Automotive Market in India
It's a clear analysis of the Indian Automobile Industry which consist of the current auto players details, Industry market share, and the trends of production, sales, exports etc.,
Content
A Complete Study About Automobile Industry In India
Compiled by: A.Vineeth MBA, Management trainee, Royal sundaram alliance General insurance company, Chennai-14, India.
Automotive Market in India Current Scenario
• • • India represents one of the largest two-wheeler markets in the world, with an estimated size of 5.4 million units a year. India is the two-wheeler capital of Asia with an average of 27 two-wheelers per thousand people, compared to China's 8 two-wheelers per thousand people. India became the fastest growing car market in the world in 2004, growth rate of 20%.
Overview
• • • •
India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Passenger vehicles sales crossed the mark of 1 million in 2004-05. 2/3rd of auto component production is consumed directly by OEMs.
Cars by Price Range
•
Maruti 800, Alto, Omni Reva
• • • • • • • • • • • • • • • •
Under Rs. 3 Lakhs
•
Rs. 3-5 Lakhs
Ambassador Fiat Palio Hyundai Santro, Getz Chevrolet Opel Corsa Maruti Zen, Wagon R, Versa, Esteem, Gypsy Ford Icon & Fiesta Tata Indica, Indigo Mahindra Bolero Chevrolet Swing, Optra, Tavera Hyundai Accent, Elantra Mahindra Scorpio Maruti Baleno Toyota Corolla, Innova Tata Safari Mitsubishi Lancer, Lancer Cedia Honda City
Rs. 5-10 Lakhs
Rs. 10-15 Lakhs
• • • • • • • • • • • • • • • • • • • •
Ford Mondeo & Endeavour Chevrolet Forester Skoda Octavia Classic & Combi Honda Civic & CR-V Maruti Suzuki Grand Vitara Hyundai Sonata Embera, Terracan & Tucson Mitsubishi Pajero Audi A4 Opel Vectra Honda Accord Mercedes C Class Toyota Camry Audi A6, A8 & TT BMW X5, 5 Series & 7 Series Mercedes E Class, S Class, SLK, SL & CLS-Class Porsche Boxster, Cayenne, 911 Carrera & Cayman S Toyota Prado Bentley Arnage, Continental GT & Flying Spur Rolls Royce Phantom Maybach
The segregation is made on Ex-Showroom price of base models.
Rs. 15-30 Lakh
Rs. 30-90 Lakhs
Above Rs. 1 Crore
Industry Growth
Indian Auto Market Growth for the year 2004-05
• • • • • • •
The automobile industry crossed a landmark with total vehicle production of 10 million units. Car sales was 8,82,094 units against 8,20,179 units in 2004-05. The two-wheeler market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2004-05. Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05 The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as against 78,97,629 units in 2004-05. According to the Society of Indian Automobile Manufacturers (SIAM), car sales was 8,82,094 units against 8,20,179 units in 2004-05. The growth of domestic passenger car market was 7.5 per cent
• • • • • • • •
Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05. The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2004-05. Motorcycles had the upward march, 17.1 per cent in domestic market touching 58,15,417 units against 49,64,753 units in 2004-05. Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units in 2004-05. Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05. Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23 per cent growth in the year ended March 31, 2005.
Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units against 1,19,924 units in 2004-05. Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862 units in 2004-05.
Production of 4-Wheelers
2005-06 (Apr-Mar) In Nos. 2005-06 (Apr-Mar) In Nos.
Manufacturers Japanese OEM Maruti Udyog Ltd. Toyota Kirloskar Motor Pvt. Ltd. Honda Siel Cars India Ltd. Swaraj Mazda Ltd. Total European OEM Skoda Auto India Pvt. Ltd. Daimler Chrysler India Pvt. Ltd. Volvo India Pvt. Ltd. Tatra Trucks India Ltd. Fiat India Pvt. Ltd.
Manufacturers Korean OEM
572,097 44,975 41,361 11,946 670,379
Hyundai Motor India Ltd. American OEM General Motors India Pvt. Ltd. Ford India Pvt. Ltd. Total Indian OEM
260,440
30,687 26,946 57,633
9.767 1,780 1,004 125 671
Tata Motors Ltd. Mahindra & Mahindra Ltd. Ashok Leyland Ltd. Force Motors Ltd. Eicher Motors Ltd. Hindustan Motors Ltd.
