Automobile Setup in India

HELLO Mates , the motive of my blog is to update you about different activities that are taking place in are Automobile Industry. 
The automotive industry in India is one of the largest automotive markets in the world. It was previously one of the fastest growing markets globally, but it is currently experiencing flat or negative growth rates.[1][2] In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand,[3] overtaking Thailand to become third in 2010. As of 2010, India was home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making India the second fastest growing automobile market in the world (after China).[4][5] India's passenger car and commercial vehicle manufacturing industry recently overtook Brazil to become the sixth largest in the world, with an annual production of more than 3.9 million units in 2011.[6][7] From 2011 to 2012, the industry grew 16-18%, selling around three million units.[7] According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015, not 5 million as previously projected.[1]
In 2011, there were 3,695 factories producing automotive parts in all of India. The average firm made US$6 million in annual revenue with profits close to US$400 thousand.


A pre-Independence car showroom in Secunderabad
The Hindustan Ambassadordominated India's automotive market from the 1960s until the mid-80s
In 1897, the first car ran on an Indian road. Through the 1930s, cars were only imported, and in very small numbers.
An embryonic automotive industry emerged in India in the 1940s. Hindustan was launched in 1942, long-time competitor Premier in 1944, building GM and Fiat products respectively.[8] Mahindra & Mahindra was established by two brothers in 1945, and began assembly ofJeep CJ-3A utility vehicles. Following independence in 1947, the Government of India and the private sector launched efforts to create an automotive-component manufacturing industry to supply to the automobile industry. In 1953, an import substitution programme was launched, and the import of fully built-up cars began to be restricted.[8]                                  

Restrictions under the license raj[edit]

However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, which hampered the Indian private sector. After 1970, with restrictions on the import of vehicles set, the automotive industry started to grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury item. In the 1970s, price controls were finally lifted, inserting a competitive element into the automobile market.[9] However, by the 1980s, the automobile market was still dominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers.[10] During the eighties, a few competitors began to arrive on the scene.
In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The 1986 Expo was a showcase for how the Indian automotive industry was absorbing new technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India. The nine-day show was attended by then Prime Minister Rajiv Gandhi.


Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South Korea, were allowed to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the first, and the most successful of these new entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s.[10] As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The variety of options available to the consumer began to multiply in the nineties, whereas before there had usually only been one option in each price class. By 2000, there were 12 large automotive companies in the Indian market, most of them offshoots of global companies.[11]
The Premier Padmini was the Ambassador's only true competitor

Slow export growth[edit]

Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets and neighbouring countries began early, and in 1987 Maruti Suzuki shipped 480 cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive.[12] This was not to last, and today India manufactures low-priced cars for markets across the globe. As of 18 March 2013, global brands such as Proton HoldingsPSA GroupKiaMazdaChryslerDodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis.[13]

Emission norms[edit]

In 2000, in tune with international standards to reduce vehicular pollution, the central government unveiled standards titled "India 2000", with later, upgraded guidelines to be known as Bharat stages. These standards are quite similar to the stringent European standards, and have been implemented in a phased manner, with the latest upgrade being implemented in 13 cities and, later, in the rest of the nation. Delhi(NCR), MumbaiKolkataChennaiBangaloreHyderabadAhmedabadPuneSuratKanpurLucknowSolapur, and Agra are the 13 cities where Bharat Stage IV has been imposed while the rest of the nation is still under Bharat Stage III.

Manufacturing facilities[edit]

The majority of India's car manufacturing industry is evenly divided into three "clusters". Around Chennai is the southernmost and largest, with a 35% revenue share, accounting for 60% of the country's automotive exports, and home of the India operations of FordHyundaiRenaultMitsubishiNissanBMWHindustan MotorsDaimlerCaparoMini, and Datsun.[14][15]
Near MumbaiMaharashtra, along the Chakan corridor near Pune, is the western cluster, with a 33% share of the market. AudiVolkswagen, and Skoda are located in AurangabadMahindra and Mahindrahas an SUV and engine assembly plant at NashikGeneral MotorsTata MotorsMercedes BenzLand RoverJaguar CarsFiat, and Force Motors have assembly plants in the area.[16][17]
The northern cluster is around the National Capital Region, and contributes 32%. Gurgaon and Manesar, in Haryana, are where the country's largest car manufacturer, Maruti Suzuki, is based.
An emerging cluster is the state of Gujarat, with a manufacturing facility of General Motors in Halol, and a planned facility for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki, and Peugeot-Citroenplants are also planned for Gujarat.[18]
Kolkata with Hindustan MotorsNoida with Honda, and Bangalore with Toyota are other automotive manufacturing regions around the country.[19][20][21]

