EMIS Insights - India Automotive Sector Report 2022 4th Quarter

COVID-19 UPDATE
INDIA
AUTOMOTIVE
SECTOR 2022 Q4
An EMIS Insights Industry Report
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ABBREVIATIONS
ACMA Automotive Component Manufacturers Association of India
AMP Automotive Mission Plan
ARAI Automotive Research Association of India
BS VI Bharat Stage Six
CAFE Corporate Average Fuel Efficiency
CII Confederation of Indian Industry
COVID-19 Coronavirus Disease 2019
DHI Department of Heavy Industry
EV Electric Vehicle
FAME Faster Adoption and Manufacturing of Electric Vehicles
INR Indian Rupee
LCV Light Commercial Vehicle
M&HCV Medium and Heavy Commercial Vehicles
MPV Multi-Purpose Vehicle
OEM Original Equipment Manufacturer
OICA International Organization of Motor Vehicle Manufacturers
SIAM Society of Indian Automobile Manufacturers
SMEV Society of Manufacturers of Electric Vehicles
SUV Sport Utility Vehicle


CONTENTS FOREWORD
01 EXECUTIVE SUMMARY
Sector in Numbers
Sector Overview
p.5
p.6
Sector Snapshot
Sector Outlook
Driving Forces
Restraining Forces
02 SECTOR IN FOCUS p.14

Quarterly Update
India Automotive Q4 FY2022
Quarterly Summary
Sector Highlights
Main Sector Indicators
Passenger Vehicle Performance
Commercial Vehicle Performance
Two-Wheeler Performance
Three-Wheeler Performance
Top M&A Deals
M&A Activity
03 COMPETITIVE LANDSCAPE p.29

Timeline India Automotive
Highlights
Market Share
04 COMPANIES IN FOCUS p.33

Tata Motors Ltd
Maruti Suzuki India Ltd
Hero MotoCorp Ltd
Ashok Leyland Ltd
Bajaj Auto Ltd

CONTENTS 05 REGULATORY
ENVIRONMENT
Government Policy
06 PASSENGER VEHICLES
p.49
p.52
Highlights
Main Events
Production
Sales
Domestic Sales
Exports
07 COMMERCIAL VEHICLES p.59

Highlights
Main Events
Production
Sales
Domestic Sales
Exports
08 TWO- AND THREE-WHEELERS p.66

Highlights
Main Events
Production
Sales
Exports
09 AUTO COMPONENTS AND p.72

PARTS
Highlights
Sales and External Trade

INDIA AUTOMOTIVE SECTOR 2022 Q4
Foreword
After the bad performances in FY2020 and FY2021, the Indian
automotive industry is expected to experience a solid recovery
over FY2022. Moreover, key players in the automotive sector
announced an expansion of their capital expenditure budgets for
FY2022 in order to execute new investment projects. However,
the negative effects of the second and a potential third wave of
COVID-19 might delay not only the recovery of the industry, but
also its transition towards electric vehicles.
Boryana Nedyalkova
Editor
Asia
The crisis created by the COVID-19 pandemic disrupted the activities of the Indian motor vehicle
industry as production domestic sales and exports registered two-digit annual falls in FY2021.
Moreover, production registered the lowest volume since FY2014, while domestic sales reported the
lowest figures since FY2013. In FY2022, production, domestic sales and exports are expected to
rebound as the global economy (including India) is experiencing a strong recovery. Moreover, motor
vehicle manufacturers announced and/or executed new investment projects to capture the demand
from first-time buyers in the domestic market. However, there are two factors that might slow the
rhythm of recovery of the Indian motor vehicle industry. First, the second wave of COVID-19 pandemic
interrupted the steady recovery of the Indian economy and automotive industry in the first quarter of
FY2022. Moreover, India presents a relatively low vaccination rates: at the beginning of August 2021,
only 8.5% of the population received two doses. Second, the recovery of the global economy has
created two issues for the Indian automotive industry: 1) the price of commodities increased,
resulting in higher pressures over production costs and higher motor vehicle prices for Indian
consumers; 2) the global shortage of semiconductors slowed the rhythm of production of the Indian
automotive industry.
The trends in the global automotive industry is moving towards the production of large-size vehicles,
electric vehicles (EVs) and autonomous vehicles. The Indian government has launched programmes
such as FAME II and BS VI norms to promote the production and commercialisation of electric vehicles
(EVs). However, the price gap between electric and conventional vehicles is still considerable in a
domestic market with a high share of first-time buyers. Furthermore, the negative effects of COVID-19
pandemic undermined the effectiveness of the programmes launched. The Indian government
recognised that further demand stimulation is required to increase the use of EVs.


An EMIS Insights Industry Report CONTENTS
01
EXECUTIVE
SUMMARY

Copyright © 2022 EMIS, an ISI Emerging Markets Group Company. All rights reserved. 6
01 EXECUTIVE SUMMARY CONTENTS
Sector in Numbers
No.6 22.4mn 81.8%

Four-Wheel Motor
Vehicle Producer
units Share of Two-
Wheelers in
Globally Motor Vehicle Motor Vehicle
(2020) Production Production
No.5 18.4mn 82.2%

Four-Wheel Motor units Share of Two-
Vehicle Market Domestic Motor Wheelers in Motor
Globally Vehicle Domestic
(2020) Vehicle Sales Sales
USD 4.1mn USD

13.9bn units 0.9bn
Motor Vehicle Motor Vehicle Auto Component
Trade Surplus Export Volume Trade Deficit
(FY2020)
Note: Unless otherwise stated, figures are for FY2021.
Source: OICA, SIAM, CEIC, ACMA
INDIA AUTOMOTIVE SECTOR 2022 Q4 7

Sector Overview
In FY2019, the Indian automotive industry registered new record high volumes in output and domestic
sales. However, the economic deceleration in FY2020 ended the growing trend of the industry which
was partially compensated by a new record high in export volume. In FY2021, the rapid expansion of
COVID-19 pandemic disrupted the production, domestic sales and exports of motor vehicle which
registered two-digit annual falls (production and domestic sales fell for the second consecutive year).
Moreover, output reached a volume of 22.43mn units (the lowest volume since FY2014 with 21.50mn
units), domestic sales reported a volume of 18.39mn units (the lowest volume since FY2013 with
17.79mn units), and exports registered a volume of 4.12mn units (the lowest volume since FY2018 with
4.04mn units).
Entry Modes
According to OICA, India was the fifth-largest four-wheel vehicle market in the world in 2020.
Additionally, India is one of the largest two-wheeler markets globally. In spite of the bad performance
of domestic sales in FY2020 and FY2021, new companies will continue to be attracted by the large size
of the Indian market. However, the different segments of the Indian motor vehicle market are
concentrated in the hands of a limited number of foreign and indigenous companies. New entrants
are encouraged to make greenfield investments to compete successfully in the development of
strategic products such as electric vehicles. In March 2021, the Indian company Ola announced the
construction of a new plant in the state of Tamil Nadu to produce electric scooters. The budget for the
first phase of the project ascended to USD 326mn.
Segment Opportunities
After the bad performance of the motor vehicle industry in FY2021 due to the rapid expansion of
COVID-19 pandemic in FY2021, the automotive industry is expected to grow in FY2022, pushed by the
recovery of the Indian economy. The two-wheeler segment will face a higher demand from the
domestic and export market as personal mobility will continue to be an important trait for consumers.
The passenger vehicle segment will be mainly driven by pent-up demand from domestic consumers,
however, the global shortage of semiconductors will negatively affect the rhythm of production. The
commercial vehicle segment will benefit for the reactivation of industrial, construction and
infrastructure activities in India. However, the second and a potential third wave of COVID-19 might
delay the rhythm of recovery.
Government Policy
The government plays a key role in the development of the motor vehicle industry through several
programmes. The Automotive Mission Plan 2016–2026 (AMP 2026) seeks to enhance the industry’s
contribution to GDP and employment. The entry into force of BS VI norms and the launch of FAME II
promotes the use of green vehicles and cleaner technologies. However, the government is also aware
that the post-COVID context requires additional support for demand stimulus in order to achieve the
goals set by AMP 2026, FAME II and BS VI norms.
Source: SIAM, OICA, Ministry of Heavy Industries, The Hindu Business Line, Business Standard, The Hindu, Economic Times

Sector Snapshot
India Automotive
Sector
PRODUCTION: 22.4mn units
Two-Wheelers: 18.3mn units
Three-Wheelers: 0.6mn units
Passenger Vehicles: 2.8mn units
EXPORTS Commercial Vehicles: 0.6mn units
USD 14.1bn
Motor Vehicle Export Value
4.1mn units
Motor Vehicle Export Volume
USD 14.5bn
Auto Component Exports (FY2020)
DOMESTIC MARKET:
IMPORTS 18.4mn units
USD 194.5mn Two-Wheelers: 15.1mn units
Motor Vehicle Import Value Three-Wheelers: 0.2mn units
USD 15.4bn Passenger Vehicles: 2.5mn units
Auto Component Imports (FY2020) Commercial Vehicles: 0.6mn units
KEY PLAYERS
MOTORCYCLES LIGHT AND HEAVY VEHICLES
Company Vehicles Sold Market Share Company Vehicles Sold Market Share
1. Hero 1. Maruti Suzuki 1,361,722 39.2%
5,608,391 37.1%
MotoCorp 2. Hyundai 471,535 13.6%
2. Honda 3,899,377 25.8%
3. Tata Motors 465,734 13.4%
3. TVS 2,160,000 14.3% 4. Mahindra 157,316 4.5%
4. Bajaj 1,807,980 12.0% 5. Kia 150,592 4.3%
5. Royal Enfield 573,728 3.8%
Note: Unless otherwise stated, figures are for FY2021.

Source: SIAM, ACMA, CEIC, Company Data, Ministry of Commerce and Industry

Sector Snapshot
India Automotive Sector
In FY2021, the Indian motor vehicle market fell by 14.1% y/y, recording domestic sales of 18.4mn units.
Two-wheelers was the largest segment with a share of 82.2%, followed by passenger cars (13.5%),
commercial vehicles (3.1%) and three-wheelers (1.2%). The weakened domestic demand for motor
vehicles was driven by the negative effects of COVID-19 pandemic over the Indian economy
(consumers postponed non-essential expenditures including motor vehicle purchases). Three-wheelers
was the segment with the largest fall in FY2021 (-66.1% y/y), followed by commercial vehicles (-20.8%
y/y), two-wheelers (-13.2% y/y) and passenger vehicles (-6.1% y/y).
In FY2021, India’s motor vehicle industry produced 22.4mn units, which represented an annual fall of
14.4%. The two-wheeler segment accounted for 81.8% of the production, followed by passenger
vehicles with 12.7%, commercial vehicles with 2.8% and three-wheelers with 2.7%. The fall in output
was mostly explained by the contraction of the domestic demand as the industry mostly relies on the
performance of the domestic market. Moreover, the export market also reported a bad performance
due to weakened foreign demand in a context of pandemic. At segment level, the production of three-
wheelers reported the largest fall (-46.1% y/y), followed by commercial vehicles (-16.9% y/y), passenger
vehicles (-13.7% y/y) and two-wheelers (-12.8% y/y).
In FY2021, exports of the Indian motor vehicle industry decreased by 13% y/y, reporting a volume of
4.1mn units. Two-wheelers was the largest segment with a share of 79.4%, followed by passenger cars
(9.8%), three-wheelers (9.5%) and commercial vehicles (1.2%). It important to note that exports reached
a new record high in FY2020 (4.7mn units). The pandemic interrupted the growing trend in export
volume. At segment level, passenger vehicles registered the largest fall (-38.8% y/y), followed by
three-wheelers (-21.7% y/y), commercial vehicles (-17.1% y/y) and two-wheelers (-6.9% y/y). In line with
the performance of export volume, motor vehicle export value fell by 27.4% y/y in FY2021, down from
USD 19.4bn in FY2020 to USD 14.1bn in FY2022 to USD 19.4bn. Imports reached a value of USD 194.5mn in
FY2021 (down from USD 264.7mn in FY2020). This represented an annual decrease of 26.5% due to lower
sales in the domestic market.
In FY2021, the domestic four-wheels motor vehicle market was dominated by the Japanese motor
vehicle manufacturer Maruti Suzuki with a market share of 39.2%. The second and third place were
taken by the South Korean company Hyundai and the Indian peer Tata Motors. These companies
registered similar market shares: 13.6% for Hyundai and 13.4% for Tata Motors. The fourth and fifth
place were disputed by Mahindra (India) with a market share of 4.5% and Kia (South Korea) with a
participation of 4.3%. The domestic two-wheeler market was dominated by four companies with a
combined market share of 89.1%. The market leader was Hero MotoCorp (India) with a participation of
37.1%, followed by Honda (Japan) with a share of 25.8%. The top 4 is completed by Indian companies
TVS and Bajaj with shares of 14.3% and 12%, respectively.
Source: SIAM, ACMA, CEIC, Company Data, Ministry of Commerce and Industry

