Automotive Industry in India

 

Automotive industry in India From Wikipedia, the free encyclopedia

Mahindra Scorpio, one of India's best selling indigenously developed SUV.

Foreign carmakers have built plants 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.[1] It is the world's second largest manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009.[2] 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.[3] 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.[4] In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand.[5]

As of 2010, India is home to 40 million passenger vehicles and more than 3.7 m million illion automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the seco second nd fastest growing automobile market in the world.[6][7] 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.[8] By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.[9]

A chunk of India's car manufacturing industry is based in and around Chennai, also known as the t he "Detroit of India"[10] 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.[11] Gurgaon and Manesar in Haryana are hubs where all of the Maruti Suzuki cars in India are manufactured.[12] The Chakan corridor near Pune, Maharashtra is another vehicular production hub with companies like General Ge neral Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Fiat and Force Motors[13][14] 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 t he other automotive manufacturing regions around the country.[15][16][17]Contents [hide] 1 Overview

 

2 History 3 Industry Definition 4 Supply Chain of Automobile Industry 5 Key statistics 5.1 Automobile Production 5.2 Automobile Sales 5.3 Automobile Exports 5.4 Product and service segmentation 5.5 Vehicle Registration 5.6 Total Number of Vehicle Registrations in India from 2001 to t o 2008 6 Emission norms 7 Geographic Segmentation 7.1 Geographical Segmentation:Sate-wise motor vehicles registration in India from 2001 - 2008 7.2 Geographical Segmentation: Category-wise number of registrations in States of India 7.3 Geographical Segmentation: Category-wise registration in Union Territories of India 8 Exports 8.1 Top 20 Export destinations in 2007-2008 and growth from previous year 9 Passenger vehicles in India 9.1 Indian automotive companies 9.2 Foreign automotive companies in India 9.2.1 Vehicles manufactured or assembled in India 9.2.2 Vehicles brought into India as CBUs 10 Commercial vehicle manufacturers in India 10.1 Indian brands

 

10.2 Joint Venture Brands 10.3 Foreign brands 11 Electric car manufacturers m anufacturers in India 12 Market Characteristics 13 International Markets 14 International Markets Analysis 15 Basis of Competition 16 Life Cycle 17 Industry Conditions 18 Taxation 19 MODVAT and CENVAT 20 Customs Duty 21 Service Tax 22 Capital and Labour Intensity 23 Industry Volatility 24 Key Competitors 25 Tata Motors 26 Maruti Suzuki India 27 Hyundai Motor India 28 Mahindra & Mahindra 29 Ashok Leyland 30 Hero Honda Motors 31 Bajaj Auto 32 Key Factors

 

33 Key Success Factors 34 Further reading 35 Footnotes

[edit] Overview

The Indian Automobile Industry is manufacturing over 11 million vehicles and exporting about 1.5 million every year [18]. The dominant products of the industry are two wheelers with a market share of  over 75% and passenger cars with a market share of about 16%[19]. 16%[19 ]. Commercial vehicles and three wheelers share about 9% of the market between them. About 91% of the vehicles sold are used by households and only about 9% for commercial purposes[20]. The industry has attained a turnover of  more than USD 35 billion and provides direct and indirect employment to over 13 million people[21].

The supply chain of this industry in India is very similar to the supply chain of the automotive industry in Europe and America. This may present its own set of opportunities and threats. The orders of the industry arise from the bottom of the supply chain i. e., from the consumers and goes through the t he automakers and climbs up until the third tier suppliers. However the products, as channelled in every traditional automotive industry, flow from the top of the supply chain c hain to reach the consumers.

Interestingly, the level of trade exports e xports in this sector in India has been medium and imports have been low. However, this is rapidly changing and both exports and imports are increasing. The demand determinants of the industry are factors like affordability, product innovation, infrastructure and price of  fuel. Also, the basis of competition is the sector se ctor is high and increasing and the life cycle stage is growth. With a rapidly growing middle class, all the advantages of this sector in India are yet to be leveraged.

Note that, with a high cost of o f developing production facilities, limited accessibility to new technology and soaring competition, the barriers to enter e nter the Indian Automotive sector are high and these barriers are study. On the other hand, India has a well-developed tax structure. The power to levy taxes and duties is distributed among the three tiers of Government. The cost structure of the industry is fairly traditional, but the profitability of motor vehicle manufacturers has been rising over the past five years. Major players, like Tata Motors and Maruti Suzuki have material mate rial cost of about 80% but are recording profits after tax of about 6% to 11%[22].

 

  The level of technology change in the Motor vehicle Industry has been high but, the rate of change in technology has been medium. Investment in the technology by the producers has been high. Systemsuppliers of integrated components and sub-systems have become the order of o f the day. However, further investment in new technologies will help the industry be more competitive. Over the past few

years, the industry has been volatile. Currently, India’s increasing per capita disposable income which is expected to rise by 106% by 2015[23] and growth in exports is playing a major role in the rise and competitiveness of the industry.

Tata Motors is leading the commercial vehicle segment with w ith a market share of about 64%[24]. Maruti Suzuki is leading the passenger vehicle segment with w ith a market share of 46%[25]. Hyundai Motor India and Mahindra and Mahindra are focusing expanding their footprint in the overseas market. Hero He ro Honda Motors is occupying over 41% and sharing 26%[26]of the two wheeler market in India with Baj Bajaj aj Auto. Bajaj Auto in itself is occupying about 58% of the three wheeler market.

Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In 2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars. c ars. Steel is the major input used by manufacturers and the rise in price of steel is putting a cost pressure on manufacturers and cost is getting transferred to the end consumer. The price of o oil il and petrol affect the driving habits of consumers and the type of car they buy.

The key to success in the industry is to improve labour productivity, labour flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players. Utilising manufacturing plants to optimum level and understanding implications from the government policies are the essentials in the Automotive Industry of India.

Both, Industry and Indian Government are obligated to intervene the Indian Automotive industry. The Indian government should facilitate infrastructure creation, create favourable and predictable business environment, attract investment and promote research and development. dev elopment. The role of Industry will primarily be in designing and manufacturing products of world-class quality establishing cost competitiveness and improving productivity in labour and in capital. With a combined effort, the Indian Automotive industry will emerge as the destination of choice in the world for design and manufacturing of automobiles. [edit] History

 

  The first car ran on India's roads in 1897. Until the 1930s, cars wer were e imported directly, but in very small numbers.

Embryonic automotive industry emerged in India in the 1940s. Mahindra & Mahindra was established by two brothers as a trading t rading company in 1945, and began assembly of Jeep CJ-3A CJ -3A utility vehicles under license from Willys.[27] The company soon branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors.[28]

Following the independence, in 1947, the Government Gover nment of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of  Maruti Udyog. A number of foreign firms initiated joint ventures with w ith Indian companies.[29]

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its jointventure to manufacture small cars. Following the economic ec onomic liberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands.[29]

Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased incre ased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which has attracted significant India-specific investment by multinational automobile manufacturers.[30] In February 2009, monthly sales of passenger cars in India exceeded 100,000 units[31] and has since grown rapidly to a record monthly high of 182 182,992 ,992 units in October 2009.[32] From 2003 to 2010, car sales in India have progressed at a CAGR of 13.7%, and with only 10% of Indian households owning a car in 2009 (whereas this figure reaches 80% in Switzerland for example [33]) this progression is unlikely to stop in the coming c oming decade.[34] Congestion of Indian roads, more than market demand, will likely be the limiting factor.[35]

 

SIAM is the apex industry body representing all the vehicle manufacturers, home-grown and international, in India.[36] [edit] Industry Definition

This class consists of units mainly engaged in manufacturing motor vehicles or motor vehicle engines.

Products and Services

The primary activities of this industry are:

Motor cars manufacturing Motor vehicle engine manufacturing The major products and services in this industry are:

Passenger motor vehicle manufacturing segment (Passenger Cars, Utility Vehicles & Multi Purpose Vehicles) Commercial Vehicles (Medium & Heavy and Light Commercial Vehicles) Two Wheelers W heelers Three Wheelers [edit] Supply Chain of Automobile Industry

Supply Chain of Indian Automobile Industry[1]

The supply chain of automotive industry in India is very similar to the supply chain of the automotive industry in Europe and America. The orders of the t he industry arise from the bottom of the supply chain i. e., from the consumers and goes through the automakers and climbs up until the third ttier ier suppliers. However the products, as channelled in every traditional automotive industry, flow from the top of the supply chain to reach the consumers. Automakers in India are the key to the supply chain and are responsible for the products and innovation in the industry.[1]

 

  The description and the role of each of the contributors to the supply chain are discussed below.

Third Tier Suppliers: These companies provide basic products like rubber, glass, steel, plastic and aluminium to the second tier suppliers.

