Overall, the degree of rivalry is assessed as moderate.

LEADING COMPANIES
Hyundai Motor Company
Table 7: Hyundai Motor Company: key facts
Head office: 12 Heolleung-ro, Seocho-gu, Seoul, KOR

Telephone: 82 2 3464 1114
Fax: 82 2 3464 3477
Website: worldwide.hyundai.com
Financial year-end: December
Ticker: 5380
Stock exchange: Korea
SOURCE: COMPANY WEBSITE MARKETLINE
Hyundai Motor Company (Hyundai) is a Korea-based company that is engaged in the design, development, and
manufacturing of automobiles. The company is part of the Hyundai Group, which includes companies with a diverse
market range, including steel, construction, auto parts, finance and services, information technology and software, and
logistics. Hyundai primarily operates in Korea, North America, Europe, Asia, and other countries.
The company operates through three business segments: Vehicle, Finance, and Others.
The Vehicle segment is engaged in the design, development, manufacturing and sales of automobiles. The company's
passenger vehicles include passenger cars and sports utility vehicles (SUVs). The company also offers commercial
vehicles, including cargo, dump, mixer, and tractor trucks. Its commercial vehicles also include buses, trucks and special
vehicles. The segment also offers bare chassis for customers.
The company sells its passenger cars under the Centennial, Equus, Genesis, Veloster, Azera, Sonata, i40, Elantra,
Accent, i30, i20, ix20, i10, Eon, and HB20 brand names. The company markets its SUVs under the Creta, Santa Fe,
Tucson, and ix35 brand names.
Hyundai has three factories in South Korea, including the Ulsan, Asan, and Jeonju factories. The Ulsan factory is
Hyundai's main factory comprising five independent manufacturing facilities on a 5,050,000 square meter site that
employs more than 34,000 employees and has a capacity to produce 1.5 million vehicles per year. The Asan factory
produces 300,000 high-quality midsize and full-size cars, such as Sonata and Azera (Grandeur), every year. The Jeonju
factory is the world's biggest production center for commercial vehicles with an annual capacity of 100,000 vehicles per
year. The Jeonju factory specializes in the production of commercial vehicles such as trucks, buses, and specially
equipped vehicles.
The company also operates seven manufacturing bases outside South Korea, including the US, China, India, the Czech
Republic, Turkey, Brazil, and Russia. The China plant’s annual manufacturing capacity is 1,050,000 vehicles across
three factories. The Indian plant is a manufacturing base for strategic vehicles such as EON, i10, and i20. The Czech
plant focuses on strategic vehicles such as the i-series. The Russia plant manufactures the strategic model Solaris
(Accent), which is focused on the local market. Hyundai Motor’s Brazil plant manufactures the strategic vehicle, HB20.
The company has more than 6,000 sales networks spanning more than 200 countries.
The company's Finance segment operates vehicle financing, credit card processing and other financing activities.
The Other segment includes research and development (R&D), train manufacturing, and the company’s other activities.

Geographically, the company classifies its operations into five segments, namely Korea, North America, Europe, Asia,
and Others.
Key Metrics
The company recorded revenues of $87,575 million in the fiscal year ending December 2017, an increase of 2.9%
compared to fiscal 2016. Its net income was $3,665 million in fiscal 2017, compared to a net income of $4,913 million in
the preceding year.
Table 8: Hyundai Motor Company: key financials ($)
$ million 2013 2014 2015 2016 2017

Revenues 79,334.8 81,105.5 83,561.2 85,097.1 87,575.1
Net income (loss) 8,172.2 6,675.9 5,831.3 4,912.7 3,664.6
Total assets 121,237.6 133,780.7 150,266.7 162,504.8 161,926.5
Total liabilities 69,821.9 76,878.6 93,906.7 101,450.9 99,133.4
SOURCE: COMPANY FILINGS MARKETLINE
Table 9: Hyundai Motor Company: key financials (KRW)
KRW million 2013 2014 2015 2016 2017

Revenues 87,307,636.0 89,256,319.0 91,958,736.0 93,649,024.0 96,376,079.0
Net income (loss) 8,993,497.0 7,346,807.0 6,417,303.0 5,406,435.0 4,032,824.0
133,421,479. 147,225,117. 165,367,946. 178,835,928. 178,199,454.
Total assets
0 0 0 0 0
103,343,988. 111,646,270. 109,095,970.
Total liabilities 76,838,690.0 84,604,552.0
0 0 0
Table 10: Hyundai Motor Company: key financial ratios
Ratio 2013 2014 2015 2016 2017

