Automotive industry in India
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Chennai is home to around 35-40% of India's total automobile industry and for this reason it is
known as the Detroit of Asia. It is on the way to becoming the world's largest Auto hub by 2016
with a capacity of over 3 million cars annually
Mahindra Scorpio, one of India's best selling natively developed SUVs
The automotive industry in India is one of the largest in the world with an annual production
of 23.37 million vehicles in FY 2014-15, following a growth of 8.68 per cent over the last year.
The automobile industry accounts for 7.1 per cent of the country's gross domestic product
(GDP). The Two Wheelers segment, with 81 per cent market share, is the leader of the Indian
Automobile market, owing to a growing middle class and a young population. Moreover, the
growing interest of companies in exploring the rural markets further aided the growth of the
sector. The overall Passenger Vehicle (PV) segment has 13 per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near
future. In FY 2014-15, automobile exports grew by 15 per cent over the last year. In addition,
several initiatives by the Government of India and the major automobile players in the Indian
market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W)
market in the world by 2020.
1 Market Size
3 Government Initiatives
o 4.1 Restrictions under the license raj
o 4.2 Liberalisation
o 4.3 Slow export growth
o 4.4 Emission norms
o 4.5 Local manufacture encouraged
5 Manufacturing facilities
o 5.1 Gujarat
o 5.2 Haryana
o 5.3 Himachal Pradesh
o 5.4 Jharkhand
o 5.5 Karnataka
o 5.6 Kerala
o 5.7 Madhya Pradesh
o 5.8 Maharashtra
o 5.9 Punjab
o 5.10 Rajasthan
o 5.11 Tamil Nadu
o 5.12 Uttar Pradesh
o 5.13 Uttarakhand
o 5.14 West Bengal
o 6.1 Top 10 export destinations
7 Passenger vehicles in India
o 7.1 Indian automotive companies
7.1.1 Defunct Indian automotive companies
o 7.2 Foreign automotive companies in India
7.2.1 Vehicles manufactured or assembled in India
7.2.2 Vehicles imported into India
8 Commercial vehicle manufacturers in India
o 8.1 Indian brands
o 8.2 Joint-venture (JV) brands
o 8.3 Foreign-owned brands
9 Electric vehicle and Hybrid vehicle (xEV) industry
o 9.1 Electric car manufacturers in India
10 Defunct motor vehicle manufacturers of India
11 See also
The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs),
three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–October 2014,
registering a marginal growth of 3.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in April–October 2015 over the same period in the
previous year. The overall CVs segment registered a growth of 8.02 per cent in April–October
2015 as compared to same period last year. Medium & Heavy Commercial Vehicles (M&HCVs)
registered very strong growth of 32.3 per cent while sales of Light Commercial Vehicles (LCVs)
declined by 5.24 per cent during April–October 2015, year-to-year.
In April–October 2015, overall automobile exports grew by 5.78 per cent. PVs, CVs, 3Ws and
2Ws registered growth of 6.34 per cent, 17.95 per cent, 18.59 per cent and 3.22 per cent,
respectively, in April–October 2015 over April–October 2014.
In order to keep up with the growing demand, several auto makers have started investing heavily
in various segments of the industry during the last few months. The industry has attracted foreign
direct investment (FDI) worth US$13.48 billion during the period April 2000 to June 2015,
according to data released by Department of Industrial Policy and Promotion (DIPP).
Some of the major investments and developments in the automobile sector in India are as
Global auto maker Ford plans to manufacture in India two families of engines by 2017, a
2.2 litre diesel engine code-named Panther, and a 1.2 litre petrol engine code-named
Dragon, which are expected to power 270,000 Ford vehicles globally.
The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and
Toyoda Gosei Co are setting up plants and increasing capacity in India.
General Motors plans to invest US$1 billion in India by 2020, mainly to increase the
capacity at the Talegaon plant in Maharashtra from 130,000 units a year to 220,000 by
US-based car maker Chrysler has planned to invest Rs 3,500 crore (US$525 million) in
Maharashtra, to manufacture Jeep Grand Cherokee model.
Mercedes Benz has decided to manufacture the GLA entry SUV in India. The company
has doubled its India assembly capacity to 20,000 units per annum.
Germany-based luxury car maker Bayerische Motoren Werke AG’s (BMW) local unit has
announced to procure components from seven India-based auto parts makers.
Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent shares in France-based
Peugeot Motorcycles (PMTC).
The Government of India encourages foreign investment in the automobile sector and allows 100
per cent FDI under the automatic route.
Some of the major initiatives taken by the Government of India are:
The Government of India aims to make automobile manufacturing the main driver of
"Make in India" initiative, as it expects the passenger vehicles market to triple to 9.4
million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.
In the Union budget of 2015-16, the Government has announced plans to provide credit
of Rs 850,000 crore (US$127.5 billion) to farmers, which is expected to boost sales in the
The government plans to promote eco-friendly cars in the country—i.e. CNG-based
vehicles, hybrid vehicles, and electric vehicles—and also to make mandatory 5 per cent
ethanol blending in petrol.