Second Tier Suppliers: These companies design vehicle systems or bodies for First Tier Suppliers and OEMs. They work on designs provided by the first tier suppliers or OEMs. They also provide engineering resources for detailed designs. Some of their services may include welding, fabrication, shearing, bending etc.

First Tier Suppliers: These companies provide major systems directly to assemblers. These companies have global coverage, in order to follow their customers to various locations around the world. They

design and innovate in order to provide “black-box” solutions for the t he requirements of their customers. Black-box solutions are solutions created by suppliers using their own technology to meet the performance and interface requirements set by assemblers.

First tier suppliers are responsible re sponsible not only for the assembly of parts into complete units like dashboard, breaks-axel-suspension, seats, or cockpit but also for the management of second-tier suppliers.

Automakers/Vehicle Manufacturers/Original Equipment Manufacturers (OEMs): After researching researc hing

consumers’ wants and needs, automakers begin designing models which are tailored to consumers’ demands. The design process normally takes five years. These companies have manufacturing units where engines are manufactured and parts supplied by first tier suppliers and second tier suppliers are assembled. Automakers are the key to the supply chain of the automotive industry. Examples of these companies are Tata Motors, Maruti Suzuki, Toyota, and Honda. Innovation, design capability and branding are the main focus of these companies.

Dealers: Once the vehicles are ready they are shipped to the regional branch and from there, to the authorised dealers of the companies. The dealers then sell the vehicles to the e end nd customers.

 

Parts and Accessory: These companies provide products like tires, windshields, and air bags etc. to automakers and dealers or directly to customers.

Service Providers: Some of the services to the customers include servicing of vehicles, repairing parts, or financing of vehicles. Many dealers provide these services but, customers can also choose to go to independent service providers. [edit] Key statistics

The production of automobiles has greatly increased in the last decade. It passed the 1 million mark during 2003-2004 and has more than doubled since.[37]Year Car Production % Change Commercial % Change Total Vehicles Prodn. % Change 2010

2,814,584

29.39

722,199

54.86

3,536,783

33.89

2009

2,175,220

17.83

466,330

-4.10

2,641,550

13.25

2008

1,846,051

7.74

486,277

-9.99

2,332,328

3.35

2007

1,713,479

16.33

540,250

-1.20

2,253,999

10.39

2006

1,473,000

16.53

546,808

50.74

2,019,808

19.36

2005

1,264,000

7.27

362, 755

9.00

1,628,755

7.22

2004

1,178,354

29.78

332,803

31.25

1,511,157

23.13

2003

907,968

28.98

253,555

32.86

1,161,523

22.96

2002

703,948

7.55

190,848

19.24

894796 8.96

2001

654,557

26.37

160,054

-43.52 814611 1.62

2000

517,957

-2.85

283,403

-0.58

1999

533,149

Year

2004-2005

285,044 2005-2006

Motor Vehicle Production[38] 11,175,479

818193

2006-2007

8,467,853

801360 -2.10

2007-2008

9,743,503

2008-2009

11,087,997

10,853,930

 

Industry Revenue[39]

24,379 26,969 30,507 32,383 33,342*

Exports (Units)[40]

629,544

Exports (Revenue)[41] 1,915

2,231

806,222

1,011,529

2,552

3,718*

3,008

1,238,333

1,530,660

[edit] Automobile ProductionType of Vehicle 2004-2005 2008-2009

2005-2006

2006-2007

2007-2008

Passenger Vehicles [42] 1,209,876

1,545,223

1,777,583

1,838,697

Commercial Vehicles [43] 417,126

1,309,300

353,703

391,083

519,982

549,006

Three Wheelers [44]

374,445

434,423

556,126

500,660

501,030

Two Wheelers [45]

6,529,829

7,608,697

8,466,666

8,026,681

8,418,626

Total

9,743,503

11,087,997

10,853,930

11,175,479

Automobile SalesType of Vehicle 2008-2009

2004-2005

2005-2006

2006-2007

2007-2008

Passenger Vehicles [46] 1,061,572

1,143,076

1,379,979

1,549,882

1,551,880

8,467,853

[edit]

Commercial Vehicles [47] 384,122

318,430

351,041

467,765

490,494

Three Wheelers [48]

307,862

359,920

403,910

364,781

349,719

Two Wheelers [49]

6,209,765

7,052,391

7,872,334

7,249,278

7,437,670

Total

8,906,428

10,123,988

9,654,435

9,723,391

[edit]

7,897,629

 

Automobile ExportsType of Vehicle 2008-2009

2004-2005

2005-2006

2006-2007

2007-2008

Passenger Vehicles [50] 166,402

175,572

198,452

218,401

335,739

Commercial Vehicles [51]

29,940 40,600 49,537 58,994 42,673

Three Wheelers [52]

66,795 76,881 143,896

141,225

148,074

Two Wheelers [53]

366,407

513,169

619,644

819,713

Total

806,222

1,011,529

1,238,333

1,530,660

629,544

1,004,174

[edit] Product and service segmentation

The automotive industry of India is categorised into passenger cars, two wheelers, commercial vehicles and three wheelers, with two wheelers dominating the market. More than 75% of the vehicles sold are two wheelers. Nearly 59% of these two wheelers sold were motorcycles and about 12% were scoters. Mopeds occupy a small portion in the two wheeler market however; electric two wheelers are yet to penetrate.

The passenger vehicles are further categorised into passenger cars, utility vehicles and m multi-purpose ulti-purpose vehicles. All sedan, hatchback, station wagon and sports cars fall under passenger cars. Tata Nano, is the world’s cheapest passenger car, manufactured by Tata Motors - a leading automaker of India. Multipurpose vehicles or people-carriers are similar in shape to a van and are taller than a sedan, hatchback or a station wagon, and are designed de signed for maximum interior room. Utility vehicles are designed for specific tasks. The passenger vehicles manufacturing account for about 15% of the market in India.

Commercial vehicles are categorised into heavy, medium me dium and light. They account for about 5% of the market. Three wheelers are categorised into passenger carriers and goods carriers. Three wheelers account for about 4% of the market in India.Segment[54] 2003-04 2004-05 200506 2006-07 2007-08 Passenger Car[55] (%) 10.22

10.39

9.91

10.65

12.42

Utility Vehicles (UVs) (%)

2.15

2.23

2.18

2.18

2.39

 

Multi Purpose Vehicles (MPVs) (%)

0.87

0.82

0.75

0.82

0.98

Total Passenger Vehicles[56] (%)

13.25

13.44

12.83

13.65

15.79 1 5.79

Passenger Carriers (%) 0.36

0.32

0.32

0.28

0.43

Goods Carriers (%)

2.19

2.01

2.44

2.10

Total Medium & Heavy Commercial Vehicles[57] (%)

2.37

2.51

2.33

Passenger Carriers (%) 0.28

0.25

0.25

0.24

0.32

Goods Carriers (%)

1.27

1.36

1.67

1.77

Total Light Commercial Vehicles (%)

1.45

1.52

1.61

1.90

2.10

Total Commercial Vehicles[58] (%)

3.82

4.03

3.94

4.63

4.63

Passenger Carriers (%) 2.56

2.17

2.39

2.34

2.51

Goods Carriers (%)

1.73

1.65

1.65

1.51

Total Three Wheelers[59] (%)

4.17

3.90

4.04

4.00

4.01

Scoters/Scooterettee (%)

13.01

11.68

10.21

9.31

11.57

Motorcycles/Step-Throughs (%) 61.24

62.86

65.24

64.83

59.35

Mopeds (%)

3.74

3.52

4.47

Electric Two Wheelers (%)

-

-

-

0.07

0.19

Total Two Wheelers[60] (%)

78.76

78.63

79.18

77.73

75.57

4.52

Grand Total[61] (%)

2.01

1.17

1.61

4.08

2.73

2.53

100.00 100.00 100.00 100.00 100.00

[edit] Vehicle Registration

India had over 100 million vehicles registered on its roads in the year 2008[62]. This is a growth of about 100% in the past 9 years. Over 77% and about 77 million m illion of these vehicles are two wheelers, about 14%

 

and over 14 million are cars, jeeps j eeps and taxis. Over 5 million and over 1 million vehicles registered are goods vehicles and buses respectively[63].

