chapter: 1 introduction and overview of indian...

Chapter 1 Introduction and Overview of Indian Automobile Industry

A STUDY OF ECONOMIC VALUE ADDED BASED PERFORMANCE MEASUREMENT OF SELECTED AUTOMOBILE COMPANIES IN INDIA

1

Chapter: 1 Introduction and Overview of Indian Automobile Industry

1.1 About Indian Economy

1.2 Introduction about Automobile Sector in India

1.3 Imported Car Brand in India

1.4 Passenger Car/Utility Vehicle Manufacturers in India

1.5 Two Wheeler Manufacturers

1.6 Market share of Indian automobile industry by volume

1.7 Indian Automobile Export market

1.8 Passenger vehicle exports from India

1.9 Passenger vehicle production in India

1.10 SWOT Analysis

1.11 Key Players in Indian Auto Mobile Industry

1.12 Factors determining the growth of the industry

1.13 Investments

1.14 Market size

1.15 Government Initiatives

1.16 Employment Opportunities

1.17 Employment Trends

1.18 FDI in Indian automobile industry

1.19 Future Trends in the Automobile Industry



2

1.1 About Indian Economy:

In 2014-15, the Indian economy is poised to overcome the 5 percent growth of Gross

Domestic Product (GDP) witnessed over the last two years. The growth slowdown

in the last two years was broad based, affecting in particular the industry sector.

Inflation too declined during this period, but continued to be above the comfort

zone, owing primarily to the elevated level of food inflation. Yet, the developments

on the macro stabilization front, particularly the dramatic improvement in the

external economic situation with the Current Account Deficit (CAD) declining to

manageable levels after two years of worryingly high levels was the redeeming

feature of 2013-14. The fiscal deficit of the Centre as a proportion of GDP also

declined for the second year in a row as per the announced medium term policy

stance. Reflecting the above and the expectations of a change for the better, financial

markets have surged. Moderation in inflation would help ease the monetary policy

stance and revive the confidence of investors, and with the global economy expected

to recover moderately, particularly on account of performance in some advanced

economies, the economy can look forward to better growth prospects in 2014-15 and

beyond.

The drop in industrial growth had been mainly owing to deceleration in

manufacturing as it constitutes about 60 percent of industry GDP. In addition to a

slowdown in fixed investment, several domestic and external factors such as higher

interest, infrastructure bottlenecks, inflationary pressure leading to rising input costs,

drop in domestic and external demand for some sectors have together contributed to

low growth in the manufacturing sector. In contrast, world manufacturing gained

strength in 2013-14. One possible reason for the contrasting performance of Indian

and global manufacturing production is the upsurge in demand for consumer

durables such as motor vehicles in the industrialized economies. The consumer

durables segment index contracted by 12.2 percent in 2013-14 as against a growth of

2.0 percent during the previous year. The consumer durables segment, in particular

the automotive sector, in India is constrained by a limited domestic market owing to

low per capita income. Major items in the consumer durables basket of the IIP that

declined during 2013-14 are gems and jewellery, passenger cars, colour TV sets, and

telephone instruments. The gems and jewellery segment suffered partly due to



3

restrictive gold imports. The consumer non-durables segment index increased by 5.0

percent in 2013-14 in comparison with 2.8 percent rise registered in the previous

year. The food products sub group index, consisting mainly of consumer non-

durables, declined by 1.1 percent on account of 8.2 percent decline in sugar

production in 2013-14. The intermediate goods index has shown 3.1 percent

increase in 2013- 14 as compared to 1.6 percent in the previous financial year. The

performance of basic goods remained more or less the same as in the previous year.

The external sector witnessed a remarkable turnaround after the first quarter of

2013-14, and the year ended with a CAD of 1.7 percent of GDP as against 4.7

percent in 2012-13. After plummeting to 68.36 per US dollar on 28 August 2013,

triggered by the expected taper of quantitative easing in the United States, the rupee

gradually strengthened and the year ended with the exchange rate averaging 61 per

US dollar in March 2014, owing to measures taken by the government and the

Reserve Bank of India (RBI). Foreign exchange reserves increased by nearly US$ 40

billion from US$ 275 billion in early September 2013 to US$ 314.9 billion on 20

June 2014. These developments on external account have generated some optimism

that the Indian economy is better prepared to confront the challenges of global

policy reversals, including tapering of quantitative easing in the US. Improvement is

also observed on the fiscal front, with the fiscal deficit declining from 5.7 percent of

GDP in 2011-12 to 4.9 percent in 2012-13 and 4.5 percent in 2013-14. Much of this

improvement has been achieved by reduction in expenditure rather than from

increased revenue. Nevertheless, the corrections in fiscal and current account

deficits augur well for macroeconomic stabilization.

