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A Complete Study About Automobile Industry In India Compiled by: A.Vineeth MBA, Management trainee, Royal sundaram alliance General insurance company, Chennai-14, India.
A Complete Study About Automobile Industry In India
Compiled by:A.Vineeth MBA,
Management trainee,Royal sundaram alliance
General insurance company,Chennai-14, India.
Automotive Market in India
Current Scenario India represents one of the largest two-wheeler markets in the world, with an
estimated size of 5.4 million units a year. India is the two-wheeler capital of Asia with an average of 27 two-wheelers per
thousand people, compared to China's 8 two-wheelers per thousand people. India became the fastest growing car market in the world in 2004, growth rate of
20%.
Overview India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Passenger vehicles sales crossed the mark of 1 million in 2004-05. 2/3rd of auto component production is consumed directly by OEMs.
Cars by Price Range
Under Rs. 3 Lakhs
Maruti 800, Alto, Omni
Reva
Rs. 3-5 Lakhs
Ambassador Fiat Palio Hyundai Santro, Getz Chevrolet Opel Corsa Maruti Zen, Wagon R, Versa, Esteem, Gypsy Ford Icon & Fiesta Tata Indica, Indigo
Mahindra Bolero
Rs. 5-10 Lakhs
Chevrolet Swing, Optra, Tavera Hyundai Accent, Elantra Mahindra Scorpio Maruti Baleno Toyota Corolla, Innova Tata Safari Mitsubishi Lancer, Lancer Cedia
Honda City
Rs. 10-15 Lakhs Ford Mondeo & Endeavour Chevrolet Forester Skoda Octavia Classic & Combi
Honda Civic & CR-V
Rs. 15-30 Lakh
Maruti Suzuki Grand Vitara Hyundai Sonata Embera, Terracan & Tucson Mitsubishi Pajero Audi A4 Opel Vectra Honda Accord Mercedes C Class
Toyota Camry
Rs. 30-90 Lakhs
Audi A6, A8 & TT BMW X5, 5 Series & 7 Series Mercedes E Class, S Class, SLK, SL & CLS-Class Porsche Boxster, Cayenne, 911 Carrera & Cayman S
Toyota Prado
Above Rs. 1 Crore
Bentley Arnage, Continental GT & Flying Spur Rolls Royce Phantom
Maybach The segregation is made on Ex-Showroom price of base models.
Industry GrowthIndian Auto Market Growth for the year 2004-05
The automobile industry crossed a landmark with total vehicle production of 10 million units.
Car sales was 8,82,094 units against 8,20,179 units in 2004-05. The two-wheeler market grew by 13.6 per cent with 70,56,317 units against
62,09,765 units in 2004-05. Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against
3,18,430 units in 2004-05 The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as
against 78,97,629 units in 2004-05. According to the Society of Indian Automobile Manufacturers (SIAM), car sales
was 8,82,094 units against 8,20,179 units in 2004-05. The growth of domestic passenger car market was 7.5 per cent Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05. The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units
against 62,09,765 units in 2004-05. Motorcycles had the upward march, 17.1 per cent in domestic market touching
58,15,417 units against 49,64,753 units in 2004-05.
Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units in 2004-05.
Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05.
Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23 per cent growth in the year ended March 31, 2005.
Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units against 1,19,924 units in 2004-05.
Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862 units in 2004-05.
Production of 4-Wheelers
Manufacturers2005-06 (Apr-Mar)In Nos.
Manufacturers2005-06 (Apr-Mar)In Nos.
