HISTORY

Soon after independence 1947, Government of India tried

to create an automotive component manufacturing
industry in order to supplement the automobile fraternity.
From 1960 to 1980s, the Indian market was dominated by
Hindustan Motors, which gathered a large amount of share
due to its Ambassador model. However, during 1950s till
1960s, the overall industry moved at a slow pace due to
trade restrictions set on imports. Soon after this
repressive phase, demand surged but to a smaller extent,
which was mainly seen in the tractor and commercial
vehicles segment.
It was in 1980s that the two firms, Hindustan Motors and
Premier, were challenged by a new entrant, Maruti Udyog
Limited. Soon after liberalisation period, car makers that
were previously not allowed to invest in Indian market due
to stringent policies arrived in the country. Post
liberalisation, the alliance between Maruti and Suzuki was
the first joint venture between an Indian company and
foreign one. Slowly and steadily, the economic reforms
brought in the led to the entry of major foreign companies
like Hyundai and Honda, which expanded their bases to
the country. From 2000 to 2010, almost every major car
company expanded its presence to India by establishing
manufacturing facilities across different parts of the
country.
As the manufacturing process during early 2000 decade
gained traction, exports of cars was quite slow in that
period. Maruti Suzuki was among the first car brands that
started shipping vehicles to major European markets.
During the same decade, the Government of India
introduced mandatory emission norms in order to reduce
pollution arising out from vehicles. The updated
guidelines were known as 'Bharat Stage' came into effect
 in major cities as these standards were based on
stringent European norms. At present, Bharat Stage IV is
implemented in 13 cities that include Delhi (NCR),
Mumbai, Kolkata, Chennai, Bangalore, Hyderabad,
Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and
Agra while the rest of the nation is still under Bharat Stage
III.
Over the years, the car market in India has evolved by
leaps and bounds as almost all major companies are
present in the country. India has now become a hub for
auto makers to set up their plants for manufacturing
vehicles intended for domestic and international markets.
The three prominent regions in which the majority of
Indian car industry is concentrated lies in south, west and
north. In the southern region, Chennai is the hub for
manufacturing vehicles while Mumbai and Pune belt
comes in second place. For the north, the NCR holds a fair
share as far as concentration of production facilities is
concerned.
To list a few commendable feats of the Indian car
industry, it emerged as the fourth largest exporter of
passenger cars behind Japan, South Korea, and Thailand
in 2009. While in 2010, India emulated its previous year's
performance to become the third largest exporter of cars
in Asia. The biggest reward came for the Indian car
market in 2011 as it became the sixth largest country in
the world in terms of production.

PODUCTION CAPACITY-M
OEM Production Cars Capacity
Capacity Produced Utilization
1 Hyundai 6,80,000 6,48,638 95.39%
2 Maruti 15,00,000 14,20,081 94.67%
Suzuki

3 VW 1,30,000 1,16,578 89.68%

4 Honda 2,40,000 2,00,362 83.48%

5 Nissan 2,00,000 1,52,482 76.24%

6 Toyota 3,10,000 1,46,981 47.41%

7 Ford 4,40,000 1,89,433 43.05%

8 Mahindra 6,20,000 2,45,411 39.58%

9 Tata 7,90,000 1,54,624 19.57%

10 Skoda 89,000 16,154 18.15%

11 Renault 4,80,000 74,337 15.49%

12 GM 2,40,000 34,544 14.39%

13 Force 75,000 3,396 4.53%

14 Fiat 2,00,000 8,787 4.39%

PRODUCTION CLUSTERS-
Manufacturing clusters in India have existed for decades.
‘Clustering’ describes the propensity of manufactures within a
specific industry to locate operations in the same geographic
area.1 A cluster is identified by the product and place where it is
located. Be it the knitwear of Ludhiana, textiles of Tirupur,
diamond cutting and polishing of Surat or pharmaceuticals of
Baddi; industry clusters across India continue to add substance to
the manufacturing sector in the country.