449,878 128,601 65,085 35,728 24,348 15,458 719,098
Total
13,347
Total
Production of 2-Wheelers
Manufacturers Japanese Hero Honda Motors Ltd. Honda Motorcycle & Scooter India (Pvt.) Ltd. Yamaha Motors India Pvt. Ltd. Suzuki Motorcycle India Pvt. Ltd. 3,006,486 603,436 248,665 2,328 Bajaj Auto Ltd. TVS Motor Company Ltd. LML Ltd. Kinetic Engineering Ltd. Majestic Auto Ltd. Kinetic Motor Company Ltd. 2005-06 (Apr-Mar) In Nos. Manufacturers Indian 2,042,289 1,366,866 107,044 82,392 56,819 53,880 2005-06 (Apr-Mar) In Nos.
Royal Enfield (Unit of Eicher 30,596 Ltd.) Total 3,860,915 Total 3,739,886
Domestic Sales
The half yearly figures (April-September 2007 over April-September 2006) indicate that domestic sales of automobiles decelerated with a negative growth rate of 5.91 percent. The cumulative growth of the Passenger Vehicles segment during April-September 2007 was 12.86 percent. Passenger Cars grew by 13.16 percent, Multi Purpose Vehicles by 19.95 percent and Utility Vehicles by 8.71 percent in April-September 2007 compared to the same period last year. In April-September 2007, the Commercial Vehicles segment grew by 2.92 percent over the same period in 2006. Light Commercial Vehicles recorded a growth of 14.75 percent; however, Medium & Heavy Commercial Vehicles witnessed a fall by 5.18 percent. Bus segment registered a growth of 41.39 percent while truck segment registered a decline by 2.25 percent. Three Wheelers sales fell by 6.87 percent with sales of both Goods Carriers decreasing the highest, by 15.76 percent and Passenger Carriers by 0.57 percent during the period.
Two Wheeler sales registered a negative growth of 9.47 percent during April-September 2007 over April-September 2006. Though Mopeds and Scooters grew by 22.37 percent and 20.13 percent respectively, Motorcycles and Electric Two Wheelers registered a negative growth rate of 15.20 percent and 10.74 percent respectively.
Exports
Automobile Exports grew by 17.13 percent during April-September 2007 over the same period last year. Exports were led by Two Wheelers, which grew by 22.98 percent, followed by Commercial Vehicles exports at 16.53 percent and Three Wheelers exports at 11.59 percent. Passenger Vehicles Exports grew marginally with a growth rate of 1.48 percent.
Turnover of Automobile Industry 1999-00 to 2004-05
Turnover of Automobile Manufacturers Year 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 (Rs.In Million) 422,933 492,024 499,136 595,184 661,769 835,851
Installed Capacities in the Indian Automobile Industry 2003-04 2003-2004 Installed Capacity (In Million) a) Four Wheelers b) Two &Three Wheelers c) Engines 2004-2005 Installed Capacity (In Million) 1.72 9.13 0.18 1.51 a) Four Wheelers 7.83 b) Two &Three Wheelers 0.18 c) Engines
Market Share
Domestic Market Share for 2006-07 CVs Total Passenger Vehicles Total Two Wheelers Three Wheelers 5 14 77 4
Trends in Automobile Industry
Automobile Domestic Sales Trends Category Passenger Cars Utility Vehicles MPVs Total Passenger Vehicles M&HCVs LCVs Total Commercial Vehicles Three Wheelers Scooters Motorcycles Mopeds Electrict Two Wheelers Total Two Wheelers Grand Total 2001-02 509088 104253 61775 675116 89999 56672 146671 200276 908268 2887194 408263 4203725 5225788 2002-03 541491 113620 52087 707198 115711 74971 190682 231529 825648 3647493 338985 4812126 5941535 2003-04 696153 146388 59555 902096 161395 98719 260114 284078 886295 4170445 307509 5364249 6810537 2004-05 820179 176360 65033 1061572 198506 119924 318430 307862 922428 4964753 322584 6209765 7897629 2005-06 882208 194502 66366 1143076 207472 143569 351041 359920 909051 5810599 332741 7052391 8906428
(Number of Vehicles) 2006-07 1076408 220199 83091 1379698 275600 192282 467882 403909 940673 6553664 355870 7341 7857548 10109037
Category Passenger Cars Utility Vehicles MPVs Total Passenger 669719 Vehicels M&HCVs 96752 LCVs 65756 Total Commercial 162508 Vehicles Three Wheelers 212748 Scooters 937506 Motorcycles 2906323 Mopeds 427498 Electrict Two Wheelers Total Two 4271327 Wheelers Grand Total 5316302
