Automotive Industry – Indian Scene!

2019-05-20 Chinese Go No comment


In the 1960s and early 1970s, most of the cars came from the twentieth century.

In a motorcycle, you have a Lambretta or Vespa.

In a motorcycle, you have a bullet or Java.

In a car, you have to choose between the ambassador and Fiat.

In the truck, it can be either Ashok Leyland or Tata.

In the tractor, it is between Swaraj and Mahindra.

This situation reflects the years of India. Economic reforms and deregulation have changed this situation. The automotive industry has written a new and inspiring story. It's an exciting diversity, unparalleled growth and a fun consumer experience story – all of which are done in a few years. India has become one of the fastest growing automotive markets in the world. This is a tribute to industry leaders and managers, as well as a tribute to policy makers. The automotive industry has the opportunity to surpass this remarkable achievement. It is standing at the door of a huge leap.

The Indian automotive industry is undergoing technological changes, and each company is committed to changing its processes and technologies to maintain its competitive edge and provide customers with optimized products and services. From two-wheelers, trucks and tractors to utility vehicles, commercial vehicles and luxury cars, the Indian automotive industry has made brilliant achievements in recent years.

"The opportunity is staring at your face. It only appears once. If you miss it, you won't get it again."

On the canvas of the Indian economy, the automobile industry maintains a high-speed development. The automotive industry has a strong multiplier effect and can be a driving force for economic growth because of its deep connection with several key parts of the economy. A sound transport system plays a vital role in the rapid development of the country’s economy and industry. The developed Indian automotive industry subtly performs this catalysis by producing a wide variety of vehicles: passenger cars, light, medium and heavy commercial vehicles, multi-purpose vehicles such as jeep, scooters, motorcycles, mopeds, Tricycles, tractors, etc.

The automotive industry is one of the core industries of the Indian economy, and its prospects reflect the country's economic recovery. The continued economic liberalization of the Indian government over the years has made India one of the major commercial destinations for many global automotive companies. The Indian automotive industry has an annual growth rate of approximately 18%.

“The automotive industry is just a multiplier, a driving force for employment, investment and technology.”


The Indian automotive industry began a new journey in 1991, through the refinement of the sector, and subsequently opened up 100% of foreign direct investment through automated routes. Since then, almost all global professional companies have established their own factories in India, from 2 million in 1991 to 9.7 million in 2006 [accounting for nearly 7% of global vehicle production, 2.4 of four-wheeler production]. %].

From 2000-2001 to 2005-2006, the cumulative annual growth rate of the automotive industry was 17%. The cumulative annual growth rate of exports from 2000-01 to 2005-06 was 32.92%. It is expected that the output of the automobile industry will increase by more than 20% in 2006-07, and the growth rate in 2007-08 will be about 15%. Exports are expected to increase by more than 20% during the same period.

In recent years, the automotive industry has been contributing to the brilliant development of the Indian economy. As the per capita income of the Indian middle class increases, more and more people are preparing to own private vehicles, including cars and two-wheelers. Product transportation and manned services facilitate the transportation and transportation of medium and large commercial vehicles.

With the growth of new car sales, the auto parts industry has also seen significant growth. The consumption of domestic auto parts has exceeded 900 billion rupees, and the export volume is half of this figure.

A striking FDI destination – India!

India is at the peak of the wave of foreign direct investment. Foreign direct investment into India increased from $6 billion in 2004-05 to $19 billion in 2006-07 and is expected to quadruple in 2007-08 to reach $25 billion. According to AT Kearney's 2006 Foreign Direct Investment Confidence Index, India is the second most attractive foreign direct investment destination after China, pushing the United States to third place. It is widely believed that India will soon catch up with China. This may also happen when China tries to cool the economy and its protectionist measures surpass China's appeal. As wages rise and land prices rise in the eastern region, China may be losing its advantage as a low-cost manufacturing hub. India seems to be a natural choice.

