10%

8%
5%

Third-largest automobile
industry by 2016E

4%

0%
2010

2020

2010

2020

40.0

20.0

Worlds second-largest two

wheeler manufacturer

34.0

CAGR: 11%

30.0

Twowheeler sales to rise from

15.9 million in FY2013 to 34.0
million by FY2020E

15.9

10.0
0.0
FY13

FY20
FY13

FY20

10.0

8.6

CAGR: 13%

Passenger vehicle sales to

increase from 3.2 million in
FY2013 to 8.6 million in
FY2021E

5.0

Passenger vehicle sales to

nearly triple by 2020E

By 2020, India's share in the

global passenger vehicle
market to double to 8 per cent
from 4 per cent over 201011

3.2
FY13

FY21
FY13

FY21
Source: IHS, NEMMP 2020, ACMA, Aranca Research
Note: E Estimate

Growingdemand
demand
Growing

FY10

Market
size:
USD57.7
billion

Strong growth in demand due to

rising income, middle class, and a
young population is likely to propel
India among the worlds top five
auto manufacturers by 2015
Growth in export demand is set to
accelerate

Innovation opportunities

FY16E

Tata Nano and the upcoming Pixel

have opened up the potentially
large ultra low-cost car segment
Innovation is likely to intensify
among engine technology and
alternative fuels

Market
size:
USD145
billion

Advantage
India
Rising investments

India has significant cost

advantages; auto firms save 10-25
per cent on operations vis--vis
Europe and Latin America
A large pool of skilled manpower
and a growing technology base
would induce greater investments

Policy support

The government aims to develop

India as a global manufacturing as
well as R&D hub
There has been a wide array of
policy support in the form of sops,
taxes and FDI encouragement

Source: Automotive Mission Plan (20062016)

Notes: R&D Research and Development; FDI Foreign Direct Investment; FY Indian Financial Year (April March);
FY16E Estimated figure for Financial Year 2016

20.7 million
units (FY13)
11 million
units (2007)
0.6 million
units (1992)
2008 onwards
19932007
0.4 million
units (1982)

198392

Before 1982

Closed market
Five players
Long waiting
periods and
outdated models
Sellers market

Joint Venture (JV):

Indian government and
Suzuki formed Maruti
Udyog; commenced
production in 1983
Component
manufacturers entered
the market via JV
Buyers market

Sector de-licensed in
1993
Major Original
Equipment
Manufacturers (OEMs)
started assembly
operations in India
Imports permitted from
April 2001
Introduction of valueadded tax in 2005

More than 35 market

players
Removal of most import
controls
Indian companies
gaining acceptance on a
global scale
Setting up of National
Automotive Board to act
as facilitator between the
government and industry

Source: Tata Motors, Society of Indian Automobile Manufacturers (SIAM), Aranca Research
Note: JV Joint Venture

Automobiles

Two-wheelers

Mopeds

Scooters

Passenger
vehicles

Passenger cars

Commercial
vehicles

Light
commercial
vehicles

Utility vehicles

Electric twowheelers

Multi-purpose
vehicles

Passenger carriers

Goods carriers
Medium
and heavy
commercial
vehicles

Motorcycles

Three-wheelers

The gross turnover of automobile manufacturers in India expanded at a CAGR of 17.7 per cent over FY07-11
Excluding three wheelers, trucks accounted for the largest share of revenues (47.8 per cent in 2011)

Revenue trends over the past few years

(USD million)

Market* break-up by revenues (2011)

70.0
58.6

60.0

CAGR: 17.7%

20.4%
Trucks

50.0

43.3

36.6

40.0

33.3

30.5

47.8%

30.0
20.0
31.8%

Cars

Two Wheelers

10.0
0.0
FY07

FY08

FY09

FY10

FY11

Source: SIAM, Datamonitor, Aranca Research

Note: *Does not include three wheelers

Production of automobiles increased at a CAGR of 11.8 per cent over FY05-13

Passenger vehicles was the fastest growing segment, representing a CAGR of 12.9 per cent