Sector Outlook
Main Sector Indicators Forecast
FY2019 FY2020 FY2021 FY2022f (Low) FY2022f (High)
Domestic Passenger Vehicle Sales, mn units 3.37 2.65 2.49 2.81 3.04
Domestic Commercial Vehicle Sales, mn units 1.01 0.72 0.57 0.69 0.74
Domestic Two-Wheeler Sales, mn units 21.18 17.42 15.12 16.63 18.14
Comments
After the bad performance of the Indian automotive industry in FY2020 (due to the deceleration of the
Indian economy) and FY2021 (due to the rapid expansion of COVID-19 pandemic), the sector is expected
to report a strong rebound in FY2022, pushed by the recovery of the Indian economy and higher
domestic demand for motor vehicles. However, the negative effects of the second wave of COVID-19
and a potential third wave over FY2022 might undermine the recovery of the industry. This resulted in
projections with relatively high levels of variance and/or corrections. In April 2022, IMF projected a
12.5% annual increase for the Indian economy in FY2022. However, the projection was reduced to a
9.5% annual expansion in July 2022. In spite of changing context, consultancy companies such as Ind-
Ra, ICRA and CRISIL projected two-digit annual increases for the Indian automotive industry.
Concerning passenger vehicles, domestic sales are expected to increase by 22% y/y in the best
scenario of FY2022 (above the volume of FY2020). In the worst scenario, sales will increase by 13% (still
above the volume of FY2020). Domestic commercial vehicle sales will grow by 30% y/y in the most
optimistic context of FY2022 (above the volume of FY2020) and by 21% in the least optimistic scenario
(below the volume of FY2020). Finally, domestic two-wheeler sales will increase by 20% y/y in the best
scenario of FY2022 (above the volume of FY2020) and by 10% in the worst scenario (below the volume
of FY2020).
Source: SIAM, Ind-Ra, ICRA, CRISIL, Business Standard, The Hindu, Economic Times, Business Today, India Today, Mobility
Outlook
Driving Forces
External
In FY2021, the Indian GPD fell by 7.3% y/y due to the negative effects of COVID-19 pandemic. In July
2022, IMF projected a 9.5% annual increase of Indian GDP in FY2022. The recovery of the Indian
economy is pushing up consumer, producer and investor’s sentiment, therefore, domestic motor
vehicle sales are expect to present two-digit annual increases after the bad performance in the last
two fiscal years. Nevertheless, the industry is not expected to recover over FY2022 the peaks
registered in FY2019.
The Indian government is actively fostering the development of the Indian motor vehicle industry. One
of the main plans launched by the government is AMP 2026, which seeks to expand the participation
of the industry in the country’s GDP and the level of employment. Additionally, the government is
promoting a transition towards cleaner energies through the entry into force of BS VI norms since
April 2020. Furthermore, in April 2019, the government launched FAME II, which will be in force until
March 2024. The main goal of FAME II is to promote the domestic manufacturing and
commercialisation of electric vehicles. Moreover, the government introduced modifications to FAME II
(including higher subsidies to two-wheelers and deadline extensions) in order to improve the results
of the programme (its effectiveness was undermined by the unfavourable context created by the rapid
expansion of COVID-19 pandemic).
Internal
In 2020, India was the fifth largest market and the sixth biggest manufacturer of four-wheel motor
vehicles at global level. It was also one of the world’s largest two-wheeler producer and seller. The
large size of the domestic market has been a solid base for the development of the Indian motor
vehicle industry. This has created the adequate conditions for the entrance of foreign companies and
the rise of indigenous firms within the Indian motor vehicle market. Moreover, the market leaders
across the different segments established manufacturing facilities over the country. The participation
of imported vehicles is low, which accounts for the steady trade surplus of the Indian motor vehicle
industry.
The potential growth of the Indian domestic market in the short and medium term continues to foster
investments for both new players and long-standing firms. The transition towards BS VI norms and
the promotion of electric vehicles will create new business opportunities as firms will adapt their
portfolio with new models or new versions of existing models. New players are ready to compete with
the market leaders through greenfield investments. In March 2021, the Indian company Ola announced
the construction of a new plant in the state of Tamil Nadu to produce electric scooters. The company
will invest USD 2bn in the new plant which is expected to reach an annual production capacity of
10mn units.
Source: OICA, SIAM, IMF, Ministry of Heavy Industries, Economic Times, Journals of India, Business Standard

Restraining Forces
External
The rapid expansion of the COVID-19 pandemic and the mandatory quarantine enacted by the Indian
government in FY2021 had a negative impact over the performance of the Indian motor vehicle
industry in FY2021: 1) total output fell by 14.4% y/y, domestic sales registered an annual decline of
14.1%; 3) exports dropped by 13% y/y. In such an adverse context, motor vehicle manufacturers decided
to prioritise cash preservation, resulting in the postponement of new investment projects. In FY2022,
the Indian economy is expected to recover, therefore, domestic demand for motor vehicles is also
expected to increase. Nevertheless, the negative effects of the second wave of COVID-19 interrupted
the recovery of the motor vehicle industry in the first quarter of FY2022. Moreover, the Indian
automotive industry is also considering the negative effects of a potential third wave of COVID-19. Key
players in the industry are prepared to reduce their capital expenditure budgets in order to prioritise
liquidity once again. Finally, the reactivation of the economy and the automotive industry at global
level has also brought new challenges for the Indian automotive sector over FY2022. First, there is an
on-going increase in commodity prices which are putting pressure towards production costs. An
increase in the price of motor vehicles will have a considerable effect in market with a high share of
first-time consumers. Second, there is a global shortage of semiconductors which will limit the
rhythm of production, specially in the passenger vehicle segment.
Internal
The Indian motor vehicle industry developed a high dependence on the internal market – domestic
sales accounted for 82% of total output in FY2021. Therefore, the industry is highly vulnerable to the
Indian economic cycle: in FY2020, prior to the pandemic, the deceleration of the Indian economy led to
double digit falls in motor vehicle domestic sales and output. The Indian motor vehicle industry aims
to enhance its export performance to reduce its dependence to the domestic market (this is one of
the key objectives set by AMP 2026).
The Indian motor vehicle industry is highly dependent on imported auto parts. Traditionally, it has
recorded chronic trade deficits in auto parts, which reached a value of USD 0.9bn in FY2020. However,
it is important to note that auto part exports increased at a CAGR of 10% over FY2017-FY2020, while
imports reported a CAGR of 4.5% over the same period.
The Indian domestic market presents high levels of concentration in a relatively small numbers of
manufacturers. In the four-wheel motor vehicle segment, three companies jointly represented 66.3%
of domestic sales in FY2022. Moreover, the level of concentration is higher in the two-wheeler
segment as four companies reported a combined share of 89.1% in FY2022.
Source: SIAM, Ministry of Heavy Industries, ACMA, Business Standard, The Hindu, Economic Times, Business Today, India
Today, Mobility Outlook
03
SECTOR
IN FOCUS

02 SECTOR IN FOCUS CONTENTS

(January 2022 March 2022)
Motor Vehicle Production
-2.1% +15.9%
Passenger Commercial
Vehicle Sales, Vehicle Sales,
y/y change y/y change
-16.6% y/y -21.0% -1.3%

Decrease in Two-Wheeler Three-Wheeler
Sales, Sales, y/y
Output Volume y/y change change
-85.9%
Quadricycle Sales,
y/y change
Motor Vehicle Production by Sector

19.2%
15.9%
29.0%
2.2%
1.4%
-1.3%
-1.9%
-2.1%
-16.6%
-21.0%
-73.8%
-85.9%
Passenger Vehicles Commercial Vehicles Two-Wheelers Three-Wheelers Quadricycles Total

Total: 9.01% / 0.16%
q/q change y/y change
Source: SIAM, CEIC


Motor Vehicle Sales
-1.2% +20.3%
-14.3% y/y
-18.4% -5.0%
Sales Volume Sales, Sales, y/y
y/y change change
(including
exports) -80.4%
Quadricycle Sales,
y/y change
Motor Vehicle Sales by Sector

20.3%
18.7%
25.5%
-0.8%
-1.2%
-5.0%
-5.2%
-6.4%
-14.3%
-18.4%
-71.5%
-80.8%
Passenger Vehicles Commercial Vehicles Two-Wheelers

Total: 9.01% /Three-Wheelers
0.16% Quadricycles Total
Source: SIAM, CEIC


Motor Vehicle Domestic Sales
-6.1% +18.8%
-18.5% y/y -23.0% -2.8%

Sales, Sales, y/y
Domestic Sales y/y change change
Volume
+300.0%
Quadricycle Sales,
y/y change
Motor Vehicle Domestic Sales by Sector

300.0%
28.3%
20.5%
18.8%
3.4%
1.0%
-1.2%
-2.8%
-6.1%
-6.9%
-18.5%
-23.0%
Total: 9.01% / 0.16%

* Domestic quadricycle sale data in FY 2021 Q3 was zero.
Source: SIAM, CEIC


Motor Vehicle Exports
+36.0% +36.5%
Vehicle Exports, Vehicle Exports,
+2.6% y/y -0.3% -6.5%

Two-Wheeler Three-Wheeler
Increase in Exports, Exports, y/y
Export Volume y/y change change
-85.3%
Quadricycle
Exports, y/y
change
Motor Vehicle Exports by Sector

36.0%
10.4%
36.5%
5.0%
2.6%
0.5%
0.5%
-0.3%
-6.5%
-11.2%
-76.9%
-85.3%

Total: 9.01% / 0.16%
Source: SIAM, CEIC

Quarterly Summary
Production
In Q4 FY2022, the automotive output volume in India reached 5.89mn units. This performance was
below the average production volume of 6.27mn units over the last six quarters (from Q2 FY2021 to Q3
FY2022). On a quarterly basis, production grew by 2.2% in Q4 FY2022 compared to Q3 FY2022. On an
annual basis, output fell by 16.6% compared to Q4 FY2021. On the other hand, the manufacturing
output increased by 5.7% compared to Q4 FY2020 (pre-COVID output). This was due to the global
semiconductor shortage and the negative effects of the COVID-19 pandemic over consumers. At the
segment level, passenger and commercial vehicle production grew by 19.2% q/q and 29% q/q,
respectively (compared to Q4 FY2021, passenger vehicle output dropped by 2.1%, while commercial
vehicle production grew by 15.9%). Two-wheeler production dropped by 1.9% q/q and 21% y/y in Q4
FY2022. Three-wheeler output rose by 1.4% q/q, but contracted by 1.3% y/y in Q4 FY2022. Quadricycle
production dropped by 73.8% q/q in Q4 FY2022, and by 85.9% y/y.
Sales
The production of motor vehicles in India mainly targets the domestic market. Although this market is
in the process of recovering, the evolution of domestic sales has been erratic. The Indian automotive
sector sold 4.48mn units in Q4 FY2022. This volume was lower compared to the domestic sale volume
average of 4.93mn units over the last six quarters (from Q2 FY2021 to Q3 FY2022). In Q4 FY2022,
domestic sale volume fell by 1.2% q/q and by 18.5% y/y. At the segment level, passenger vehicle sales
grew by 20.5% q/q, but contracted by 6.1% y/y. Commercial vehicle sales expanded by 28.3% q/q and by
18.8% y/y. Two-wheeler sales reported falls of 6.9% q/q and 23% y/y. COVID-19 pandemic weakened
consumer’s sentiment over Q4 FY2022 through the expansion of the Omicron variant. Three-wheeler
sales expanded by 1% q/q, but dropped by 2.8 y/y in Q4 FY2022. Quadricycle sales increased by 3.4% q/q
and by 300% y/y in Q4 FY2022.
Exports
Exports have a complementary role for the Indian automotive industry, since the main target is the
domestic market. However, the contribution of external markets continue to grow. In terms of volume,
exports reached 1.40mn units in Q4 FY2022, up by 0.5% q/q from 1.39mn units in Q3 FY2022, and up by
2.6% y/y from 1.36mn units in Q4 FY2021. Moreover, exports rose by 29% compared to Q4 FY2020. The
share of exports in manufacturing output increased from 19.3% in Q4 FY2021 to 23.7% in Q4 FY2022. At
the segment level, exports of passenger vehicles increased by 10.4% q/q in Q4 FY2022, and by 36%
compared to Q4 FY2021. Commercial vehicle exports rose by 5% q/q in Q4 FY2022, and by 36.5%
compared to Q4 FY2021. Two- and three-wheelers exports expanded by 0.5% y/y and by 1% q/q,
respectively, in Q4 FY2021. Compared to Q4 FY2021, two- and three-wheeler exports contracted by 0.3%
and 2.8%, respectively. Quadricycle exports in Q3 FY2022 dropped by 76.9% q/q and by 85.3% y/y.
Source: SIAM, CEIC

Sector Highlights
▪ In March 2022, Tata Motors announced an investment project with a budget of INR 150bn. The
project will be executed over the period 2022-2026. According to Shailesh Chandra, president for
Passenger Vehicle Business of Tata Motors, the main objective is the development of ten new EV
models which will include different types of body style and a wide range of prices. Chandra also
pointed out the necessity to accelerate the adequate infrastructure for EVs through the
deployment of charging facilities. The company owns a network of nearly 400 charging stations
located in the state of Maharashtra, however, the network must be expanded.
▪ In March 2022, the Japanese carmaker Suzuki Motor, parent company of Maruti Suzuki, announced
a new investment project with a budget of INR 104.4bn. The main objective of the project is to
produce EVs and batteries in its factory located in the state of Gujarat. Moreover, the company
plans to sell affordable EVs in India by 2025. Around INR 31bn will be used to produce electric
vehicles in India, while INR 73bn will be destined to manufacture EV batteries. It is worth noting
that this is the first EV project announced by Maruti Suzuki in India. However, the company aims to
sell EVs produced in India not only in the domestic market, but also in European and South Asian
markets.
▪ In February 2022, South Korean car manufacturer Hyundai announced a new investment plan to
produce six new EV models in India by 2028. The budget of the plan ascends to INR 40bn. The
company aims to produce both affordable and premium EVs, including SUVs and sedans. According
to Tarun Garg, Director of Sales and Marketing for Hyundai Motor India, the first EV model will be
launch in 2022. One of the key objectives of the plan is to produce affordable EVs, therefore, the
company will target local suppliers to obtain key components at lower prices. Additionally, the
development of an adequate infrastructure for EVs is one of the main concerns of the company.
Hyundai is not only developing its own network of charging stations, but it is also actively looking
for a strategic partner to provide public charging facilities.
▪ In February 2022, Mahindra & Mahindra announced a new investment project to develop EVs. The
budget of the project ascends to INR 30bn and it is expected to be executed between 2022 and
2024. Moreover, the company plans to launch its first EV model in the first quarter of FY2023: EV
XUV 400 model (SUV). In July 2023, Mahindra & Mahindra will show the three remaining EV SUV
models to be launched by 2024. Additionally, the company plans to offer EV versions of existing
models, such as the Scorpio model (SUV).
Source: Business Standard, Reuters, Car and Bike, CNBC

Main Sector Indicators
Q1 FY2021 Q2 FY2021 Q3 FY2021 Q4 FY2021 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022
GDP, Current Prices, INR bn 38,734 47,218 54,485 57,571 51,483 56,347 63,033 n/a
GDP, Constant Prices, y/y change -23.8% -6.6% 0.7% 2.5% 20.3% 8.5% 5.4% n/a
WPI Manufactured Products, FY2012=100, end-quarter
118.6 120.1 123.3 127.9 131.6 134.0 136.5 141.6
value
WPI Manufactured Products, Motor Vehicles, Trailers and
117.0 118.3 118.4 120.1 120.5 122.1 124.1 126.3
Semi-Trailers, FY2012=100, end-quarter value
Consumer Price Index, FY2012=100, end-quarter value 151.8 156.4 157.3 156.8 161.3 163.2 166.2 167.7
Total Motor Vehicle Production, thou units 1,479 6,644 7,248 7,064 4,513 6,394 5,760 5,889
Passenger Vehicle Production, thou units 137.0 785.6 951.3 970.9 730.2 795.2 798.0 951.0
Commercial Vehicle Production, thou units 28.9 147.6 213.3 235.2 136.9 184.5 211.4 272.7
Two-Wheeler Production, thou units 1,250 5,567 5,884 5,649 3,482 5,222 4,549 4,462
Three-Wheeler Production, thou units 62.3 144.3 197.9 206.7 162.0 190.5 201.1 203.9
Total Motor Vehicle Sales, thou units 1,915 6,533 7,214 6,860 4,534 6,417 5,926 5,877
Passenger Vehicle Sales, thou units 182.8 782.2 964.1 961.6 708.1 813.8 800.2 950.0
Commercial Vehicle Sales, thou units 35.5 143.2 209.8 230.4 121.8 189.1 220.8 277.2
Two-Wheeler Sales, thou units 1,632 5,459 5,848 5,459 3,541 5,222 4,694 4,452
Three-Wheeler Sales, thou units 63.4 148.0 190.5 207.2 162.0 190.7 210.4 196.9
Total Motor Vehicle Domestic Sales, thou units 1,478 5,541 5,875 5,498 3,115 5,007 4,537 4,480
Passenger Vehicle Domestic Sales, thou units 139.2 670.7 828.2 848.9 581.3 656.7 661.4 796.8
Commercial Vehicle Domestic Sales, thou units 31.6 133.5 193.0 210.4 105.8 166.3 194.7 249.8
Two-Wheeler Domestic Sales, thou units 1,295 4,691 4,782 4,354 2,404 4,114 3,598 3,350
Three-Wheeler Domestic Sales, thou units 12.8 45.9 71.9 85.6 24.4 70.3 82.4 83.2
Total Motor Vehicle Exports, thou units 436 992 1,338 1,361 1,419 1,410 1,390 1,396
Passenger Vehicle Exports, thou units 43.6 111.4 135.9 112.7 126.8 157.1 138.8 153.3
Commercial Vehicle Exports, thou units 3.9 9.7 16.8 20.0 16.0 22.9 26.1 27.4
Two-Wheeler Exports, thou units 338.0 768.1 1,065.9 1,106 1,137 1,108 1,096 1,102
Three-Wheeler Exports, thou units 50.6 102.1 118.6 121.6 137.6 120.4 128.0 113.7
Source: Central Statistics Office, Ministry of Commerce and Industry, SIAM, CEIC