West Bengal[edit]

Passenger vehicles


Passenger vehicles
Commercial vehicles


Two wheelers
Passenger vehicles

Himachal Pradesh[edit]

Two wheelers
Passenger vehicles
Commercial vehicles


Commercial vehicles


Two wheelers
Passenger vehicles
Commercial vehicles


Commercial vehicles

Madhya Pradesh[edit]

Two wheelers
Commercial vehicles


Two wheelers
Passenger vehicles
Commercial vehicles


Commercial vehicles


Two Wheelers
Honda Motorcycle & Scooter India – Tapukara[25]
Passenger vehicles
Commercial vehicles

Tamil Nadu[edit]

Two wheelers
Passenger vehicles
Commercial vehicles

Uttar Pradesh[edit]

Two wheelers
Passenger vehicles
Commercial vehicles


Commercial vehicles


Mahindra Scorpio Jeep in service with Italy's CNSAS.
India's automobile exports have grown consistently and reached $4.5 billion in 2009, with the United Kingdom being India's largest export market, followed by Italy, Germany, Netherlands, and South Africa.[82]
According to the New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies like HyundaiNissanToyotaVolkswagen, and Maruti Suzuki.[83]
In 2008, South Korean multinational Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011.[84] Similarly, USautomobile company, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011.[85]
In September 2009, Ford Motors announced its plans to set up a plant in India with an annual capacity of 250,000 cars, for US$500 million. The cars will be manufactured both for the Indian market and for export.[86] The company said that the plant was a part of its plan to make India the hub for its global production business.[87] Fiat Motors announced that it would source more than US$1 billion worth auto components from India.[88]
Tata Safari on display inPoznańPoland.
In 2009 India (0.23m) surpassed China (0.16m) as Asia's fourth largest exporter of cars after Japan (1.77m), Korea (1.12m) and Thailand (0.26m) by allowing foreign carmakers 100% ownership of factories in India, which China does not allow.[3]
In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing € 700M in the operation.[89] PSA's intention to utilise this production facility for export purposes however remains unclear as of December 2010.
The Maruti Ertiga, a model exported by Maruti Suzuki, India.
In recent years, India has emerged as a leading center for the manufacture of small cars. Hyundai, the biggest exporter from the country, now ships more than 250,000 cars annually from India. Apart fromMaruti Exports' shipments to Suzuki's other markets, Maruti Suzuki also manufactures small cars for Nissan, which sells them in Europe. Nissan will also export small cars from its new Indian assembly line.Tata Motors exports its passenger vehicles to Asian and African markets, and is preparing to sell electric cars in Europe in 2010. The firm is planning to sell an electric version of its low-cost car the Tata Nano in Europe and in the U.SMahindra & Mahindra is preparing to introduce its pickup trucks and small SUV models in the U.S. market. Bajaj Auto is designing a low-cost car for Renault Nissan Automotive India, which will market the product worldwide. Renault Nissan may also join domestic commercial vehicle manufacturer Ashok Leyland in another small car project.[90] While the possibilities for the Indian automobile industry are impressive, there are challenges that could thwart future growth. Since the demand for automobiles in recent years is directly linked to overall economic expansion and rising personal incomes, industry growth will slow if the economy weakens.[90]

Top 18 export destinations in 2007-2008 and growth from previous year[edit]

RankCountry2007-2008 (in USD Millions)2008-2009 (in USD Millions)Percentage Growth
1United States of America593.64525.24-11.52
3Sri Lanka249.14216.11-13.26
4South Africa224.93188.57-15.79
5United Kingdom165.57246.3248.77
6United Arab Emirates164.44192.7417.21

Passenger vehicles in India[edit]

This list is of cars that are officially available and serviced in India. While other cars can be imported to the country at a steep 105%[91] import duty, car-makers such as Alfa Romeo,[92] McLaren,[93] Pagani,[94] Cadillac,[95] Chrysler,[96] SSC,[97] Lincoln,[98] Zenvo,[99] SEAT,[100] Smart,[101] Daihatsu,[102] Lexus,[103] Infiniti,[104] Acura,[105] Saab,[106] Spyker,[107] Lotus,[108] Ariel,[109] Caterham,[110]Peugeot-Citroën,[111] Mazda,[112] Jeep,[113] Kia,[114] GAZ,[115] and Proton[116] in various stages of official introduction into the Indian automobile industry.