15.5

18

15.9

Total production of automobiles in India (million units)

13.4

16
14

8.4

6.5

7.6

10

8.5

10.5

12

Passenger Vehicle

Commercial Vehicle

Three Wheelers

FY12

0.8
0.8

FY11

0.8
0.8

FY10

3.2

3.1
0.8

FY09

0.8

0.6
0.6

FY08

2.4

FY07

1.8

FY06

0.4
0.5

1.6
0.6
0.5

1.3

1.3
0.5
0.6

FY05

0.4
0.4

0.4
0.4

1.2

3.0

FY13

Two Wheelers
Source: SIAM, Aranca Research
Note: CAGR Compound Annual Growth Rate

Two wheelers dominate production volumes; in FY13, the

segment accounted for about three quarters of the total
automotive production in the country

Market share by volume (FY13)

India is the worlds second-largest two wheeler

manufacturer and fourth-largest producer of commercial
vehicles

4% 4%

Two Wheelers

15%
Passenger Vehicle

Commercial Vehicle

77%

Three Wheelers

Source: SIAM, Aranca Research

Share in production of passenger vehicles (FY13)

Share in production of commercial vehicles (FY13)

19.3%
29.4%
Passenger cars

MCV & HCV

Utility vehicle

LCV
70.6%

80.7%

Source: SIAM, Aranca Research

Notes: LCV Light Commercial Vehicle;
MCV Medium Commercial Vehicle;
HCV Heavy Commercial Vehicle

Share in production of three-wheelers (FY13)

Share in production of two-wheelers (FY13)

15.3%

18.3

5.9%
Mopeds

Goods Carrier

Motorcycles
Passenger Carrier
81.7

Scooters
78.7%

Source: SIAM, Aranca Research

Automobile export volumes increased at a CAGR of 19.1 per cent over FY0513
Two-wheeler segment reported the fastest growth (22.2 per cent) followed by three-wheelers (16.3 per cent) over FY0513

2.0

2.0

Exports of automobiles from India (million units)

2.0

1.5

1.8
1.6

1.0

1.2

0.1

FY09

FY10

FY11

FY12

0.1

0.1

FY08

0.3

0.4

0.5

0.5

0.0

0.2

0.3
0.0
0.2

0.2

0.1
0.1

0.1
0.1

0.2
0.0
0.1
FY06

0.2

0.2
0.0
0.1
FY05

0.3

0.5

0.5
0.4

0.6

0.2

0.6

0.8

0.5

0.8

1.0

0.4

1.1

1.4

0.0
Passenger Vehicle

FY07

Commercial Vehicle

Three Wheelers

FY13

Two Wheelers

Source: SIAM, Aranca Research

Exports shares by volume (FY13)

Two wheelers accounted for the largest share in exports (by

volume) at 67 per cent in FY13
Passenger vehicles comprised a sizeable 19 per cent of
overall exports