Profit margin 10.3% 8.2% 7.0% 5.8% 4.2%
Revenue growth 3.4% 2.2% 3.0% 1.8% 2.9%
Asset growth 9.8% 10.3% 12.3% 8.1% (0.4%)
Liabilities growth 4.4% 10.1% 22.1% 8.0% (2.3%)
Debt/asset ratio 57.6% 57.5% 62.5% 62.4% 61.2%
Return on assets 7.1% 5.2% 4.1% 3.1% 2.3%

Figure 13: Hyundai Motor Company: revenues & profitability
Figure 14: Hyundai Motor Company: assets & liabilities

Mahindra & Mahindra Limited
Table 11: Mahindra & Mahindra Limited: key facts
Head office: Gateway Building, Apollo Bunder, Mumbai, Maharashtra, IND

Telephone: 91 22 2490 1441
Fax: 91 22 2490 0833
Website: www.mahindra.com
Financial year-end: March
Ticker: 500520
Stock exchange: Bombay
Mahindra & Mahindra Limited (M&M) is an India-based manufacturer and marketer of utility vehicles, and tractors. It also
provides farm equipment, steel trading and processing, financial, infrastructure development, hospitality, and information
technology services. The group operates in Asia, the Americas, Europe, the Middle East and Africa, and Australia.
The group operates through 10 segments: Automotive, Farm Equipment, Financial Services, Hospitality, Two Wheelers,
Steel Trading and Processing, Infrastructure, Systech, IT Services, and Others.
M&M's Automotive segment comprises the design, manufacturing, and sales of automobiles, spare parts, and related
services. The group manufactures and markets utility vehicles and light commercial vehicles, including three-wheelers.
M&M markets its vehicles under the Alfa, Bolero, Korando, Kyron, Loadking, Maxximo, REVA Electric Cars, Rexton II,
Rodius, Scorpio, Thar, Verito, XUV 500, Xylo, and e2o brand names. It exports its automotive products to several
regions, including Europe, Africa, South America, South Asia, and the Middle East.
The group's Farm Equipment segment operates through the Mahindra USA, Mahindra Yueda (Yancheng) Tractor,
Mahindra (China) Tractor, and Mahindra & Mahindra-Farm Equipment Division subsidiaries. It is engaged in the sale of
tractors, spare parts, and related services. Under this segment, the group markets its vehicles under the Arjun,
Bhoomiputra, Sarpanch, Shaan, Yuvraj, FengShou, Huanghai Jinma, and Swaraj brand names. Additionally, the
segment offers crop care solutions and the distribution of seeds. The segment also offers power generation products
under the Mahindra Powerol Brand.
M&M's Financial Services segment comprises services relating to the financing, leasing and hire purchase of
automobiles and tractors. It provides financing for UVs, tractors and cars in the rural and semi-urban sectors.
Additionally, the group offers direct insurance broking services both in the life and non-life insurance segments with a
focus on the retail and commercial lines of business. The life insurance retail products include children's plans,
endowment, money back, retirement plans, term, unit linked plans, and whole-life plans, while the group's non-life
insurance retail products cover personal, industrial, commercial, social and liability plans.
The group’s Hospitality segment includes the sale of timeshares, and providing leisure facilities to members for a
specified period each year, over a number of years, for which membership fees are collected either in full up front, or on
a deferred payment basis. The Hospitality segment operates through the Mahindra Holidays & Resorts India and
Mahindra Ocean Blue Marine subsidiaries.
The group’s Two Wheelers segment comprises the sale of two wheelers, spare parts and related services. The group's
Steel Trading and Processing segment comprises the trading and processing of steel.
M&M's Infrastructure segment is engaged in operating commercial complexes, project management and development.
The segment offers services related to real estate, special economic zones, infrastructure development, project
engineering consultancy and design.