India is an up-and-coming manufacturer, especially electrical and electronic equipment, automotive and automotive parts. In the period 2000-2005, among the total inflows of foreign direct investment, electrical and electronic [including computer software] and automobiles accounted for 13.7% and 8.4% respectively.

In the service sector, the main players are the United States, Singapore and the United Kingdom. In the period 2000-2005, the total investment of these three countries accounted for about 40% of foreign direct investment in services. In the automotive sector, the key figure is Japan. Between 2000 and 2005, Japan accounted for about 41% of total foreign direct investment in automobiles, far exceeding all of its competitors.


India's huge domestic market and a large number of skilled human resources are attractive to foreign investors. To date, known for its knowledge-based industries, India is also becoming a strong country in traditional manufacturing. The manufacturing sector of the Industrial Production Index has grown at a rate of 9% per year over the past three years.


Korean automakers believe that India is a better destination than China. Although China provides a bigger market for cars, India offers higher growth potential. Clearly, growth driven by manufacturing and services, as well as increasing consumerization, make India one of the most important destinations for foreign direct investment.

Car Mission Plan 2016

The bumper harvest of the global auto giants in the process of reaching India has finally given the government peace of mind. In order to increase investment in the industry, the Ministry of Heavy Industry decided to develop a 10-year mission plan to make India a global hub for the automotive industry.

“The 10-year mission plan will also develop a roadmap for budgetary fiscal incentives”


The Indian government is developing a 2016 car mission plan to make India a global automotive center. Our idea is to develop innovative action plans with the full participation of stakeholders and implement them in a mission model to address industry development challenges. Through this automotive mission plan, the government also hopes to provide a level playing field for participants in the industry and lay the foundation for predictable growth in the future, enabling manufacturers to make smarter investment decisions.

The main players in the automotive industry are:

Ø Tata

Ø Mahindra

o Ashok Leyland

Ø Bajaji

o Hero Honda

o Daimler Chrysler

Ø Suzuki


Ø Fiat

Ø modern

o General Motors

Ø Volvo

Ø Yamaha

Ø Mazda

Foreign companies in the Indian automotive industry

Until the mid-1990s, India's automotive industry consisted of only a handful of local companies with small capacity and outdated technology. Despite this, after the industry opened up to foreign direct investment in 1996, some global professional companies settled in. By 2002, Hyundai, Honda, Toyota, General Motors, Ford and Mitsubishi had established their own manufacturing bases.

In the past four to five years, the country has introduced several models of domestic and foreign passenger cars, utility vehicles [MUVs], commercial vehicles and two-wheelers, as well as strong growth in various vehicle production. In addition, due to its low cost and high quality manufacturing, India has become an important outsourcing center for auto parts and automotive engineering design, comparable to Thailand. German automaker Volkswagen is also seeking to enter India.

India is expected to become the small car center of Japan's major Toyota. Popular cars like Swift or Getz may be exported to markets in Brazil and other Asian countries. This global car is crucial for Toyota, which hopes to increase its sales in the BRIC countries [Brazil, Russia, India, China].

Two multinational auto giants – Suzuki Motor Corporation of Japan and Hyundai Motor Co. of Korea – said their production facilities will be used as a global resource for small cars. The rapid advancement of internal product development skills and the unique concentration of small cars will affect the country's ability to become a secondary compact car procurement center.

The exciting feature of India's ever-changing automotive market over the past five years has been the new success and confidence of domestic manufacturers. They are no longer afraid of the competition of international auto giants.

For example, today, Tata Motors' Indigo leads the popular customer category, while its Indica and modern Santro are leading the way in the top B category. At the same time, M&M's Scorpio has beat Toyota's Qualis challenge to lead the SUV market segment.


Similarly, there have been some Indian winners in the motorcycle market – 150 and 180 cc Pulsar from Bajaj and 110 cc Victor from TVS. The 93 cc bike from Bajaj and the 110 cc Freedom bike from LML also became winners.

Obviously, Indian players have learned from past mistakes and developed skills to make cheaper cars using "appropriate" technology. For example, TVS paid…

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