Two wheelers account a significant market share. share . Tata Motors with the launch of Tata Nano is ttrying rying to attract some of these two wheeler buyers to buy a small, cheap c heap and affordable passenger car. [edit] Total Number of Vehicle Registrations in India from 2001 to 2008Year All Vehicles (in '000) Two Wheelers (in '000) Cars, Jeeps and Taxis (in '000) Buses (in '000) Goods Vehicles (in '000) Other Vehicles (in '000) 2001

54,991 38,556 7,058

634

2,948

5,795

2002

58,924 41,581 7,613

635

2,974

6,121

2003

67,007 47,519 8,599

721

3,492

6,676

2004

72,718 51,922 9,451

768

3,749

6,828

2005

80,045 57,417 10,460 822

4,053

7,337

2006

88,068 63,487 11,571 879

4,345

7,891

2007

96,808 70,141 12,810 936

4,652

8,464

2008

106,591

77,588 14,222 1,003

5,018

9,065

[edit] Emission norms See also: Bharat Stage emission standards

In tune with international standards to reduce vehicular pollution, the central ce ntral government unveiled the standards titled 'India 2000' in 2000 with later upgraded guidelines as 'Bharat Stage'. These standards are quite similar to the more stringent European standards and have been traditionally implemented in a phased manner, with the latest upgrade getting implemented in 13 cities and later, in the rest of the nation. Delhi(NCR), Mumbai, Kolkata, Chennai, Bengaluru, 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 III.

 

[edit] Geographic Segmentation

The total number of new vehicles registered registe red in the 28 states and 7 union territories of India in the year 2008 were about 106,591,000. 106,591 ,000. The diagram above displays the registration of new vehicles in var various ious states and union territories. About 16 states and 1 union territory had over a m million illion new vehicles registered. Tamil Nadu had about 16 million new vehicles registered, reg istered, Maharashtra had over 13 million, and Gujarat had over 10 million. m illion. About 91% of these vehicles are non-commercial vehicles purchased by households looking for a two wheeler, or a car. Only about 9% of new ve vehicles hicles registered are used for commercial purposes. Details of category wise new vehicle registrations in the various states and union territories are displayed. The number of new vehicles registrations has grown by about 66% in the past five years. [edit] Geographical Segmentation:Sate-wise motor vehicles registration in India from 2001 - 2008States\Year 2001 (in '000) 2002 (in '000) 2003 (in '000) 2004 (in '000) 2005 (in '000) 2006 (in '000) 2007 (in '000)

2008 (in '000)

Andhra Pradesh 3,966

4,389

5,002

5,720

6,446

7,232

8,042

8,989

Arunachal Pradesh

21

21

21

21

21

21

21

Assam 542

596

657

727

798

883

973

1,086

Bihar

1,024

1,121

751

726

694

647

593

Chhattisgarh

857

948

1,076

1,216

1,367

1,536

1,726

Goa

366

397

436

483

537

585

638

Gujarat 5,576

6,008

6,508

7,087

7,892

8,785

9,633

10,543

Haryana

1,949

2,122

2,279

2,548

2,883

3,267

3,689

4,164

Himachal Pradesh

217

244

269

289

329

375

421

480

Jammu & Kashmir

330

364

399

439

493

556

628

719

Jharkhand

909

984

1,101

1,217

1,341

1,479

1,630

1,796

Karnataka

3,537

3,636

3,738

3,977

4,338

4,717

5,036

5,360

Kerala 2,112

2,315

2,552

2,792

3,180

3,612

4,034

4,564

949

341

21

1,939

 

Madhya Pradesh

3,095

3,173

3,459

3,804

Maharashtra

6,760

7,414

8,134

8,969

10,055 11,281 12,477 13,817

Manipur

77

90

97

106

114

123

134

145

Meghalaya

62

67

73

73

78

84

89

95

Mizoram

31

34

37

42

48

54

61

70

Nagaland

160

177

162

172

186

201

215

230

Orissa 1,096

1,215

1,359

1,525

1,717

1,936

2,159

2,417

Punjab 2,910

3,103

3,308

3,529

3,859

4,225

4,571

4,992

Rajasthan

2,943

3,197

3,487

3,834

4,285

4,791

5,281

Sikkim 12

13

15

17

19

21

23

25

Tamil Nadu

5,162

5,658

8,005

8,575

10,085 11,901 13,860 16,207

Tripura 50

57

66

76

85

95

105

117

Uttarakhand

364

406

457

516

580

651

732

822

Uttar Pradesh 4,921

5,171

5,928

6,460

7,271

8,144

8,970

9,919

West Bengal

1,690

2,366

2,548

2,816

3,138

3,464

3,833

Andaman & Nicobar Islands

25

28

28

28

31

34

Chandigarh

386

562

586

629

677

732

799

Dadra & Nagar Haveli

13

13

31

35

43

54

67

Daman & Diu

37

41

44

48

55

63

71

79

Delhi

3,699

3,971

4,237

4,544

4,868

5,166

5,469

Lakshadweep

4

5

5

5

6

7

7

8

Pondicherry

252

270

293

313

359

418

495

552

[edit]

3,635

1,690

386

4,119

4,442

4,710

4,968

5,815

38

86

42

 

Geographical Segmentation: Category-wise number of registrations registrat ions in States of IndiaType of Vehicle [64] Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttarakhand Uttar Pradesh West Bengal Multiaxled/Articulated Vehicles/Trucks & Lorries 143,147 2,323 83,189 30,516 40,413 28,326 182,304 147,667 41,644 29,958 62,566 100,596 73,315 77,178 243,113 5,963 14,028 3,215 41,019 50,496 75,921 173,552 1,619 276,235 6,321 9,799 94,482 241,035 Light Motor Vehicles (goods) 66,891 555 14,317 32,296 16,686 2,340 12,272 91,755 136,181 30,030 256,082 9,243 35,543 34,645 13,601 353 204,314 595 5,662 4,868 840

204,336 1,206 57,681 -

45,669 9,369 4,872 20,139 9,539 3,505 13,966 18,579 55,936 406

58,325 1,255

Buses

15,498 665 10,286 10,961 2,043 67,206 24,626 49,092 2,403 2,827 1,596 4,626 26,437 41,385

Taxis

81,627 299 10,368 14,000 22,005 8,273 40,100 14,990 14,970 10,325 21,814 40,839 114,245 61,424 102,475 363 5,030 3,864 4,448 24,614 11,982 32,868 4,947 116,373 257 13,385 30,193 67,918

Light Motor Vehicles (passenger) 263,325 1,430 29,806 9,507 7,474 276,908 37,841 2,783 14,255 36,257 190,362 294,244 493,142 2,521 2,934 1,145 8,291 21,893 36,838 64,580 12,162 6,799 78,067 38,289

29,710 76,907

9,375 45,146 154,192

Total Commercial 570,488 268,192 66,609 86,949 1,143,904 12,456 24,819 7,325 828,021 20,931

5,272 147,966 97,280 88,621 50,842 749,317 130,176 453,262 685,191 238,404 10,319 66,506 146,512 177,965 340,537 40,271 286,860 388,627

Two Wheelers 4,543,283 10,605 5,162,167 1,526,404 1,595,808 2,876,191 2,587,181 2,692,175 1,581,326

418,780 469,751 152,286 253,611 6,216,794 75,333 21,050 4,682 6,734,205 44,241

Cars

397,738 2,340 51,918 74,187 92,171 14,595 4,850 33,273 42,220 391,443

991,022 937,745 19,501 36,741 391,251

309,488 2,732,674 1,223,573 4,922,047

106,063 27,508 43,572 71,516 572,414 272,895 418,181 378,912 148,030 924,006 8,030 62,553 267,379 203,991 1,870 731,380 8,672 494,505

 

Jeeps

58,114 2,260 14,266 21,726 7,302 41,024 71,656 36,282 262,741 128,056 2,863 53,987 -

Omni Buses 36,549 36,513 30,488 19,957 787

3,259 12,609 570 14,736 -

7,872 6,452

110,943 9,401 6,765 6, 765 97,821 -

87,203 12,331 10,693 23,419 21,649 26,527 32,797

-

-

2,765 2,238

Tractors 62,363 333 10,280 77,848 44,321 470 10,969 15,136 119,340 9,004 328,380 1,827 30,592 459,014 407,523 9 48,341 Trailors 46,885 155 8,740 120,185 1,913 410 57,013 -

275,543 275 ,543 201,940 90,886 147

50,403 38,804 199,603 164,933 190,628 580 39,910 1,015 898 10,021 -

Others 4,500 179 20,724 2,928 2,103 19,102 11,308 16,111 221 772 541 2,122 19,188 35,164 Total non-commercial 385,278 3,523,322 105,411 475,711

1,345 207

5,149,432 6,338,173 2,106,883 1,378,470 6,173,338

3,804 247

62 2,304

16,158 17,078 1,665 11,018 8,806 4,354

44 -

-

487

373,373 3,898 1,263 441 209 31,981 718,082

561 254

12,512 696 24,181

1,626 4,511

5,799 -

55,405 76,895

15,872 578,853 653,423 1,127,124 2,279,718 222,204 351,647 1,086,782 3,565,124 7,824,829 93,869 48,563 31,826 3,351,135 3,493,269 9,911 7,747,220 54,616 2,159,336