Passenger Vehicle

19%

Exports of passenger vehicles registered the highest growth

at 9.02 per cent in FY13

3%

Commercial
Vehicle

11%
Three Wheelers
67%
Two Wheelers

Source: SIAM, Aranca Research

Growth in sales

Auto sales across categories domestically rose by 3.53 per

cent in FY14

28%

30%

Passenger vehicles declined by 6.05 per cent in FY14

27%

25%
20%

Passenger car segment declined by 5.01 per cent

15%

12%

10%

SUVs declined by 19.58 per cent

5%

4%

3%

4%

FY13

FY14

0%
FY09

Commercial vehicles declined by 20.2 per cent

FY10

FY11

FY12

Auto Sales growth

LCVs declined by 17.6 per cent

Growth for the auto segment

Source: SIAM, Aranca Research, News articles

Notes: E Estimate, UV Utility Vehicle

FY11

-20%

-40%

Passenger Vehicle

Commercial Vehicle

Three Wheelers

7%

FY13

3%

FY12

FY14

-6%
-20%
-11%

FY10

16%

33%
28%

25%
33%

50%
20%
25%

33%

FY09

2%
-2%
5%

Car sales rose 3 per cent following a stable government in

the center

3%
0%
0%

0%

5%

20%

0%

Two-wheelers registered a growth of 7.31 per cent during

FY14

40%
13%

Three wheelers declined by 10.9 per cent in FY14

60%

-33%

MCVs and HCVs declined by 25.3 per cent

Two Wheelers

9.0

10.0

Passenger vehicles to increase at a CAGR of 16

per cent during FY201320

5.0

CAGR: 16%
5.0
3.2

FY13

FY15
FY15

FY13

FY20
FY20

3.0
2.2

CAGR: 16%

Commercial vehicles expected to register a CAGR

of 16 per cent during FY201320

2.0

1.4

0.8
1.0
FY13
FY13

40.0

Two and three wheelers projected to expand at a

CAGR of 9 per cent during FY201320

FY15
FY15

FY20
FY20

CAGR: 9%

30.0

30.0
20.0

22.0

16.8

10.0
FY13
FY13

FY15
FY15

FY20
FY20

Source: SIAM, Vision 2020, Aranca Research

Scenario

The Indian luxury car market expanded at a CAGR of 30 per cent, with 23,000 units
in 2011 (about 1 per cent of the passenger vehicle market in India). The market is
dominated by players such as BMW, Mercedes, Audi, Jaguar. Audi sold 10,126 units
in 2013-14, remaining the biggest luxury car seller over Mercedes-Benz which sold
around 9,003 cars in calendar year 2013

Key drivers

India has the worlds 12th-largest HNI population, with a growth of 20.8 per cent
(highest among the top 12 countries)
With expansion in the education and realty sectors, and increasing wealth of IT
professionals, more consumers aspire to own luxury cars
Affluent class of the country is driving the demand of the luxury cars

Notable
trends

The Indian luxury car market is estimated to expand at a CAGR of 25 per cent during
201220 and reach 150,000 units by 2020 (accounting for 4 per cent of the estimated
6.8-million-unit domestic car market)
The luxury SUV segment is growing at about 50 per cent, while luxury sedans are
increasing at 2530 per cent
Audi to launch A3 sedan later in the year
Source: World Wealth Report (2011) of Merrill Lynch Wealth Management and Capgemini, Aranca Research, News Articles
Note: HNI - High Networth Individuals

The automotives industry is concentrated with leaders in each segment commanding a share of over 40 per cent

Market leader

Others

Passenger vehicles

45%

20%

10%

4%

MCVs & HCVs

63%

23%

7%

LCVs

59%

30%

4%

Three wheelers

41%

40%

10%

Motorcycles

59%

24%

7%

6%

Scooters

51%

21%

14%

10%

4%

Source: SIAM, Aranca Research

Note: Data is for FY10

New product launches

Improving productdevelopment
capabilities

Large number of products available to consumers across various segments; this has
gathered pace with the entry of a number of foreign players
Reduced overall product lifecycle have forced players to employ quick product launches

Increasing R&D investments from both the government and the private sector
Private sector innovation has been a key determinant of growth in the sector; two good
examples are Tata Nano and Tata Pixel; while the former has been a success in India, the
latter is intended for foreign markets

Alternative fuels

In FY11, the CNG market was worth more than USD330 million; CNG cars and taxis are
expected to register a CAGR of 28 per cent over FY11FY14
The CNG distribution network in India is expected to increase to 250 cities by 2018 from
30 cities in 2009

New financing options

Carmakers such as BMW, Audi, Toyota, Skoda, Volkswagen and Mercedes-Benz have
started providing customised finance to customers through NBFCs
Major MNC and Indian corporate houses are moving towards taking cars on operating
lease instead of buying them

Note: NBFCs - Non-Banking Finance Companies

Competitive Rivalry

Competitive rivalry has increased post liberalisation to a great extent

The competition has turned more intense after the entry of foreign players like
Volkswagen and Ford in low- priced hatchback segment
Foreign firms have aggravated the competition by changing their traditional
designs and substituting it to cater Indian needs