The last two years were particularly disappointing for the manufacturing sector, with

growth averaging 0.2 percent per annum. The decline has been quite broad based, as

per data from the Index of Industrial Production (IIP). Decline in the growth rate for

basic goods continued for the third year in succession in 2013-14. Output of capital

goods declined for the third year in a row starting 2011-12. Contraction of 12.2

percent in the consumer durables segment was observed in 2013-14. Only

intermediate and non-durable consumer goods registered higher growth rate in 2013-

14 vis-a-vis 2012-13. Following close to double-digit growth between 2004-05 and

2011-12, the construction sector lost momentum in the last two years. Taken



4

together with the trends in capital goods, the slowdown in construction activity

reflects subdued business sentiments.

The data on manufacturing growth during the last two years need to be interpreted

with care, given the possibility of revisions by the CSO. The initial estimates of

value added in manufacturing sector are based on the IIP, while the second and third

revised estimates are based on more detailed data from the Annual Survey of

Industries (ASI). For example, as per the National Accounts Statistics, the growth

rate of manufacturing for 2011-12 was revised to 7.4 percent in the second revised

estimates (released in January 2014) from 2.7 percent estimated earlier as ASI data

for 2011-12 became available only in the second half of 2013.

Table: 1 Growth in GDP at Factor Cost at Constant (2004-05) Prices (percent)

Sector 2007-2008

2008-2009

2009-2010

2010-2011

2011-2012 (2R)

2012-2013 (1R)

2013-2014 (PE)

Agriculture, Forestry & Fishing

5.8 0.1 0.8 8.6 5.0 1.4 4.7

Mining & Quarrying

3.7 2.1 5.9 6.5 0.1 -2.2 -1.4

Manufacturing 10.3 4.3 11.3 8.9 7.4 11 -0.7 Electricity, Gas & Water Supply

8.3 4.6 6.2 5.3 8.4 2.3 5.9

Construction 10.8 5.3 6.7 5.7 10.8 1.1 1.6 Trade, Hotels, Transport, Storage & Communication

10.9 7.5 10.4 12.2 4.3 5.1 3.0

Financing, Insurance, Real Estate & Business Services

12.0 12.0 9.7 10.0 11.3 10.9 12.9

Community, Social & Personal Services

6.9 12.5 11.7 4.2 4.9 5.3 5.6

GDP at factor cost

9.3 6.7 8.6 8.9 6.7 4.5 4.7

Note: 2R: Second Revised, 1R: First Revised, PE: Provisional Estimate

Sources: http://indiabudget.nic.in/es2013-14/echap-01.pdf



5

Sector-wise analysis of industrial performance shows that the key reasons for poor

performance have been contraction in mining activities and deceleration in

manufacturing output. Manufacturing and mining sector GDP declined by 0.7

percent and 1.4 percent respectively in 2013-14. The underlying cause of the poor

performance of these two sectors has been considerable deceleration in investment

particularly by the private corporate sector during 2011-12 and 2012-13, a trend that

appears to be continuing as the overall Gross Fixed Capital Formation (GFCF) has

further declined during 2013-14. Registered manufacturing activities constitute

about two-thirds of manufacturing and the remaining one-third consists of

unregistered manufacturing activities. It has been observed that the share of

unregistered manufacturing in GDP has been declining over time. While the share of

registered manufacturing in GDP has increased from about 9.8 percent in 2004-05 to

11.2 percent in 2012-13, the share of unregistered manufacturing has declined from

5.4 percent in 2004-05 to 4.5 percent in 2012-13.

Figure: 1 Sector-wise Growth of Industry GDP (percent)

Source: http://indiabudget.nic.in/es2013-14/echap-09.pdf



6

Table: 2 Sectoral Share in GDP (percent)

Sector 1999-2000 2007-2008 2012-2013 2013-

2014 (P) Agriculture & Allied 23.2 16.8 13.9 13.9 Industry Mining Manufacturing -Registered Manufacturing -Unregistered Manufacturing

26.8 3.0

15.0 9.2 5.8

28.7 2.5

16.1 10.7

5.4

27.3 2.0

15.8 11.2

4.5

26.1 1.9

14.9 NA NA

Services Trade, Hotels, Transport and Communication Financing, Insurance, Real Estate and Business Services Community, Social and Personal Services

50.0 21.2

14.5

14.4

54.4 25.9

16.1

12.4

58.8 26.9

19.1

12.8

59.9 26.4

20.6

12.9

Sources: Calculated from National Accounts Statistics, CSO

P- Provisional NA- Not Available

Note: Industry includes electricity, gas& water supply and Construction sectors that

are not indicated in the table.