Automobile Production Trends 2001-02 2002-03 2003-04 2004-05 500301 557410 782562 960487 105667 114479 146325 182018 63751 51441 60673 67371 723330 120502 83195 203697 276719 848434 3876175 351612 5076221 6279967 989560 166123 108917 275040 356223 935279 4355168 332294 5622741 7243564 1209876 214807 138896 353703 374445 987498 5193894 348437 6529829 8467853
(Number of Vehicles) 2005-06 2006-07 1046133 1238032 196506 222111 66661 84707 1309300 219295 171788 391083 434423 1021013 6207690 379994 7608697 9743503 1544850 294266 225734 520000 556124 943974 7112225 379987 7982 8444168 11065142
Category Passenger Cars Utility Vehicles MPVs Total Passenger Vehicles M&HCVs LCVs Total Commercial Vehicles Three Wheelers Scooters Motorcycles Mopeds Electrict Two Wheelers Total Two Wheelers Grand Total
Automobile Exports Trends 2001-02 2002-03 2003-04 2004-05 49273 70263 125320 160670 3077 1177 3049 4505 815 565 922 1227 53165 4824 7046 11870 15462 28332 56880 18971 104183 184680 72005 5638 6617 12255 43366 32566 123725 23391 179682 307308 129291 8188 9244 17432 68144 53687 187287 24078 265052 479919 166402 13474 16466 29940 66795 60699 277123 28585 366407 629544
(Number of Vehicles) 2005-06 2006-07 169990 192745 4489 4403 1093 1330 175572 14078 26522 40600 76881 83934 386054 43181 513169 806222 198478 18838 30928 49766 143896 35685 545887 37566 619138 1011278
Forecasted Growth
The following points are taken from the forecasted statistical report,
•
Automobile industry expert predicts that by 2050 every sixth car in the world will be for Indians. By 2010 India will take over Germany in sales volumes and Japan by 2012 The Indian automobile component industry is estimated to triple from USD 63 billion to USD 190 billion within a span of six years by 2012. Estimated turnover USD 12 billlion, plus components revenue USD 3 billion, this is the vastness of Indian automobile industry. Industry analysts predict this industry to touch USD 13000 million mark by 2010, a cumulative growth of 9.5% annually. It is said that for every Re 1 spent, the auto sector returns Rs. 2.24 to the Indian economy. By 2010, India is expected to witness over Rs 30,000 crore of investment. Component industry's growth was only 9% between 1997-2000. But between 2000-2005 it has grown to 20%. It is projected 17% between 2005-2014. According to estimation the compound annual growth rate (CAGR) of Indian Automobile sales will grow at 9.5% and will touch a mark of 13,008 million by 2010.
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Compiled by: A.Vineeth MBA, Management trainee, Royal sundaram alliance General insurance company, Chennai-14, India.
Automotive Market in India Current Scenario
• • • India represents one of the largest two-wheeler markets in the world, with an estimated size of 5.4 million units a year. India is the two-wheeler capital of Asia with an average of 27 two-wheelers per thousand people, compared to China's 8 two-wheelers per thousand people. India became the fastest growing car market in the world in 2004, growth rate of 20%.
Overview
• • • •
India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Passenger vehicles sales crossed the mark of 1 million in 2004-05. 2/3rd of auto component production is consumed directly by OEMs.
Cars by Price Range
•
Maruti 800, Alto, Omni Reva
• • • • • • • • • • • • • • • •
Under Rs. 3 Lakhs
•
Rs. 3-5 Lakhs
Ambassador Fiat Palio Hyundai Santro, Getz Chevrolet Opel Corsa Maruti Zen, Wagon R, Versa, Esteem, Gypsy Ford Icon & Fiesta Tata Indica, Indigo Mahindra Bolero Chevrolet Swing, Optra, Tavera Hyundai Accent, Elantra Mahindra Scorpio Maruti Baleno Toyota Corolla, Innova Tata Safari Mitsubishi Lancer, Lancer Cedia Honda City
Rs. 5-10 Lakhs
Rs. 10-15 Lakhs
• • • • • • • • • • • • • • • • • • • •
Ford Mondeo & Endeavour Chevrolet Forester Skoda Octavia Classic & Combi Honda Civic & CR-V Maruti Suzuki Grand Vitara Hyundai Sonata Embera, Terracan & Tucson Mitsubishi Pajero Audi A4 Opel Vectra Honda Accord Mercedes C Class Toyota Camry Audi A6, A8 & TT BMW X5, 5 Series & 7 Series Mercedes E Class, S Class, SLK, SL & CLS-Class Porsche Boxster, Cayenne, 911 Carrera & Cayman S Toyota Prado Bentley Arnage, Continental GT & Flying Spur Rolls Royce Phantom Maybach
The segregation is made on Ex-Showroom price of base models.