The Systech segment is engaged in providing automotive components and other related products and services. It
provides design and engineering services, computer-aided design (CAD) and computer-aided engineering (CAE)
services to the automotive domain, aerospace and general engineering industries. Its products include alloy steel,
blankings, and ring rolling.
M&M's IT Services segment offers a range of IT solutions and support services globally. The group offers business
process outsourcing (BPO), infrastructure management, IT consulting services, network technology solutions and
services, R&D services, and security services for the telecom industry. For other industries, it offers BPO, IT consulting,
IT services, R&D engineering and manufacturing services, supply chain consulting, and value added services. The IT
services segment operates through the Bristlecone, Mahindra Comviva, and Tech Mahindra subsidiaries.
M&M's Other Business segment comprises logistics, after-market, two wheelers, and investment. The after-market
sector focuses on the pre-owned vehicles, servicing, spares and the financial instruments and exchange platforms. The
business units in the after-market sector include Mahindra Spares Business, Mahindra First Choice Wheels, which
purchases and sells pre-owned vehicles, and Mahindra First Choice Services, which is involved in the multi-brand
service chain. The group's two wheeler sector is engaged in designing and marketing a range of scooters and
motorcycles for the Indian and global markets.
Additionally, the group, through Mahindra Defence Systems Limited (MDS), is engaged in two businesses: Mahindra
Defence Naval Systems (MDNS) and Mahindra Special Services Group (MSSG). MDNS provides weapons, sub-
systems and components to the Navy, ordnance factories and the Defence Research and Development Organization
and defence public sector undertakings, including Bharat Electronics Limited and Bharat Dynamics Limited. The
division's products primarily include the Triple Tube Torpedo Launcher, Anti Torpedo Decoy Launcher, and other
components for the ordnance factories which go into Naval and Army weapon systems. MSSG provides corporate
security risk management consultancy services to various organizations to protect information, physical and personnel
assets.
Key Metrics
The company recorded revenues of $13,633 million in the fiscal year ending March 2018, an increase of 4.8% compared
to fiscal 2017. Its net income was $1,098 million in fiscal 2018, compared to a net income of $541 million in the
preceding year.
Table 12: Mahindra & Mahindra Limited: key financials ($)
$ million 2014 2015 2016 2017 2018

Revenues 10,740.3 10,517.4 11,761.9 13,007.5 13,633.4
Net income (loss) 682.2 458.6 469.4 540.6 1,097.9
Total assets 12,903.3 13,864.3 15,820.0 16,785.2 20,057.4
Employees 19,427 19,853 20,122 20,366 20,867

Table 13: Mahindra & Mahindra Limited: key financials (Rs.)
Rs. million 2014 2015 2016 2017 2018

Revenues 734,733.0 719,486.0 804,618.7 889,830.0 932,647.7
Net income (loss) 46,669.0 31,375.0 32,112.6 36,980.4 75,103.9
Total assets 882,703.0 948,440.0 1,082,228.9 1,148,256.1 1,372,109.1
Total liabilities 592,303.0 630,954.0 796,032.5 850,876.2 1,004,357.2
Table 14: Mahindra & Mahindra Limited: key financial ratios
Ratio 2014 2015 2016 2017 2018

Profit margin 6.4% 4.4% 4.0% 4.2% 8.1%
Revenue growth 8.1% (2.1%) 11.8% 10.6% 4.8%
Asset growth 15.4% 7.4% 14.1% 6.1% 19.5%
Liabilities growth 15.7% 6.5% 26.2% 6.9% 18.0%
Debt/asset ratio 67.1% 66.5% 73.6% 74.1% 73.2%
Return on assets 5.7% 3.4% 3.2% 3.3% 6.0%
Revenue per employee $552,854 $529,765 $584,529 $638,687 $653,348
Profit per employee $35,116 $23,102 $23,329 $26,543 $52,613
Figure 15: Mahindra & Mahindra Limited: revenues & profitability

Figure 16: Mahindra & Mahindra Limited: assets & liabilities

Suzuki Motor Corporation
Table 15: Suzuki Motor Corporation: key facts
Head office: 300, Takatsuka-cho, Minami-ku, Hamamatsu-shi, Shizuoka, JPN