The government has formulated a Scheme for Faster Adoption and Manufacturing of
Electric and Hybrid Vehicles in India, under the National Electric Mobility Mission 2020,
to encourage the progressive introduction of reliable, affordable, and efficient electric and
hybrid vehicles into the country.
The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the
government is aimed at accelerating and sustaining growth in this sector. Also, the wellestablished Regulatory Framework under the Ministry of Shipping, Road Transport and
Highways, plays a part in providing a boost to this sector.
A pre-Independence car showroom in Secunderabad
The Hindustan Ambassador dominated India's automotive market from the 1960s until the mid80s
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 Motors was
launched in 1942, long-time competitor Premier in 1944, building GM and Fiat products
respectively. Mahindra & Mahindra was established by two brothers in 1945, and began
assembly of Jeep 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.
Restrictions under the license raj
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.
However, by the 1980s, the automobile market was still dominated by Hindustan and Premier,
who sold superannuated products in fairly limited numbers. 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
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. 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.
The Premier Padmini was the Ambassador's only true competitor
Slow export growth
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.
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 Holdings, PSA Group, Kia, Mazda, Chrysler,
Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the
market, as well as the global economic crisis.
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), Mumbai, Kolkata, Chennai, Bangalore,
Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra are the 13 cities
where Bharat Stage IV has been imposed while the rest of the nation is still under Bharat Stage
Local manufacture encouraged
India levies an import tax of 125% on electric cars, while the import tax on components such as
gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in
India rather than be imported as completely built units.
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 Ford, Hyundai, Renault,
Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun.
Near Mumbai, Maharashtra, along the Chakan corridor near Pune, is the western cluster, with a
33% share of the market. Audi, Volkswagen, and Skoda are located in Aurangabad. Mahindra
and Mahindra has an SUV and engine assembly plant at Nashik. General Motors, Tata Motors,
Mercedes Benz, Land Rover, Jaguar Cars, Fiat, and Force Motors have assembly plants in the
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 facility for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki, and PeugeotCitroen plants are also planned for Gujarat.
Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota are
other automotive manufacturing regions around the country.
General Motors India Private Limited
o Chevrolet Sales India Private Limited – Halol
Tata Motors – Sanand
Asia Motor Works AMW – Bhuj
Harley-Davidson India, Gurgaon 
Hero MotoCorp – Dharuhera, Gurgaon
Honda Motorcycle & Scooter India – Manesar
India Yamaha Motor – Faridabad, Manesar
Suzuki – Gurgaon
Maruti Suzuki – Gurgaon, Manesar
TVS Motors – Nalagarh
ICML motors – Amb
TAFE Tractors – Parwanoo
Tata Motors – Jamshedpur
TVS Motor – Mysuru
Honda Motorcycle & Scooter India Pvt. Ltd. - Narsapura
Mahindra REVA Electric Vehicles – Bengaluru
Toyota Kirloskar Motor Private Limited – Bidadi
Bharat Earth Movers - Bengaluru
Scania Commercial Vehicles India Private Limited – Bengaluru
TAFE Tractors – Doddaballapur
Tata Motors – Dharwad
Bharat Earth Movers - Mysuru
o Volvo Buses India – Hosakote
o Volvo Trucks India – Hosakote
o Volvo Construction Equipment India – Hosakote
Tata Motors Limited
o Tata Motors – Pimpri Chinchwad(Pune)
o Jaguar Cars and Land Rover – Pune
Mercedes-Benz Passenger Cars – Chakan(Pune)
Fiat Automobiles – Ranjangaon (Pune)
General Motors India – Chakan(Pune)
Volkswagen Group Sales India Private Limited
o Volkswagen – Chakan(Pune)
o Audi AG – Aurangabad
o Škoda Auto – Aurangabad
Chinkara Motors – Karlekhind Alibag
Premier Automobiles Limited – Pimpri Chinchwad(Pune)
Ashok Leyland – Bhandara
Bajaj Auto – Waluj Aurangabad
Force Motors – Pune
Mahindra Navistar – Chakan(Pune)
MAN Trucks India – Akurdi (Pune)
Piaggio Vehicles – Baramati (Pune)
Premier Automobiles Limited – Pimpri Chinchwad(Pune)
SML Isuzu Limited – Nawanshahar (originally a Swaraj Mazda plant)
Honda Motorcycle & Scooter India – Tapukara
Honda Cars India Ltd. – Tapukara
Ashok Leyland – Alwar
TAFE Tractors – Alwar
TVS Motor – Hosur
Royal Enfield – Chennai
India Yamaha Motor – Oragadam
BMW India – Chengalpattu
Ford India Private Limited – Maraimalai Nagar
Hyundai Motor India Limited – Sriperumbudur
Mitsubishi – Tiruvallur
Renault Nissan Automotive India Private Limited
o Nissan Motor India Private Limited – Oragadam
o Renault India Private Limited – Oragadam
Ashok Leyland – Ennore, Hosur
BharatBenz – Oragadam
Kamaz Vectra Motors – Hosur
SAME Deutz-Fahr Tractors – Ranipet, Vellore
TAFE Tractors – Chennai
TVS Motors – Hosur
India Yamaha Motor – Greater Noida
LML – Kanpur
Honda Cars India Ltd. – Greater Noida
J.S. Auto (P) LTD. – Kanpur
Tata Motors – Lucknow
Ashok Leyland – Pantnagar
Tata Motors – Pantnagar
Mahindra & Mahindra – Haridwar
Hero MotoCorp – Haridwar
Bajaj Auto – Pantnagar
Hindustan Motors Limited - Kolkata (Inactive)
Mahindra Scorpio 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.