Production, thou units Sales, thou units
7,248 7,064 7,214

6,644 6,533 6,860
6,394 6,417
5,760 5,889 5,926 5,877
1.5 4,513 4,534
1.4 1.3
206.7 1.4 1.3 1.7
0.5 197.9 0.2 0.6 190.5 207.2 0.9 0.2
190.5 0.8 190.7
144.3 203.9 148.0 210.4 196.9
1,479 201.1 1,915
1.6 1.6
162.0 162.0
5,884 5,649 5,848 5,459
5,567 5,222 4,462 5,459 5,222 4,452
0.4 4,549 0.4 4,694
62.3 3,482 63.4 3,541
1,250 1,632 220.8 277.2
121.8 189.1
28.9 147.6 213.3 235.2 136.9 184.5 211.4 272.7 35.5 143.2 209.8 230.4
708.1 813.8 800.2 950.0
137.0 785.6 951.3 970.9 730.2 795.2 798.0 951.0 182.8 782.2 964.1 961.6
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY2021 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022 FY2021 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022
Passenger Vehicles Commercial Vehicles Passenger Vehicles Commercial Vehicles
Two-Wheelers Three-Wheelers Two-Wheelers Three-Wheelers
Quadricycles Total Quadricycles Total
Domestic Sales, thou units Exports, thou units
5,875 1,338 1,361 1,419 1,410 1,390 1,396

5,541 5,498
5,007
4,537 4,480 991.9
1.6 1.7 0.8 0.2
1.3 1.3
0.0 3,115 436.5 137.6 120.4 128.0 113.7
0.0 0.0 118.6 121.6
71.9
45.9 85.6 0.0
1,478 70.3 0.1 0.1 0.6
82.4 83.2 102.1 1,106
0.0 1,137 1,108 1,096 1,102
4,782 4,354 0.4 1,066
4,691 24.4
0.0 4,114 3,598 3,350 50.6 768.1
12.8 2,404
1,295 338.0
210.4
31.6 133.5 193.0 105.8 166.3 194.7
249.8 3.9 9.7 16.8 20.0 16.0 22.9 26.1 27.4
828.2 848.9
139.2 670.7 581.3 656.7 661.4 796.8 43.6 111.4 135.9 112.7 126.8 157.1 138.8 153.3
Passenger Vehicles Commercial Vehicles Passenger Vehicles Commercial Vehicles
Two-Wheelers Three-Wheelers Two-Wheelers Three-Wheelers
Quadricycles Total Quadricycles Total
Source: SIAM, CEIC

Passenger Vehicle Performance
Passenger Vehicle Production, thou units Passenger Vehicle Sales, thou units
951.3 970.9 951.0 964.1 961.6 950.0

785.6 795.2 798.0 782.2 813.8 800.2
730.2 708.1
36.6 36.1 29.8 37.0 36.0 29.5
29.3 29.1 30.1 29.6 29.6 30.2

351.9 389.5 23.4 423.7 357.6 386.1 22.9 423.0
293.1 377.3 352.7 182.8 292.5 378.8 359.0
137.0 308.5 301.8
3.4 562.9 545.3 5.7 569.5 539.5

463.2 497.4 460.0 497.5
398.3 388.8 415.2 75.3 383.4 405.5 411.0
61.9
71.6 101.8
Passenger Cars Utility Vehicles Vans Total Passenger Cars Utility Vehicles Vans Total
Domestic Passenger Vehicle Sales, thou Passenger Vehicle Exports, thou units
units
848.9 157.1 153.3
828.2 796.8 135.9 138.8
670.7 126.8
656.7 661.4 112.7
111.4
581.3
36.4 35.3
29.4
0.3 0.2
29.4 312.3 348.2 29.3 29.5 0.6 0.7
22.4 369.1 43.6 0.5 54.1 53.9
139.2 249.9 0.2 45.3 0.6 44.7
324.6 314.3 47.0
254.8 42.7 37.9
479.5 0.0 102.7

5.7 465.4 398.3 90.0 93.4 99.2
391.5 11.7 79.3
63.5 304.1 302.8 317.6 68.6 74.1
31.9
70.0
Passenger Cars Utility Vehicles Vans Total Passenger Cars Utility Vehicles Vans Total
Source: SIAM, CEIC

Commercial Vehicle Performance
Commercial Vehicle Production, thou Commercial Vehicle Sales, thou units

units
272.7 277.2
235.2 230.4
213.3 211.4 209.8 220.8
98.7 103.8
184.5 189.1
58.2 87.6
147.6 143.2 56.8 88.3 72.7
136.9 74.6
57.2 121.8 61.1
28.8 27.5
41.7
28.9 35.5 35.2
174.0 173.4
155.1 147.6 153.0 142.1 148.1
127.3 136.8 128.0
118.7 115.7
6.7 95.3 5.6 86.6
22.3 29.9
Light Medium and Heavy Total Light Medium and Heavy Total
Domestic Commercial Vehicle Sales, thou Commercial Vehicle Exports, thou units
units
249.8 27.4
26.1
210.4 22.9
193.0 194.7 94.0 9.8
20.0 8.7
166.3
80.5 16.8 16.0 7.6
133.5 51.2 64.0
7.8
105.8 53.5
9.7 5.6
24.6 6.0
29.2 3.9
31.6 155.8 17.3 17.5
141.8 2.9 15.2
129.8 130.7
109.0 112.8 11.1 12.2
4.4 76.6 1.2 10.0
6.8
27.2 2.6
Light Medium and Heavy Total Light Medium and Heavy Total
Source: SIAM, CEIC

Two-Wheeler Performance
Two-Wheeler Production, thou units Two-Wheeler Sales, thou units
5,884 5,649 5,848

5,567 5,459 5,459
5,222 5,222
4,549 4,462 4,694 4,452
214.9 3,482 215.0 3,541
200.3 176.4 199.2 156.9 165.4
176.1 132.9
118.3 115.3 111.1
1,632
1,250 3,972
3,947 4,189 63.5 3,574 4,132 3,842 74.0
3,860 3,622
3,390 3,454
3,202 3,208
2,723 2,782
54.5
44.7
1,224
1,047 1,419 1,480 1,500 1,468 1,038 1,144 1,399 1,500 1,459 1,431 1,105 1,133
693.3 353.7 682.6
158.2
Scooters Motorcycles Mopeds Total Scooters Motorcycles Mopeds Total
Domestic Two-Wheeler Sales, thou units Two-Wheeler Exports, thou units
4,691 4,782 1,106 1,137 1,108 1,102

4,354 1,066 1,096
4,114
3,598
3,350 1.8 5.0 1.9 1.8
768.1 4.1 1.6
197.5 210.9 2,404
155.1
163.6
1,295 131.3 1.7
109.3
3,145 3,154 338.0
2,821 978.6 1,022 1,042 1,011 1,009 1,020
2,611
69.0 2,444 2,188
714.7
1,740 0.8
53.7
901.7 1,347 1,417 1,377 1,335 322.5
1,020 1,053 80.0
339.0 592.4 51.7 83.2 82.4 90.1 95.3 84.8
14.7
Scooters Motorcycles Mopeds Total Scooters Motorcycles Mopeds Total
Source: SIAM, CEIC

Three-Wheeler Performance
Three-Wheeler Production, thou units Three-Wheeler Sales, thou units
206.7 201.1 203.9 207.2 210.4

197.9 190.5 196.9
190.5 190.7
31.2 162.0 23.3 25.8
30.6 25.4 162.0 25.1
144.3 148.0 30.7
24.5 25.6
12.4 29.7
11.8
21.2
21.3
62.3 63.4
167.2 175.5 165.1 177.8 178.2 185.3
149.6 176.5 166.2 171.3
160.8 150.2
6.2 123.0 6.0 126.7
56.1 57.3
Passenger Goods Total Passenger Goods Total
Domestic Three-Wheeler Sales, thou Three-Wheeler Exports, thou units

units
85.6 82.4 83.2 137.6
128.0
71.9 70.3 118.6 121.6 120.4
113.7
102.1
3.2
28.3 22.3 22.9 2.8
45.9 1.5 2.3 1.5
2.7
28.2 23.0 1.6
24.4 50.6
12.8
19.7 134.4 125.2
117.1 119.3 119.0 110.9
57.3 60.1 60.3 0.2 100.6
43.7 47.3
8.6
5.8 26.2 50.4
15.8
6.9
Source: SIAM, CEIC

Top M&A Deals

Top M&A Deals in the Indian Automotive Sector,* April 1, 2021 - March 31, 2022
Country of Deal Value,
Date Target Company Deal Type Buyer Stake, %
Buyer USD mn
Altigreen Propulsion Labs Pvt Sixth Sense Ventures; Reliance New Energy Solar
11/2/2022 Minority stake India 6.90 Undisclosed
Ltd Ltd; Xponentia Capital Partners; Momentum Ventures
Alpine Investors; Tekne Capital Management LLC; United
24/1/2022 Ola Electric Mobility Pvt Ltd Minority stake 40.00 Undisclosed
Edelweiss Financial Services Ltd States; India
United
14/1/2022 Evage Ventures Pvt Ltd Minority stake RedBlue Capital 200.00 4.00
States
13/12/2021 Oben Electric Vehicles Pvt Ltd Minority Stake We Founder Circle India 1.50 Undisclosed
Edelweiss Financial Services Ltd; VSS Investco; IIFL
India;
8/12/2021 Ola Electric Mobility Pvt Ltd Minority Stake Asset Management Ltd; Temasek Holdings Pte Ltd; 53.00 1.96
Singapore
Rahul Ravindra Raj Mehta - private investor
Manish Bharti - private investor; Raghunath
25/11/2021 Simpleenergy Pvt Ltd Minority Stake Subramanian - private investor; Athiyas Group; India 21.00 Undisclosed
Salarpuria Sattva Group; Buyer(s) unknown
Angel investors; Vijay Shekhar Sharma - private
investor; Renu Satti-private investor; Better Capital; India; United
6/10/2021 Kwh Motors Pvt Ltd Minority Stake 2.00 Undisclosed
Cloud Capital Partners; Rajiv Nazareth-private States
investor
Japan;
Softbank Group Corp; Falcon Edge Capital LP;
30/9/2021 Ola Electric Mobility Pvt Ltd Minority Stake United 200.00 6.66
Buyer(s) unknown
States
Retail investor(s); Anchor Investors; Eligible
Initial Public
17/9/2021 Sansera Engineering Ltd Employees; Qualified Institutional Buyers (QIBs); India 174.52 33.56
Offering
Non-Institutional Investors
Devam Electric Vehicles Pvt
4/8/2021 Acquisition Lords Automotive Pvt Ltd India Undisclosed 100.00
Ltd
Initial Public Retail investor(s); Anchor Investors; Non-Institutional
30/7/2021 Rolex Rings Ltd India 98.45 25.30
Offering Investors ; Qualified Institutional Buyers (QIBs)
22/7/2021 Godi India Pvt Ltd Minority Stake Blue Ashva Capital Singapore Undisclosed Undisclosed
United Arab
Gulf Islamic Investments LLC; Oaks Asset
12/7/2021 Hero Electric Vehicles Pvt Ltd Minority Stake Emirates; 29.50 Undisclosed
Management
India
Sundaram Finance Holdings Ltd; India Motor Parts &
23/6/2021 Brakes India Pvt Ltd Minority Stake Accessories Ltd; T V Sundram Iyengar & Sons Ltd; India Undisclosed 49.00
Flometallic India Pvt Ltd
Secondary
22/6/2021 WABCO India Ltd Buyer(s) unknown Undisclosed 57.10 3.43
Public Offering
Sona BLW Precision Forgings Initial Public Retail investor(s); Anchor Investors; Qualified
17/6/2021 India 755.33 25.00
Ltd Offering Institutional Buyers (QIBs); Non-Institutional Investors
Huddle Accelerator; GrowX Venture Management Pvt
10/6/2021 CellProp Pvt Ltd Minority Stake India 2.00 Undisclosed
Ltd; Endiya Partners; Micelio Fund
Open Market
7/6/2021 TVS Motor Co Ltd Buyer(s) unknown Undisclosed 206.45 5.14
Purchase
20/5/2021 Magenta EV Solutions Pvt Ltd Minority Stake Kiran Patel-private investor India 15.00 Undisclosed
Inflection Point Ventures; Keiretsu Forum; Vijay Kedia India; United
19/5/2021 Fabheads Automation Pvt Ltd Minority Stake 1.09 Undisclosed
- private investor States
India;
23/4/2021 Magenta EV Solutions Pvt Ltd Minority Stake JITO Angel Network; LetsVenture Online Pte Ltd Undisclosed Undisclosed
Singapore
* NAICS Codes: 3361, 3362, 3363

Source: EMIS DealWatch

M&A Activity, April 2021 March

2022
Number and Value of Deals Deals by Deal Type

1,037
Initial Public
Offering
19.0%
Open Market
Purchase
8 502.5
9.5%
6
Secondary
4 246.90
Public
Offering
77.5 3 4.8%
Minority
Q1 Q2 Q3 Q4 Acquisition
Stake 61.9%
FY 2022 4.8%
Number of Deals Value of Deals, USD mn
Deals by Country of Investors Deals by Deal Value

United States
14.8% 100-300mn
19.0% > 300mn
4.8%
Singapore
11.1%
20-100mn
28.6%
Japan 3.7%
Undisclosed
United Arab 19.0%
Emirates
3.7%
Undisclosed
7.4%
India 59.3%
0-20mn
28.6%
Source: EMIS DealWatch

04
COMPETITIVE
LANDSCAPE

03 COMPETITIVE LANDSCAPE CONTENTS
1945 Market Players

Timeline India Vehicle manufacturer
Automotive Tata Motors is set up.
Sector
1948 Market Players
1981 Market Players Commercial vehicle manufacturer

Ashok Leyland Ltd is established.
Maruti Suzuki India Ltd (MSIL), India's largest motor
vehicle manufacturer by volume as of FY2019, is
established.
1984 Market Players
Two-wheeler manufacturer Hero

Motocorp Ltd is set up.
1985 Development Milestones
The government partially deregulates the automotive

industry, which drives capacity expansions. 1991 Development Milestones
The government introduces full sector deregulation.
The government allows automatic approval for

automotive sector FDI up to 100%, with no
minimum investment criteria. India launches the National Mission for

Electric Mobility 2020.
India launches the Make in India initiative

to encourage local manufacturing.
India adopts Automotive Mission Plan 2016-2026,

aimed at promoting safe and efficient mobility for
all Indians.
2018 Market Players
Tata Motor sets up an EV Division.