Threat of New Entrants

The threat of new entrants is
generally medium because of the
brand equity and capital intensive
nature of the business
But, considering India, foreign firms
(with capital) have done pretty well

Bargaining Power of Suppliers

Bargaining power of suppliers is

low as most of the auto
component manufacturers are
specialised in some segments
related to only one client
Suppliers, in turn depend on them

Threat of New
Entrants
(Low)

Substitute Products
The threat from substitute products
continues to be low, with public
transportation
being
under
developed even in cities
Changing travel patterns and the
convenience give it an edge

Bargaining
Power of
Customers
(High)

Competitive
Rivalry
(High)

Bargaining Power of Customers

In a market, like India there is lot

of bargaining power available to
the customers as there are variety
of products available in the same
range, by different manufacturers
It still depends on the markets

Bargaining
Power of
Suppliers
(Low)

Substitute
Products
(Low)

Capacity addition

Launch of new models

Most of the big auto names in the World have their presence in the country, industry today
Every company wants to increase its capacity addition with Nissan and Mercedes to
increase their capacity in Chennai and Chakan respectively
Most of the companies eyeing India as an outsourcing hub. Cheap labor in India is giving
them an edge

Mahindra & Mahindra launched Verito Refresh, Quanto and Rexton in 2013
Tata unveiled three new models (including Zest and Bolt)after a span of nearly four years
Maruti unveiled Ciaz (Keeping India and Chinese markets in mind) and SX4 S-Cross

Marketing &
advertisement

Each and every firm is now focusing on shelling out a chunk of their profits on
advertisement
The idea is to make the customers more brand conscious and increasing brand
positioning
This is giving the firms differential advantage. Success today lies in structuring and
restructuring strategies

Catering Indian needs

India boasts a large population of middle class

Most of the firms including Ford and Volkswagen have adapted themselves to cater to this
class by dropping their traditional structure and designs
This allows them to compete directly with domestic firms making the sector highly
competitive

Growing demand
demand
Growing

Increasing
investments

Policy
support
Strong
government
support
Goal of
establishing India
as an automanufacturing hub

Rising income,
young population

Inviting

Rising investments
from domestic and
foreign players

Resulting in

Greater availability
of credit and
financing options

R&D focus; GOI

has set up a
technology
modernisation fund

Greater product
innovation; market
segmentation

Strong growth in
exports

Policy sops, FDI

encouragement

Demand projected
to remain strong,
making returns
attractive
Note: GOI Government of India

Changing income dynamics of Indias population

Increasing income and middle-class population

Million Household,100%
120

GDP per capita has grown from USD1,432.25 in 2010 to

USD1,500.76 in 2012, and is expected to reach
USD1,869.34 by 2018
Apart from the impact of rising incomes, widening of the
consumer base will also be aided by expansion of the
middle class, increasing urbanisation, and changing
lifestyles
A young population is boosting demand for cars

100

322

273
26

80

50

15
32

60

40

40

29

35
25

20
0

Demand for commercial vehicles increased due to the

development of roadways and greater market access

222

12
2
1
2008
Globals (>18412.8)
Seekers (3682.5 - 9206.4)

6
3
2020

17
7
2030
Strivers (9206.4-18412.8)
Aspirers (1657-3682.5)

Deprived (<1657)

Source: IMF, McKinsey Quarterly, Aranca Research

Indian car finance market size

Easy availability of credit
15.0

Greater access to credit eases the purchase of

passenger and commercial vehicles
The auto finance industry has grown at the rate of 13 per
cent over FY08-13; the car finance penetration has
increased from 68 per cent 70 per cent in FY08-10 to
70 per cent 72 per cent in FY11-13

BMW, Audi, Toyota, Skoda, Volkswagen and MercedesBenz have started providing customised finance to
customers, dealers and suppliers through dedicated
Non-Banking Finance Companies (NBFCs)

13.2

12.9

12.0

11.7

9.3
7.7

9.0
6.0
3.0

2.5

2.6

2.7

1.9

1.5

0.0
FY09

FY10

Car industry sales volume (mn)