[edit] Geographical Segmentation: Category-wise registration in Union Territories of IndiaType of Vehicle Andaman & Nicobar Islands Chandigarh Dadra & Nagar Haveli Daman & Diu Delhi Lakshadweep

Pondicherry

Multiaxled/Articulated Vehicles/Trucks & Lorries 6,588

1,519

1,671

Light Motor Vehicles (goods)

-

7,459

1,829

75,947 270

Buses

459

1,239

154

361

36,059 -

1,831

Taxis

436

1,173

108

43

24,712 -

1,421

784

-

500

5,019

233,212

Light Motor Vehicles (passenger) Total Commercial

3,198

11,542 7,439

1,190

890

5,487

1,896

2,923

20,893 408 678

75,601 -

17,046

4,283

 

Two Wheelers 21,743 416,917

17,881 30,351 2,665,750

3,978

Cars

1,693

157,612

9,270

12,278 1,192,389

78

47,642

Jeeps

1,033

-

429

295

122,283

85

3,838

Omni Buses

-

-

6

38

8,386

5

2,545

Tractors

261

36

44

165

4,851

44

318

Trailors 67

-

46

124

99

-

1,582

Others 461

-

-

30

9,705

503

4,541

Total non-commercial 25,258 574,565

27,676 43,281 4,003,463

235,438

4,693

295,904

[edit] Exports

Mahindra Scorpio Jeep in service with the Italy's CNSAS.

India's automobile exports have grown consistently and reached $4.5 billion in 2009, with United Kingdom being India's largest export market followed by Italy, Germany, Ger many, Netherlands and South Africa.[65] India's automobile exports are expected to cross $12 billion by 2014.[66]

According to New York Times, India's strong engineering base and expertise in the manufacturing of lowcost, fuel-efficient cars has resulted in the t he expansion of manufacturing facilities of several automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki.[67]

In 2008, Hyundai Motors alone exported 240,000 cars c ars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011.[68] Similarly, General Gener al Motors announced its plans to export about 50,000 cars manufactured in India by 2011.[69]

 

In September 2009, Ford For d Motors announced its plans to setup 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.[70] The company said that the plant was a part of its plan to make India the hub for its global production business.[71] Fiat Motors also announced that it would source more than US$1 billion worth auto components from India.[72]

In July 2010, The Economic Times reported that PSA P SA Peugeot Citroen was planning to re-enter re -enter the Indian market and open a production plant in Andhra Pradesh with an annual capacity of 100,000 vehicles, investing EUR 700M in the operation.[73] PSA's intention to utilise this production facility for export purposes however remains unclear as of December 2010.

A Tata Safari on display in Poznan, Poland.

In 2009 India (0.23m) surpassed China (0.16m) as Asia's fourth largest exporter expo rter 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.[5]

In recent years, India has emerged emerg ed 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 shipments to its parent Suzuki, 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 in preparation to launch electric vehicles in Europe in 2010. The firm is also planning to launch an electric elec tric version of its low-cost car Nano in Europe and 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 the 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.[74] While the possibilities are impressive, there are challenges that could thwart future growth of the Indian automobile industry. Since the demand for automobiles in recent years is directly direct ly linked to overall economic expansion and rising personal incomes, industry growth will slow if the economy weakens.[74]

[edit] Top 20 Export Export destinations destinations in 2007-2008 and growth from previous yearRank USD Millions) 2008-2009 (in USD Millions) Percentage Growth

Country2007-2008 (in

 

1

United States of America

593.64 525.24 -11.52

2

Italy

3

Sri Lanka

249.14 216.11 -13.26

4

South Africa

224.93 188.57 -15.79

5

United Kingdom

165.57 246.32 48.77

6

United Arab Emirates

164.44 192.74 17.21

7

Algeria 147.34 265.63 80.28

8

Bangladesh

9

Egypt

10

Germany

133.52 409.63 206.8

11

Colombia

118.88 120.71 1.54

12

Nepal 111.33 98.13

-11.86

13

Mexico 93.80

94.10

0.32

14

Turkey 83.53

73.82

-11.63

15

Spain

56.96

-29.69

16

France 76.77

134.21 74.83

17

Nigeria 66.01

148.74 125.03

18

Greece 65.75

127.63 94.1

19

Netherland

65.19

163.66 151.05

20

Ghana 59.91

38.30

-36.07

332.35 359.68 8.22

137.26 164.86 20.11

134.43 143.54 5.99

81.01

[edit] Passenger vehicles in India See also: List of cars available in India and List of auto plants 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 110% import duty, car-makers such as Alfa Romeo,[75] Ferrari,[76] McLaren,[77] Cadillac,[78] Chrysler,[79] SSC,[80] Zenvo,[81] MINI,[82] Smart,[83] Daihatsu,[84] Lexus,[85] Infiniti,[86] Acura,[87] Saab,[88] Spyker,[89] Lotus,[90] Renault,[91] Peugeot-Citroen,[92] Mazda,[93] Jeep,[94] SsangYong,[95] Kia[96], GAZ[97] and Proton[98] are in varying stages st ages of official introduction to the Indian automobile market. [edit] Indian automotive companies Chinkara Motors[99]: Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster Hindustan Motors[100]: Ambassador ICML[101]: Rhino Rx Mahindra[102]: Major, Xylo, Scorpio, Bolero, Thar, Genio Premier Automobiles Limited[103]: Sigma, RiO San Motors[104]: Storm Tata Motors[105]: Nano, Indica, Indica Vista, Indigo, Indigo Manza, Indigo CS, Sumo, Venture, Safari, Xenon, Aria

[edit] Foreign automotive companies in India [edit] Vehicles manufactured or assembled in India

Manufactured only in Chennai, India, the i10 is one of Hyundai's best selling globally exported cars. car s.

 

Maruti Swift. Maruti Suzuki, a subsidiary of Japan's Suzuki Motor, is the largest automobile manufacturer in India.[106] BMW India[107]: 1 Series, 3 Series, 5 Series, X1. Fiat India[108] (in collaboration with Tata Motors): Grande Punto, Linea. Ford India[109]: Figo, Ikon, Fiesta, Endeavour. General Motors India[110] Chevrolet[111]: Spark, Beat, Aveo U-VA, Aveo, Optra, Cruze, Tavera. Honda Siel[112]: Jazz, City, Civic, Accord. Hyundai Motor India[113]: Santro, i10, i20, Accent, Verna Transform, Sonata So nata Transform. Mahindra Renault[114]: Logan. Maruti Suzuki[115]: 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Versa, Eeco, Gypsy. Mercedes-Benz India: C-Class, E-Class. Mitsubishi[116] (in collaboration with Hindustan Motors):[117] Motors):[117] Lancer, Lancer Cedia, Pajero Nissan Motor India[118]: Micra. Toyota Kirloskar[119]: Etios, Corolla, Innova. Volkswagen India[120][121]: Polo, Vento, Jetta, Passat. Audi India: A4, A6.

Škoda Auto India[122][123]: Fabia, Laura, Superb, S uperb, Yeti. 

Opel was present in India until 2006. As of 2011, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners. [edit] Vehicles brought into India as CBUs

Aston Martin[124]: Vantage, Rapide, Virage, DB9, DBS, One-77.

 

Audi[125]: A8, S4, S6, S8, TT, R8, Q5, Q7. Bentley[126][127]: Arnage, Azure, Brooklands, Broo klands, Continental GT, Continental Flying Spur, Mulsanne. BMW[128]: 5 Series GT, 6 Series, 7 Series, X3, X5, X6, X6 M, M3, M5, M6 and Z4. Bugatti[129][130]: Veyron. Chevrolet: Captiva. Fiat[108]: 500, Bravo. General Motors[110]: Hummer H2, Hummer H3. Honda[131][132]: Civic Hybrid, CR-V. Hyundai[113]: Santa Fe. Jaguar[133]: XF, XJ, XK. Koenigsegg[134][135]: CCX, CCXR, Agera. Lamborghini[136]: Gallardo, Murciélago. Land Rover[137]: Freelander 2, Discovery 4, Range Rover, Range Rover Sport. Maserati[138]: Quattroporte, GranTurismo, GranCabrio. Maybach[139]: 57 and 62. Mercedes-Benz[140]: CL-Class, GL-Class, M-Class, R-Class, CLS-Class, S-Class, SL-Class, S L-Class, SLK-Class, Viano, G-Class, SLS. Mitsubishi: Montero, Outlander, Evo X. Nissan[141]: Teana, X-Trail, 370Z, GT-R. Porsche[142][143]: 997, Boxster, Panamera, Cayman, Cayenne, Carrera GT. Rolls Royce[144]: Ghost, Phantom, Phantom Coupé, Phantom Drophead Coupé.