These clusters usually form on the basis of availability of raw

material, skilled labour and other support infrastructure. It is
interesting to note that in all cases where a cluster develops, a
symbiotic relationship can be noticed between manufacturers,
part suppliers, related services and support industries.2 This
holds true for all automobile hubs in India which are presently at
the forefront of the automotive and automotive component
sector’s growth in the country. Contrary to the initial stages of
industrial development in India, when the development of
automobile industry was sporadic, a high level of organization is
visible today.Following automobile clusters are paving a path for
the booming automobile industry in India, all set to reach a market
size of USD 300 Billion by 2026:

CHAKAN, MAHARASHTRA

An auto hub located near Pune city in Maharashtra, Chakan

houses industrial parks developed by Maharashtra Industrial
Development Corporation (MIDC). The well-known auto industry
names in the Chakan Industrial belt include Germany based
Volkswagen and Daimler along with Indian auto majors such as
Mahindra & Mahindra and Bajaj Auto.3Automobile clustering
started in this region due to its proximity to the coast, availability
of power supply, skilled labour pool and exceptional
infrastructure. Chakan’s strategic location helped in the rapid
expansion of industries in the region. Its proximity to Mumbai’s
Jawaharlal Nehru Port Trust (JNPT) and National Highways
connecting important cities in Maharashtra made it attractive to
automobile companies.
ORAGADAM, TAMIL NADU

It was in 1995 when the US automobile giant Ford Motors set up

its plant in Chennai that marked the arrival of the city as an auto
hub.8 Since then, the region hosts plants of BMW, Royal Enfield
and Renault, Hyundai, Mitsubishi and Daimler.9 Tamil Nadu is one
of the top 10 automobile hubs in the world with Chennai having an
installed capacity to produce 1.4 million cars per year.

Innovative business models, ease of doing business and strong

policy support have all contributed to the rise of Chennai as the
automobile hub in the region.11 The region has always welcomed
major auto-players with its superior infrastructure facilities. Three
modern ports in Chennai and one in Tuticorin provide an easy
gateway for exports and imports. Chennai’s strong labour force is
noted to be a significant contributor to its success as an auto
cluster.

NATIONAL CAPITAL REGION CLUSTER (NCR)

This automobile cluster houses Maruti Suzuki, one of the oldest

passenger car makers of India which established its plant at
Gurgaon in 1982.12 The cluster is spread across three states –
Uttar Pradesh, Haryana and Delhi – hosting production facilities
for Honda, Hero Moto Corp, Yamaha and other established players
in the automobile industry.13Apart from manufacturing, the region
also houses R&D and testing facilities at Rohtak and Manesar.
Access to large domestic market, government’s support and
availability of land were major factors which have resulted in the
growth of the automobile sector in the NCR region.14 Delhi and
Haryana have an excellent road network which facilitates faster
transportation of goods from the point of production to the point of
consumption. The industries in Uttar Pradesh have also benefited
out of the 165 km long newly constructed Yamuna Expressway
Industrial Development Authority (YEIDA) which ensures planned
development of areas along the route.15

SANAND, GUJARAT

The automobile revolution in Sanand, a town near Ahmedabad,

Gujarat, began with Tata Motors’ ambitious plant to manufacture
Nano car models in 2010.16 Since then, the 5,000 acre Sanand
Industrial Estate has attracted world renowned automobile majors
such as AMW Motors, Maruti Suzuki, Ford, Honda and Hero
Motocorp.17 18

Sanand boasts of an excellent support infrastructure and is

extremely well connected to the rest of country. railway station is
located at a distance of 35 km. Critical infrastructure including
power, water/gas supply and solid waste disposal facilities are
easily available with simplified application procedures. All of this,
coupled with the state’s enabling policies have made the region a
magnet for the auto industry giants.19 What adds value to the
location is its ability to swiftly meet the demands of the growing
car markets of North and North-West India at a low cost. Sanand is
a part of the Delhi-Mumbai Industrial Corridor – a multi-billion
dollar infrastructure project20 and its connectivity to the major
port of Kandla makes it an ideal export-hub.21

PITHAMPUR, MADHYA PRADESH

Located at a distance of 30 km from the city of Indore, Pithampur

is spread across an area of nearly 2,000 hectares and boasts of an
annual automotive production of USD 500 Million. The cluster
houses 122 medium and large-scale industrial units, more than
455 small-scale industries and auto giants such as Larsen &
Toubro, Eicher, Volvo, Mahindra and Hindustan Motors. Pithampur
has attracted cumulative investment of over USD 1 billion and
today provides employment to approximately 25,000 people. 1
Madhya Pradesh, being the centre of India, enjoys strategic
locational advantages like close proximity to major Indian
automotive markets, including the automotive hub of NCR