FY11

FY12

FY13

Car finance industry (USD bn)

Source: Kotak Mahindra Prime, Aranca Research

Note: Greater distributional efficiencies, increasing demand
(especially from rural areas) due to rising disposable incomes
have created new markets for products within the country

design and
engineering skills

Manufacturing
skills

Manpower
costs

Supplier
base

Raw
materials

Korea
China

East Asia

Thailand
Indonesia
Vietnam
Czech Republic
Romania
Poland

Central & Eastern

Europe

Slovakia
Russia
Hungary
Turkey
Brazil

Latin America

Mexico

Less competitive than India

In competition with India

Source: ACMA, Aranca Research

Auto Policy 2002

Automatic approval for foreign equity investment up to 100 per cent; no minimum
investment criteria
Encourage R&D by offering rebates on R&D expenditure
AMPs vision is to make India a preferred destination for designing and manufacturing of
automobiles and achieve a market size of USD154 billion by 2016
Setting up of a technology modernisation fund focused on SMEs
Establishment of automotive training institutes, auto design centers and special auto parks

Automotive Mission
Plan (AMP) 200616

NATRiPs

Dept. of Heavy
Industries & Public
Enterprises

Union Budget FY14 &

Budget FY15

Set up at a total cost of USD388.5 million to enable the industry to be on par with global
standards
Nine R&D centers of excellence with focus on low-cost manufacturing and product
development solutions

Worked towards reduction of excise duty on small cars and increase budgetary allocation
for R&D
Weighted increase in R&D expenditure to 200 per cent from 150 per cent (in-house) and
175 per cent from 125 per cent (outsourced)

Proposal to allocate USD2.7 billion for JNNURM to bolster sales volumes of Medium and
Heavy Commercial Vehicles (MHCV). Relaxation of excise duty on small cars from 12 to 8
per cent bound to help the sector in the long run

Notes: SME Small and Medium Enterprises, R&D - Research and Development, NATRiP National Automotive Testing and R&D
Infrastructure Project, AMP - Automotive Mission, JNNURM - Jawaharlal Nehru National Urban Renewal Mission

 Business description
Vehicles Research & Development
Establishment (VRDE), Ahmednagar

Research, design, development and testing of vehicles

Centre of excellence for photometry, electromagnetic compatibility (EMC) and
test tracks

Indore National Automotive Test

Tracks (NATRAX)

Complete testing facilities for all vehicle categories

Centre of excellence for vehicle dynamics and tyre development

Automotive Research Association of

India (ARAI), Pune

Services for all vehicle categories

Centre of excellence for power-train development and material

Chennai Centre, Tamil Nadu

Complete homologation services for all vehicle categories

Centre of excellence for infotronics, EMC and passive safety

Rae Bareilly Centre

Services to agri-tractors, off-road vehicles and a driver training centre

Centre of excellence for accident data analysis

International Centre for Automotive

Technology (iCAT), Manesar

Services to all vehicle categories

Centre of excellence for component development, Noise Vibration and
Harshness (NVH) testing

Silchar Centre, Assam

Research, design, development and testing of vehicles

Centre of excellence for photometry, EMC and test tracks

List of companies

North

DelhiGurgaonFaridabad

West

MumbaiPune
Nashik
Aurangabad

Ashok
Leyland
Force
Motors
Piaggio

Ashok
Leyland
Bajaj Auto
FIAT
GM

Swaraj

Mazda
Amtek Auto
Eicher

Honda SIEL

Maruti
Suzuki
Tata Motors
Bajaj Auto
Hero Group

M&M
Eicher
Skoda
Bharat
Forge

Tata Motors
Volkswagen
RenaultNissan
M&M

Kolkata Jamshedpur

East

Chennai Bengaluru Hosur

South

Source: ACMA, Aranca Research

Tata Motors
Hindustan
Motors
Simpson &
Co

International
Auto
Forgings
JMT
Exide

Ashok
Leyland
Ford
M&M
Toyota

Kirloskar
Volvo
Sundaram
Fasteners
Enfield

Hyundai
BMW
Bosch
TVS Motor
Company

RenaultNissan

NORTH WEST: Rajasthan is

a major hub for light vehicle
manufacturing

WEST: Maharashtra, and

Gujarat are hubs for
heavy and light vehicle
manufacturing

NORTH: Delhi is a hub for light

vehicle manufacturing, whereas
Haryana and Uttarakhand are
hubs for heavy vehicle
manufacturing