Telephone: 81 53 4402061
Website: www.globalsuzuki.com
Ticker: 7269
Stock exchange: Tokyo
Suzuki Motor Corporation (Suzuki or ‘the company’) is a producer of motorcycles, automobiles, outboard motors, boats,
motorized wheelchairs, electro senior vehicles, houses, and industrial equipment. The company also provides logistics
and other services related to the respective operations. Suzuki’s main production facilities are located in Asia, the
Americas, Europe, and Africa. The company comprises 136 subsidiaries and 33 affiliates. The Master Trust Bank of
Japan, Ltd. holds a 5.9% stake in the company.
The company operates through three business segments: Automobile, Motorcycle, and Marine and Power Products.
The Automobile segment manufactures sports utility vehicles (SUVs), mini-cars, and premium and luxury cars. Suzuki's
brands comprise Celerio, Swift, Swift Sport, SX4 (sports crossover vehicle), Ciaz, Kizashi, Jimny, Grand Vitara, Alto, and
APV. The company manufactures its automobiles through its subsidiaries, Magyar Suzuki, Maruti Suzuki India, and
through an affiliate, Chongqing Changan Suzuki Automobile, among others. The automobile parts are manufactured by
Suzuki Auto Parts Mfg and others. The marketing of automobiles is carried by its subsidiaries, Suzuki Motor Sales Kinki
and by Suzuki Deutschland GmbH overseas, and other marketing companies. The company also offers various logistics
services through its subsidiary, Suzuki Transportation & Packing.
The Motorcycle segment manufactures motorcycles, scooters, ATVs, and motorsports. Suzuki's motorcycle brands
comprise GSR750/A, Bandit 650, Hayabusa, GSXR1000, Burgman, Inazuma, V-Strom, VanVan, Suzuki Boulevard,
QuadSport, and the KINGQUAD. Motorcycles are manufactured by the company and its subsidiary, Thai Suzuki Motor,
and an affiliate, Jinan Qingqi Suzuki Motorcycle. The motorcycle parts are manufactured by the company's subsidiary,
Suzuki Auto Parts Mfg. Co., Ltd. and others. In the domestic market, the company markets its motorcycles through its
subsidiary, Suzuki Motorcycle Sales, and other marketing companies. In overseas markets, the marketing of its
motorcycles is conducted through its subsidiary, Suzuki Deutschland GmbH, and other marketing companies.
The Marine and Power Products segment manufactures outboard motors, motorized wheelchairs, engines for
snowmobiles, houses, and electro senior vehicles. Outboard motors are manufactured mainly by the company and are
marketed by its subsidiary, Suzuki Marine, among others. In the domestic market, Suzuki markets its motorized
wheelchairs and electro senior vehicles through its subsidiaries Suzuki Motor Sales Kinki and others. In addition, the
marketing of the company's houses is conducted by a subsidiary, Suzuki Business Co., Ltd.
Geographically, the company classifies its operations into four geographies, namely Japan, Asia (excluding Japan),
Europe, and Other Areas.
Key Metrics
The company recorded revenues of $34,024 million in the fiscal year ending March 2018, an increase of 18.5%
compared to fiscal 2017. Its net income was $1,954 million in fiscal 2018, compared to a net income of $1,448 million in
the preceding year.

Table 16: Suzuki Motor Corporation: key financials ($)
$ million 2014 2015 2016 2017 2018

Revenues 26,607.9 27,306.5 28,802.5 28,701.8 34,023.5
Net income (loss) 973.3 877.1 1,056.4 1,448.5 1,953.6
Total assets 26,026.2 29,455.7 24,468.0 28,216.8 30,252.9
Table 17: Suzuki Motor Corporation: key financials (¥)
¥ million 2014 2015 2016 2017 2018

Revenues 2,938,314.0 3,015,461.0 3,180,659.0 3,169,542.0 3,757,219.0
Net income (loss) 107,484.0 96,862.0 116,661.0 159,957.0 215,731.0
Total assets 2,874,074.0 3,252,800.0 2,702,008.0 3,115,985.0 3,340,828.0
Total liabilities 1,379,719.0 1,551,410.0 1,744,121.0 1,995,993.0 2,043,165.0
Table 18: Suzuki Motor Corporation: key financial ratios
Ratio 2014 2015 2016 2017 2018

Profit margin 3.7% 3.2% 3.7% 5.0% 5.7%
Revenue growth 14.0% 2.6% 5.5% (0.3%) 18.5%
Asset growth 15.5% 13.2% (16.9%) 15.3% 7.2%
Debt/asset ratio 48.0% 47.7% 64.5% 64.1% 61.2%
Return on assets 4.0% 3.2% 3.9% 5.5% 6.7%