The Indian government introduces FAME II, a sequel to the

FAME I policy of 2015. Under FAME II, electric vehicles for
2020 Development Milestones personal and shared transportation with 50% local content
are eligible for price reductions benefitting individuals or
The Indian government implements BS VI norms companies adopting them.
in an effort to improve air quality in the country
in line with its international commitments.
Source: Company Data, Mint, Financial Express

Highlights
Overview
In FY2020, the pre-COVID economic deceleration of the Indian economy and the bad performance of
the domestic motor vehicle market led to a change in the marketing and financial strategies of motor
vehicle manufacturers to attract new customers. However, the rapid expansion of COVID-19 pandemic
had a deep negative impact over the Indian economy, weakening the purchasing power of consumers,
producers and investors in India. Companies were forced to change their strategies once again,
prioritising liquidity and postponing new investment projects as domestic and foreign sales crumbled
in Q1 FY2021. Domestic sales started to show the first signs of recovery between Q2 and Q4 FY2021,
however, they fell again in Q1 FY2022 due to a resurge in COVID-19 cases in India. In such a changing
context, motor vehicle manufacturers had to find a balance between cash preservation, investment
and sale expansion.
Market Structure
In FY2021, five companies accounted for 52.8% of four-wheels motor vehicle sales in India. Three of
them presented two-digit market shares: Maruti Suzuki (Japan) with a participation of 39.2%, followed
by Hyundai (South Korea) and Tata Motors (India) with shares of 13.6% and 13.4%, respectively.
Mahindra (India) ranked fourth with a participation of 4.5%, closely followed by Kia (South Korea) with
a share of 4.3%. In the domestic two-wheeler market, the level of concentration was higher as four
companies presented a combined share of 89.1% in FY2021. The Indian company Hero MotoCorp
reported a market share of 37.1%, followed by the Japanese firm Honda (25.8%), and the Indian peers
TVS (14.3%) and Bajaj (12%). The fifth place was occupied by the Indian company Royal Enfield with a
market share of 3.3%.
Main Players
The motor vehicle industry in India is controlled by national and foreign companies with
manufacturing facilities in India. In the four-wheels motor vehicle segment, the Japanese company
Maruti Suzuki owns three manufacturing plants in India with passenger vehicles as its main product,
with commercial vehicles as a complementary product. Hyundai owns one plant to produce passenger
vehicles. Tata Motors owns ten manufacturing facilities in India and its portfolio is focused on the
production and commercialisation of passenger and commercial vehicles. Kia owns plant in India and
produces passenger vehicles only. In the two-wheeler segment, Hero MotoCorp owns six
manufacturing plants in India and it continues to be the largest manufacturer of motorcycles and
scooters in the world. Honda owns four plants in India and also targets motorcycles and scooters
only. TVS and Bajaj individually own three plants in India and their portfolio includes not only two-
wheelers but also three-wheelers.
Source: SIAM, Company Data, Carwale, Autocar India

Market Shares
Top Four-Wheels Motor Vehicle Sellers, Top Motorcycle Seller,

units, FY 2021 units, FY 2021
1. Maruti Suzuki 1. Hero

1,361,722 MotoCorp
(39.2%) 5,608,391
(37.1%)
2. Hyundai 2. Honda
471,535 (13.6%) 3,899,377
(25.8%)
3. Tata Motors 3. TVS

465,734 3,160,000
(13.4%) (14.3%)
4. Mahindra
3. Tata Motors 4. Bajaj
157,316 (4.5%)
465,734 1,807,980
(13.4%) (12.0%)
5. Kia 5. Royal Enfield

150,592 (4.3%) 573,728 (3.8%)
Note: 1,361,772 (39.2%) – new vehicle sales (market share)
Source: EMIS Insights

05
COMPANIES
IN FOCUS

04 COMPANIES IN FOCUS CONTENTS
Tata Motors Ltd
Income Statement, Standalone, INR bn
16.5
1.8 4.1
-6.0 -6.6
-12.1 -13.2
200.5
176.5
173.4
166.2
146.3
144.9
126.2
125.0
123.5
119.0
113.4
110.0
102.1
96.7
Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22
Revenue Expenditure Net Profit
Quarterly Update
According to the standalone quarterly results of Tata Motors Ltd (TML) – the Indian operation of Tata
Motors Group – the company’s revenues reached a value of INR 173.4bn, decreasing by 13.5% in Q4
FY2022 (which ended in March 2022), compared to Q4 FY2021. However, revenues increased by 40.4%
compared to Q3 FY2022 and by 78.1% compared to Q4 FY2020. In terms of volume, production reported
236,286 units in Q4 FY2022. This represented an increase of 25.8% compared to Q4 FY2021, and a rise of
19.5% compared to Q3 FY2022. Domestic sales reached 233,078 units in Q4 FY2022, growing by 27.5%
compared to Q4 FY2021 and by 23% compared to Q3 FY2022. Exports reported a volume of 10,382 units,
expanding by 16.7% compared to Q4 FY2021 and by 2.8% compared to Q3 FY2022. Utility vehicles was
the main segment, representing 36% of total production and 36.1% of domestic sales in Q4 FY2022.
Utility vehicle production and domestic sales expanded by 137.9% and 137.1%, respectively, compared
to Q4 FY2021; and by 29% and 23.7%, respectively, compared to Q3 FY2022. Commercial vehicle demand
continued with its recovery trend in Q4 FY2022 (and the whole FY2022) after two years of decline,
pushed up by the recovery of the Indian economy along with higher activity in road construction,
mining and infrastructure. Moreover, the company achieved new record highs in passenger and
electric vehicle sales in Q4 FY2022. Nonetheless, the company still faces two challenges: commodity
inflation and global auto part shortages.
Source: Bombay Stock Exchange, Company Data

Highlights Income Statement, Consolidated, INR bn

TML was founded in 1945 under the name Tata
Engineering and Locomotive Company. The firm
12.9%
manufactures and sells motor vehicles for 11.7%
10.8%
domestic and foreign markets. TML is part of the
8.2%
Indian conglomerate Tata Group. In February 6.9%
3,019
2,954
2004, the Indian company bought the South
2,745
2,611
2,498
Korean commercial vehicle manufacturer
Daewoo. In June 2008, TML fully acquired the 345.3
322.9
295.9
246.6
179.9
89.9
75.5
British motor vehicle manufacturer Jaguar Land

Rover. In March 2012, Jaguar Land Rover made a
joint venture with the Chinese company Chery.
-28.8
-120.7
-134.5
The company owns ten manufacturing facilities in FY2017 FY2018 FY2019 FY2020 FY2021
India, five in the UK and two in Europe. The
Net Revenues EBITDA
company also operates a vehicle and engine Net Profit EBITDA Margin
manufacturing facility in China through the joint
venture with Chery. Additionally, TML owns a
total of 7 R&D/engineering and design centres Balance Sheet, Consolidated, INR bn
around the world. TML’s portfolio includes a wide 3.7
range of motor vehicles such as passenger cars,
SUVs, trucks, buses and defence vehicles. 2.4
2.1
TML (excluding the operations of Jaguar Land
1.3 1.3
Rovers in China) reduced its capital expenditure
3,431
3,314
3,221
from INR 45.1bn in FY2020 to INR 25.9bn in FY2021.

3,072
2,738
This represented an annual fall of 42.7%. The

company prioritised cash preservation in a
433.8
384.1
context of weakened demand due to the

959.5
585.2
607.0
583.2
638.9
659.5
568.2
679.8
pandemic. However, TML managed to renew its

portfolio over FY2021 with new versions of the FY2017 FY2018 FY2019 FY2020 FY2021
New Forever range of passenger vehicles which Total Assets Shareholders' Equity
included five models: Tiago, Tigor, Nexon, Harrier Net Debt Net Debt/EBITDA
and Altroz. Additionally, TML launched in January
2021 a new version of the Safari model.
Source: EMIS Company Database, Company Data, Nikkei

Highlights Production by Segment, FY2021

In FY2021, total sales (including exports) of TML
Jaguar Land
fell by 12.9% y/y to 837,783 units. This was mainly Rover 46.7%
due to lower domestic sales due to the negative
economic effects of the pandemic. However, the
performance was dissimilar at segment level. On
the one hand, commercial vehicle sales of the
Tata brand dropped by 23% y/y and Jaguar Land
Rover four-wheels motor vehicle sales fell by 27%.
On the other hand, passenger vehicles sales of
the Tata brand grew by 61.2% y/y. This was mainly
explained by the solid performance of the New
Forever range of passenger vehicles. Because of
this, the share Tata Motors over total sales
Tata Motors
increased from 51.5% in FY2020 to 53.5% in FY2021. 53.3%
In the domestic market, TML was the third largest
seller of four-wheels vehicles in FY2021 with a
share of 13.4%.
Sale Volume by Type, thou units Sale Volume by Region, FY2021

United
1,274 North Kingdom
America 9.7%
11.2%
961.5
507.9 Europe (excl.
837.8 UK) 9.1%
476.0
347.6
527.3 China 5.6%
267.5
347.6
234.5 222.4
137.9
Others 8.7%
FY2019 FY2020 FY2021
Jaguar Land Rover - Motor Vehicles

India 55.6%
Tata and Other Brands - Commercial Vehicles
Tata and Other Brands - Passenger Vehicles
Source: Company Data

19.4
18.4
13.7
11.7
10.1
267.4
4.4 4.8
243.7
240.2
234.6
232.5
220.7
217.1
212.6
205.4
197.1
187.4
177.7
169.7
168.3
Quarterly Update
Maruti Suzuki India Ltd (MSIL) reported a revenue of INR 267.4bn in Q4 FY2022, ending in March 2022.
This represented an increase of 15% compared to Q3 FY2022. Moreover, the revenue of the company
grew by 11.3% compared to Q4 FY2021 and by 46.9% compared to Q4 FY2020. Total sales, comprising
domestic and export sales, reached 488,830 units, dropping by 0.7% compared to Q4 FY2021, but rising
by 13.5% compared to Q3 FY2022. Domestic sales were the main component with a volume of 420,376
units, and a share of 86% in total sales, declining by 8% compared to Q4 FY2021, and increasing by
15% compared to Q3 FY2022. On the other hand, exports reported a volume of 68,454 units, rising by
92.7% compared to Q4 FY2021 and by 5.3% compared to Q3 FY2022. Compact vehicles was the main
segment of domestic sales with 231,581 units and a decrease of 3.4% compared to Q4 FY2021, and an
increase of 32.3% compared to Q3 FY2022. Utility vehicles registered a volume of 76,985 units, growing
by 0.1% compared to Q4 FY2021, but falling by 2.1% compared to Q3 FY2022. Mini passenger vehicle
sales reached a volume of 53,816 units with drops of 27% compared to Q4 FY2021 and 3.3% compared
to Q2 FY2022. MSIL highlighted two positive factors during Q4 FY2022: 1) improved capacity utilisation;
2) increase in selling prices; and 3) higher non-operating income. Among the negative factors, the
company pointed out adverse commodity prices.


MSIL was established in 1982 as a joint venture
between the Indian government and the Suzuki
14.1% 14.7%
Motor Corporation (SMC) of Japan. The company 12.8%
became a subsidiary of SMC in 2002. In terms of
9.7%
production and sales volume, MSIL is the largest
7.5%
subsidiary of SMC. The Japanese company owned
56.28% of MSIL at the end of FY2020. MSIL owns
860.7
820.4
two manufacturing facilities located in Gurugram
756.6
733.2
703.7
and Manesar in Haryana state. These two plants
have a combined annual production capacity of
120.6
110.0
103.6
1.5mn units. The company also owns a subsidiary

78.8
76.5
75.1
73.1
56.8
52.9
43.9
(Suzuki Motor Gujarat Private Ltd) in Hansalpur
(Gujarat state) and became operational in 2017.
FY2017 FY2018 FY2019 FY2020 FY2021
With this subsidiary, the annual production
Net Revenues EBITDA
capacity of the company rises to 2mn units. The Net Profit EBITDA Margin
portfolio of the company in FY2020 included 17
models: Baleno, Ciaz, Dzire, Vitara Brezza, Wagon-
R, Alto, S-Cross, XL6, Ignis, Ertiga, Swift, S-Presso,
Celeriox, Celerio and Eeco (passenger vehicles); Balance Sheet, Consolidated, INR bn
Super Carry and Eeco Cargo (commercial
vehicles). The company’s main destination is the
Indian market, however, MSIL also exports to 90
countries.
In May 2020, MSL projected a capital expenditure

712.8
639.7
636.3
602.5
of INR 27bn for the FY2021 (the lowest value since

525.0
519.6
494.3
471.1
425.8
FY 2016), down from INR 32.5bn in FY2020. This

370.9
4.6
represented an annual fall of 16.9%. Nevertheless,

0.8
0.5
the company will introduce seven new vehicles

0.04 0.00 0.0
over 2021. This includes three new versions of
-0.3
-25.6
existing models (Celerio, Alto and Swift), and four

new models: an EV (based on the Wagon R FY2017 FY2018 FY2019 FY2020 FY2021
model), a mid-size SUV and a C-Segment MPV Total Assets Shareholders' Equity
Net Debt Net Debt/EBITDA
(both in cooperation with Toyota) and the Jimny
model.
Source: EMIS Company Database, Company Data, Money Control, India Car News

Highlights Motor Vehicle Sales

In FY2021, MSIL motor vehicle sales (including
4.7%
exports) fell by 6.7% y/y to 1.46mn units. This was
mainly explained by a weaker demand of motor
vehicles from the domestic and foreign markets
1,458
during the pandemic. Domestic motor vehicle
sales accounted for 93.4% of total sales and 1,862
reported an annual fall of 6.8%. Exports -6.7%
1,563
represented the remaining 6.6% of total sales,
with an annual decline of 5.9%. Despite the bad
performance in FY2021, MSIL remained as the
largest seller of four-wheels motor vehicles in
-16.1%
India with a market share of 39.2% (up from 38.6%
FY2019 FY2020 FY2021
in FY2020). At segment level, compact cars
represented 52.8% of domestic sales, followed by Sale Volume, thou units y/y change
utility vehicles (16.8%), mini cars (16.6%) and vans