Rs. 15-30 Lakh
Rs. 30-90 Lakhs
Above Rs. 1 Crore
Industry Growth
Indian Auto Market Growth for the year 2004-05
• • • • • • •
The automobile industry crossed a landmark with total vehicle production of 10 million units. Car sales was 8,82,094 units against 8,20,179 units in 2004-05. The two-wheeler market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2004-05. Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05 The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as against 78,97,629 units in 2004-05. According to the Society of Indian Automobile Manufacturers (SIAM), car sales was 8,82,094 units against 8,20,179 units in 2004-05. The growth of domestic passenger car market was 7.5 per cent
• • • • • • • •
Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05. The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2004-05. Motorcycles had the upward march, 17.1 per cent in domestic market touching 58,15,417 units against 49,64,753 units in 2004-05. Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units in 2004-05. Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05. Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23 per cent growth in the year ended March 31, 2005.
Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units against 1,19,924 units in 2004-05. Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862 units in 2004-05.
Production of 4-Wheelers
2005-06 (Apr-Mar) In Nos. 2005-06 (Apr-Mar) In Nos.
Manufacturers Japanese OEM Maruti Udyog Ltd. Toyota Kirloskar Motor Pvt. Ltd. Honda Siel Cars India Ltd. Swaraj Mazda Ltd. Total European OEM Skoda Auto India Pvt. Ltd. Daimler Chrysler India Pvt. Ltd. Volvo India Pvt. Ltd. Tatra Trucks India Ltd. Fiat India Pvt. Ltd.
Manufacturers Korean OEM
572,097 44,975 41,361 11,946 670,379
Hyundai Motor India Ltd. American OEM General Motors India Pvt. Ltd. Ford India Pvt. Ltd. Total Indian OEM
260,440
30,687 26,946 57,633
9.767 1,780 1,004 125 671
Tata Motors Ltd. Mahindra & Mahindra Ltd. Ashok Leyland Ltd. Force Motors Ltd. Eicher Motors Ltd. Hindustan Motors Ltd.
449,878 128,601 65,085 35,728 24,348 15,458 719,098
Total
13,347
Total
Production of 2-Wheelers
Manufacturers Japanese Hero Honda Motors Ltd. Honda Motorcycle & Scooter India (Pvt.) Ltd. Yamaha Motors India Pvt. Ltd. Suzuki Motorcycle India Pvt. Ltd. 3,006,486 603,436 248,665 2,328 Bajaj Auto Ltd. TVS Motor Company Ltd. LML Ltd. Kinetic Engineering Ltd. Majestic Auto Ltd. Kinetic Motor Company Ltd. 2005-06 (Apr-Mar) In Nos. Manufacturers Indian 2,042,289 1,366,866 107,044 82,392 56,819 53,880 2005-06 (Apr-Mar) In Nos.
Royal Enfield (Unit of Eicher 30,596 Ltd.) Total 3,860,915 Total 3,739,886
Domestic Sales
The half yearly figures (April-September 2007 over April-September 2006) indicate that domestic sales of automobiles decelerated with a negative growth rate of 5.91 percent. The cumulative growth of the Passenger Vehicles segment during April-September 2007 was 12.86 percent. Passenger Cars grew by 13.16 percent, Multi Purpose Vehicles by 19.95 percent and Utility Vehicles by 8.71 percent in April-September 2007 compared to the same period last year. In April-September 2007, the Commercial Vehicles segment grew by 2.92 percent over the same period in 2006. Light Commercial Vehicles recorded a growth of 14.75 percent; however, Medium & Heavy Commercial Vehicles witnessed a fall by 5.18 percent. Bus segment registered a growth of 41.39 percent while truck segment registered a decline by 2.25 percent. Three Wheelers sales fell by 6.87 percent with sales of both Goods Carriers decreasing the highest, by 15.76 percent and Passenger Carriers by 0.57 percent during the period.
Two Wheeler sales registered a negative growth of 9.47 percent during April-September 2007 over April-September 2006. Though Mopeds and Scooters grew by 22.37 percent and 20.13 percent respectively, Motorcycles and Electric Two Wheelers registered a negative growth rate of 15.20 percent and 10.74 percent respectively.
Exports
Automobile Exports grew by 17.13 percent during April-September 2007 over the same period last year. Exports were led by Two Wheelers, which grew by 22.98 percent, followed by Commercial Vehicles exports at 16.53 percent and Three Wheelers exports at 11.59 percent. Passenger Vehicles Exports grew marginally with a growth rate of 1.48 percent.