Indian automotive companies[edit]

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

Defunct Indian automotive companies[edit]

Foreign automotive companies in India[edit]

Hyundai, Suzuki, BMW, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet(of General Motors), Toyota, Lamborghini, Jaguar, Eicher, TAFE, are the foreign automotive companies that manufacture and market their products in India

Vehicles manufactured or assembled in India[edit]

Manufactured only in Chennai, India, the i10 is one of Hyundai's best selling globally exported cars.
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.

Vehicles brought into India as CBUs[edit]

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

Commercial vehicle manufacturers in India[edit]

Indian brands[edit]

Joint-venture (JV) brands[edit]

Foreign-owned brands[edit]

Electric vehicle and Hybrid vehicle (xEV) industry[edit]

During April 2012, the Indian government planned to unveil the road map for the development of domestic electric and hybrid vehicles (xEV) in the country.[197] A discussion between the various stakeholders, including Government, industry, and academia, was expected to take place during 23–24 February.[197] The final contours of the policy would have been formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad framework for the sector. Along with these ministries, auto industry executives, such as Anand Mahindra(Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task.[197] The Government has also proposed to set up a Rs 740 crore research and development fund for the sector in the 12th five-year plan during 2012-17.[197] The idea is to reduce the high cost of key imported components such as the battery and electric motor, and to develop such capabilities locally.

Electric car manufacturers in India[edit]

Defunct motor vehicle manufacturers of India[edit]

  • Automobile Products of India or API - founded in 1949 at Bombay (now Mumbai), by the British company Rootes Group,[203] and later bought over by M. A. Chidambaram of the MAC Group fromMadras (now Chennai).[203] The company manufactured Lambretta scooters, API Three Wheelers under licence from Innocenti of Italy and Automobile ancillaries, notably Clutch and Braking systems. API's registered offices were earlier in Mumbai, later shifted to Chennai, in Tamil Nadu. The manufacturing facilities were located in Mumbai and Aurangabad in Maharashtra and in Ambattur,Chennai.[204] The company has not been operational since 2002.
  • Escorts Yamaha - in 1984 Escorts formed a joint venture with Yamaha to manufacture motorcycles. In 2008 became India Yamaha Motor.
  • Hero Motors is a former moped and scooter manufacturer based in Delhi, India. It is a part of multinational company Hero Group, which also currently owns Hero Motocorp (formerly Hero Honda) andHero Cycles, among others. Hero Motors was started in the 1960s to manufacture 50 cc two-stroke mopeds but gradually diversified into making larger mopeds, mokicks and scooters in the 1980s and the 1990s. Noteworthy collaborators and technical partners were Puch of Austria and Malaguti of Italy. Due to tightening emission regulations and poor sales, Hero motors have discontinued the manufacture of all gasoline powered vehicles and transformed itself into an electric two-wheeler and auto parts manufacturer.
  • Ideal Jawa - motorcycle company based in Mysore, sold licensed Jawa and ČZ motorcycles beginning in 1960 under the brand name Jawa and later Yezdi.
  • Kinetic Honda - a joint venture between Kinetic Engineering Limited, India and Honda Motor Company, Japan. The JV operated during 1984 - 1998, manufacturing 2-stroke scooters in India. In 1998, the joint venture was terminated after which Kinetic Engineering continued to sell the models under the brand name Kinetic until 2008[205] when the interests were sold to Mahindra.
  • Mopeds India Limited - produces the Suvega range of Mopeds under technical collaboration with Motobécane of France.
  • Standard - produced by Standard Motor Products in Madras from 1949 to 1988. Indian Standards were variations of vehicles made in the U.K. by Standard-Triumph. Standard Motor Products of India Ltd. (SMPI) was incorporated in 1948,[206] and their first product was the Vanguard, which began to be assembled in 1949. The company was dissolved in 2006 and the old plant torn down


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