1. Industry Overview
The automobile industry in India is the eleventh largest in the world with an annual
production of approximately 2 million units. India is expected to overtake China as the
world's fastest growing car market in terms of the number of units sold and the automotive
industry is one of the fastest growing manufacturing sectors in India. Because of its large
market India has a population of !.! billion" the second largest in the world#$ a low base
of car ownership % per !$&&& people# and a surging economy$ India has become a huge
attraction for car manufacturers around the world.
The automotive industry directly and indirectly employs !' million individuals in
India. The industry is valued at about ()* '+ billion contributing about '.!, of India's
-./ nominal#. India's cost0competitive auto components industry is the second largest in
the world. In addition$ India's motorcycle market is also the second largest in the world
with annual sales of about + million units.
1mong the two0wheeler segment$ motorcycles have ma2or share in the market.
3ero 3onda contributes +&, motorcycles to the market. In it 3onda holds 45, share in
scooter and T6) makes 72, of the mopeds in the country.
4&, of the three0wheelers are used as goods transport purpose. /iaggio holds 4&,
of the market share. 1mong the passenger transport$ Ba2a2 is the leader by making 57, of
the three0wheelers.
Cars dominate the passenger vehicle market by %8,. 9aruti )u:uki has +2, share
in passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles
9ahindra holds 42, share.
In commercial vehicle$ Tata 9otors dominates the market with more than 5&,
share. Tata 9otors is also the world's fifth largest medium ; heavy commercial vehicle
manufacturer.
Babasabpatilfreepptmba.com 1
)ince the first car rolled out on the streets of 9umbai then Bombay# in !787$ the
1utomobile Industry of India has come a long way. .uring its early stages the auto
industry was overlooked by the then -overnment and the policies were also not favorable.
The liberali:ation policy and various tax reliefs by the -ovt. of India in recent years has
made remarkable impacts on Indian 1utomobile Industry. Indian auto industry$ which is
currently growing at the pace of around !7 , per annum$ has become a hot destination for
global auto players like 6olvo$ -eneral 9otors and
The automobile industry in India is the eleventh largest in the world with an annual
production of approximately 2 million units. India is expected to overtake China as the
world's fastest growing car market in terms of the number of units sold and the automotive
industry is one of the fastest growing manufacturing sectors in India. Because of its large
market India has a population of !.! billion" the second largest in the world#$ a low base
of car ownership % per !$&&& people# and a surging economy$ India has become a huge
attraction for car manufacturers around the world.
The automotive industry directly and indirectly employs !' million individuals in
India. The industry is valued at about ()* '+ billion contributing about '.!, of India's
-./ nominal#. India's cost0competitive auto components industry is the second largest in
the world. In addition$ India's motorcycle market is also the second largest in the world
with annual sales of about + million units.
1mong the two0wheeler segment$ motorcycles have ma2or share in the market.
3ero 3onda contributes +&, motorcycles to the market. In it 3onda holds 45, share in
scooter and T6) makes 72, of the mopeds in the country.
4&, of the three0wheelers are used as goods transport purpose. /iaggio holds 4&,
of the market share. 1mong the passenger transport$ Ba2a2 is the leader by making 57, of
the three0wheelers.
Cars dominate the passenger vehicle market by %8,. 9aruti )u:uki has +2, share
in passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles
9ahindra holds 42, share.
In commercial vehicle$ Tata 9otors dominates the market with more than 5&,
share. Tata 9otors is also the world's fifth largest medium ; heavy commercial vehicle
manufacturer.
Babasabpatilfreepptmba.com 1
)ince the first car rolled out on the streets of 9umbai then Bombay# in !787$ the
1utomobile Industry of India has come a long way. .uring its early stages the auto
industry was overlooked by the then -overnment and the policies were also not favorable.
The liberali:ation policy and various tax reliefs by the -ovt. of India in recent years has
made remarkable impacts on Indian 1utomobile Industry. Indian auto industry$ which is
currently growing at the pace of around !7 , per annum$ has become a hot destination for
global auto players like 6olvo$ -eneral 9otors and