Japanese OEM Korean OEM
Maruti Udyog Ltd. 572,097 Hyundai Motor India Ltd. 260,440
Toyota Kirloskar Motor Pvt. Ltd. 44,975 American OEM
Honda Siel Cars India Ltd. 41,361 General Motors India Pvt. Ltd. 30,687
Swaraj Mazda Ltd. 11,946 Ford India Pvt. Ltd. 26,946
Total 670,379 Total 57,633
European OEM Indian OEM
Skoda Auto India Pvt. Ltd. 9.767 Tata Motors Ltd. 449,878
Daimler Chrysler India Pvt. Ltd. 1,780 Mahindra & Mahindra Ltd. 128,601
Volvo India Pvt. Ltd. 1,004 Ashok Leyland Ltd. 65,085
Tatra Trucks India Ltd. 125 Force Motors Ltd. 35,728
Fiat India Pvt. Ltd. 671 Eicher Motors Ltd. 24,348
Hindustan Motors Ltd. 15,458
Total 13,347 Total 719,098
Production of 2-Wheelers
Manufacturers
2005-06 (Apr-Mar)In Nos.
Manufacturers2005-06 (Apr-Mar)In Nos.
Japanese Indian
Hero Honda Motors Ltd. 3,006,486 Bajaj Auto Ltd. 2,042,289
Honda Motorcycle & Scooter India (Pvt.) Ltd. 603,436 TVS Motor Company Ltd. 1,366,866
Yamaha Motors India Pvt. Ltd. 248,665 LML Ltd. 107,044
Suzuki Motorcycle India Pvt. Ltd. 2,328 Kinetic Engineering Ltd. 82,392
Majestic Auto Ltd. 56,819
Kinetic Motor Company Ltd. 53,880
Royal Enfield (Unit of Eicher Ltd.) 30,596
Total 3,860,915 Total 3,739,886
Domestic Sales
The half yearly figures (April-September 2007 over April-September 2006) indicate that domestic sales of automobiles decelerated with a negative growth rate of 5.91 percent. The cumulative growth of the Passenger Vehicles segment during April-September 2007 was 12.86 percent. Passenger Cars grew by 13.16 percent, Multi Purpose Vehicles by 19.95 percent and Utility Vehicles by 8.71 percent in April-September 2007 compared to the same period last year. In April-September 2007, the Commercial Vehicles segment grew by 2.92 percent over the same period in 2006. Light Commercial Vehicles recorded a growth of 14.75 percent; however, Medium & Heavy Commercial Vehicles witnessed a fall by 5.18 percent. Bus segment registered a growth of 41.39 percent while truck segment registered a decline by 2.25 percent. Three Wheelers sales fell by 6.87 percent with sales of both Goods Carriers decreasing the highest, by 15.76 percent and Passenger Carriers by 0.57 percent during the period.
Two Wheeler sales registered a negative growth of 9.47 percent during April-September 2007 over April-September 2006. Though Mopeds and Scooters grew by 22.37 percent and 20.13 percent respectively, Motorcycles and Electric Two Wheelers registered a negative growth rate of 15.20 percent and 10.74 percent respectively. Exports Automobile Exports grew by 17.13 percent during April-September 2007 over the same period last year.
Exports were led by Two Wheelers, which grew by 22.98 percent, followed by Commercial Vehicles exports at 16.53 percent and Three Wheelers exports at 11.59 percent. Passenger Vehicles Exports grew marginally with a growth rate of 1.48 percent.