EAST: Jamshedpur is the

site for Tatas heavy
vehicle manufacturing

Heavy vehicle manufacturing plant

SOUTH: Chennai hosts

manufacturing plants for
heavy and light vehicles

Light vehicle manufacturing plant

Source: Aranca Research

Note: All figures as of 2011-12

FDI inflows in the automotives sector aggregated USD9.6billion (4.5 per cent of the total FDI) over April 2000 February
2014

FDI trends over the past few years

(USD billion)
1.8
1.5

1.6

DelhiGurgaon
Faridabad

1.4
1.2

1.2

1.2

0.9

1.0
Ahmedabad

1.3

1.3

0.8
MumbaiPune
Nashik
Aurangabad

0.6
0.4
Kolkata
Jamshedpur

0.2
FY09

FY10

FY11

FY12

FY13

FY14*

FDI in Automobile Industry (USD Billion)

Chennai Bengaluru
Hosur

Source: Department of Industrial Policy & Promotion (India), Aranca Research

Note: FY14* - April to February (11 months only)

Global car majors have been ramping up investments in India to cater to the growing domestic demand. Also, these
manufacturers plan to leverage Indias competitive advantage to set up export-oriented production hubs
Planning to double its current investment level of about USD2.5 billion over the next five years
Aims to raise its market share from 1.5 per cent in FY13 to 10 per cent by FY17
To increase the Chennai Plant capacity to 400,000 units a year in a few years time
Investing in Chennai and Sanand plants to raise capacity to 0.44 million cars & 0.61 million engines by FY14
Long term strategy to export 25 per cent of vehicles and to make India compact car global production base
Is in the process of expanding its dealer network from 33 in January 2013 to 50 by 2014 end
Plans to raise the number of car offerings in the sub USD46,000 category

Plans to launch up to eight models over the next 56 years

Aims to invest USD460 million in Rajasthan plant by 2014 to build a new assembly line for cars
This will include a new diesel engine component production and a forging plant
Expects to invest another USD163 million at Bidadi plant near Bengaluru
Plans to increase capacity to 310,000 units by 2013 with an investment of USD187 million
Plans to invest USD552-737 million over the next two to three years to develop new products
Plans to infuse USD46 million to double India capacity to 20,000 vehicles by the end of CY13
Expansion of MIDC and MoU, and to invest USD244mn for capacity expansion in Chakan, Pune
Source: Respective Company Websites, News Articles, Aranca Research

Opportunities for creating

sizeable market segments
through innovations

India is fast emerging as a

global R&D hub

Strong support from the

government; setting up of
NATRiP centres
Private players, such as
Hyundai, Suzuki, GM, keen
to set up R&D base in India
Strong education base, large
skilled
English-speaking
manpower
Comparative advantage in
terms of cost
Firms both national and
foreign are increasing their
footprints with over 1031
centers

The worlds cheapest car

(Tata Nano) has directed
focus on the low-income
market
Bajaj Auto, Hero Honda and
M&M plan to jointly develop
a
technology for twowheelers to run on natural
gas
Electric cars likely to be a
sizeable market segment in
the coming decade
Tata
Motors to launch
MiniCAT, a car running on
compressed air, thereby
stepping into the next era
where cars would not require
any fossil fuel and emissions
would be almost nil

Small-car manufacturing hub

General Motors, Nissan and

Toyota announced plans to
make India their global hub
for small cars
Light vehicle sales estimated
to cross 3 million by the end
of 2012
Strong export potential in
ultra low-cost cars segment
(to developing and emerging
markets)

Note: M&M Mahindra & Mahindra

Continuing market
leadership
Accounted for 45
per cent share in
the Indian car
market