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 Hyundai, Nissan, Toyota, Volkswagen, and
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.
Similarly, US automobile company, General Motors announced its plans to export about 50,000
cars manufactured in India by 2011.
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. The company said that the plant was a part of its plan to make India the
hub for its global production business. Fiat Motors announced that it would source more than
US$1 billion worth auto components from India.
A Tata Safari on display in Poznań, Poland.
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.
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. 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 from Maruti 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.S. Mahindra &
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. 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.
Top 10 export destinations
India exported $14.5 billion worth of automobiles in 2014. The 10 countries below imported
47.8% of that total.
United Arab Emirates
Passenger vehicles in India
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% import duty, car-makers such as Alfa Romeo,
McLaren, Pagani, Cadillac, Chrysler, SSC, Lincoln, Zenvo, SEAT, Smart,
Daihatsu, Lexus, Infiniti, Acura, Saab, Spyker, Lotus, Ariel, Caterham,
Peugeot-Citroën, Mazda, Jeep, Kia, GAZ, and Proton in various stages of
official introduction into the Indian automobile industry.
Indian automotive companies
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
Foreign automotive companies in India
Hyundai, Suzuki, BMW, Volkswagen, 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
Manufactured only in Chennai, India, the i10 is one of Hyundai's best selling globally exported
BMW India: 1 Series, 3 Series, 3 Series GT, 5 Series, 7 Series, X1, X3, X5.
Audi India: A3, A4, A6, Q3, Q5.
Fiat India: Grande Punto, Linea, Fiat Avventura.
Ford India: Figo, Fiesta Classic, Fiesta, Ecosport, Endeavour, Figo Aspire.
SsangYong (subsidiary of Mahindra & Mahindra): Rexton.
Suzuki (sold through Maruti Suzuki): Grand Vitara, Kizashi.
Toyota: Prius, Land Cruiser, Land Cruiser Prado.
Volkswagen: Beetle, Touareg, Phaeton.
Volvo: V40, S60, S80, XC60, XC90.
Commercial vehicle manufacturers in India
Mahindra & Mahindra
Joint-venture (JV) brands
Ashok Leyland - originally a JV between Ashok Motors (owned by the Hinduja
Group) and Leyland Motors, now joint ventures between Ashok Leyland and Nissan
Motors (Japan) for LCV's; and John Deere (USA) for construction equipment.
KaMAZ Vectra - A JV between Russia's KaMAZ and the Vectra Group
MAN Force - A JV between Force Motors and MAN AG (Germany)
SML Isuzu - originally, as Swaraj Mazda, a JV between Punjab Tractors and Mazda, now
53.5% owned by Sumitomo Group and with its current name since 2011.
Tatra Vectra Motors Ltd - (defunct) Initial truck partnership with India by Vectra.
Replaced by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration
with Bharat Earth Movers Limited.
VE Commercial Vehicles Limited - VE Commercial Vehicles limited - A JV between
Volvo Group & Eicher Motors Limited.
Maruti Suzuki - A joint venture of Indian Maruti and Japanese Suzuki.
J. C. Bamford (JCB) (Owned by British multinational corporation J. C. Bamford).
BharatBenz (Owned by Daimler AG of Germany and affiliated with Daimler's Fuso and
Mercedes-Benz - manufactures luxury coaches in India.
Electric vehicle and Hybrid vehicle (xEV) industry
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. A discussion between the various
stakeholders, including Government, industry, and academia, was expected to take place during
23–24 February. 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.
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. The idea is to reduce the high cost of
key imported components such as the battery and electric motor, and to develop such capabilities
Electric car manufacturers in India
o REVA now Mahindra Reva Electric Vehicles.
Defunct motor vehicle manufacturers of India
Automobile Products of India or API - founded in 1949 at Bombay (now Mumbai), by
the British company Rootes Group, and later bought over by M. A. Chidambaram of
the MAC Group from Madras (now Chennai). 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. 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) and Hero 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 twowheeler 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
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, 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.
Media related to Automobile manufacturers of India at Wikimedia Commons
Automotive Industry Standards, the automotive regulations of India