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UNIT IV BBMT

AUTOMOBILE ASSEMBLY
Indian Automobile industry
The automobile industry in India happens to be the
ninth largest in the world.
Following Japan, South Korea and Thailand, in 2009,
India emerged as the fourth largest exporter
of automobiles.
Several Indian automobile manufacturers have spread
their operations globally as well, asking for more
investments in the Indian automobile sector by the
MNCs.
INDUSTRY BACKGROUND
Driving the most luxurious car has been made possible by the
stiff competition in the automobile industry in India, with
overseas players gathering the same momentum as the
domestic participants.

Every other day, we have been hearing about some new


launches, some low cost cars – all customized in a manner such
that the common man is not left behind.

In 2009, the automobile industry is expected to see a growth


rate of around 9%, with the disclaimer that the auto industry in
India has been hit badly by the ongoing global financial crisis.
Beginning of the Industry
The beginnings of automotive industry in India can be
traced during 1940s.
After the nation became independent in the year 1947, the
Indian Government and the private sector launched their
efforts to establish an automotive component
manufacturing industry to meet the needs of the
automobile industry.
The growth of this segment was however not so
encouraging in the initial stage and through the 1950s and
1960s on account of nationalization combined with the
license raj that was hampering the private sector in the
country.
However, the period that followed 1970s, witnessed a
sizeable growth contributed by tractors, scooters and
commercial vehicles. Even till those days, cars were
something of a sort of a major luxury.
Contd..
Eventually, the country saw the entry of Japanese
manufacturers establishing Maruti Udyog. During the
period that followed, several foreign based companies
started joint ventures with Indian companies.
During 1980s, several Japanese manufacturers started
joint-ventures for manufacturing motorcycles and
light commercial-vehicles.
During this time, that the Indian government
selected Suzuki for a joint-venture to produce small
cars.
1991

Liberalization
Experts have an opinion that during the early stages the
policies and the treatment by the Indian government were
not favorable to the development of the automobile
industry.
However, the liberalization policy and various tax reliefs
announced by the Indian government over the recent past
have pronounced a significantly encouraging impact on
this industry segment.
Estimates reveal that owing to several boosting factors,
Indian automobile industry has been growing at a pace of
about 18% per year.
Therefore, global automobile giants like Volvo,
General Motors and Ford have started looking at
India as a prospective hot destination to establish
and expand their operations.
Automobile industry
The economic liberalization that dawned in India in the
year 1991 has succeeded in bringing about a sustained
growth in the automotive production sector triggered by
enhanced competitiveness and relaxed restrictions
prevailing in the Indian soil. A number of Indian
automobile manufacturers including Tata Motors, Maruti
Suzuki and Mahindra and Mahindra, have dramatically
expanded both their domestic and international
operations.
This segment has in fact invited a huge amount of India-
specific investment by a number of multinational
automobile manufacturers. As a significant milestone in
its progress, the monthly sales of passenger cars in
India exceeded 100,000 units in February 2009.
Transportation System
Like many other nations India’s highly developed
transportation system has played a very important
role in the development of the country’s economy
over the past to this day.
One can say that the automobile industry in the
country has occupied a solid space in the platform of
Indian economy.
Empowered by its present growth, today the
automobile industry in the country can produce a
diverse range of vehicles under three broad categories
namely cars, two-wheelers and heavy vehicles.
TURNOVER
Turnover of Automobile USD ($)
Manufacturers