(7.7%).
Motor Vehicle Sales by Destination, Domestic Motor Vehicle Sales by Type,

FY2021 FY2021
Utility
Vehicle
16.8%
Domestic Mini 16.6%
Sales 93.4%
Van 7.7%
Exports 6.6%
Others 6.0%
Compact
52.8%

Hero MotoCorp Ltd
10.8
9.5
8.6
7.9
6.9 6.3
3.7
97.8
93.7
86.9
84.5
83.7
80.9
78.8
74.8
74.2
73.9
69.3
66.0
54.9
49.8
Quarterly Update
According to the standalone quarterly results of Hero MotoCorp Ltd (HMCL), the company’s revenues
reached INR 74.2bn in Q4 FY2022 that ended in March 2022. This represented a decrease of 14.6%
compared to Q4 FY2021. Moreover, revenues fell by 5.9% compared to Q3 FY2022. On the other hand,
revenues increased by 19% compared to Q4 FY2020. According to Niranjan Gupta, CFO of Hero
MotoCorp, the company faced a weaker demand in the domestic market and a reduction in margin
profits as the increase in input costs continued to be a challenge during Q4 FY2022. The number of
two-wheelers sold by HMCL (including domestic sales and exports) reached a volume of 1.19mn units
in Q4 FY2022, dropping by 24.2% compared to Q4 FY2021 and by 8% compared to Q3 FY2022.
Motorcycles was the main segment with 1.12mn units and a share of 94.4% in Q4 FY2022, with a fall of
21.9% compared to Q4 FY2021 and by 7.4% compared to Q3 FY2022. Scooter sales reached 66,864 units
with a share of 5.6% in Q4 FY2022, decreasing by 48.9% compared to Q4 FY2021 and by 16.6% compared
to Q3 FY2022. Domestic sales was the main component with a volume of 1.11mn units in Q4 FY2022,
with a share of 93% in total sales, declining by 26.1% compared to Q4 FY2021 and by 10.2% compared
to Q3 FY2022. On the other hand, exports reported a volume of 82,998 units, rising by 15.7% compared
to Q4 FY2021, but contracting by 36% compared to Q3 FY2022.
Source: Bombay Stock Exchange, Company Data, Economic Times, CNBC


HMCL was created as a joint venture between the
Indian company Hero Cycles (also knowns as the
16.1%
Hero Group) and the Japanese company Honda,
14.8% 14.8%
under the name Hero Honda. In December 2010, 13.9%
13.2%
the directors of Hero Honda decided to terminate
the joint venture, giving birth to HMCL in July 2011
under the direction of the Hero Group. As of
339.7
331.0
December 2020, HMCL consolidated its position
309.8
309.6
292.5
as the world’s largest manufacturer of two-
wheelers for 20 calendar years in a row. The
53.3
50.2
45.8
41.0
40.6
37.2
36.4
35.8
company owns eight manufacturing facilities
34.4
29.2
with an annual production capacity of 9.5mn
units. Six of them are located in India, and the
FY2017 FY2018 FY2019 FY2020 FY2021
other two are located in Colombia and
Net Revenues EBITDA
Bangladesh. Additionally, it owns two R&D
Net Profit EBITDA Margin
facilities, one in India and one in Germany.
The portfolio of the company included scooters,

premium and non-premium motorcycles. In Income Statement, INR bn
FY2021, HMCL launched 13 new models/versions of
existing models across all segments in the Indian
market. This included models such as Glamour
Blaze, Xtreme 200S BS VI, Maestro Edge 125
Stealth, Xtreme 160R, Pleasure+ Platinum,
Splendor+ Black and Accent and Destini 125
231.0
196.7
Platinum. Moreover, the company plans to launch

185.0
174.0
155.6
153.1
145.5
its first electric two-wheeler within the FY2022.

132.4
120.6
103.8
However, it is important to note that the capital

expenditure of the company fell from INR 12.7bn
0.5
0.0
0.01 0.00
in FY2020 to INR 5.8 in FY2021. This represented an
-0.1
-0.7
-2.3
annual fall of 54.4%. On the other hand, in

January 2021, the company’s produced its 100 FY2017 FY2018 FY2019 FY2020 FY2021
millionth unit (the first 50mn units took 29 years Total Assets Shareholders' Equity
of production, while the second 50mn units took
only seven years).
Source: EMIS Company Database, Company Data

Highlights Two-Wheelers Sales

In FY2021, the company’s sales of two wheelers
(including exports) fell by 9.3% y/y to 5.8mn units 3.1%
– the lowest volume in the last ten fiscal years.
This was to the negative effects of COVID-19
pandemic over two-wheeler demand. Domestic
5,800
sales accounted for 96.7% of total sales, while
exports represented the remaining 3.3%. At
7,821
segment level, motorcycles had a share of 88.3%
6,398
-9.3%
of total sales (including exports), while scooter
reported a share of 11.7%. In spite of the bad
performance in FY2021, HMCL kept its position as
the largest seller of two-wheelers in the domestic
-18.2%
market with a share of 37.1% (up from 35.7% in FY2019 FY2020 FY2021
FY2020). However, the market share in the
Sale Volume, thou units y/y change
motorcycle segment fell from 51.9% in FY2020 to
51.5% in FY2021.
Two-Wheelers Sales by Type, FY2021 Two-Wheelers Sales by Destination,

FY2021
Motorcycles Domestic
88.3% Sales 96.7%
Scooters
11.7%
Exports 3.3%
Source: Company Data, SIAM

Ashok Leyland Ltd
9.0
65.1
70.0
53.4
87.4
75.7
2.4
55.5
48.1
46.7
44.6
44.1
28.4
28.5
0.1
29.5
-0.2
31.6
-0.8
-1.5
-2.8
Quarterly Update
According to the standalone results of Ashok Leyland Ltd (ALL), its revenue in Q4 FY2022, ending in
March 2022, reached a value of INR 87.4bn. This represented an increase of 57.5%, compared to Q3
FY2022. Furthermore, revenues in Q4 FY2022 reported rises of 24.9% compared to Q4 FY2021. Between
Q2 and Q4 FY2021, ALL reported a steady recovery which was interrupted in Q1 FY2022. The company
started a new recovery path in Q2 and Q3 FY2022, with values in Q4 FY2022 surpassing those registered
in Q4 2021. Total sale volume (including domestic sales and exports) in Q4 FY2022 reached 48,719 units.
This represented an increase of 10.6% compared to Q4 FY2021, and 45.8% compared to Q3 FY2022.
Trucks represented 59.6% of total sale volume, while LCVs and buses reported shares of 34.3% and
6.5%, respectively, in Q4 FY2022. Truck and bus total sales rose by 23.6% and 14.1%, respectively,
compared to Q4 FY2021 (or by 96.9% and 72.9%, respectively, compared to Q3 FY2022). Domestic sales in
Q4 FY2022 reached 44,546 units, represented 91.4% of total sales, and expanded by 8.9% compared to
Q4 FY2021 (or by 46.2% compared to Q3 FY2022). Domestic sales of trucks grew by 24% compared to Q4
FY2021 (or by 95% compared to Q3 FY2022). Exports in Q4 FY2022 reported a volume of 4,173 units, with
a share of 8.6% of total sales, with increases of 31.9% compared to Q4 FY2021 and 41.9% compared to
Q3 FY2022.


ALL was founded in 1948 under the name Ashok
Motors as an assembler and manufacturer of cars
for the English company Austin. In 1954, the 19.1%
English company Leyland Motors joined Ashok
Motors through an equity participation, giving 15.1% 14.8% 14.7%
birth to ALL with the manufacturing of
12.7%
commercial vehicles as the main product of the
company. The collaboration ended in 1975,
332.0
299.0
however, Leyland continued to give technological
241.9
219.5
support until the 1980s. In 1987, the company was
194.5
acquired by a joint venture between the Hinduja
49.1
46.1
45.3
32.3
24.6
Group (a British-based and Indian originated
20.8
18.1
16.3
3.4
1.7
transnational conglomerate) and the Italian
heavy vehicle manufacturer Iveco. In 2007, the FY2017 FY2018 FY2019 FY2020 FY2021
Hinduja Group acquired Iveco’s share, becoming Net Revenues EBITDA
the main shareholder. Net Profit EBITDA Margin
The company owns nine manufacturing plants.

Seven of them are located in India, the remaining
two are in United Arab Emirates and in the United Balance Sheet, Consolidated, INR bn
Kingdom. The company’s portfolio includes a wide
variety of commercial vehicles: 1) trucks with a 6.7
gross vehicle weight ranging between 1 and 55

tonnes; 2) 9 to 80-seater buses, vehicles for 4.3
defence and special applications, and diesel
2.7
engines for industrial, genset and marine 2.4
1.9
420.7
applications.
391.2
381.3
335.2
266.7
The capital expenditure of the company

decreased from INR 13bn in FY2020 to INR 7.5bn in
163.9
139.2
133.7
109.2
FY2021. This represented an annual decrease of

98.2
91.3
89.0
88.5
82.5
69.8
42.3% as ALL prioritised cash preservation.

However, the company used the capital FY2017 FY2018 FY2019 FY2020 FY2021
expenditure in three areas: 1) development of new Total Assets Shareholders' Equity
products; 2) automation; 3) incorporation of
technology.
Source: EMIS Company Database, Company Data, Economic Times

Highlights Commercial Vehicle Sales

In FY2021, ALL’s sales (including exports) fell for
12.9%
the second consecutive year. In FY2020, the Indian
economic deceleration explained the annual fall
of 36.6%, while in FY201, the negative effects of
the pandemic led to an annual drop of 19.6%,
down to 100,717 units. Domestic sales represented 197.4
the bulk of total sales with a share of 92.1% and
an annual fall of 20.3%. However, ALL kept its
-19.6%
125.2
position as the third largest seller of commercial
100.7
vehicles in the Indian market with a share of
16.3% (the market leaders were Tata Motors and
Mahindra). Exports represented the remaining -36.6%
7.9% of total sales and reported an annual fall of FY2019 FY2020 FY2021
10.3%, down to 8,001 units (exports fell for the Sale Volume, thou units y/y change
third consecutive fiscal year).
Domestic Commercial Vehicle Sales Commercial Vehicle Exports
16.7% -10.3%
185.1
12.3
8.9
116.3
-20.3%
8.0
-24.3%
92.7
-37.2% -27.5%
FY2019 FY2020 FY2021 FY2019 FY2020 FY2021
Export Volume, thou units y/y change Export Volume, thou units y/y change

Bajaj Auto Ltd
15.6
14.7
13.3 12.7
12.1
11.4
10.6
90.2
89.1
87.6
86.0
79.7
76.5
73.9
73.6
71.8
71.6
70.7
63.0
62.7
58.9
Quarterly Update
According to the standalone quarterly results reported by Bajaj Auto Ltd (BAL), the company revenues
reached a value of INR 79.7bn in Q3 FY2022, ending in March 2022. This was a decrease of 7.2%,
compared to Q4 FY2021, and a drop of 11.6% compared to Q3 FY2022. However, revenues increased by
16.3%, compared to Q4 FY2020. The revenue contraction in Q4 FY2022 was mainly explained by supply
chain challenges which negatively affected the performance of motorcycle and commercial vehicle
sales. Total sales (including domestic sales and exports) reached 0.98mn units in Q4 FY2022,
contracting by 16.5% compared to Q4 FY2021 and by 17.3% compared to Q3 FY2022. Motorcycles was the
main segment with a share of 88% (0.86mn units) of the company’s total sales in Q4 FY2022.
Motorcycle total sales decreased by 18% compared to Q3 FY2021 and by 18.1% compared to compared
to Q3 FY2022. Commercial vehicles represented 12% (117,560 units) of the company’s total sales in Q4
FY2022. Commercial vehicle total sales dropped by 3.7% compared to Q4 FY2021, and by 11.5%
compared to Q3 FY2022. Total domestic sales reached 0.39mn units in Q4 FY2022, they represented
39.8% of the company’s total sales, and fell by 27.1% compared to Q4 FY2021 and by 25.6% compared to
Q3 FY2022. Total exports reported a volume of 0.59mn units in Q4 FY2022 with a share of 60.2% of total
sales. Exports dropped by 7.6% compared to Q4 FY2021 and by 10.7% compared to Q3 FY2022.
Source: Bombay Stock Exchange, Company Data, SIAM

Highlights Income Statement, INR bn

BAL was created in 1945 under the name Bachraj
Trading Corporation Private Ltd. In 1948, the
company started to sell imported two- and three-
19.1%
wheelers in India. In 1959, the company obtained 18.9%
17.8%
a licence from the Indian government to 17.1% 17.0%
manufacture two- and three-wheelers. In 1960,

BAL became a public limited company. BAL is part
of the Indian conglomerate Bajaj Group. As of
303.6
299.2
277.4
256.2
March 2020, BAL consolidated its position as one
230.9
the world’s largest two-wheeler manufacturers

and the world’s largest three-wheeler
manufacturer and exporter. The company owns
52.1
51.9
51.0
49.3
49.2
44.2
40.8
48.4
42.2
48.6
three manufacturing plants, two of them in
Maharashtra state and one in Uttarakhand state. FY2017 FY2018 FY2019 FY2020 FY2021
The three plants have a combined annual
Net Revenues EBITDA
production capacity of 6.33mn units. The company Net Profit EBITDA Margin
also has an R&D centre in Maharashtra. At the
end of FY2020, the company had 10,052
employees.
Balance Sheet, Consolidated, INR bn
In spite of the negative effects of COVID-19
pandemic in India, BAL increased its capital
expenditure from INR 1.7bn in FY2020 to INR 2.2bn
in FY2021. This represented an annual increase of
26.9%. Moreover, the company’s R&D centre
successfully completed all the product launches
336.0
that were planned for the FY2021. Specifically, BAL

288.3
272.7
265.1
251.4
232.3
introduced forty-one new models/versions of

216.6
216.4
204.3
178.6
existing models: nine launches in the commuter

segment; six models of the sport segment; three
launches in the super-sport or premium segment;
-3.0
-3.2
and twenty-three launches in the commercial

-5.4
-7.9
-9.3
segment. In October 2020, the company FY2017 FY2018 FY2019 FY2020 FY2021
inaugurated an EV laboratory to design and
Total Assets Shareholders' Equity Net Debt
develop EV technologies and to manufacture and
test EV components and vehicles.
Source: EMIS Company Database, Company Data