Passenger vehicles in India

Passenger vehicle is a motor vehicle designed or adapted
primarily to carry people on highways and streets. It seats a driver
and no more than eight passengers. Most cars, station wagons,
vans, and some pick-up trucks are passenger vehicles

India is the 4th largest passenger vehicle producer in the world. In

2018-19, it produced 4.06 million Cars.[93] Currently , there an
estimated 30 million cars in India.[94]

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 105%
import duty, car-makers such as Alfa Romeo,[95] McLaren,[96]
Pagani,[97] Cadillac,[98] SSC,[99] Zenvo,[100] SEAT,[101]
Smart,[102] Daihatsu,[103] Infiniti,[104] Acura,[105] Spyker,[106]
Lotus,[107] Ariel,[108] Caterham,[109] Peugeot-Citroën,[110]
Mazda,[111] Kia,[112] GAZ,[113] and Proton[114] are in various
stages of official introduction into the Indian automobile industry.
The sale of Passenger Vehicles grew by 2.70 percent in April-
March 2019 over the same period last year. Within the Passenger
Vehicles, the sales of Passenger Cars, Utility Vehicle & Vans grew
by 2.05 percent, 2.08 percent and 13.10 percent respectively in
April-March 2019 over the same period last year.

SALES OF PASSENGER VEHICLES The overall Commercial

Vehicles segment registered a growth of 17.55 percent in April-
March 2019 as compared to the same period last year. Medium &
Heavy Commercial Vehicles (M&HCVs) increased by 14.66
percent and Light Commercial Vehicles grew by 19.46 percent in
April-March 2019 over the same period last year.
 Three Wheelers sales increased by 10.27 percent in April-March
2019 over the same period last year. Within the Three Wheelers,
Passenger Carrier sales registered a growth of 10.62 percent and
Goods Carrier grew by 8.75 percent in April-March 2019 over
April-March 2018.

Two Wheelers sales registered a growth at 4.86 percent in April-

March 2019 over April-March 2018. Within the Two Wheelers
segment, Scooters declined by (-) 0.27 percent, whereas
Motorcycles and Mopeds grew by 7.76 percent and 2.41 percent
respectively in April-March 2019 over April-March 2018.