Škoda[122]: Yeti, Superb.  Suzuki: Grand Vitara, Kizashi. Toyota[119]: Prius, Camry, Fortuner*, Land Cruiser, Land Cruiser Prado.

 

Volkswagen[145]: Beetle, Tiguan, Touareg, Phaeton. Volvo[146]: S60, S80, XC60, XC90.

*Toyota Fortuner is imported as a CKD kit from Toyota Motor Thailand. [edit] Commercial vehicle manufacturers in India [edit] Indian brands Force[147] Hindustan Motors[148] Premier[103] Tata[149] AMW[150] Eicher Motors[151] [edit] Joint Venture Brands VE Commercial Vehicles Limited[152] - VE Commercial Vehicles limited - A JV between Volvo Groups & Eicher Motors Limited. Ashok Leyland[153] - originally a JV between Ashok Motors and Leyland Motors, now 51% owned by Hinduja Group Mahindra Navistar[154] - a 51:49 JV between Mahindra Group and Navistar International Swaraj Mazda[155] - originally a JV between Punjab Tractors and Mazda, now 53.5% owned by Sumitomo Group Kamaz Vectra[156] - A JV between Russia's KaMAZ and the Vectra Group [edit]

 

Foreign brands Volvo[157] Tatra[158] MAN[159] - as a JV with Force Motors, makes MAN Trucks in India Mercedes-Benz[160] sells luxury buses in India Daimler AG[161] - manufactures BharatBenz, a brand of trucks based on the Fuso and tthe he Mercedes Benz truck platforms, which Daimler AG owns Scania[162] Iveco[163] Hino[164] Isuzu[165] Piaggio[166] Caterpillar Inc.[167] [edit] Electric car manufacturers in India Ajanta Group[168] Mahindra[169] Hero Electric[170] REVA Tara International[171] Tata[172] [edit] Market Characteristics

 

Market Size

The Indian Automotive Industry after de-licensing in July 1991 has grown at a spectacular rate on an average of 17% for last few years. The industry has attained a turnover o off USD 35.8 billion, (INR 165,000 crores) and an investment of USD 10.9 billion[173]. The industry has provided direct and indirect employment to 13.1 million people. Automobile industry is currently contributing about 5% of the total

GDP of India. India’s current GDP is about USD 650 billion and is expected to grow to USD 1,390 billion

by 2016[174]. The projected size in 2016 of the Indian automotive industry varies between USD 122 12 2 billion and UDS 159 billion including USD 35 billion in exports. This translates into a contribution of 10% to 11% towards India’s GDP by 2016, which is more than double the current contribution[175]. 

Demand Determinants

Determinants of demand for this industry include vehicle prices (which are determined largely by wage, material and equipment costs) and exchange rates, preferences, prefer ences, the running cost of a vehicle (mainly determined by the price of petrol), pet rol), income, interest rates, scrapping rates, and product innovation.

Exchange Rate:Movement in the value of Rupee determines the attractiveness of Indian products overseas and the price of import for domestic consumption.

Affordability: Movement in income and interest rates determine the t he affordability of new motor vehicles. Allowing unrestricted Foreign Direct Investment (FDI) led to t o increase in competition in the domestic market hence, making better vehicles available at affordable prices.

Product Innovation is an important determinant as it allows better models to be available each year and also encourages manufacturing of environmental friendly cars.

Demographics: It is evident that high population of India has been one of the major reasons for large size of automobile industry in India. Factors that may be augment demand include rising population and an increasing proportion of young persons in the population that will be more inclined to use and replace cars. Also, increase in people peo ple with lesser dependency on traditional single family income structure is likely to add value to vehicle demand.

 

  Infrastructure: Longer-term determinants of demand include development in Indian’s infrastructure.

India’s banking giant State Bank of India and Australia’s Macquarie Group has launched an infrastructure fund to rise up to USD 3 billion for infrastructure improvements. India needs about $500 billion to repair its infrastructure such as ports, roads, and power units. These investments are been made with an aim to generate long-term cash c ash flow from automobile, power, and telecom industries. (Source: Silicon India)

Price of Petrol:Movement in oil prices also have an impact on demand for large cars in India. During periods of high fuel cost as experienced exper ienced in 2007 and first –half of 2008, demand for large cars declined in favour of smaller, more fuel efficient vehicles. The changing patterns in customer preferences for smaller more fuel efficient vehicles led to the launch of Tata Motor’s Nano – one of world’s smallest and cheapest cars. [edit] International Markets

International Markets Exports

The level of trade export is medium

The level of trade export is increasing

International Markets Imports

The level of trade import is low

The level of trade import is increasing incre asing [edit] International Markets Analysis

 

  The Indian automotive industry embarked a new journey in 1991 with de-licensing of the sector and subsequent opening up for 100% foreign direct investment (FDI). (F DI). Since then almost all global majors have set up their facilities in Indian taking the level of production from 2 million in 1991 to over 10 million in recent years[176]. The exports in automotive sector have grown on an average compound annual growth rate of 30% per year for the last seven years. The export earnings from this sector are over USD 6 billion[177].

Even with this r apid growth, the Indian automotive industry’s contribution in global terms is very v ery low. This is evident from the fact that t hat even thought passenger and commercial vehicles have crossed the production figures of 2.3 million in the year 2008[178], yet India’s share is about 3.28% of world

production of 70.53 million passenger and commercial vehicles. India’s automotive exports constitute only about 0.3% of global automotive trade[179]. [edit] Basis of Competition

Competition in this industry is high. Competition in this industry is increasing. Automotive industry is a volume-driven industry, and certain critical mass is a pre-requisite for attracting the much-needed investment in research and development and new product design and development. Research and development investment is needed for innovations which is the lifeline for achieving and retaining competitiveness in the industry. This competitiveness in turn depends on the capacity and the speed of  the industry to innovate and upgrade. The most important indices of competitiveness are productivity of  both labour and capital.

The concept of attaining competitiveness on the basis of low cost and abundant labour, favourable exchange rates, low interest rates and concessional duty structure is becoming inadequate and therefore, not sustainable. A greater emphasis is required on the development of the factors like innovation which can ensure competitiveness on a long-term basis.

India, with a rapidly growing middle class (450 million in 2007 as per NCAER Report), market oriented stable economy, availability of trained manpower at competitive cost, fairly well developed credit c redit and financing facilities and local availability of almost all the raw materials at a competitive c ompetitive cost, has emerged as one of the t he favourite investment destinations for the automotive manufacturers. These advantages need to be leveraged in a manner to attain the twin objective objec tive of ensuring availability of best quality product at lower cost to the consumers on the one hand and developing and assimilating the latest technology in the industry on the other othe r hand.

 

  As per Automotive Mission Plan 2006 –2016 (2008), the Indian Government recognises its role as a catalyst and facilitator to encourage the companies to move to higher level of competitive p performance. erformance. The Indian Government wants to create a policy environment to help companies gain competitive advantage. The government aims that with its policies its encourage e ncourage growth, promote domestic competition and stimulate innovation. [edit] Life Cycle

The life cycle stage is growth Life Cycle Reasons The market for manufacturing motor vehicles is consistently increasing. The products manufactured by this industry are profitable. Companies have been consistently opening new plats and employing over the past p ast five years. Japanese and European manufacturers of motor vehicles have entered the market. Industry value added has been rising, along with the rise in GDP. Life Cycle Analysis

General improvement in availability of trained manpower and good infrastructure is required r equired for sustainable growth of the industry. Keeping this in view, the Indian Government has launched a unique initiative of National Automotive Testing and R&D Infrastructure Project (NATRIP) to provide specialised facilities for Testing, Certification and Homologation to the industry. A similar initiative is required for creating specialised institutions in automotive sector for education, training and development.

The auto industry has grown in the clusters c lusters of interconnected companies which are linked by commonalities and complementarities. The major clusters are in and around Manesar in North, Pune in West, Chennai in South, Jamshedpur-Kolkata in East and Indore in Central Ce ntral India. The Government is planning to create a National Level Specialises S pecialises Education and Training Institute for Automotive Sector and to enhance the transportation, communication and export infrastructure facilities.