Highlights Two-Wheelers Sales

In FY2021, BAL’s sales (including exports) fell for
the second consecutive year, down to 3.60mn 25.7%
units. In FY2020, sales decreased by 6.8% y/y due
to the deceleration of the Indian economy; in
FY2021, sales dropped by 8.7% y/y due to the
negative impact of COVID-19 pandemic. Domestic
sales registered a share of 50.2% of total sales,
4,237
3,947
3,604
reporting an annual fall of 13%. However, BAL
kept its position as the fourth largest seller of
two-wheelers in the Indian market with a share of
12% (the market leaders were Hero MotoCorp,
Honda and TVS). Exports represented the -6.8%
-8.7%
remaining 49.8% of total sales and reported an FY2019 FY2020 FY2021
annual fall of 3.9%, down to 1.80mn units,
Sale Volume, thou units y/y change
interrupting the growing trend in the two
previous fiscal years.
Domestic Two-Wheelers Sales Two-Wheelers Exports
28.7% 21.6%
1,869
10.2%
2,541
1,797
1,696
2,078
1,808
-13.0%
-18.2% -3.9%
FY2019 FY2020 FY2021 FY2019 FY2020 FY2021
Sale Volume, thou units y/y change Export Volume, thou units y/y change

06
REGULATORY
ENVIRONMENT

05 REGULATORY ENVIRONMENT CONTENTS
Government Policy
Main Bodies
The Department of Heavy Industry (DHI), part of the Ministry of Heavy Industries & Public Enterprises,
is responsible for India’s automotive industry. It also administers the Automotive Research
Association of India (ARAI). The Society of Indian Automobile Manufacturers (SIAM) is a non-profit
national body representing all major vehicle and vehicular engine manufacturers in India. The
Automotive Component Manufacturers’ Association (ACMA) brings together more than 800
manufacturers who contribute more than 85% of the auto component segment’s turnover. The
Confederation of Indian Industry (CII) is a non-government, non-profit organisation which plays a
proactive role in industry policy development in India. The Society of Manufacturers of Electric
Vehicles (SMEV) is a Delhi-based body representing electric vehicles and component manufacturers in
the passenger vehicle, bus, and two- and three-wheeler segments.
Automotive Mission Plan 2016-2026 (AMP 2026)

India’s AMP 2026 has set four major objectives for the development of the Indian automotive industry.
First, it aims to increase the contribution of the automotive sector to the country's GDP from 7% in
FY2016 to over 12% in FY2026. Second, it seeks to create 65mn new direct and indirect jobs (compared
to an increment of 25mn in the previous decade). The third objective is to promote safe, efficient and
comfortable mobility with an eye on environmental protection and affordability. The fourth goal is to
increase the share of motor vehicle exports over total output (the industry has the potential to
increase the share up to 40% by FY2026). However, the economic deceleration in FY2020 and the
negative effects of COVID-19 pandemic in FY2021 has negatively affected the investment capacity of
key players. In September 2020, SIAM declared that the government support for demand stimulus is
required to achieve the goals set by AMP 2026.
Vehicle Scrappage Policy 2021

In February 2021, the government announced the development of a voluntary vehicle scrapping policy
to phase out old and unfit vehicles. To promote this new programme, the government will create
strong incentives to scrap old vehicles and buy new ones: 1) vehicle manufacturers will give up to 5%
discount for buying new vehicles; 2) the government will give up to 25% rebate on road tax for
passenger vehicles (15% for commercial vehicles). Additionally, keeping old vehicles will carry
disadvantages such as: 1) an increase in re-registration fee for private vehicles, 2) an increase renewal
fee of fitness certification for commercial vehicles, and 3) automatic de-registration of unfit vehicles.
Strong hybrid vehicles, electric vehicles, agricultural equipment, vehicles using alternative fuels such
as compressed natural gas, ethanol and liquified petroleum gas are exempted from the vehicle
scrappage policy.
Source: DHI, SIAM, ACMA, CII, SMEV, Business Standard, India Times

05 REGULATORY ENVIRONMENT CONTENTS
Faster Adoption and Manufacturing of Hybrid and Electric Vehicle (FAME)

In April 2019, India launched the programme FAME II, which comes to replace FAME I. The new policy
will be in force until March 2022 with a budget of INR 100bn. FAME I had been adopted in April 2015
and ended in March 2019. The main objective of FAME II is to promote the production and adoption of
electric and hybrid vehicles. Around 86% of the budget has been allocated to create demand for EVs in
the country. Specifically, the programme aims to support the production and sale of 7,000 electric
buses; 500,000 electric three-wheelers; 55,000 electric four-wheeler passenger vehicles and one
million electric two-wheelers.
However, the deceleration of the Indian economy in FY2020, the negative effects of the pandemic in
FY2021, rigidities of the programme (e.g., localisation norms) and the price gap with combustion
engine vehicles has undermined the success of the programme. In January 2021, SMEV suggested a
modification of FAME II due to its bad performance. Moreover, as of June 2021, only 78,045 vehicles
have benefit under the scheme. To counter this, the government took two measures. First, it extended
the duration of FAME II until March 2024. Second, it increased the demand incentive for electric two-
wheelers to INR 15,000 per kWh (up from INR 10,000 per kWh for every EV with the exception of buses).
Additionally, the government also increased the incentive cap for electric two-wheelers at 40% of the
vehicle cost (up from 20%).
Bharat Stage Six (BS VI) and Corporate Average Fuel Efficiency (CAFE)
In April 2017, CAFE regulations come intro force in April 2017 which established that average corporate
CO2 emissions must be less than 130 grams per kilometre until March 2022 (CAFE-1) and below 113
grams per kilometre since April 2022 (CAFE-2). These norms applies for petrol, diesel, liquified
petroleum gas and compressed natural gas passenger vehicles. In April 2020, the automotive industry
in India started a massive transition with the implementation of BS VI norms to regulate the output of
air pollutants from internal combustion engine and spark-ignition engine equipment. Since April 2020,
vehicle makers must manufacture and sell only BS VI vehicles (BS VI Stage One). Since April 2023 (BS
VI Stage Two), new measures will be introduced including: 1) confirmatory factor for in-service
compliance; 2) market surveillance and independent verification testing of in-use vehicles by
regulatory authorities; 3) adoption of more stringent driving cycles for emissions testing, 4) public
disclosure of emissions data by the manufacturer; and 5) on-board fuel consumption meters. In
January 2021, the Indian automotive industry requested to postpone the implementation of CAFE-2
and BS VI Stage Two to April 2024. The economic deceleration of the Indian economy in FY2020 and the
negative effects of COVID-19 in FY2021 weakened the purchasing power of Indian consumers. Domestic
sales are expected to recovery in FY2022, however, the entry into force of the new regulations will put
more pressure over the price of motor vehicles in a market characterised by a large share of first-time
buyers.
Source: Ministry of Heavy Industries, Economic Times, Electrive, Business Standard, Autocar India, Journals of India, Drishti,
Indian Express
07
PASSENGER
VEHICLES

06 PASSENGER VEHICLES CONTENTS
Highlights
Overview
India was the world’s fifth-largest passenger vehicle manufacturer and market in 2020, OICA figures
showed. Passenger vehicles is the second main segment of the Indian motor vehicle industry with a
share of 12.7% of total output and 12.8% of total sales in FY2021. Passenger vehicle reached a peak of
output (4.03mn units) and sales (4.05mn units) in FY2019. However, output and sale volumes fell in
FY2020 (due to the deceleration of the Indian economy) and in FY2021 (due to the negative effects of
COVID-19 pandemic and the lockdown). Passenger vehicle sales fell by 12.6% y/y in FY2021, reaching a
volume of 2.89mn units (the lowest volume since FY2010 with 2.40mn units). Along this vein, passenger
vehicle output also decreased by 13.7% y/y in FY2021, with a volume of 2.84mn units (the lowest
volume since FY2010 with 2.36mn units). Exports reported an annual decline of 38.8% in FY2021,
reporting a volume of 403,642 units (the lower volume since FY2009 with 335,730 units).
Drivers and Constraints

The performance of the Indian passenger vehicle segment is mainly determined by the dynamics of
the domestic market. Between FY2017 and FY2019, passenger vehicle production was fostered by
domestic sales which represented on average 81.9% of passenger vehicle output. In FY2020, domestic
sales fell due to the economic deceleration of the Indian economy, however, the share of domestic
passenger vehicle sales over output reached 80.4%. In FY2021, the negative effects of COVID-19
pandemic disrupted the performance of the passenger vehicle industry, nonetheless, the dependency
of the industry towards the domestic market increased as domestic passenger vehicle sales
represented 87.4% of total output. To reduce the dependence on the domestic market, the industry
must improve its export performance. Nevertheless, passenger vehicle exports registered its fourth
annual consecutive fall in FY2021, with an annual average fall of 14.6% over FY2017-FY2021.
Outlook
In FY2022, domestic sales of passenger vehicles are expected to recover as the Indian economy is
recovering from the deep negative effects of COVID-19 pandemic. According to a report published by
Ind-Ra in March 2021, domestic passenger vehicle sales are expected to increase between 18% and
22% y/y in FY2022, pushed by a higher consumer sentiment from rural and urban markets. However,
there are negative factors that can lower the rhythm of recovery of the passenger vehicle segment: 1)
the negative effects of the second wave of COVID-19 pandemic over the Indian economy over FY2022;
2) the rising prices of key commodities which are putting pressure over production costs; 3)
disruptions in the supply chain (e.g., the global shortage of semiconductors). In line with this, ICRA
projected (in May 2021) a domestic sale increase between 17% and 20% y/y in FY2022; while CRISIL
expected (in June 2021) a rise between 13% and 15% y/y.
Source: OICA, SIAM, Ind-Ra, ICRA, CRISIL, Business Standard, Business Today, Mobility Outlook

Main Events
▪ In the last quarter of FY2021, key car manufacturers such as Tata, Mahindra & Mahindra, Maruti
Suzuki and Hyundai were negatively affected by the global shortage of semiconductors. In
consequence, the pace of manufacturing activities was reduced, and in some cases, activities were
suspended. The bottleneck in semiconductors are expected to continue over 2021.
▪ In February 2021, South Korean car manufacturer Hyundai announced an investment of USD 200mn
to produce electric vehicles in India. The company is negotiating with battery makers and auto part
suppliers to ensure a lower assembly cost in India. In 2019, Hyundai launched in the Indian market
the Kona model (an electric compact crossover SUV), however, this vehicle was too expensive for
the average Indian consumers. Therefore, the strategy of Hyundai is to produce an affordable
electric vehicles for mass markets.
▪ In September 2020, Toyota announced an investment project of INR 20bn whose main goals are
technology and electrification, both for the domestic and export market. Additionally, Toyota is
working closely with Maruti Suzuki in key areas such as production, technology and procurement to
expand Toyota’s presence in India. On the other hand, Toyota also indicated that it will not
introduce new vehicles from its own portfolio into the country in the short term. According to the
company, the high tax structure in the Indian motor vehicle industry, particularly on hybrid
vehicles, does not justify local manufacturing. In India, GST on hybrid vehicles stands on 43%,
therefore, it is preferable to import hybrid vehicles instead of producing them, Toyota argued.
Furthermore, the company suggests that GST for hybrid vehicles should be lowered to its previous
level (28%). In line with this, GST for petrol vehicles should also be lowered from the current 28% to
18%. Toyota considers that the relatively high levels of taxation discourage investments, reduce the
margin profit of carmakers and increase the cost of launching new products. Toyota does not plan
to leave India; however, it will not increase its production capacity as its plant are not functioning
at its full capacity.
▪ In the second half of March 2020, key passenger vehicle manufacturers such as Maruti Suzuki,
Hyundai, Tata Motors, Mahindra and Kia suspended their operations as the Indian government
ordered a mandatory lockdown at national level to prevent the rapid expansion of COVID-19
pandemic. Activities were slowly retaken since May 2020, therefore, output, domestic sales and
exports of commercial vehicles in the first quarter of FY2021 showed exceptionally low volumes.
Source: Mint, Business Standard

Production
Overall Motor Vehicle Production by Type, thou units
30,915
29,093
25,331 26,220
5.4 22,435
1.7
1.6 1,269 6.1
1,022
783.7 1,133 3.8
611.2
23,154 24,500
19,934 21,033
18,350
810.3 895.3 1,112

752.0 624.9
3,802 4,020 4,028 3,296 2,845
FY2017 FY2018 FY2019 FY2020 FY2021
Passenger Vehicle Production by Type, Comments

thou units
The production of passenger vehicles fell by 13.7%
y/y to 2.8mn units in FY2021 due to lower sales in
4,020 4,028
3,802 the domestic market. Passenger cars reported a
180.3 217.5 3,296 share of 57.8%, followed by utility vehicles and
180.2
2,845
1,093 1,100 125.7 vans, with 38.5% and 3.7%, respectively. Passenger
909.6
105.4 car production reported the largest annual fall of
1,082
1,096 21.3% y/y to 1.6mn units in FY2021. Similarly, van
output fell by 16.2% y/y to 105,427 units. On the
2,712 2,747 2,711
2,088
other hand, utility vehicle production registered
1,643
an annual increase of 1.3%, reaching a volume of
1.1mn units. The good performance of utility
FY2017 FY2018 FY2019 FY2020 FY2021 vehicles was mainly attributed to a shift of
Passenger Cars Utility Vehicles consumer preferences towards utility vehicles,
Vans Total whose share in passenger vehicle output grew
from 23.9% in FY2017 to 38.5% in FY2021.
Source: SIAM

Sales
Overall Motor Vehicle Sales by Type, thou units
30,895
29,023
25,342 5.0 26,168
1.6 1,269
1,017 22,521
1.6 6.1
783.8 1,139 3.5
609.1
23,014 24,461
19,930 20,936
18,399
822.6 953.6 1,107

778.5 618.9
3,804 4,037 4,054 3,309 2,891
FY2017 FY2018 FY2019 FY2020 FY2021
Passenger Vehicle Sales by Type, thou Comments

units
Passenger vehicle sales (including exports)
4,037 4,054 dropped by 12.6% y/y to 2.9mn units in FY2021 due
3,804
to a lower level of spending in India due to the
194.1 221.5 3,309
184.1 negative economic effects of COVID-19 pandemic.
2,891
916.3 1,089 1,100 127.8 Passenger cars had a share of 57.8%, followed by
1,076
108.2 utility vehicles and vans, with shares of 38.5% and
1,112 3.7%, respectively. Similarly to production,
passenger car sales saw the largest annual
2,704 2,754 2,732 decrease of 20.6% to 1.7mn in FY2021. In line with
2,105
1,671 this, van sales decreased by 15.4% to 108,196 units.
Finally, utility vehicle sales registered an annual
FY2017 FY2018 FY2019 FY2020 FY2021 growth of 3.3%, reaching a volume of 1.1m units.
Consumers show a growing preference for utility
Passenger Cars Utility Vehicles vehicles over passenger cars. The share of the
Vans Total former in the domestic market increased from
24.1% in FY2017 to 38.5% in FY2021.
Source: SIAM

Domestic Sales
Overall Domestic Motor Vehicle Sales by Type, thou units
26,266
24,980
21,863 0.6 21,421
0.0 701.0
0.0 635.7 18,392
0.9
511.9 637.1 216.2
20,199 21,180
17,590 17,416
15,121
714.3 856.7 1,007 717.8 568.6

3,047 3,289 3,377 2,649 2,487
FY2017 FY2018 FY2019 FY2020 FY2021
Domestic Passenger Vehicle Sales by Comments

Type, thou units
Domestic passenger vehicle sales fell by 6.1%
y/y to 2.5mn units in FY2021 as consumer’s
3,289 3,377 purchasing power weakened during the
3,047 pandemic. Passenger cars accounted for 56.5%
2,649
2,487
of domestic sales, followed by utility vehicles
192.2 217.4 and vans with 39.2% and 4.3%, respectively.
181.7
762.0
922.3 941.5 125.8
106.8
Domestic van sales showed the largest annual
893.2
973.9
fall of 15.1% to 106,757 units, while domestic
passenger vehicle sales fell by 13.7% y/y to
2,103 2,174 2,218 1.4mn units. On the other hand, domestic utility
1,630 1,406
vehicle sales increased by 9% y/y. The
preference of Indian consumers for utility
FY2017 FY2018 FY2019 FY2020 FY2021
vehicles has smoothed the effects of a weaker
Passenger Cars Utility Vehicles domestic demand. The share of utility vehicles
Vans Total in domestic passenger vehicle sales increased
from 25% in FY2017 to 39.2% in FY2021.
* According to SIAM, domestic sales of quadricycles reported a negative volume.