Figure 17: Suzuki Motor Corporation: revenues & profitability
Figure 18: Suzuki Motor Corporation: assets & liabilities

Tata Motors Limited
Table 19: Tata Motors Limited: key facts
Head office: Bombay House, 24, Homi Mody Street, Mumbai, Maharashtra, IND
Telephone: 91 22 6665 8282
Website: www.tatamotors.com
Ticker: TTM
Stock exchange: New York
Tata Motors Limited (Tata Motors) is an Indian automobile manufacturer with a portfolio comprising light commercial
vehicles, medium and heavy commercial vehicles, utility vehicles, and passenger cars. It has automotive operations in
India, South Korea, South Africa, Thailand, Bangladesh, Singapore, Spain, and the UK. The company is a part of the
Tata Group, one of the leading business groups in India.
Tata Motors operates in the automotive segment. The company's business operations can be distributed into three
business divisions, including Jaguar Land Rover; Tata and financing thereof; and other operations.
The Jaguar Land Rover division consists of the Jaguar Land Rover business operations that the company acquired from
Ford Motor in 2008. The segment operates, designs, manufactures, and sells Jaguar luxury performance cars and Land
Rover premium all-terrain vehicles (ATVs).
Jaguar's principal products include three car lines, the XF and XJ sedans, the F-TYPE two-seater sports cars and the XK
coupe and convertible. Land Rover's range of products includes the Range Rover, Range Rover Sport, including the
Range Rover Sport SVR, the Range Rover Evoque, Land Rover Discovery, including the Discovery 4 which features 7-
seat capacity, the Discovery Sport and the Defender.
The Jaguar Land Rover business operates three automotive manufacturing facilities in the UK at Solihull, Castle
Bromwich, and Halewood. The segment also has two product development facilities in the UK at Gaydon and Whitley.
The Tata and other brand vehicles, including financing thereof, division includes the development, design, manufacture,
assembly, and sale of vehicles. The division also includes the sale of related parts and accessories, as well as the
financing for vehicles sold by dealers in India. The division offers a wide range of automotive products, including
passenger cars, utility vehicles, light commercial vehicles, and medium and heavy commercial vehicles.
The passenger cars offered by the company include micro cars (Tata Nano), compact cars (Indica, Indica Vista, and mid-
sized cars, Indigo Manza and Indigo eCS). The company offers a number of utility vehicles, including the Sumo, Tata
Safari, Safari Storme, Xenon XT pickup, Tata Aria crossover vehicle, and Venture multipurpose utility vehicle (MPV).
The light commercial vehicles (LCV) offered by the company include pick-up trucks, trucks and small commercial
vehicles (SCVs) with a gross vehicle weight (GVW) (including payload) of 7.5 tons. This also includes the Ace mini-truck
with a 0.7 ton payload in different fuel options, Super Ace with a one ton payload, Ace Zip with a 0.6 ton payload, which
also includes the Magic and Magic Iris, both passenger variants for commercial transportation developed on the Ace
platform, and the Winger.
Tata Motors manufactures a variety of medium and heavy commercial vehicles (M&HCV) including trucks, tractors,
buses, tippers, and multi-axled vehicles with a GVW between eight tons and 49 tons. In addition, through Tata Daewoo
Commercial Vehicle (TDCV), the company manufactures a range of high horsepower trucks ranging from 215
horsepower to 560 horsepower, including dump trucks, tractor-trailers, mixers and cargo vehicles.