Sources: http://indiabudget.nic.in/es2013-14/echap-01.pdf

Further, slowdown in construction activities has resulted in capacity underutilization

in the steel and cement sectors. Steel and cement consumption rise by just 0.6

percent and 3.0 percent respectively in 2013-14. Also, for the first time since 2001-

02, diesel consumption contracted by 0.3 percent during the year. Demand side

constraints, along with a combination of other factors, have resulted in contraction in

output of the capital goods and consumer durables sectors. The two key

manufacturing sub-sectors that had hitherto shown steady growth, namely the

automotive and export oriented gems and jewellery sectors, have posted negative

growth rates during 2013-14. The positive highlights of 2013-14 were robust growth

in textiles and electrical equipment as well as electricity generation notwithstanding

capacity underutilization owing to fuel supply bottlenecks.

In the sections that follow, the performance of key industrial sectors and sub-sectors

is examined, based on the latest Index of Industrial Production (IIP) estimates. IIP-

based estimates are meant to serve as quick estimates of industrial performance and



7

are not seasonally adjusted; therefore the data tends to overlook fluctuations or

calendar effects. These estimates are not strictly comparable to annual ASI-based

estimates or monthly HSBC India Manufacturing Purchase Managers’ Indices

(PMI).

1.2 Introduction about Automobile Sector in India:

India was the sixth largest motor vehicle/car manufacturer in the world in 2013.

Indian auto manufacturers produced a record 20.4 million motor vehicles in 2011-12

(March-April). 3.124 million passenger vehicles rolled out from Indian auto plants

in 2011-12. India is the largest manufacturer of three-wheelers (8,78 ,000 in 2011-

12) and the eighth largest commercial vehicle (9,12 ,000 in 2011-12) while two-

wheeler production reached 15.45 million units. India is the largest tractor

manufacturing country (around 1/3 of global output) with a total estimated

production of 605,000 units in 2011-12. Construction vehicle production was

approx. 48 000 in 2010-11. 2.55 million Passengers cars were sold in India in 2013.

India is the second largest motorcycle (6.54 million produced in 2007-08) and the

fourth largest commercial vehicle manufacturer in the world. Auto exports amounted

to almost USD 2.3 billion in the year 2005-06. Over 13 million people work directly

or indirectly in the auto industry. Indian car exports amounted to 5,50,000 units in

2013-14. Hyundai India was the largest exporter of cars at 2,33 ,000 units followed

by Nissan (116 000 cars), Maruti Suzuki (1,00,000 cars) and Toyota Kirloskar

(27000 cars). Motorcycle exports amounted to 1.98 million units along with 94,000

scooters.

The total turnover of the Indian automotive component industry was estimated at

USD 35 billion in 2013-14. Auto ancillary exports fetched USD 10.2 billion in the

same year while the total turnover of India's vehicle tyre industry amounted to an

estimated Rs 450 billion in 2013-14. The total number of registered motor vehicles

on Indian roads reached 160 million in 2012 of which over 21.5 million were cars,

taxis and jeeps.

Established auto manufacturers and new entrants in the Indian auto market are

expanding their production capacities on a large scale. Companies undergoing



8

expansion include Maruti-Suzuki, General Motors (GM), Tata Motors, Volks

Wagon(VW) Group, Toyota, Honda and Hyundai. The Renault-Nissan Alliance's

maiden auto plant near Chennai commenced it’s production in 2010. A second plant

is planned. New auto makers planning to enter the Indian market include Isuzu, Jeep

and possibly Mazda.

The Indian automobile industry seems to come a long way since the first car that

was manufactured in Mumbai in 1898. The automobile sector today is one of the key

sectors of the country contributing majorly to the economy of India. The automobile

industry is one of India’s most vibrant and growing industries. This industry

accounts for 22 percent of the country's manufacturing Gross Domestic Product

(GDP). The auto sector is one of the biggest job creators, both directly and

indirectly. It is estimated that every job created in an auto company leads to three to

five indirect ancillary jobs.

India's domestic market and its growth potential have been a big attraction for many

global automakers. India is presently the world's third largest exporter of two-

wheelers after China and Japan. Two-wheeler sales are projected to rise from 15.9

million in FY 2013 to 34 million by FY 2020. The segment registered a growth of

7.31 percent in FY 2014. Furthermore, passenger vehicle sales are expected to

increase to 8.6 million in FY 2021 from 3.2 million in FY 2013. According to a

report by Standard Chartered Bank, India is likely to overtake Thailand in global

auto-export market share by the year 2020. Strong growth in demand due to rising

income, growing middle class, and a young population is likely to propel India

among the world's top five auto manufacturers by 2015. Automobile export volumes

increased at a Compound Annual Growth Rate (CAGR) of 19.1 percent during FY

2005-2013, out of which two-wheelers accounted for the largest share in exports at

67 percent in FY 2013.