Turnover of Automobile Industry 1999-00 to 2004-05
Turnover of Automobile Manufacturers Year 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 (Rs.In Million) 422,933 492,024 499,136 595,184 661,769 835,851
Installed Capacities in the Indian Automobile Industry 2003-04 2003-2004 Installed Capacity (In Million) a) Four Wheelers b) Two &Three Wheelers c) Engines 2004-2005 Installed Capacity (In Million) 1.72 9.13 0.18 1.51 a) Four Wheelers 7.83 b) Two &Three Wheelers 0.18 c) Engines
Market Share
Domestic Market Share for 2006-07 CVs Total Passenger Vehicles Total Two Wheelers Three Wheelers 5 14 77 4
Trends in Automobile Industry
Automobile Domestic Sales Trends Category Passenger Cars Utility Vehicles MPVs Total Passenger Vehicles M&HCVs LCVs Total Commercial Vehicles Three Wheelers Scooters Motorcycles Mopeds Electrict Two Wheelers Total Two Wheelers Grand Total 2001-02 509088 104253 61775 675116 89999 56672 146671 200276 908268 2887194 408263 4203725 5225788 2002-03 541491 113620 52087 707198 115711 74971 190682 231529 825648 3647493 338985 4812126 5941535 2003-04 696153 146388 59555 902096 161395 98719 260114 284078 886295 4170445 307509 5364249 6810537 2004-05 820179 176360 65033 1061572 198506 119924 318430 307862 922428 4964753 322584 6209765 7897629 2005-06 882208 194502 66366 1143076 207472 143569 351041 359920 909051 5810599 332741 7052391 8906428
(Number of Vehicles) 2006-07 1076408 220199 83091 1379698 275600 192282 467882 403909 940673 6553664 355870 7341 7857548 10109037
Category Passenger Cars Utility Vehicles MPVs Total Passenger 669719 Vehicels M&HCVs 96752 LCVs 65756 Total Commercial 162508 Vehicles Three Wheelers 212748 Scooters 937506 Motorcycles 2906323 Mopeds 427498 Electrict Two Wheelers Total Two 4271327 Wheelers Grand Total 5316302
Automobile Production Trends 2001-02 2002-03 2003-04 2004-05 500301 557410 782562 960487 105667 114479 146325 182018 63751 51441 60673 67371 723330 120502 83195 203697 276719 848434 3876175 351612 5076221 6279967 989560 166123 108917 275040 356223 935279 4355168 332294 5622741 7243564 1209876 214807 138896 353703 374445 987498 5193894 348437 6529829 8467853
(Number of Vehicles) 2005-06 2006-07 1046133 1238032 196506 222111 66661 84707 1309300 219295 171788 391083 434423 1021013 6207690 379994 7608697 9743503 1544850 294266 225734 520000 556124 943974 7112225 379987 7982 8444168 11065142
Category Passenger Cars Utility Vehicles MPVs Total Passenger Vehicles M&HCVs LCVs Total Commercial Vehicles Three Wheelers Scooters Motorcycles Mopeds Electrict Two Wheelers Total Two Wheelers Grand Total
Automobile Exports Trends 2001-02 2002-03 2003-04 2004-05 49273 70263 125320 160670 3077 1177 3049 4505 815 565 922 1227 53165 4824 7046 11870 15462 28332 56880 18971 104183 184680 72005 5638 6617 12255 43366 32566 123725 23391 179682 307308 129291 8188 9244 17432 68144 53687 187287 24078 265052 479919 166402 13474 16466 29940 66795 60699 277123 28585 366407 629544
(Number of Vehicles) 2005-06 2006-07 169990 192745 4489 4403 1093 1330 175572 14078 26522 40600 76881 83934 386054 43181 513169 806222 198478 18838 30928 49766 143896 35685 545887 37566 619138 1011278
Forecasted Growth
The following points are taken from the forecasted statistical report,
•
Automobile industry expert predicts that by 2050 every sixth car in the world will be for Indians. By 2010 India will take over Germany in sales volumes and Japan by 2012 The Indian automobile component industry is estimated to triple from USD 63 billion to USD 190 billion within a span of six years by 2012. Estimated turnover USD 12 billlion, plus components revenue USD 3 billion, this is the vastness of Indian automobile industry. Industry analysts predict this industry to touch USD 13000 million mark by 2010, a cumulative growth of 9.5% annually. It is said that for every Re 1 spent, the auto sector returns Rs. 2.24 to the Indian economy. By 2010, India is expected to witness over Rs 30,000 crore of investment. Component industry's growth was only 9% between 1997-2000. But between 2000-2005 it has grown to 20%. It is projected 17% between 2005-2014. According to estimation the compound annual growth rate (CAGR) of Indian Automobile sales will grow at 9.5% and will touch a mark of 13,008 million by 2010.
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