INDIAN AUTOMOTIVE COMPANIES-

500 Rank Company Turnover PAT MCRP CR Assets

7 Tata Motors Ltd. 123222.91 9273.62 56499.77 52209.48

21 Mahindra & Mahindra Ltd. 37026.37 3079.73 49945.17 36926.19

19 Maruti Suzuki India Ltd. 38140.69 2382.37 31475.63 14762.9

41 Hero MotoCorp Ltd. 19669.29 1927.9 40398.63 4447.22

46 Bajaj Auto Ltd. 17008.05 3454.89 46885.69 5154.96

67 Ashok Leyland Ltd. 11133.04 631.3 6653.15 6621.16

101 Sundaram Clayton Ltd. 7419.41 64.63 529.23 2428.87

110 TVS Motor Company Ltd. 6569.99 127.94 2985 1745.06

148 Eicher Motors Ltd. 5138.64 243.12 4448.27 474.14

396 Force Motors Ltd. 1574.05 58.62 730.05 583

About Top Automobile Companies in India

 Tata Motors-Tata Motors is the largest automobile company

of Asia headquartered in Mumbai, India. Annual Projected
revenue for 2010-11 is US$ 27.629 billion. It also occupies
the number one position in commercial car segment. Tata
Motors enjoys 31.2% of market share in the multi-utility
vehicles, which in luxury car segment, it has 6.4% market
share.
 Maruti Suzuki India Limited (MSIL) -Maruti Suzuki India is an
undisputed leader in the Indian automobile industry. Started
its journey in February 1981 as Maurti Udyog Limited, the
company created history in the Indian automobile market
with its hugely popular four-wheeler model Maruti 800. The
company became the first Indian automobile company to
manufacture one million vehicles in 1994. The company
became Maruti Suzuki India Limited on September 17, 2007.
 Hyundai Motor India Limited (HMIL) -Hyundai Motor India
Limited, founded in 1998 and a subsidiary of Korean auto
giant Hyundai Motor Company, is the second largest car
manufacturer in India. It is also country's largest passenger
car exporter. Hyundai Motor came very close to the hearts of
the Indian auto lovers through its flagship model Santro.
 Mahindra & Mahindra Limited (M&M)-Mahindra &Mahindra
Limited is another auto-giant in India. A part of the Mahindra
Group, M&M is the largest SUV maker in the country. In
September 2009, M&M registered a domestic sale of record
26,921 units, comparing to 22,729 units in September 2008
 (with an increase of 18.4%). On the other hand, it sold 15,296
units of UV in the same period comparing to 10,641 units in
September 2008 (with a whooping growth of 43.7%).
 General Motors India Private Limited (GM India)-General
Motors India Private Limited is another top player in Indian
automobile industry. A wholly-owned subsidiary of the auto
giant General Motors, GM India saw a Y-o-Y sales growth of
49% in September 2009 with a sale of 7,654 units, comparing
to 5,154 units in September 2008.
 Hero MotoCorp Limited -Hero Honda Motors Limited, the
joint venture between Hero Group and Honda, was the
biggest two-wheeler manufacturers in the world. It shook the
Indian two-wheeler market with its famous model Hero
Honda Splendor, which became the largest selling
motorcycle in the world. It consistently sold more than 1
million units of Splendors every year.In 2008-09, Hero Honda
sold about 3.28 million bikes and registered a net profit of `
1281.7 crore.
 Bajaj Auto -Bajaj Auto is the second largest two-wheeler
manufacturer in India. It is also the fourth largest two and
three-wheeler maker in the world. In September 2009, Bajaj
Auto sold 249,795 units of two-wheelers, comparing to
218,494 units in September 2008 (with a growth rate of
14.3%). During September 2009, it also registered a growth
of 12.4% in the domestic two-wheeler sales and 19.9% in two-
wheeler export.
 Honda Cars India Limited-Honda Siel Cars India Limited, a
joint venture between the Japanese auto giant Honda Motor
Company Limited and the Indian company Siel Limited,
started its operation in December 1995. In September 2009,
HSCI sold 5,794 units, comparing to 3,104 units in
September 2008 (with a growth rate of 86.7%).
  Toyota Kirloskar Motor Private Limited (TKM)-Toyota
Kirloskar Motor Private Limited is another top Indian
automobile company. A joint venture between the Japanese
auto giant Toyota Motor Corporation and Kirloskar Group,
TKM has a number of car models including Innova, Corolla,
Fortuner, Camry and the Land Cruiser Prado. It sold 7,657
units in December 2009..
 Hindustan Motors-Hindustan Motors is another top
automobile company in India. It was once country's largest
car manufacturer before Maruti Udyog overpowered it. Its
popular model Ambassador' has been extensively used as
government limousine as well as taxi cab in India.

Foreign automotive companies in India

Hyundai, Renault, Nissan, Datsun, Mitsubishi, Ford, Fiat, Honda,
Toyota, Volkswagen, Skoda, Audi, Jaguar, Land Rover, Mercedes-Benz,
BMW and MINI are the foreign automotive companies that manufacture
and market their products in India.
Vehicles currently manufactured in India

Manufactured only in Chennai, India, the i10 is one of Hyundai's best

selling globally exported cars.

 Audi India: A3, A4, A6, A8, Q3, Q5, Q7.

 BMW India:[125] 1 Series, 3 Series, 3 Series GT, 5 Series, 7
Series, X1, X3, X4, X5.
 Datsun: Go, Go+, Redi-Go
 Fiat India: Punto, Linea, Avventura, Urban Cross.
 Ford India:[126] Figo, Figo Aspire,
Freestyle, Ecosport, Endeavour.
 Honda Cars India Limited:[127] Brio, Jazz, Amaze, BR-
V, City, WR-V.
 Hyundai Motor
India:[128] Eon, i10, i20, Xcent, Verna, Elantra, Creta, Tucson.
 Isuzu:[129][130] MU-7, V-Cross.
 Jaguar (Subsidiary of Tata Motors):[131] XE, XF, XJ.
 Jeep India: Compass.
 Land Rover (Subsidiary of Tata Motors):[132] Discovery
Sport, Range Rover Evoque.
 Mercedes-Benz India:[133] A-Class, C-Class, E-Class, GLA-
Class, GLE-Class, GLC-Class, S-Class.
 MINI:[134] Countryman.
 Mitsubishi[135] (in collaboration with Hindustan
Motors):[136]Pajero.
 Nissan Motor India:[137] Micra, Sunny, Terrano.
 Renault India:[138][139][140] Captur, Duster, Kwid, Lodgy.
 Škoda Auto India:[141][142] Rapid, Octavia, Superb, Kodiaq.
 Toyota Kirloskar:[143] Etios Liva, Etios, Corolla Altis, Innova
Crysta, Fortuner, Camry, Yaris.
 Volkswagen India:[144][145] Polo, Vento, Ameo, Tiguan, Passat.