The company operates six automotive manufacturing facilities located in Jamshedpur (Jharkhand), Pune (Maharashtra),
Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Dharwad (Karnataka), and Sanand (Gujarat) in India. TDCV has a
manufacturing facility in Gunsan, South Korea. Tata Motors (Thailand) has a manufacturing facility in Samutprakarn
province, Thailand. Also, Fiat India Automobiles Private Limited, the company's joint arrangement with Fiat Group, has a
manufacturing facility in Ranjangaon, Maharashtra.
The company's wholly-owned subsidiary, Tata Motors Finance (TMFL), provides financing for the company's dealer's
customers. Additionally, the company's wholly-owned subsidiary, Tata Motors Insurance Broking and Advisory Services,
undertakes the business of insurance and reinsurance broking.
Tata Motors' other operations business division includes information technology and machine tools and factory
automation solutions. Through its other subsidiary and associate companies, the company is engaged in providing
engineering and automotive solutions, construction equipment manufacturing, and automotive vehicle components
manufacturing and supply chain activities. In addition, it provides machine tools and factory automation solutions, high-
precision tooling and plastic and electronic components for automotive and computer applications, and automotive
retailing and service operations.
The company's wholly-owned subsidiary, TML Distribution Company (TDCL), provides distribution and logistics support
for the company's products throughout India.
Tata Technologies subsidiary is engaged in providing specialized engineering and design services, product lifecycle
management and product-centric IT services to global manufacturers.
Key Metrics
The company recorded revenues of $43,183 million in the fiscal year ending March 2018, an increase of 7.6% compared
to fiscal 2017. Its net income was $1,314 million in fiscal 2018, compared to a net income of $1,090 million in the
preceding year.
Table 20: Tata Motors Limited: key financials ($)
$ million 2014 2015 2016 2017 2018

Revenues 34,035.5 38,114.0 40,281.4 40,125.1 43,182.8
Net income (loss) 2,045.2 2,044.5 1,611.4 1,089.7 1,314.0
Total assets 32,159.3 34,886.9 39,365.8 40,017.3 48,436.7
Employees 66,593 73,485 76,598 79,558 81,090

Table 21: Tata Motors Limited: key financials (Rs.)
Rs. million 2014 2015 2016 2017 2018

Revenues 2,328,337.0 2,607,343.0 2,755,611.1 2,744,921.0 2,954,093.4
Net income (loss) 139,910.0 139,863.0 110,237.5 74,543.6 89,889.1
Total assets 2,199,983.0 2,386,580.0 2,692,976.0 2,737,543.6 3,313,505.1
Total liabilities 1,539,742.0 1,819,627.0 1,885,149.3 2,156,924.7 2,359,226.0
Table 22: Tata Motors Limited: key financial ratios
Ratio 2014 2015 2016 2017 2018

Profit margin 6.0% 5.4% 4.0% 2.7% 3.0%
Revenue growth 23.3% 12.0% 5.7% (0.4%) 7.6%
Asset growth 29.1% 8.5% 12.8% 1.7% 21.0%
Debt/asset ratio 70.0% 76.2% 70.0% 78.8% 71.2%
Return on assets 7.2% 6.1% 4.3% 2.7% 3.0%
Revenue per employee $511,098 $518,664 $525,881 $504,351 $532,530
Profit per employee $30,712 $27,822 $21,038 $13,697 $16,204
Figure 19: Tata Motors Limited: revenues & profitability

Figure 20: Tata Motors Limited: assets & liabilities

MACROECONOMIC INDICATORS
Country data
Table 23: India size of population (million), 2014–18
Year Population (million) % Growth

2014 1,238.9 1.3%
2015 1,254.0 1.2%
2016 1,269.0 1.2%
2017 1,283.6 1.2%
2018 1,298.0 1.1%
Table 24: India gdp (constant 2005 prices, $ billion), 2014–18
Year Constant 2005 Prices, $ billion % Growth

2014 1,595.4 7.4%
2015 1,716.1 7.6%
2016 1,847.6 7.7%
2017 1,990.6 7.7%
2018 2,146.3 7.8%
Table 25: India gdp (current prices, $ billion), 2014–18
Year Current Prices, $ billion % Growth

2014 2,045.6 9.0%
2015 2,337.2 14.3%
2016 2,671.5 14.3%
2017 3,035.3 13.6%
2018 3,453.7 13.8%

Table 26: India inflation, 2014–18
Year Inflation Rate (%)

2014 7.7%
2015 7.2%
2016 6.7%
2017 6.4%
2018 6.3%
Table 27: India consumer price index (absolute), 2014–18
Year Consumer Price Index (2005 = 100)

2014 215.6
2015 231.0
2016 246.5
2017 262.2
2018 278.7
Table 28: India exchange rate, 2014–18
Year Exchange rate ($/Rs.) Exchange rate (€/Rs.)