The contribution of automotive sector in the GDP of India is expected to double by 2016[180] through t hrough major spotlight on export of small cars, Multi-Utility Vehicles, Two and Three wheelers. [edit] Industry Conditions

 

Barriers to Entry Barriers to entry in this industry is high These barriers are study The cost of developing high volume production facilities. The ability to gain access to technology tec hnology of major global operators. The relatively high competition between established domestic companies and foreign companies. The automobile manufacturing sector is characterised by a high cyclical growth patterns, high fixed cost and break-even point levels, and an excessive number of participants. Barriers to entry into automobile manufacturing activity are formidable. Some of the barriers that t hat need to be overcome by a new entrant include: the cost of developing high volume production facilities, in order to benefit from economies of  scale; and the ability to gain access to technology of major operators, as tthe he present incumbents include some of the largest multinationals, that have considerable claims to new technology. The relative large size of domestic market, together with high competition, has already seen significant rationalisation of  this industry. [edit] Taxation

India has a well developed tax structure. The power to levy taxes and duties is distributed among the three tiers of Government, in accordance with the provisions of the Indian Constitution. The main taxes/duties that the Union Government is empowered to levy are:- Income Tax (except tax on agricultural income, which the State Governments can levy), Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are: are:-- Sales Tax (tax on intraState sale of goods), Stamp Duty (duty on o n transfer of property), State Excise (duty on manufacture of  alcohol), Land Revenue (levy on land used for agricultural/non-agricultural purposes), Duty on Entertainment and Tax on Professions & Callings. The Local Bodies are empowered to levy tax on properties (buildings, etc.), Octroi (tax on entry of goods for use/consumption within areas of the Local Bodies), Tax on Markets and Tax/User Charges for utilities.

Excise Duty

Central Excise duty is an indirect tax levied on those automobiles which are manufactured in India and are meant for home consumption. co nsumption. The taxable event is 'manufacture' and the liability of central excise duty arises as soon as the automobiles are manufactured. It is a tax on manufacturing, which is paid by a manufacturer, who passes its incidence on to the t he customers.

Types of Excise Duties

 

Basic Excise Duty: This is the duty leviable under First Schedule to the Central Excise Tariff Act, 1985 at the rates mentioned in the said Schedule.

Special Excise Duty: This is the duty leviable under Second Schedule to the Central Excise Tariff Act, 1985 at the rates mentioned in the said Schedule. At present this is leviable on very few items.

National Calamity Contingent Duty (NCCD): Normally known as NCCD. This duty is levied as per section 136 of the Finance Act, 2001, as a surcharge on specified goods.

Excise Duties and Cesses Leviable under Miscellaneous Act:On certain specified goods, in addition to the aforesaid duties, prescribed rate of excise exc ise duty and cess is also leviable.

Education Cesson excisable goods is levied in addition to any other duties of excise chargeable on such goods, under the Central Excise Act, 1944 or any other law for the time being in force. [edit] MODVAT and CENVAT

Taxation of inputs, like raw materials, components and other intermediaries has a number of limitations. In production process, raw material passes through various processes stages till a final product emerges. Thus, output of the first manufacturer becomes input for second manufacturer and so on. When the inputs are used in the manufacture of product `A', the cost of the final product increases not only on account of the cost of the t he inputs, but also on account of the duty paid on such inputs. As the duty on the final product is on ad valorem basis and the final cost of o f product `A' includes the cost of inputs, inclusive of the duty paid, duty charged on product `A' meant doubly taxing raw materials. In other words, the tax burden goes on increasing as raw material mater ial and final product passes from one stage to other othe r because, each subsequent purchaser has to pay tax again and again on the material which has already suffered tax. This is called cascading effect or double taxation.

This very often distorted the production structure and did not allow the correct assessment of the tax incidence. Therefore, the Government tried to remove these defects of the Central Excise System by progressively relieving inputs from excise and countervailing duties. An ideal system to realize re alize this objective would have been to adopt value added taxation tax ation (VAT). However, on account of some practical difficulties it was not possible to fully adopt the value added taxation.

 

  Hence, Government evolved a new scheme, scheme , `MODVAT' (Modified Value Added Tax). MODVAT Scheme which essentially follows VAT Scheme of taxation. i.e. if a manufacturer A purchases certain components(raw materials) from another manufacturer B for use in its product. B would have paid excise duty on components manufactured by it and would have recovered that excise duty in its sales price from A. Now, A has to pay excise duty on product manufactured by it as well as bear the excise duty paid by the supplier of raw material B. Under the MODVAT scheme, an Original Equipment Manufacturer can take credit of excise e xcise duty paid by First Tier and Second Se cond Tier suppliers. It amounts to excise duty only on additions in value by each manufacturer at each stage.

MODVAT Scheme ensures the revenue of o f the same order and at same time the price of the t he final product could be lower. Apart from reducing the t he costs through elimination of cascade effect, and bringing in in greater rationalization in tax structure and also bringing in certainty in the amount of tax leviable on the final product, this scheme will help the consumer to understand precisely the impact of taxation on the cost of any product.

Subsequently, MODVAT scheme was restructured into CENVAT (Central Value Added Tax) scheme. A new set of rules 57AA to 57AK , under The CENVAT Credit Rules, 2004, were framed and whatever restrictions were there in MODVAT Scheme were put to an end and comparatively, a free hand was given to the assesses.

Under the CENVAT Scheme, a manufacturer of final product or provider of taxable service shall be allowed to take credit of duty of excise as well as of service tax paid on any input received in the factory or any input service received by manufacturer of final product. Inputs include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer. [edit] Customs Duty

Customs Duty (Import duty and Export tax) is a type of indirect tax levied on goods imported into India as well as on goods exported from India. Taxable event is import into or export from India. In India, the basic law for levy and collection of customs c ustoms duty is Customs Act 1962. It provides for levy and collection of duty on imports and exports, import/export procedures, prohibitions on importation and exportation of goods, penalties, offences, etc.

 

Export duties are levied occasionally to mop up excess ex cess profitability in international prices of goods in respect of which domestic prices may be low at the given time. But tthe he sweep of import duties is quite wide. [edit] Service Tax

Service tax is a tax levied on services rendered by a person and the responsibility of payment of the tax is cast on the service provider. It is an indirect tax as it can be recovered from the service receiver by the service provider in course of his business transactions. Service Tax was introduced in India in 1994 by Chapter V of the Finance Act, 1994. It was imposed on an initial set of three services in 1994 and the scope of the service tax has since been expanded continuously by subsequent Finance Acts. The Finance Act extends the levy of service tax to the whole of India, except the State of Jammu & Kashmir[181].

(Source: National Information Centre)

Industry Assistance

The automobile industry has a defined its target in the Automotive Mission Plan as “To emerge as the destination of choice in the world for design and manufacture of o f automobiles with output reaching a level of USD 145 billion accounting more than 10% of GDP and providing additional employment to 25

million people by 2016”[182]. In order to achieve this plan interventions are required from both Industry and Indian Government. The Indian Government would play a key enabling role in facilitating

infrastructure creation, promote the country’s capabilities, create a favourable and predictable business environment, attract investment and promote research & development. The role of Industry will primarily be in designing and manufacturing products of world-class quality standards, establishing cost competitiveness, improving productivity of both labour and capital, achieving scale and R&D enhancing capability and showcasing India’s products in potential markets. 

In order to achieve these goals the following key recommendations have been made in the Automotive Mission Plan to the Indian Government and Industry:

Manufacturing and export of small cars, multi-utility vehicles, two and three wheelers, tractors, components to be promoted Care to be taken of negative like and rules of the country with current

 

negotiation of Free Trade Agreement Agreeme nt and Regional Trade agreement with countries like Thailand, Singapore, Malaysia, China, Korea, Egypt, Gulf etc. Attractive Att ractive Tariff Policy which may follow attractive investment. Specific measures will be taken for expansion ex pansion of domestic market. Incremental investment of USD 35 to 40 billion to Automotive Industry during the next 10 years. National Road Safety Board Boar d to act as the coordinating body for promoting safety. Inspection and Certification Ce rtification system to be strengthened by encouraging public-private partnership. National level Automotive Institute for training on automobile at International Training Institutes (ITIs) and Automotive Training Institute (ATIs) to be set up. An Auto Design Centre to be established at National Institute of Design, Ahmadabad.

National Automotive Testing and R&D Implementation Project (NATRIP) to act as Centre of Excellence Exce llence for Technical Design Data. Integration of Information Technology in manufacturing to be promoted. R&D for product, process and technology to be incentivised. Road Map for Auto Fuel Policy beyond 2010 would be drawn.

The profitability of motor vehicle manufacturers has been rising over the past five years, mainly due to rising demand and growth of Indian middle class. Major players of the industry, like Maruti Suzuki S uzuki India and Tata Motors have been recording profits of 6% 6 % to 11% from the past five years. Whereas, earlier profit margins in the industry were only 1.5% 1 .5% to 3%.

Cost of material has reduced from over 85% in the year 2001-2002 to under 80% in the year20082009[183]. Wages and salary as a percentage of revenue has been bee n declining and with the increasing labour productivity this is expected to decline further furthe r in the coming years. [edit] Capital and Labour Intensity

The level of Capital Intensity is high The level of Labour L abour intensity in medium

The motor vehicle manufacturing industry requires significant level of capital investment. Value is added through the automated manufacturing and assembly of costly components. Labour input is required in the manufacturing, assembly, and finishing processes. In order to achieve and retain competitiveness, c ompetitiveness, vehicle manufacturing industry depends on its capacity and speed to innovate and upgrade. The most m ost imperative indices for competitiveness in the industry are productivity in both labour and capital. c apital.