Source: SIAM

Exports
Overall Motor Vehicle Exports by Type, thou units
4,629 4,747
4,043 4,128
4.4 5.2
3,479 567.7 501.7
1.6 3.5
381.0 392.9
1.6
271.9
3,281 3,519
2,815 3,278
2,340
108.3 96.9 99.9 60.7

50.3
757.3 748.4 676.2 659.9 403.6
FY2017 FY2018 FY2019 FY2020 FY2021
Passenger Vehicle Exports by Type, Comments

thou units
Passenger vehicle exports fell by 38.8% y/y to
403,642 units in FY2021 as COVID-19 pandemic
757.3 748.4
weakened foreign demand. Passenger cars
676.2 659.9
2.3 1.9 accounted for 65.5% of total exports, followed by
154.3 166.3 4.0 2.0 utility vehicles and vans with 34.1% and 0.4%,
158.3 182.4 respectively. Passenger car exports reported the
403.6
biggest annual fall of 44.3% to 1,439 units, while
1.4
van exports fell by 29.5% y/y. Contrary to
137.6
600.7 580.2 production and domestic sales, utility vehicle
513.9 475.4
exports decreased by 24.6% y/y to 137,625 units,
264.6
however, the decrease was smaller compared to
the other two segments due to the global shift in
FY2017 FY2018 FY2019 FY2020 FY2021
consumer preference from small to medium and
Passenger Cars Utility Vehicles large size vehicles. In line with this, the share of
Vans Total utility vehicles in passenger vehicle exports
increased from 20.4% in FY2017 to 34.1% in FY2021.
Source: SIAM

08
COMMERCIAL
VEHICLES

07 COMMERCIAL VEHICLES CONTENTS
Highlights
Overview
India was the tenth-largest LCV manufacturer, the fifth-biggest manufacturer of heavy trucks and the
second-largest producer of buses at a global level in 2020, according to OICA data. India was also the
fifth-biggest commercial vehicle market in 2020, OICA figures showed. Commercial vehicles was the
third largest segment of the Indian motor vehicle industry with a share of 2.8% of total output and
2.7% of total sales in FY2021. Similarly to passenger vehicles, commercial vehicle output and sales
reached new records in FY2019 with volumes of 1.11mn in each category. However, output and sales
reported volumes of 624,939 units and 618,893 units, respectively, in FY2021. These figures were the
lowest volumes since FY2010 with 567,556 units and 577,730 units, respectively. Exports reported an
annual drop of 17.1% in FY2021, reporting a volume of 50,334 units (the lower volume since FY2010 with
45,009 units).

Given the large size of the Indian domestic market, the evolution of the commercial vehicle segment
is mainly determined by the boom-and-bust cycle of the Indian economy. Over FY2017 and FY2019, the
commercial vehicle segment grew on the back of a solid increase of the domestic sales. Moreover,
domestic commercial vehicle sales represented on average 91.5% of commercial vehicle output. In
FY2020, the participation increased to 95.4% in spite of the drop in domestic commercial vehicle sales.
In FY2021, the rapid expansion of COVID-19 pandemic negatively affected domestic sales and reduced
the share of domestic sales over total output. Nonetheless, the share remained at a relatively high
level of 91% in FY2021. The development of a stronger export market is a key strategy to reduce the
dependence of the export market. However, commercial vehicle exports reported an annual average
fall of 17.4% over the period FY2017-FY2021.
Outlook
The rapid expansion of COVID-19 pandemic had deep negative effects over the Indian economy in
FY2021 as the Indian GDP fell by 7.3% y/y. In April 2022, IMF projected a 12.5% annual increase of Indian
GDP in FY2022. However, the projection has been downgraded to 9.5% in July 2022 due to the negative
effects of the second wave of COVID-19 in India. The economic recovery is leading to an increase in
industrial, infrastructure and construction activities which, in turn, are stimulating the demand for
commercial vehicles. In March 2021, Ind-Ra projected an increase in domestic commercial vehicle
sales between 25% and 30% in FY2022. Nonetheless, the negative effects of the second wave of
COVID-19 pandemic in India also led to forecast corrections with a relatively high degree of variance.
In May 2021, ICRA projected an increase in domestic commercial sales between 21% and 24% y/y in
FY2022, while CRISIL projected an increase between 23% and 28% y/y in July 2021.
Source: OICA, SIAM, IMF, Ind-Ra, ICRA, CRISIL, India Today, Business Today, Business Standard

Main Events
▪ In January 2021, Daimler India Commercial Vehicles introduced eight new models in the Indian
market: six truck models and two bus models. The main objective of the company is to increase its
participation in the domestic market (in the calendar year 2020, the market share of Daimler in
trucks and buses ascended to 9.1%).
▪ In December 2020, VE Commercial Vehicles, a joint venture between the Swedish truck
manufacturer Volvo and the Indian commercial vehicle manufacturer Eicher Motors, has
inaugurated a new truck manufacturing unit, located in the state of Madhya. The new plant has an
annual production capacity of 40,000 trucks. The objective is not limited to meet domestic demand,
but also to sell in foreign markets. VE Commercial Vehicles operates a total of eight plants in India
with a cumulated investment budget of INR 50bn since August 2008.
▪ In August 2020, the Indian company Etrio launched the first retrofitted electric light commercial
vehicle in India. The model is based on the Tata Ace model. Etrio owns a manufacturing plant in
Telangana with an annual production capacity of 5,000 units. The retro fitment process consists of
the removal of the combustion engine parts of the vehicle, followed by mechanical and electrical
replacement.
▪ In May 2020, Daimler India Commercial Vehicles announced an investment plan with a budget of
INR 22.77bn through the signature of a Memorandum of Understanding with the Government of
Tamil Nadu. The main objective of the new project is to expand the production of commercial
vehicles in its plant located in Chennai. According to the company, this project will create 400 new
jobs.
▪ In the second half of March 2020, key commercial vehicle manufacturers such as Tata Motors,
Mahindra and Ashok Leyland suspended their operations as the Indian government ordered a
mandatory lockdown at national level to prevent the rapid expansion of COVID-19 pandemic.
Activities were slowly retaken since May 2020, therefore, output, domestic sales and exports of
commercial vehicles in the first quarter of FY2021 showed exceptionally low volumes.
Source: Business World, Financial Express, Trucks Decko, The Hindu, Economic Times

Production
Comments Commercial Vehicle Production by Type,

thou units
The production of commercial vehicles fell by
16.9% y/y to 624,939 units in FY2021 due to lower
1,112
sales in the domestic market. In terms of
composition, LCVs and M&HCVs had shares of
895.3
71% and 29%, respectively. LCV production 810.3
decreased by 14.4% y/y to 443,697 units in FY2021. 444.4
752.0
Goods-carrying LCVs claimed 96.5% of total LCV 624.9
344.4
production with an annual decrease of 9.9%, 342.8 234.0
while passenger-carrying LCVs reported an output 181.2
share of 3.5% and an annual fall of 63.9%. M&HCV 668.0
output fell by 22.5% y/y to 181,242 units in FY2021. 467.5 550.9 518.0 443.7
Goods-carrying M&HCV output decreased by
10.5% y/y, accounting for 94.5% of M&HCV
FY2017 FY2018 FY2019 FY2020 FY2021
production. Passenger-carrying M&HCMs reported
an annual fall of 10.5% and a share of 5.5%.
Light Medium and Heavy Total
Light Commercial Vehicle Production by Medium and Heavy Commercial Vehicle

Type, thou units Production by Type, thou units
668.0 444.4
550.9 342.8 344.4

518.0
467.5
443.7
234.0
614.0 181.2
398.9
499.8 475.2 293.2
416.8 306.4
428.2
191.4
171.2
50.7 51.1 54.1 42.8 49.6 38.0 45.5 42.6

15.5 10.0
FY2017 FY2018 FY2019 FY2020 FY2021 FY2017 FY2018 FY2019 FY2020 FY2021
Source: SIAM

Sales
Comments Commercial Vehicle Sales by Type, thou

units
Commercial vehicle sales (including exports) fell
by 20.5% y/y to 618,893 units in FY2021 due to a 1,107
weaker consumer sentiment in India due to the
953.6
COVID-19 pandemic. In terms of composition, LCVs
and M&HCVs reported shares of 71.2% and 28.8%, 822.6
778.5
439.3
respectively. LCV sales decreased by 16.8% y/y to
384.7 618.9
440,657 units in FY2021. Goods-carrying LCVs
346.3 249.0
claimed 96.9% of total LCV sales with an annual 178.2
decrease of 28.4%, while passenger-carrying LCVs
reported a share of 3.1% and an annual fall of 568.9
667.8
529.4
476.3 440.7
16.8%. M&HCV sales fell by 28.4% y/y to 178,236
units in FY2021. Goods-carrying M&HCV sales
decreased by 16.4% y/y, accounting for 93.6% of FY2017 FY2018 FY2019 FY2020 FY2021
M&HCV sales, while passenger-carrying M&HCV
sales had a share of 6.4% and fell by 77.1% y/y. Light Medium and Heavy Total
Light Commercial Vehicle Sales by Type, Medium and Heavy Commercial Vehicle
thou units Sales by Type, thou units
667.8 439.3
384.7
568.9
529.4 346.3
476.3
440.7 249.0
611.6 178.2
391.4
515.8 481.4 287.2 336.6
420.7
426.9 199.5
166.9
55.5 53.2 56.3 48.0 59.1 48.1 47.9 49.6

13.7 11.4
Source: SIAM

Domestic Sales
Comments Domestic Commercial Vehicle Sales by

Type, thou units
Domestic commercial vehicle sales fell by 20.8%
y/y to 568,559 units in FY2021 due to a
deceleration in Indian economy due to the 1,007
pandemic. LCVs and M&HCVs accounted for 71.7% 856.7
and 28.3% of domestic sales, respectively.
714.3 717.8
Domestic LCV sales fell by 17.2% y/y to 407,871 390.7
units in FY2021. Goods-carrying LCVs claimed a 340.6 568.6
224.9
share of 97% of domestic LCV sales with an 302.6
160.7
annual fall of 11.6%, while passenger-carrying
616.6
LCVs reported a share of 3% and an annual 411.7
516.1 492.9
407.9
decrease of 73.4%. Domestic M&HCV sales fell by
28.5% y/y to 160,688 units in FY2021. Domestic
FY2017 FY2018 FY2019 FY2020 FY2021
goods-carrying M&HCV sales fell by 16.9% y/y,
accounting for 95.4% of domestic M&HCV sales. Light Medium and Heavy Total
Passenger-carrying M&HCM reported an annual
decrease of 81.8% and a share of 4.6%.
Domestic Light Commercial Vehicle Sales Domestic Medium and Heavy Commercial
by Type, thou units Vehicle Sales by Type, thou units
616.6 390.7
340.6
516.1 302.6
492.9
411.7 407.9 224.9
160.7
351.0
564.4 304.7
467.1 447.5 255.3
360.8 395.8 184.6
153.4
50.9 49.0 52.2 45.4 47.3 35.9 39.6 40.3

12.1 7.3
Source: SIAM

Exports
Comments Commercial Vehicle Exports by Type,

thou units
Commercial vehicle exports fell by 17.1% y/y to
50,334 units in FY2021 due to a weakened demand 108.3
of foreign markets. LCVs and M&HCVs reported 96.9 99.9
shares of 65.1% and 34.9%, respectively. LCV

exports fell by 10.3% y/y to 32,786 units in FY2021. 43.7
60.7
Goods-carrying LCVs claimed 95% of total LCV 44.1 48.7
50.3
exports with an annual decrease of 8.1%, while
passenger-carrying LCVs reported a share of 5% 24.2
17.5
and an annual fall of 38.2%. M&HCV exports fell 64.6
52.8 51.3
by 27.4% y/y to 17,548 units in FY2021. Goods- 36.6 32.8
carrying M&HCV exports decreased by 9.1% y/y,
accounting for 77% of M&HCV exports. On the FY2017 FY2018 FY2019 FY2020 FY2021
other hand, passenger-carrying M&HCM reported
an annual decrease of 56.5% and a share of 23%. Light Medium and Heavy Total
Light Commercial Vehicle Exports by Medium and Heavy Commercial Vehicle

Type, thou units Exports by Type, thou units
48.7
64.6
43.7 44.1
52.8 51.3
36.6 24.2
32.8
31.9 31.9 40.4 17.5
59.9
48.6 47.2
14.9
33.9 31.1
13.5
11.8 12.2 9.3
8.3
4.7 4.2 4.1 2.7 1.6 4.0
Source: SIAM

09
TWO- AND THREE-
WHEELERS

08 TWO- AND THREE-WHEELERS CONTENTS
Highlights
Overview
Two-wheelers is the main segment of the Indian motor vehicle industry with a share of 81.8% of total
output and 81.7% of total sales in FY2021. Two-wheeler output and sales reported new record high
volumes of 24.50mn units and 24.46mn units, respectively, in FY2019. However, the combined effects of
the economic deceleration of the Indian economy in FY2020 and the COVID-19 pandemic in FY2021 has
led to a reduction of output and sale volume to 18.35mn units and 18.40mn units, respectively (the
lowest volumes since FY2014 with 16.88mn units and 16.89mn units, respectively). Three-wheelers is
the fourth largest segment of the Indian motor vehicle industry with a participation of 2.7% in both
total output and total sales in FY2021. Three-wheelers also registered record high volumes in FY2021
for output and total sales with 1.27mn units in each category. In FY2021, three-wheelers output and
sales fell to 0.61mn in each category (the lowest volume since FY2009).