Turnover of Automobile Industry 1999-00 to 2004-05
Turnover of Automobile Manufacturers
Year (Rs.In Million)
1999-00 422,933
2000-01 492,024
2001-02 499,136
2002-03 595,184
2003-04 661,769
2004-05 835,851
Installed Capacities in the Indian Automobile Industry 2003-04
2003-2004 2004-2005
Installed Capacity (In Million) Installed Capacity (In Million)
a) Four Wheelers 1.51 a) Four Wheelers 1.72
b) Two &Three Wheelers 7.83 b) Two &Three Wheelers 9.13
c) Engines 0.18 c) Engines 0.18
Market Share
Domestic Market Share for 2006-07
CVs 5
Total Passenger Vehicles 14
Total Two Wheelers 77
Three Wheelers 4
Trends in Automobile Industry
Automobile Domestic Sales Trends (Number of Vehicles)
Category 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07Passenger Cars 509088 541491 696153 820179 882208 1076408Utility Vehicles 104253 113620 146388 176360 194502 220199
MPVs 61775 52087 59555 65033 66366 83091Total
Passenger Vehicles
675116 707198 902096 1061572 1143076 1379698
M&HCVs 89999 115711 161395 198506 207472 275600LCVs 56672 74971 98719 119924 143569 192282Total
Commercial Vehicles
146671 190682 260114 318430 351041 467882
Three Wheelers 200276 231529 284078 307862 359920 403909
Scooters 908268 825648 886295 922428 909051 940673Motorcycles 2887194 3647493 4170445 4964753 5810599 6553664
Mopeds 408263 338985 307509 322584 332741 355870Electrict Two
Wheelers - - - - - 7341
Total Two Wheelers 4203725 4812126 5364249 6209765 7052391 7857548
Grand Total 5225788 5941535 6810537 7897629 8906428 10109037
Automobile Production Trends (Number of Vehicles)
Category 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07Passenger Cars 500301 557410 782562 960487 1046133 1238032Utility Vehicles 105667 114479 146325 182018 196506 222111
MPVs 63751 51441 60673 67371 66661 84707Total Passenger
Vehicels 669719 723330 989560 1209876 1309300 1544850
M&HCVs 96752 120502 166123 214807 219295 294266
LCVs 65756 83195 108917 138896 171788 225734Total
Commercial Vehicles
162508 203697 275040 353703 391083 520000
Three Wheelers 212748 276719 356223 374445 434423 556124Scooters 937506 848434 935279 987498 1021013 943974
Motorcycles 2906323 3876175 4355168 5193894 6207690 7112225Mopeds 427498 351612 332294 348437 379994 379987
Electrict Two Wheelers - - - - - 7982
Total Two Wheelers 4271327 5076221 5622741 6529829 7608697 8444168
Grand Total 5316302 6279967 7243564 8467853 9743503 11065142
Automobile Exports Trends (Number of Vehicles)Category 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Passenger Cars 49273 70263 125320 160670 169990 192745Utility Vehicles 3077 1177 3049 4505 4489 4403
MPVs 815 565 922 1227 1093 1330Total Passenger
Vehicles 53165 72005 129291 166402 175572 198478
M&HCVs 4824 5638 8188 13474 14078 18838LCVs 7046 6617 9244 16466 26522 30928Total
Commercial Vehicles
11870 12255 17432 29940 40600 49766
Three Wheelers 15462 43366 68144 66795 76881 143896Scooters 28332 32566 53687 60699 83934 35685
Motorcycles 56880 123725 187287 277123 386054 545887Mopeds 18971 23391 24078 28585 43181 37566
Electrict Two Wheelers - - - - - -
Total Two Wheelers 104183 179682 265052 366407 513169 619138
Grand Total 184680 307308 479919 629544 806222 1011278
Forecasted Growth
The following points are taken from the forecasted statistical report,
Automobile industry expert predicts that by 2050 every sixth car in the world will be for Indians.
By 2010 India will take over Germany in sales volumes and Japan by 2012
The Indian automobile component industry is estimated to triple from USD 63 billion to USD 190 billion within a span of six years by 2012.
Estimated turnover USD 12 billlion, plus components revenue USD 3 billion, this is the vastness of Indian automobile industry. Industry analysts predict this industry to touch USD 13000 million mark by 2010, a cumulative growth of 9.5% annually. It is said that for every Re 1 spent, the auto sector returns Rs. 2.24 to the Indian economy.
By 2010, India is expected to witness over Rs 30,000 crore of investment.
Component industry's growth was only 9% between 1997-2000. But between 2000-2005 it has grown to 20%. It is projected 17% between 2005-2014.
According to estimation the compound annual growth rate (CAGR) of Indian Automobile sales will grow at 9.5% and will touch a mark of 13,008 million by 2010.
