Saturday, January 23, 2010

Automobile Industry

Hello Guys...This is in nut shell regarding auto industry.

A well developed transport network indicates a well developed economy. For rapid development a well-developed and well-knit transportation system is essential. As India's transport network is developing at a fast pace, Indian Automobile Industry is growing too. Also, the Automobile industry has strong backward and forward linkages and hence provides employment to a large section of the population. Thus the role of Automobile Industry cannot be overlooked in Indian Economy. All kinds of vehicles are produced by the Automobile Industry. India Automobile Industry includes the manufacture of trucks, buses, passenger cars, defense vehicles, two-wheelers, etc. The industry can be broadly divided into the Car manufacturing , two-wheeler manufacturing and heavy vehicle manufacturing units.
The major Car manufacturer are Hindustan Motors, Maruti Udyog, Fiat India Private Ltd., Ford India Ltd ., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd.,Hyundai Motors India Ltd., Skoda India Private Ltd., Toyota Kirloskar Motor Ltd., to name a few.

The two-wheeler manufacturing is dominated by companies like TVS, Honda Motorcycle & Scooter India (Pvt.) Ltd., Hero Honda, Yamaha, Bajaj, etc. The heavy motors like buses, trucks, defense vehicles, auto rickshaws and other multi-utility vehicles are manufactured by Tata-Telco, Ashok Leyland, Eicher Motors, Bajaj, Mahindra and Mahindra, etc.

Car Manufacturers
Two-wheelers manufacturers
Indian Automobile Market
Latest Launches in India Automobile Market
India Heavy Vehicle Industry
India Heavy Vehicle Companies
India Automobile Insurance
Tata Finance Limited

The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2007, more than 73 million motor vehicles, including cars and commercial vehicles were produced worldwide.
[1] In 2007, a total of 71.9 million new automobiles were sold worldwide: 22.9 million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in Latin America, 2.4 million in the Middle East and 1.4 million in Africa.
[2] The markets in North America and Japan were stagnant, while those in South America and Asia grew strongly. Of the major markets, Russia, Brazil and China saw the most rapid growth. In 2008, with rapidly rising oil prices, industries such as the automotive industry, are experiencing a combination of pricing pressures from raw material costs and changes in consumer buying habits. The industry is also facing increasing external competition from the public transport sector, as consumers re-evaluate their private vehicle usage. The automobile industry in India-the tenth largest in the world with an annual production of approximately 2 million units-is expected to become one of the major global automotive industries in the coming years.
[3] A number of domestic companies produce automobiles in India and the growing presence of multinational investment, too, has led to an increase in overall growth.
[4] Following the economic reforms of 1991 the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions


The first automobile in India rolled in 1897 in Bombay.
India is being recognized as potential emerging auto market.
Foreign players are adding to their investments in Indian auto industry.
Within two-wheelers, motorcycles contribute 80% of the segment size.
Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
Tata Motors dominates over 60% of the Indian commercial vehicle market.
2/3rd of auto component production is consumed directly by OEMs.
India is the largest three-wheeler market in the world.
India is the largest two-wheeler manufacturer in the world.
India is the second largest tractor manufacturer in the world.
India is the fifth largest commercial vehicle manufacturer in the world.
The number one global motorcycle manufacturer is in India.
India is the fourth largest car market in Asia - recently crossed the 1 million mark.


Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the country by the second half of 2008. It would be set up by city-based Prajay Engineers Syndicate in area of more than 35 acres. This 'Autopolis' would have facilities for automobile financing institutions and insurance services to create a complete range of services required for both auto companies and customers. It will also have a multi-purpose convention centre for auto fairs and product launches.

Automobile Industry in Budget 2008
The declarations made by the Indian Union Minister of Finance Mr. P Chidambaram, related the Indian automobile industry during the Union Budget of India 2008-2009 were expected to infuse growth in industry. The automobile industry was one of the focus areas of Budget 2008 due to the high growth in this industry and the much talked about launch of the cheap small car by Tata Motors, the Nano. The initiatives taken by the Ministry to propel growth of this industry were mostly in line with the pre-budget expectations. The reduction in excise duties was welcome by the Indian Automobile industry but it was quick to point out that the much talked about area of Automobile loan was not touched upon.

The Indian automobile industry had mixed reaction towards the Finance Minister's policy for the financial year 2008-2009. The minister proposed reduction of excise duties on small cars from 16% to 12%. However this reduction is not expected to bring down the price of Tata Nano. It is rather expected to add to the profitability of the project.

1 comment:

  1. I have been interested in automobile business. I really like to read your useful summary about automobile industry. Your article is helpful for those people who want to know about automobile business.

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