Automobile Sector

 In 2020, India was the fifth-largest auto market, with approx. 3.49 million units

combined sold in the passenger and commercial vehicles categories.

 It was the seventh largest manufacturer of commercial vehicles in 2019.

 Automotive market shares around 7.1% in India’s GDP.

 It accounts for 4.3% share in India’s exports and has a 40% share in global R&D.
 Industry Growth for last 5 years

Market Size Sector Composition for FY21

70 3% 1%
(In Millions)

60 15%
50
25 26.3
40
21.86 21.6
30 18.6

20
29.1 30.9 81%
25.33 26.4 22.7
10
0
FY17 FY18 FY19 FY20 FY21
Two Wheelers Passenger Vehicles Commercial Vehicles
Number of automobiles produced Number of automobiles sold Three Wheelers
Number of Players in the Industry

Market Share of the Automobile

sector:
Maruti Suzuki has been the best-
selling automobile manufacturer
in the Indian market

Maruti Suzuki , Hyundai and Tata

accounts for more than 70% of
the market share in Passenger
Vehicles.
Supply side dynamics

Why are steel prices increasing?

Owing to production curbs and

export tax in China, steel supply is
in shortage in the global market.
As a result, steel prices have
increased.
 On average, 900 kg of steel is used per vehicle.
Steel usage in cars
The steel in a vehicle is distributed as follows, based on total
vehicle curb mass:
Breaking
systems/wheel
s etc  40% is used in the body structure, panels, doors
25%

Body structure
 23% is in the drive train, consisting of cast iron for the engine
& panels
40% block and machinable carbon steel for the wear resistant

Suspension
gears.
12%
 12% is in the suspension, using rolled high-strength steel
strip.
Drive train
23%
 The remainder is found in the wheels, tires, fuel tank,
Body structure & panels Drive train steering and braking systems.
Suspension Breaking systems/wheels etc
Due to increase in steel prices many car manufactures have
increased prices from Q1 and Q2.
Demand drivers

• Historical-
Heightened demand in smaller car segments, Increased affordability,and surging income of Indian
middle class

• Current-
People are opting for personal vehicles to avoid public transport due to covid

• Future-
The Indian shared mobility market is expected to grow at a CAGR of 56.8% from 2020 and 2025 and
India's electric vehicle (EV) market is estimated to be a Rs. 50,000 crore (US$ 7.09 billion) opportunity
by 2025.