 

  Technology and Systems

The level of technology change is high The rate of change in technology is medium

Investment in technology by producers has been on the rise. The automobile industry in India has seen an enormous development in the engines which are being used. Carburettor engines have become obsolete and Multi Point Fuel Injection (MPFI) engines are the order o rder of the days in patrol cars. The Diesel engines have also under gone a sea change from the time Rudolf Diesel invented it way back in the 1892. Today Common Rail Direct Injection (CRDI) is the order of the day.¹

Multi Point Fuel injection (MPFI) ¹

The fuel injects were used to meet stricter emission norms as it keeps pollutants to bare minimum and drives the maximum performance out of a vehicle by squeezing out the maximum mileage even from the last drop of fuel that goes into the engine.

MPFI system injects fuel into individual cylinders after receiving command from the on board engine management system computer or Engine Control Unit (ECU).

This technology results in superior fuel combustion, better fuel management, engine performance and reduced pollution. To get the maximum out from these t hese types of engine one should use Premium petrol like XTRA Premium, Speed, and Power.

Common Rail Direct Injection (CRDI)¹ –  – 

CRDI engine cars offer 25% more power than the normal direct injection engine with a superior pickup and torque, offering sometimes up to 70% more power than the conventional diesel engines.

 

They are smooth, less strident, and immensely fuel efficient giving around 24 kilometres to a litre of  o f  Diesel. The fact that Diesel is cheaper che aper than petrol in India further attributes greatness to the engine. In a CRDI engine, a tube or a common rail connects all the injectors and contains fuel at a constant pressure.

The high pressure in the common rail ensures that when injected, the fuel breaks up into small particles and mixes evenly with the air, thereby leaving little un-burnt fuel thus reducing pollution. The common rail principle has been used to reduce the noise which used to be a downside with earlier Diesel engines; the technology has been pioneered by the Fiat group, only to be adopted by other automobile companies around the world.

However, these engines are 25% more costly than the conventional engines. They also require higher degree of maintenance and spares are also expensive.

The Indian automotive industry is in the mindset of a major structural transformation in today’s globalised scenario. “System Supplies” of integrated components and sub-systems has become the order of the day, with w ith individual small components being supplied supplied to the system integrators instead of  vehicle manufacturers. In this process most of the Small S mall Scale Industrial units, manufacturing smaller individual components, have become tier 2 and tier 3 suppliers, while the large companies including most Multi National Companies are being transformed into tier 1 companies who purchase from tier 2 and tier 3, and sell to the auto manufacturers. (Source: Department of Heavy Industry)

Investment in new technology such as supply-chain management and collaborative forecasting (where members of the supply chain share forecasting data to reduce bottlenecks) will help make industry more competitive. [edit] Industry Volatility

The level of volatility is medium.

Over the past few years, year s, the Motor Vehicle Manufacturing industry has become more volatile. This has been the result of fluctuations in metal prices price s and fuel prices, as well as changes in legislation and

assistance packages. India’s increasing per capita disposable income and growth in exports is playing a major role in the ri se and the competitiveness of the industry. As per the BRIC report India’s per capita

 

disposable income from current year will rise by 106% 1 06% in 2015¹. This increase in the spending power has been a forefront of the economic development. According to the Economic Times of India, economic liberalization – allowing unrestricted Foreign Direct Investment (FDI) and removing foreign fore ign currency neutralisation and export obligations  – has been also been one of the key to India’s automotive volatility². [edit] Key Competitors

Major Players [edit] Tata Motors

Market Share: Commercial Vehicles 63.94%, Passenger Vehicles 16.45%[184]

Tata Motors Limited is India’s largest automobile company, with consolidated revenues of USD 14 billion in 2008-09. It is the leader le ader in commercial vehicles and among the top thr three ee 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 r olled out in 1954, Tata Motors as has produced and sold over 4 million vehicles in India.

Tata Motors is the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the United Kingdom, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two tw o British brands which was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean Kore an market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets.

 

In 2006, Tata Motors formed a joint venture v enture with the Brazil-based Marcopolo, a global leader in bodybuilding for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors is also expanding its international footprint by franchises and joint ventures assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa.

With over 3,000 engineers and scientists, the company's Engineering Research Centre, established est ablished in 1966, has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the t he UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of  launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck.

In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, a development which signifies a first for the global automobile industry. Nano brings the comfort and safety of a car within the reach of  thousands of families. The standard version has been priced at USD 2,200 or Rs.100,000 (excluding VAT and transportation cost). The Tata Nano has been subsequently launched as planned, in India in March 2009[185]. [edit] Maruti Suzuki India

Market Share: Passenger Vehicles 46.07%

Maruti Suzuki India Limited, a 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.

Since inception in 1983, Maruti Suzuki India has produced and sold over 10 million vehicles in India and exported over 500,000 units to Europe and other countries. The company’s revenue for the fiscal 20102011 stood over Rs 375,224 million and Profits After Tax at over Rs. 22,886 million[186].

 

[edit] Hyundai Motor India

Market Share: Passenger Vehicles 14.15%

Hyundai Motor India Limited is a wholly owned subsidiary of world’s fifth largest automobile company, Hyundai Motor Company, South Korea, and is the largest passenger car exporter. Hyundai Motor presently markets 49 variants of passenger cars across segments. These includes the Santro in the B segment, the i10, the premium hatchback i20 in the B+ segment, the Accent and the Verna in the C segment, the Sonata Transform in the E segment.

Hyundai Motor, continuing its tradition of being the fastest growing passenger car c ar manufacturer, registered total sales of 559,880 vehicles in the year 2009, an increase of 14.4% over 2008. In the domestic market it clocked a growth of 18.1% as compared to 2008 with 289,863 units, while overseas sales grew by 10.7%, with w ith export of 270,017 units. Hyundai Motor currently exports cars c ars to more than 110 countries across European Union, Africa, Middle East, Latin America Amer ica and Asia. It has been the number one exporter of passenger car of the country for the sixth year in a row.

In a little over a decade de cade since Hyundai has been present in India, it has become the leading exporter of  passenger cars with a market share of 66% of the total t otal exports of passenger cars from India, making it a significant contributor to the Indian automobile industry. In 2009, in spite of a global g lobal slowdown, Hyundai

Motor India’s exports grew by 10.7%[187]. In 2010 Hyundai plans to add 10 new markets with Australia being the latest entrant to the t he list. The first shipment to Australia is of 500 units of the i20 and the total i20 exports to Australia are expected to be in the region of 15,000 per annum. [edit] Mahindra & Mahindra

Market Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three Wheelers 1.31%

Mahindra & Mahindra is mainly engaged in the Multi Utility Vehicle and Three Wheeler segments directly. The company competes in the LightLimited Commercial Ve hicle segment itsthrough joint venture subsidiary Mahindra Navistar Automotives and inVehicle the passenger carthrough segment another

 

 joint venture subsidiary Mahindra Renault. In In the year 2009, on the domestic sales front, the Company along with its subsidiaries sold a total of 220,213 vehicles (including 44,533 three wheelers, 8,603 Light Commercial Vehicles through Mahindra Navistar Automotives and 13,423 cars through Mahindra Renault), recording a growth of 0.6% over the previous year[188].

The company’s domestic Multi Utility Vehicle sales volumes increased by 3.3%, as against a decline of  7.4% for industry Multi Utility Vehicle sales. A record number of 153,653 Multi Utility Vehicles were sold in the domestic market in 2009 compared to 148,761 MUVs in the previous pr evious year.Hence, Mahindra & Mahindra further strengthened its domination of the domestic Multi Utility Vehicle Ve hicle sub-segment during the year, increasing its market share to 57.2% 5 7.2% over the previous year’s market share of 51.3%[189]. 

Mahindra & Mahindra is expanding its footprint in the overseas market. In 2009 the Xylo was launched in South Africa. The company formed a new joint venture Mahindra Automotive Australia Pty. Limited, to focus on the Australian Market. [edit] Ashok Leyland

Market Share: Commercial Vehicles 16.47%[190]

Against the backdrop of the sharp slump in demand for commercial vehicles, during 2008-09, Ashok Leyland registered sales of 47,118 medium m edium and heavy commercial vehicles (M&HCV), 37.5% less than in the previous year. This includes 16,049 M&HCV buses and 31,069 M&HCV trucks respectively, 8.7% and 46.3% less than in the previous year.

The company lost 1.8% market share in the Indian medium and heavy commercial vehicle market during the financial year 2008-09[191], mainly due to loss of sales in the truck segment. This was be because cause the Eastern Region, where the Company’s presence had been historically weak, was relatively stable, whilst the market declined sharply in other regions. re gions.