The main driving force of the two-wheeler segment is the domestic market. Between FY2017 and
FY2019, domestic two-wheeler sales pushed up domestic production, representing on average 87.3% of
two-wheeler output. However, the share fell to 82.8% in FY2020, and to 82.4% in FY2021, due to the bad
performance of domestic sales. On the other hand, two-wheeler exports increased their importance in
the segment, as foreign sales increased by 7.3% y/y in FY2020 (two-wheeler domestic sales fell by
17.8% y/y). In FY2021, two-wheeler exports fell at a smother rate of 6.9%, while domestic sales dropped
by 13.2% y/y. The domestic market is also a key component for the three-wheeler segment as
domestic sales represented on average 60.9% of total output. However, exports increased their
importance for the segment as their share over total output increased to 56.2% in FY2020 and 35.4% in
FY2021.
Outlook
After the exceptionally bad performance of the two-wheeler segment in FY2021 due to the COVID-19
pandemic, domestic demand of two-wheelers is expected to rebound in FY2022, pushed by the
recovery of the Indian economy. In line with this, domestic two-wheeler sales are expected to
increase between 16% and 20% y/y in FY2022, according to a report published by consultancy company
Ind-Ra in March 2021. In July 2021, the consultancy company ICRA argued that domestic two-wheeler
sales are forecast to increase between 12% and 14% y/y in FY2022 as consumer’s preference for
personal mobility will continue in the short term. On the other hand, the consultancy company CRISIL
forecasts an annual increase of domestic two-wheeler ranging between 10% and 12% (down from an
earlier estimate between 18% and 20%) due to the negative effects of the second wave of COVID-19
pandemic in the country.
Source: SIAM, Ind-Ra, ICRA, CRISIL, Business Standard, The Hindu, Business Today

Main Events
▪ In March 2021, the Indian company Ola announced the construction of a new plant in the state of
Tamil Nadu to produce electric scooters. For the first phase of the project, the company counts
with the financial support of SoftBank Group (Japan). A total of USD 326mn will be disbursed to
complete the first phase of the project. The plant will have an initial production capacity of 2mn
units per year by June 2021. Once the project is fully completed, the annual production capacity will
reach 10mn units, distributed among ten production lines. The project will demand an investment
budget of USD 2bn. Finally, the new plant is expected to create 10,000 new direct jobs.
▪ In February 2021, the Indian company Tube Investments India has announced its entrance in the
electric three-wheeler segment. The company aims to produce and sale electric three-wheelers by
December 2021 and January 2022. The budget for the new projects ascends to INR 2bn.
▪ In February 2021, Bajaj Auto announced the introduction of its first electric three-wheeler in the
second half of FY2022. The launch experienced a delay of two years which was mainly due to the
rapid expansion of COVID-19 pandemic. According to Rakesh Sharma, executive director of Bajaj
Auto, the company is also developing an electric version of the Qute model, a quadricycle launched
by the company.
▪ In February 2021, the Indian company Ather Energy has started to produce electric scooters in its
new plant located Tamil Nadu. Previously, in December 2020, the company had stopped the
production on its plant located in Bengaluru, moving it entirely to the new plant which not only
manufactures electric scooters but also lithium-ion batteries. The new plant has an initial monthly
production capacity of 3,000 units. The company expects to expand the capacity to 8,000 units per
month in the fourth quarter of FY2022. It is worth noting that the Bengaluru plant had a production
capacity of 300 units per month.
▪ In the second half of March 2020, key two-wheeler companies such as Hero MotoCorp, Honda, TVS
and Bajaj suspended their operations as the Indian government ordered a mandatory lockdown at
national level to prevent the rapid expansion of COVID-19 pandemic. Activities were slowly retaken
since May 2020, therefore, output, domestic sales and exports of two-wheelers in the first quarter
of FY2021 showed exceptionally low volumes.
Source: The Hindu Business Line, Projects Today, Money Control, Economic Times

Production
Two-Wheeler Production by Type, thou Three-Wheeler Production by Type, thou

units units
24,500 1,269
23,154
1,133
21,033
19,934 905.2 1,022
869.6 18,350 136.0
649.7 116.8
919.0 783.7
636.2 123.1
15,166 16,499 611.2
14,356 112.4
13,088
13,155 1,133 89.3
1,016
899.1
671.4
521.9
5,926 7,118 7,095 6,027 4,556
Scooters Motorcycles Mopeds Total Passenger Goods Total
Comments
In FY2021, two-wheeler production fell by 12.8% y/y (18.3mn units) as a response to a lower domestic
and foreign demand due to the COVID-19 pandemic. The main component corresponded to
motorcycles, which accounted for 71.7% of two-wheeler output, followed by scooters and mopeds with
shares of 24.8% and 3.5%, respectively. Motorcycle production decreased by 8.4% y/y (13.1mn units),
while scooter and moped output reported annual falls of 24.4% (4.6mn units) and 2.1% (0.64mn units),
respectively. Similarly, two-wheeler sales decreased by 12.1% y/y (18.4mn units) in FY2021 with
motorcycles as the main component with a share of 71%, complemented by scooters and mopeds
which presented shares of 25.6% and 3.4%, respectively. Motorcycle sales registered an annual fall of
9% (13.1mn units), while scooter and moped sales fell by 20.6% y/y (4.7mn units) and by 3.9% y/y
(0.62mn units), respectively.
In FY2021, three-wheeler manufacturing reported an annual fall of 46.1% y/y (0.62mn units). Within the
three-wheeler segment, passenger three-wheelers claimed a share of 85.4%, leaving 14.6% to goods-
carrying three-wheelers. The passenger segment reported an annual decrease of 48.6% (0.52mn units),
while the good segment registered an annual fall of 23.6% (89,253 units). In line with this, three-
wheeler sales fell by 46.5% y/y (0.61mn units) in FY2021. Passenger-carrying three-wheelers reported a
share of 85.6% and a 48.9% annual fall (0.52mn units). Goods-carrying three-wheeler sales fell by 25.6%
y/y (87,714 units) with a share of 14.4%.
Source: SIAM

Sales
Two-Wheeler Sales by Type, thou units Three-Wheeler Sales by Type, thou units
24,461 1,269
23,014 1,139
20,936 1,017
19,930 896.9
876.9 18,399 134.8
650.7 117.9
910.7 783.8
625.6 122.5
16,464 609.1
15,103
14,349 112.6
13,122
13,059 1,134 87.7
1,021
894.2
671.2
521.4
5,898 7,034 7,100 5,936 4,712
Domestic Two-Wheeler Sales by Type, Domestic Three-Wheeler Sales by Type,

thou units thou units
701.0
21,180
20,199 635.7 637.1
17,590 880.2 17,416 511.9 128.6
859.5
15,121 118.3 111.6
890.5 636.8
617.2 109.7
12,620 13,598
216.2
11,095 11,214
10,021 572.4
517.4 525.5
402.2
82.1
5,605 6,720 6,701 5,566 4,480 134.1
Source: SIAM

Exports
Two-Wheeler Exports by Type, thou Three-Wheeler Exports by Type, thou

units units
3,519
567.7
3,281 3,278
501.7
2,815 13.9
16.7 8.3
2,340 17.4 381.0 6.2 392.9
6.4
20.2
3,136 271.9 5.6
2,866 3,037 4.2
2,483
2,027 2.9 561.5
495.3
376.8 387.3
269.0
292.8 314.3 398.3 370.0 232.0
Comments
In FY2021, domestic two-wheeler sales fell by 13.2% y/y (15.1mn units) in a context of economic
deceleration in India due to the COVID-19 pandemic. The main component was motorcycles which
accounted for 66.3% of domestic two-wheeler sales, followed by scooters and mopeds with shares of
29.6% and 4.1%, respectively. Domestic motorcycle sales decreased by 10.6% y/y (10mn units), while
domestic scooter and moped sales reported annual falls of 19.5% (4.5mn units) and 3.1% (0.62mn
units), respectively. As foreign domestic demand weakened as well, two-wheeler exports decreased by
6.9% y/y (3.3mn units) in FY2021 with motorcycles as the main component with a share of 92.7%,
complemented by scooters with a share of 7.1% (mopeds presented a marginal share of 0.3%).
Motorcycle exports fell by 3.1% y/y (3mn units), while scooter and moped exports fell by 37.3% y/y
(231,972 units) and 40% y/y (8,313 units), respectively. In FY2021, domestic three-wheeler sales reported
an annual fall of 66.1% y/y (216,197 units). Within the three-wheeler segment, passenger three-
wheelers claimed a share of 62%, leaving 38% to goods-carrying three-wheelers. The passenger
segment reported an annual decrease of 74.5% (134,087 units), while the good segment registered an
annual fall of 26.4% (82,110 units). In line with this, three-wheeler exports fell by 21.7% y/y (392,941
units) in FY2021. Passenger-carrying three-wheelers reported a share of 98.6% and a 21.8% annual fall
(387,337 units). Similarly, goods-carrying three-wheeler exports decreased by 12.1% y/y (5,604 units)
with a share of 1.4%.
Source: SIAM

10
AUTO COMPONENTS
AND PARTS

09 AUTO COMPONENTS AND PARTS CONTENTS
Highlights
Overview
The turnover of the Indian auto component and parts industry grew at a CAGR of 16.4% between
FY2017 and FY2019 as the output of the Indian motor vehicle industry increased at a CAGR of 10.5%
over the same period. The growing trend was interrupted in FY2020 as motor vehicle output dropped
by 15.2% due to the deceleration of the Indian economy. In line with this, the turnover of the Indian
auto component and parts industry decreased by 11.7% y/y. Sales to Original Equipment Manufacturers
(OEMs) reported a share of 56.6% of total turnover in FY2020, while exports and aftermarket presented
shares of 25.9% and 17.5%, respectively. In FY2021, the rapid expansion of COVID-19 pandemic affected
the performance of the Indian motor vehicle industry whose output and total sales dropped by 14.4%
y/y and 13.9% y/y. According to consultancy company ICRA, the turnover of the Indian auto component
and parts industry fell between 14% y/y and 18% y/y in FY2021.

The performance of the Indian auto component and parts industry is closely tied to the evolution of
the Indian motor vehicle industry which, in turn, is vulnerable to the boom-and-bust cycle of the
Indian economy. Between FY2017 and FY2019, the economic growth in India pushed up motor vehicle
output and sales, which also created a solid domestic demand for auto parts. On the other hand, the
economic deceleration in the country in FY2020 and the pandemic in FY2021 led to a weaker demand
for motor vehicle and its auto parts. A second constraint for the Indian auto component and parts
industry is the chronic trade deficit. Between FY2017 and FY2019, the trade deficit of the industry
reported an average value of USD 2.5bn. However, in FY2020, the trade deficit fell from USD 2.5bn to
USD 0.9bn as exports fell by 4.4% y/y, while imports dropped by 13% y/y. The development of a
competitive auto component and parts industry is a key step to achieve a reversal of the trade deficit.
Outlook
The turnover of the Indian auto component and parts industry is expected to increase between 20%
and 23% y/y in FY2022, according to a report of the consultancy company ICRA published in July 2021.
This is a rebound after the bad performances registered in FY2020 and FY2021. As the demand for
motor vehicles is increasing after the negative impact of COVID-19 pandemic, the auto component and
parts industry is expected to augment its sales in the domestic and foreign markets. However,
potential negative factors such as the increase in commodity prices, supply chain disruptions and
premium freight expenses, are expected to put pressure over the margin profits of the industry, ICRA
added. Concerning investment, the industry will take a cautious approach as capital expenditure will
focus mainly on capability development. Due to the uncertainties around a possible third wave of
COVID-19, investments towards capacity expansion are less likely to materialise.
Source: ACMA, ICRA, Economic Times

09 AUTO COMPONENTS AND PARTS CONTENTS
Sales and External Trade
Auto Component Industry Turnover Industry Turnover by Segment
18.3%
19.2% 17.8% 17.0% 17.5%
14.3% 14.5%
25.0% 26.2% 26.8% 25.9%

3,959
3,496
3,456
2,922
55.8% 56.0% 56.2% 56.6%
FY2017 FY2018 FY2019 FY2020

-11.7%
FY2017 FY2018 FY2019 FY2020
OEM Suppliers Exports Aftermarket
Turnover, INR bn y/y change
Auto Component Sales to OEMs by Auto Component Exports and Imports,

Segment USD bn
Two Medium and

Wheelers Heavy
19.6% Commercial
Vehicles
12.4%
Light
Commercial
Vehicles
17.7
11.8%
15.9
15.4
15.2
14.5
13.5
13.5
Tractors
10.9
6.5%
Three
Wheelers
3.3%
FY2017 FY2018 FY2019 FY2020
Earth Moving
Private Equipment
Vehicles 1.2% Exports Imports
45.3%
Source: ACMA

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ACMA Automotive Component Manufacturers Association of India

AMP Automotive Mission Plan

ARAI Automotive Research Association of India

BS VI Bharat Stage Six

CAFE Corporate Average Fuel Efficiency

CII Confederation of Indian Industry

COVID-19 Coronavirus Disease 2019

DHI Department of Heavy Industry

FAME Faster Adoption and Manufacturing of Electric Vehicles

INR Indian Rupee

LCV Light Commercial Vehicle

M&HCV Medium and Heavy Commercial Vehicles

MPV Multi-Purpose Vehicle

OEM Original Equipment Manufacturer

OICA International Organization of Motor Vehicle Manufacturers

SIAM Society of Indian Automobile Manufacturers

SMEV Society of Manufacturers of Electric Vehicles

SUV Sport Utility Vehicle

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02 SECTOR IN FOCUS p.14

03 COMPETITIVE LANDSCAPE p.29

04 COMPANIES IN FOCUS p.33

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07 COMMERCIAL VEHICLES p.59

08 TWO- AND THREE-WHEELERS p.66

09 AUTO COMPONENTS AND p.72

Sales and External Trade

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No.6 22.4mn 81.8%

No.5 18.4mn 82.2%

USD 4.1mn USD

Note: Unless otherwise stated, figures are for FY2021.

Source: OICA, SIAM, CEIC, ACMA

INDIA AUTOMOTIVE SECTOR 2022 Q4 7

INDIA AUTOMOTIVE SECTOR 2022 Q4 8

Note: Unless otherwise stated, figures are for FY2021.

INDIA AUTOMOTIVE SECTOR 2022 Q4 9

INDIA AUTOMOTIVE SECTOR 2022 Q4 10

Main Sector Indicators Forecast

FY2019 FY2020 FY2021 FY2022f (Low) FY2022f (High)

Domestic Two-Wheeler Sales, mn units 21.18 17.42 15.12 16.63 18.14

INDIA AUTOMOTIVE SECTOR 2022 Q4 12

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India Automotive Q4 FY2022

Motor Vehicle Production

-16.6% y/y -21.0% -1.3%

Motor Vehicle Production by Sector

Passenger Vehicles Commercial Vehicles Two-Wheelers Three-Wheelers Quadricycles Total

q/q change y/y change

Source: SIAM, CEIC

INDIA AUTOMOTIVE SECTOR 2022 Q4 15

India Automotive Q4 FY2022

Motor Vehicle Sales

Motor Vehicle Sales by Sector

Passenger Vehicles Commercial Vehicles Two-Wheelers

q/q change y/y change

Source: SIAM, CEIC