Automotive Industry in India

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Automotive Industry in India Automotive industry in india The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33 million every year. It is the world's second largest manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. A chunk of India's car manufacturing industry is based in and around Chennai, also known as the "Detroit of India" with the India operations of BMW, Ford,Hyundai and Nissan headquartered in the city. Chennai accounts for 60 per cent of the country's automotive exports.Gurgaon and Manesa in Haryana are hubs where all of the Maruti Suzuki cars in India are manufactured. The Chakan corridor near Pune, Maharashtra is another vehicular production hub with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Fiat and Force Motors having assembly plants in the area. Ahmedabad with the Tata Nano plant, Halol with General Motors, Aurangabad with Audi, Kolkatta with Hindustan Motors, Noida with Honda and Bengaluru with Toyota are some of the other automotive manufacturing regions around the country. 1 Indian Four Wheeler Industry The Four-Wheeler Industry in India has not quite matched up to the performance of its counterparts in other parts of the world. The primary reason for this has been the all-pervasive regulatory atmosphere prevailing till the opening up of the industry in the mid-1990s. The various layers of legislative Acts sheltered the industry from external competition for a long time. Moreover, the industry was considered low-priority as cars were thought of as unaffordable luxury". Post Liberalization, the car market in India have been in a burgeoning stage with all types of cars flooding the market in order to meet the demands of Indian customers who are increasingly exposed to state of the world automobiles and want the best when it comes to purchasing a car. It is expected that by 2030, the Indian car market will be the 3rd largest car market across the globe. The main encouraging factors for the success story of the car market in India are the increase in the opportunity for new investments, the rise in the GDP rate, the growing per capita income, massive population, and high ownership capacity. The liberalization policies followed by the Indian government had been inviting foreign players to participate in the car market in India. The recent trend within the new generation to get work in the software based sector has led to the rise in the income level and change in the lifestyle significantly, which has further led to the increase in the demand for luxurious cars among them. The car Market in India is crowded with all varieties of car models like the small cars, mid-size cars, luxury cars, super luxury cars, and sports utility vehicles. Initially the most popular car model dominating the Car Market in India was the Ambassador, which however today gave way to numerous new models like Hyundai, Honda, Mercedes-Benz, BMW, Bentley and many others. Moreover, there are many other models of cars in the pipeline, to be launched in the car market in India. Some of the leading brands dominating the car market in India at present are Hindustan Motors, Reva Electric Car Co., Fiat India Private Ltd., Daimler Chrysler India Private Ltd, Ford India Ltd., Honda Siel Cars India Ltd., General Motors India, Hyundai Motors India Ltd., Skoda Auto India Private Ltd., and Toyota Kirloskar Motor Ltd. Since the demand for foreign cars are increasing with time, big brands like Mercedes Benz, Volkswagen, Aston Martin, Ferrari, and Rolls-Royce have long since made a foray into the Indian car market. 2 Facts about Indian Car Market: Although the Indian automobile industry has come a long way since the deregulation in 1993, India does not rank well among its global peers in many respects, viz., the contribution of the sector to industrial output, number of cars per person, employment by the sector as a percentage of industrial employment, number of months' income required to purchase a car, and penetration of cars. India is far behind from other countries with just 6.9 cars per 100 persons, while Unites States has 76.9 cars on per 100 persons. Among developing countries, Russia also stands ahead than India and China with 16.3 cars per 100 persons. 120 1 00 6.9 1.6 16.3 80 40.8 41.3 60 76.9 Series 2 Series 1 40 20 0 INDIA EUROPE US CHIINA JAPAN RUSSIA Figure 1 :-Passenger vehicle stock per 100 people Two things that stunted growth of the Indian automobile industry in the past have been low demand and lack of vision on the part of the original equipment manufacturers (OEMs). However, the demand has picked up after the liberalization of the regulatory environment, and global OEMs who enjoy scale economies both in terms of manufacturing and research and development (R&D) entered the Indian market. This has resulted in a significant shift in the way business is conducted by suppliers, assemblers and marketers 3 Major Automobile Players in India Maruti Udyog Limited Maruti Udyog Limited is India's largest automobile company. Its main factory is situated in Gurgaon district, Haryana. The company, a joint venture with of Government of India with Suzuki of Japan, has been a success story like no other in the annals of the Indian automobile industry. The first cars rolled out for sale on 14th December 1983, (the Company went into production in a record 13 months), marking the beginning of a revolution in the Indian automobile industry. Suzuki Motor Corporation Suzuki Motor Corporation was incorporated in 1920. Today it is one of the leading manufacturing industry in automobiles. Suzuki Motor Corporation, with headquarters in Hamamatsu, Shizuoka, Japan is the leading international manufacturer of compact cars. The Company employs some 45,510 people worldwide. And it is represented in over 192 countries and areas. Its net sales have been exceeding the previous terms for the 8th consecutive year and its operating income for 7th consecutive year, and in the fiscal 2006/2007 the turnover reached about 3,163 billion yen with an increase of 15.2 percent over the previous year. The worldwide sales cover among other things 2.22 million automobiles and 3.06 million motorcycles. Suzuki has 35 main production facilities in 23 countries. Hyundai Motor India Ltd. Hyundai Motor Company, Korea, has constructed its largest overseas manufacturing plant in Chennai, India. Hyundai models include Santro, Accent and Sonata. Provides information about Hyundai dealers throughout India. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets 34 variants of passenger cars in six segments. The Santro 4 in the B segment, Getz Prime, i10 in the B+ segment, the Accent and Verna in the C segment, the Elantra in the D segment, the Sonata Embera in the E segment and the Tucson in the SUV segment. Hyundai Motor India, continuing its tradition of being the fastest growing passenger car manufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, an increase of 18.5 percent over CY 2005. In the domestic market it clocked a growth of 19.1 percent a compared to 2005, with 186,174 units, while overseas sales grew by 17.4 percent, with exports of 113,339 units. Daimler Chrysler India Pvt. Ltd & Mercedes-Benz India Ltd. Daimler Chrysler India is a 100% subsidiary of Daimler Chrysler group and one of the first auto joint ventures set up in India. Daimler Chrysler India has a world-class production facility in Pune, in Maharastra State. Ford India Limited - Subsidiary of Ford Ford has invested heavily in India, with a Rs. 1700 crore integrated manufacturing plant at Maraimalai Nagar, equipped with state-of-the-art Ford technology and employing 1,000 people. Models include Ikon and Mondeo. Gajra Gears Ltd. :manufacturer of automobile transmission gears. Opel India Manufactures the Opel Astra car in India Automotive seating systems and components for passenger cars,LCVs, tractors. S.K. Engineering & Allied Works has now become a world famous name for Dehusking and Splitting plant for pulses and peas. Our plants of capacities ranging from 50 to 150 tones per day are already installed and successfully working in countries like Australia, Middle East, Canada, India, Nepal and Burma with more and more countries getting added to the list.
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