While total industry volume of the medium and heavy duty buses declined by about 8.7%, the Company’s market share grew marginally and Ashok Leyland retained its number one position in this segment.

 

  The Company sold 6,812 vehicles in the overseas over seas markets during 2008-09. This represents a de decrease crease of  approximately 6.5% over the previous year. Total industry volume related to overseas overse as markets to which the Company exports (such as Sri Lanka, the Middle East) witnessed a reduction of about 25% over the previous year[192].

To combat the impact of decline in CV sales, the Company focused on non-cyclical businesses in the portfolio.

The Company produced in all 54,049 vehicles during the year. To contain costs and conserve cash, tthe he Company worked only about 50% of the working days in all its manufacturing units during the second half of the year. [edit] Hero Honda Motors

Market Share: Two Wheelers 41.35%[193]

Hero Honda has been the largest two wheeler company in the world for eight consecutive years. The company crossed the 15 million unit milestone over a 25 year span. Hero Honda sold more two wheelers than the second, third and fourth placed two-wheeler two -wheeler companies put together.

As one of the world's wor ld's technology leaders in the automotive sector, Honda has been able to consistently provide technical know-how, design specifications and R&D innovations. This has led to the development of world class, value - for- money motorcycles motorcycle s and scooters for the Indian market. On its part, the Hero Group has took the responsibility of creating world-class manufacturing facilities with robust processes, building the supply chain, setting up an extensive distribution networks and providing pr oviding insights into the mind of the Indian customer. Since both partners continue to focus on their respective strengths, they have been able to complement each other. In the process, Hero Honda is recognized today as one of the most successful joint ventures in the world. It is ttherefore herefore no surprise that there ar are e more Hero Honda bikes on this country's roads than the total population of some European countries.

 

Hero Honda's bikes are sold and serviced through a network of over 3500 customer touch points, comprising a mix of dealers, service centres c entres and stockists located across rural and urban India. Hero Honda has built two world-class manufacturing facilities at Dharuhera and Gurgaon in Haryana, and

Hero Honda was the torchbearer for the two-wheeler industry during 2008-2009. It sold more twowheelers during the year than the combined volumes of the second, third and fourth placed competitor. Overall, the company sold 3.72 million two-wheelers[194], growth of 12% 1 2% over previous year. Motorcycle sales in the domestic market, which account for more than 95 per cent of Hero Honda's sales, were up by 11%. The company posted sales of USD 2.4 billion and profits after ttax ax of USD 256.40 million during the year 2008-2009. During the year under review, your Company exported 81,194 twowheelers, a decline of 10%. Its third and most sophisticated manufacturing plant at Haridwar has just completed a full year of operations.

During the year, the company c ompany also turned in a rollicking performance with its scooter portfolio, portfol io, with a 49% growth in domestic sales to 156,210 1 56,210 units[195]. This performance allowed Hero Honda to increase its share in the domestic scooter market by more than three percentage points. Hero Honda's performance in the two-wheeler industry was the only standout performance during the year amongst the large players. Without Hero Honda's numbers, the two wheeler industry growth would have been marginal. [edit] Bajaj Auto

Market Share: Two Wheelers 26.70%, Three Wheelers 58.60%[196]

Bajaj Auto is ranked as the world's fourth largest two and three wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America, Africa, Afr ica, Middle East, South and South East Asia. Despite falling demand in the motorcycle segment, the company has succeeded in maintaining an operating EBITDA (earnings before interest, taxes, depreciation and amortisation) margin of 13.6% of  net sales and other operating income. From 1.66 million motorcycles in 2007-2008, the company’s domestic sales fell by 23% to 1.28 1 .28 million units in 2008-2009[197].

Bajaj Auto is the country’s largest exporter of two- and three-wheelers.During 2008-2009, Bajaj Auto’s international sales achieved an all-time high of 772,519 units of two and three wheelers, representing re presenting a growth of 25% over the previous year.The growth was driven by the export of o f two-wheelers, which increased by 31% over 2007-2008 to achieve sales of 633,463 units in 2008-2009. The company

 

expanded its footprint in Africa and Middle East, where the region’s share rose from 30% of the export business in 2007-2008 to 43% in 2008-2009. 2008 -2009. The total value of exports was USD 528 million, representing a growth of 29%[198].

The company’s domestic sales of three wheelers in 2008-209 were 12% lower compared to the previous year, and stood at 135,473 units. Exports of three wheelers grew at 2% to 139,056 units [edit] Key Factors

Key Sensitivity

Consumer Sentiment Index

Description: Customer Sentiment Index, 12 month rolling average of o f the Index; historical and forecast data and analysis.

End customers are very important to ensure the survival of the Motor Vehicle Manufacturing industry. Economic downturns and other events can affect the expenditure decision of households. When customers are not happy or optimistic about the future of the economy, they will tend to postpone expenditure until times are better. In 2008-09, 20 08-09, customer sentiment is expecte expected d to fall, which will have a brunt on the augmentation in demand of cars.

Domestic Goods Price – Metal – Iron and Steel

Description: The price of input such as steel.

Steel is a major input used when manufacturing a motor vehicle. Rises in the price pr ice of steel puts cost pressures on manufacturers, which often leads to a fall in profitability. Over the past five years, the price

 

of steel has been rising rapidly. These rises in price eventually pass from the manufacturers to the end customers’. 

Import and Export Taxes (Duties)  – Motor Vehicle Tariffs

Description: Tariff rates applicable to the industry

High taffies may restrict flow of trade t rade but may attract investment if domestic market is big enough and

growing. Over the last few years India’s tariff policies and conditions of import of vehicles have served the purpose of attracting investments. Industry is keen that the existing tariff structure roadmap and conditions of import of vehicles are retained without any modifications because of certain ce rtain systematic deficiencies which make manufacturing less cost competitive in India as compared to some of the neighbouring countries like China, Thailand, Indonesia, etc.

Wold Price - Energy – Crude Oil

Description: The world price of crude oil, $US/barrel, $U S/barrel, and price analysis.

The price of oil and petrol affect the driving habits of consumers and the type of car they buy. Over the past five years, the price of petrol has been influenced the buying decision of motorists, who are switching fuel efficient options. include cars that t hatsector run on liquefied petroleum gaswith (LPG), diesel andmore smallto cars that achieve better These mileage. The trucking has also been struggling the rise in the price of fuel, which has put enormous pressures on their costs. [edit] Key Success Factors

The Key Success factors in the Motor Vehicle Manufacturing industry are:

 

Efficiency factor - Improve labour productivity, labour flexibility, and capital efficiency Resource Availability - Quality manpower availability, infrastructure improvements, and raw material availability Effective cost controls - Close relationship r elationship with supplies and goods distribution channels. Establish Establishment ment of export markets - Growth of export markets Having an extensive distribution/collection network Goods distribution channels Successful industrial relations policy - Ethical and tactical industrial relations Access to the latest available and most efficient technology and techniques - The degree of investment in technological improvements and product development Optimum capacity utilisation - The level of  plant utilisation Management of high quality assets portfolio - Understanding implications from Government policies [edit] Further reading Kamala, T.N. & Doreswamy, A.G. (2007). Strategies for Enhancing Competitiveness of Indian Auto Component Industries. Indian Institute of Management Kozhikode. Tiku, Pran (2008). Six Sizzling Markets: How to Profit from Investing in Brazil, Russia, India, China, South Korea, and Mexico. John Wiley & Sons. ISBN 9780470178881. [edit] Footnotes ^ a b c "Automobile Industry India". Imagin Mor Pty Ltd. ^ "Honda to Build Second Motorcycle Production Plant in India". World.honda.com. 2010-03-09. Retrieved 2010-11-28. ^ http://oica.net/wp-content/uploads/all-vehicles-2010-pro http://oica.net/wp-content/uploads/all-vehicles-2010-provisional.pdf  visional.pdf  ^ [1] ^ a b Nair, Vipin V. (2009-09- 07). "Suzuki, Hyundai’s Indian Car Exports Beat China’s". Bloomberg.com. Retrieved 2010-09-01. ^ Gulati, Nikhil (2010-09-09). "India Car Sales Touch Record High". Online.wsj.com. Retrieved 2010-1128. ^ "India second fastest growing auto market after China". Thehindubusinessline.com. Thehindubusinessline.com. 2010-04-10. Retrieved 2010-11-28. ^ "Restarting trouble in Indian Auto Industry - Forbes India". Moneycontrol.com. Retrieved 2011-01-01. ^ S Kalyana Ramanathan. "India to top in car volumes by 2050". Rediff. ^ N. Madhavan (2008-07-07). "India's detroit". Businesstoday.intoday.in. Retrieved 2011-12-02.

 

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