2014 60.9620 80.8938
2015 64.1233 71.1453
2016 67.1794 74.3472
2017 65.0484 73.5945
2018 68.4090 80.6918

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Industry associations
Society of Indian Automobile Manufacturers (SIAM)
Core 4B, 5th Floor, India Habitat Centre, Lodi Road, New Delhi - 110 003, IND
Tel.: 91 11 2464 7810/12
Fax: 91 11 2464 8222
www.siamindia.com
Related MarketLine research

Industry Profile
Global car manufacturers
Car manufacturers in Asia-Pacific
Car manufacturers in Europe
Car manufacturers in Australia
Car manufacturers in Japan

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Car Manufacturing in India: April 2019

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Car Manufacturing in India: April 2019

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MarketLine Industry Profile

Reference Code: 0102-2010

Publication Date: April 2019

India - Car Manufacturing 0102 - 2010 - 2018

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

Market value forecast

Market volume forecast

India - Car Manufacturing 0102 - 2010 - 2018

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

Market value ................................................................................................................................................................ 2

Market value forecast .................................................................................................................................................. 2

Market volume ............................................................................................................................................................. 2

Market volume forecast ............................................................................................................................................... 2

Geography segmentation ............................................................................................................................................ 2

Market rivalry ............................................................................................................................................................... 2

Market definition .......................................................................................................................................................... 7

Market Data ..................................................................................................................................................................... 9

Market value ................................................................................................................................................................ 9

Market volume ........................................................................................................................................................... 10

Market Segmentation .................................................................................................................................................... 11

Geography segmentation .......................................................................................................................................... 11

Market Outlook .............................................................................................................................................................. 13

Market value forecast ................................................................................................................................................ 13

Market volume forecast ............................................................................................................................................. 14

Five Forces Analysis ..................................................................................................................................................... 15

Buyer power .............................................................................................................................................................. 16

New entrants ............................................................................................................................................................. 20

Threat of substitutes .................................................................................................................................................. 22

Degree of rivalry ........................................................................................................................................................ 24

India - Car Manufacturing 0102 - 2010 - 2018

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 3

Mahindra & Mahindra Limited.................................................................................................................................... 29

Suzuki Motor Corporation .......................................................................................................................................... 33

Tata Motors Limited ................................................................................................................................................... 36

Country data .............................................................................................................................................................. 40

Industry associations ................................................................................................................................................. 43

Related MarketLine research .................................................................................................................................... 43

About MarketLine ...................................................................................................................................................... 44

India - Car Manufacturing 0102 - 2010 - 2018

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 4

Table 3: India car manufacturing industry geography segmentation: $ billion, 2018.....................................................11

Table 4: India car manufacturing industry share: % share, by value, 2018...................................................................12

Table 5: India car manufacturing industry value forecast: $ billion, 2018–23................................................................13

Table 7: Hyundai Motor Company: key facts.................................................................................................................26

Table 8: Hyundai Motor Company: key financials ($)....................................................................................................27

Table 9: Hyundai Motor Company: key financials (KRW) .............................................................................................27

Table 10: Hyundai Motor Company: key financial ratios ...............................................................................................27

Table 11: Mahindra & Mahindra Limited: key facts .......................................................................................................29

Table 12: Mahindra & Mahindra Limited: key financials ($)...........................................................................................30

Table 15: Suzuki Motor Corporation: key facts..............................................................................................................33

Table 16: Suzuki Motor Corporation: key financials ($).................................................................................................34

Table 17: Suzuki Motor Corporation: key financials (¥).................................................................................................34

Table 18: Suzuki Motor Corporation: key financial ratios ..............................................................................................34

Table 19: Tata Motors Limited: key facts.......................................................................................................................36

Table 20: Tata Motors Limited: key financials ($)..........................................................................................................37

Table 21: Tata Motors Limited: key financials (Rs.) ......................................................................................................38

Table 22: Tata Motors Limited: key financial ratios .......................................................................................................38

Table 23: India size of population (million), 2014–18 ....................................................................................................40

Table 25: India gdp (current prices, $ billion), 2014–18 ................................................................................................40

Table 26: India inflation, 2014–18 ................................................................................................................................. 41

Table 27: India consumer price index (absolute), 2014–18...........................................................................................41

Table 28: India exchange rate, 2014–18 .......................................................................................................................41