Year In USD Million

2002-03 14,880

2003-04 16,544

2004-05 20,896

2005-06 27,011

2006-07 34,285
DOMESTIC MARKET SHARE FOR 2008-09

Passenger Vehicles 15.96%

Commercial Vehicles 3.95%

Three Wheelers 3.6%

Two Wheelers 76.49%


Automobile companies in India
Audi Hero Honda Motors
Bajaj Auto Hyundai Motors
BMW
Mahindra & Mahindra
Chevrolet
Maruti Udyog
DaimlerChrysler (Mer San Motors
cedes)
Skoda
Fiat
Tata Motors
Ford
Yamaha Motors
General Motors
Hindustan Motors
Locally manufactured Automobiles of
MNCs
 Audi: A4, A6.
 BMW: 3 Series, 5 Series.
 Chevrolet: Spark, Aveo U-VA, Aveo, Optra, Cruze, Tavera.
 Fiat: Palio, Grande Punto, Linea.
 Ford: Ikon, Fiesta, Fusion, Endeavour
 Honda: Jazz, City, Civic, Accord.
 Hyundai: Santro, i10, Getz, i20, Accent, Verna, Sonata.
 Mercedes-Benz: C-Class, E-Class
 Mitsubishi: Lancer, Lancer Cedia.
Contd…
 Renault: Logan
 škoda: Fabia, Octavia, Laura.
 Toyota: Corolla, Innova, Fortuner
 Volkswagen: Jetta, Passat.
 Cars sold in India as Completely Built Units
 Audi: A8, TT, R8, Q5, Q7.
 Bentley: Arnage, Continental GT, Continental Flying Spur, Arnage.
 BMW: 6 Series, 7 Series, X3, X5, X6, M3, M5, M6 and Z4.
 Chevrolet: Captiva
 Fiat: 500.
 Honda: Civic Hybrid, CR-V.
Contd…
 Hyundai: Tucson.
 Jaguar: XF, XK.
 Lamborghini: Gallardo, Murciélago.
 Land Rover: Range Rover, Range Rover Sport, Discovery 4, Freelander 2.
 Maybach: 57 and 62.
 Mercedes-Benz: CL-Class, CLS-Class, S-Class, SL-Class, SLK-Class, M-Class,
Viano.
 Mitsubishi: Pajero, Montero, Outlander.
 Nissan: Teana, X-Trail.
 Porsche: 911, Boxter, Panamera, Cayman, Cayenne.
 Rolls Royce: Ghost, Phantom, Phantom Coupé, Phantom Drophead Coupé.
 škoda: Superb.
 Suzuki: Grand Vitara.
 Toyota: Camry, Land Cruiser, Land Cruiser Prado.
 Volkswagen: Touareg.
 Volvo: S80, XC90.
Overview of Automobile industry
Starting its journey from the day when the first car rolled
on the streets of Mumbai in 1898, the Indian automobile
industry has demonstrated a phenomenal growth to this
day.
Today, the Indian automobile industry presents a galaxy of
varieties and models meeting all possible expectations and
globally established industry standards.
Some of the leading names echoing in the Indian
automobile industry include Maruti Suzuki, Tata Motors,
Mahindra and Mahindra, Hyundai Motors, Hero Honda
and Hindustan Motors in addition to a number of others.
Current Scenario
During the early stages of its development, Indian automobile
industry heavily depended on foreign technologies.
However, over the years, the manufacturers in India have
started using their own technology evolved in the native soil.
The thriving market place in the country has attracted a
number of automobile manufacturers including some of the
reputed global leaders to set their foot in the soil looking
forward to enhance their profile and prospects to new heights.
Following a temporary setback on account of the global
economic recession, the Indian automobile market has once
again picked up a remarkable momentum witnessing a buoyant
sale for the first time in its history in the month of September
2009.
Road Ahead
The automobile sector of India is the seventh largest in
the world. In a year, the country manufactures about 2.6
million cars making up an identifiable chunk in the world’s
annual production of about 73 million cars in a year.
The country is the largest manufacturer of motorcycles and
the fifth largest producer of commercial vehicles. Industry
experts have visualized an unbelievably huge increase in these
figures over the immediate future.
The figures published by the Asia Economic Institute indicate
that the Indian automobile sector is set to emerge as the global
leader by 2012.
In the year 2009, India rose to be the fourth largest exporter of
automobiles following Japan, South Korea and Thailand.
Experts state that in the year 2050, India will top the car
volumes of all the nations of the world with about 611 million
cars running on its roads.
Current Scenario
 At present, about 75 percent of India’s automobile industry is made up
by small cars, with the figure ranking the nation on top of any other
country on the globe. Over the next two or three years, the country is
expecting the arrival of more than a dozen new brands making
compact car models.
Recently, the automotive giants of India including General
Motors (GM), Volkswagen, Honda, and Hyundai, have
declared significant expansion plans. On account of its
huge market potential, a very low base of car ownership in
the country estimated at about 25 per 1,000 people, and a
rapidly surging economy, the nation is firmly set on its
way to become an outsourcing platform for a number of
global auto companies. Some of the upcoming cars in the
India soil comprise Maruti A-Star (Suzuki), Maruti Splash
(Suzuki), VW Up and VW Polo (Volkswagen), Bajaj small
car (Bajai Auto), Jazz (Honda) and Cobalt, Aveo (GM) in
addition to several others.
Maruti Suzuki India Limited
Maruti Suzuki India Limited subsidiary of Suzuki
Motor Corporation of Japan, is India's largest
passenger car company, accounting for over 45% of
the domestic car market. The company offers a
complete range of cars from entry level Maruti-800
and Alto, to stylish hatchback Ritz, A star, Swift,
Wagon-R, Estillo and sedans DZire, SX4 and Sports
Utility vehicle Grand Vitara.
 It is the market leader in India and on 17 September 2007, Maruti
Udyog Limited was renamed Maruti Suzuki India Limited. The
company's headquarters are located in Delhi.
 Key people Mr. Shinzo Nakanishi, Managing Director and CEO
CEOs
Mahindra