Product portfolio
expansion

To launch six new

models by the end
of this year

2013-14
Total sales
crossed
1.15million units

Product portfolio
comprising 16
passenger vehicle
models

Increased
productivity
Enhanced R&D
capability
Capacity
expansion
Roll-out of peoples
car (Maruti 800)
1983

1994

1997

2001

2011
Roll-out of 10
millionth car

In the process of
establishing
Suzukis largest
R&D facility
outside Japan

1994
Production of
1 millionth car

2004

2006

2007

Plans to setup
two facilities
in Gujarat

2008

2009

2010

2011

2012

2013

2014

Source: Company website, Aranca Research

Production of
first
indigenously
designed LCV

JV with
Daimler AG

Disruptive innovation

Market expansion

Launch of the
first
indigenous
CV

Product portfolio
expansion

Establishment
of Tata
Engineering &
Locomotives

Introduction
of
Megapixel,
an electric
vehicle

Acquisition
of Jaguar
and
Landrover

Launched
Indica, India's
first fully
indigenous
passenger car

Enhancing
R&D capability

Acquisitions

Acquired
stake in
Hipo
Carrocera
SA

Unveiled
three new
models in
2014

Launched
Tata Nano

Joint Ventures
1945

1954

1961

1977

1982

1986

1991

1998

2005

2008

2010

2012

2013

2014

Source: Company website, Aranca Research

M&M auto sales domestic and export

(000 units)

M&M has been the market leader in utility vehicles in India

for over 50 years since building the first Willys jeep in 1947
Manufactures passenger vehicles, utility vehicles, light
commercial vehicles (including three-wheelers)

600

Produces 15 passenger vehicle models and 8 commercial

vehicle models, noteworthy among which are Scorpio, Thar,
Xylo, XUV 500

400

Global player in exporting products to several countries in

North America, Europe, Africa, South America, South Asia,
and the Middle East; exported 32,457 units in FY13

563
483

500

CAGR: 19%

507

377
298

300

231 230
178

200
100

65 87

117 145 149

FY14

FY13

FY12

FY11

FY10

FY09

FY08

FY07

FY06

FY05

FY04

FY03

Recorded four wheeler revenue of USD3.3 billion in FY13

FY02

Launched Verito Refresh, Quanto, and Rexton in FY2013

Sluggish industrial activity, strict financing environment hurt
sales sentiments
In 2013, inked a partnership with online shopping portal
Snapdeal.com to sell its two-wheelers
In 2014, company sales were down by 9.97 per cent, with
the same period previous fiscal, deteriorating consumption
and investment demand remains to be a key concern

Source: Company website, News articles, Aranca Research

Society of Indian Automobile Manufacturers (SIAM)

Core 4-B, 5th Floor, India Habitat Centre
Lodhi Road, New Delhi 110 003
India
Phone: 91 11 246478102
Fax: 91 11 24648222
E-mail: siam@siam.in

CAGR: Compound Annual Growth Rate

CV: Commercial Vehicle
FDI: Foreign Direct Investment
FY: Indian Financial Year (April to March)
So FY10 implies April 2009 to March 2010
GOI: Government of India
HCV: Heavy Commercial Vehicle
INR: Indian Rupee
LCV: Light Commercial Vehicle
OEM: Original Equipment Manufacturers
PV: Passenger Vehicle
SIAM: Society of Indian Automobile Manufacturers

ULCC: Ultra Low Cost Car

USD: US Dollar
Wherever applicable, numbers have been rounded off to the nearest whole number

Exchange rates (Fiscal Year)

Exchange rates (Calendar Year)

Year

INR equivalent of one USD

Year

INR equivalent of one USD

200405

44.81

2005

45.55

200506

44.14

2006

44.34

200607

45.14

2007

39.45

200708

40.27

2008

49.21

200809

46.14

2009

46.76

200910

47.42

2010

45.32

201011

45.62

2011

45.64

201112

46.88

2012

54.69

201213

54.31

2013

58.44

201314

60.28

Q12014

61.58

Average for the year

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