Opel was present in India until 2006. As of 2013, Opel only

provides spare parts and vehicle servicing to existing Opel vehicle
owners.
General Motors India stopped producing passenger cars for the
Indian market in late 2017. It however continues to produce
vehicles for export to other markets.

Major Commercial vehicle Manufacturers in India

The key players in the heavy commercial vehicles sector in India

are:
Tata Motors: Leading commercial vehicles manufacturer, Tata
Motors offers an array of CVs namely, Tata Se 1613, Tata Sk 1613,
Tata LPT 1613, etc. The company provides an assortment of other
alternatives and modifications for the buyers. The player has an
industrial joint venture with the Russian based internationally
acknowledged CV manufacture, Volvo. In associated with Volvo,
Tata Motors has introduced Volvo FH12-340 and Volvo FH12-420
for its Indian customers.
Tata Motors has the credit of being Indian foremost firm to
indigenous automobile, besides manufacturing Luxury Buses,
Tractors and Trucks under Commercial vehicle sector.

Ashok Leyland: Initiated in 1948, Ashok Leyland has always been

associated with tie-ups with renowned conglomerates. Since its
initiation the sector has manufactured around 375,000 vehicles for
its customers giving a tough competition to Tata Motors. The firm
has launched vehicles like Hippo Tipper, Cargo 1512, Comet
Tipper, Cargo 909, etc. in the market and is incessantly working
on enhanced versions and attributes on its commercial vehicles.

Swaraj Mazda: A north India CV producer, swaraj Mazda is a tie-up

between Swaraj and Japanese auto manufacturer Mazda and has
product like Super ZT 54 to its credit.

Bajaj Tempo: Besides two-wheelers, Bajaj Tempo also produces

tremendously strong heavy commercial vehicles to suit the Indian
roads. The tempos manufactured by the firm helps in delivering
sizeable loads to their destinations and also act as a reasonable
option to the ubiquitous travelers.

JOINT VENTURE BRANDS-

 Ashok Leyland[176] - originally a JV between Ashok Motors
(owned by the Hinduja Group) and Leyland Motors, now joint
ventures between Ashok Leyland and Nissan Motors (Japan)
for LCV's; and John Deere (USA) for construction
equipment.[177]
 KaMAZ Vectra[178] - A JV between Russia's KaMAZ and the
Vectra Group
 MAN Force - A JV between Force Motors and MAN AG
(Germany)
 SML Isuzu - originally, as Swaraj Mazda, a JV between
Punjab Tractors and Mazda, now 53.5% owned by Sumitomo
Group and with its current name since 2011.[179]
  Tatra Vectra Motors Ltd - (defunct) Initial truck partnership
with India by Vectra. Replaced by Kamaz. Tatra trucks for
sale in India are now manufactured in collaboration with
Bharat Earth Movers Limited.
 VE Commercial Vehicles Limited[180] - VE Commercial
Vehicles limited - A JV between Volvo Group and Eicher
Motors Limited.
 Maruti Suzuki - A joint venture of Indian Maruti and Japanese
Suzuki.

Foreign-owned brands-
 J. C. Bamford (JCB) (Owned by British multinational
corporation J. C. Bamford).
 BharatBenz (Owned by Daimler AG of Germany and affiliated
with Daimler's Fuso and Mercedes-Benz brands)[181]
 Caterpillar Inc.[182]
 DAF[183]
 Hino[184]
 Isuzu[185]
 Iveco[186]
 MAN
 Mercedes-Benz[187] - manufactures luxury coaches in India.
 Piaggio[188]
 Rosenbauer.[189]
 Scania[190]
 Tatra.[191]
 Volvo.[192]