& Mahindra
Mahindra & Mahindra Limited (BSE: 500520) is
part of the Indian Industrial Conglomerate
Mahindra Group based in Mumbai.
 In recent times the company is engaged in spreading its reach beyond
its traditional markets. They entered into the two-wheeler segment by
taking over the Kinetic Motors in India[4]. M&M also has controlling
stake in REVA Electric Car Company.[5] M&M has also been selected as
the preferred bidder for the acquisition of South Korea's
SsangYong Motor Company.
The company was set up in 1945 in Ludhiana as
Mahindra & Mohammed by brothers K.C. Mahindra
and J.C. Mahindra along with
Malik Ghulam Mohammed..
Mahindra & Mahindra
After India gained independence and Pakistan was
formed; Malik Ghulam Mohammed moved to
Pakistan where he became the nation's first
finance minister. Now, with the Mahindra brothers as
the whole sole of the company, its name was changed
to Mahindra & Mahindra in 1948
Key people Keshub Mahindra (Chairman),
Anand Mahindra (Vice-Chairman & Managing
Director)
HYUNDAI MOTORS INDIA LTD
Hyundai Motor India Limited was formed in 6 May
1996 by the Hyundai Motor Company of South Korea.
When Hyundai Motor Company entered the
Indian Automobile Market in 1996 the Hyundai brand
was almost unknown throughout India. During the
entry of Hyundai in 1996, there were only five major
automobile manufacturers in India, i.e. MUL, HM, PAL
, TELCO and M&M. Daewoo had entered the Indian
automobile market with Cielo just three years back
while Ford, Opel and Honda had entered less than a
year back.
Contd..
Hyundai Motor India Limited is a wholly owned
subsidiary of the Hyundai Motor Company in India. It
is the 2nd largest automobile manufacturer in India
after Maruti Suzuki.
Key people Mr. H.W. Park, MD
TATA MOTORS LTD
 Tata Motors Ltd is a multinational corporation headquartered in
Mumbai, India. Part of the Tata Group, it was formerly known as
TELCO (TATA Engineering and Locomotive Company).
 Tata Motors is India’s largest automobile company, with consolidated
revenues of USD 20 billion in 2009-10. It is the leader in commercial
vehicles and among the top three in passenger vehicles. Tata Motors
has winning products in the compact, midsize car and utility vehicle
segments. The company is the world's fourth largest truck
manufacturer, and the world's second largest bus manufacturer with
over 24,000 employees. Since first rolled out in 1954, Tata Motors has
produced and sold over 4 million vehicles in India
Headquarters Mumbai, Maharashtra, India Key
people Ratan Tata, Chairman
Ravi Kant, Vice Chairman
Carl Peter Foster, CEO
Prakash Telang, MD (India Operations)
Ravi Pisharody, President (CVBU)

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