Domestic Motor Vehicle Sales (2013):

Passenger Vehicles: 1.81 million units

Commercial Vehicles: 0.69 million units

Two-wheelers: 14.36 million units

Three-wheelers: 0.50 million units



9

TOTAL: 18.10 million units.

The automobiles sector is compartmentalized in four different sectors which are as

follows:

Two-wheelers which comprise of mopeds, scooters, motorcycles and electric

two-wheelers

Passenger Vehicles which include passenger cars, utility vehicles and multi-

purpose vehicles

Commercial Vehicles that are light and medium-heavy vehicles

Three Wheelers that are passenger carriers and goods carriers.

The automobile industry is one of the key drivers that boost the economic growth of

the country. Since the de-licensing of the sector in 1991 and the subsequent opening

up of 100 percent Foreign Direct Investment (FDI) through automatic route, Indian

automobile sector has come a long way. Today, almost every global auto major has

set up facilities in India.

It directly and indirectly provides employment to over 10 million people in the

country. According to the Confederation of Indian Industry, the automobile sector

currently employs over 80 lakh people. An extension in production in the

automobile industry is forecasted, it is likely to rise to Rs. 6,00,000 crores by 2016.

India is the world's second fastest growing auto market and boasts of the sixth

largest automobile industry after China, the US, Germany, Japan and Brazil.

According to Vikas Sehgal, Global Head of automotive industry, Rothschild, the

Indian automobile market, which includes cars, trucks and auto parts, is pegged at

3.5 million units by the end of 2011-12. Rothschild is a UK-based global financial

advisory firm. India's car market is evolving at a great pace. A car is not only a

utility, but also represents aspirations and image of its owner. Hence, auto giants

across the globe are leaving no stone unturned to attract Indian consumers by

offering luxury, value, utility and convenience in their products.

In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the

first automobile to run on roads. This automobile, in fact, was a self-powered, three-

wheeled, military tractor that made the use of a steam engine. The range of the

automobile however was very brick and at the most, it could only run at a stretch for



10

fifteen minutes. In addition these automobiles were not fit for the roads as the steam

engines made them very heavy and large, and required ample starting time. Oliver

Evans was the first to design a steam engine driven automobile in the US. A

stockman Robert Anderson was the first to invent an electric carriage between 1832

& 1839. However, Thomas Davenport of the USA and Scotsman Robert Davidson

were the first to invent more applicable automobiles, making use of non-

rechargeable electric batteries in 1842. Development of roads made travelling

comfortable and as a result, the short ranged electric battery driven automobiles

were no more the best option for travelling over longer distances. The automobile

industry came of age with Henry Ford in 1914 for the bulk production of cars. This

led to the development of the industry and is first began in the assembly lines of his

car factory. The several methods adopted by the ford, made the new invention

popular amongst the rich as well as the masses. According to history, automobile

industry of US, dominated the automobile market around the globe with no notable

competitors. However after the end of the Second World War in 1945, the

automobile industry of other technologically advanced nations such as Japan and

certain European nations gained momentum and within a very short period,

beginning in the early 1980s, the US auto industry was flooded with foreign

automobile companies, especially those of Japan and Germany. The current trend of

the global automobile industry reviews that in developed countries the automobile

industry is stagnating as a result of the drooping car markets, whereas the

automobile industry in developing nations such as India & Brazil, have been

consistently registering higher growth rates every passing year for their flourishing

domestic automobile markets.

The Indian automobile industry has a well established name globally being the

second largest two wheeler market in the world, fourth largest commercial vehicle

market in the world, and eleventh largest passenger car market in the world and

expected to become the third largest automobile market in the world only behind

USA and China. The Indian automobile industry proved to be in good shape in the

last year even after the economic downturn. This was majorly due to the fact of

renewed interest shown by global automobile players like Nissan Motors which

consider India to be a potential market.



11

As far as authorized dealer networks and service stations are concerned Maruti

Suzuki is the most widespread. The other automobile companies are also showing

rapid progression in this field.

Austria based motorcycle manufacturer KTM, the established makers of Harley

Davidson from the US and Mahindra & Mahindra have set up manufacturing bases

in India. Furthermore, according to internal projections by Mercedes Benz

Cars, India is set to become Mercedes Benz’s fastest-growing market worldwide

ahead of China, the US and Europe.

As per the data published by Department of Industrial Policy and Promotion (DIPP),

Ministry of Commerce, Government of India, the cumulative FDI inflows into the

Indian automobile industry during April 2000 to October 2013 was noted to be US$

9,079 million, which amounted to 4% of the total FDI inflows in terms of US $. The

production of compact superbikes is also expected to take place in India. The

country has a mass production base of 16 million two-wheelers and the several

global as well as Indian bike makers are looking forward to use it as an advantage in

order to roll out sports bikes in the 250 cc capacity.

The world standing for the Indian automobile sector, as per the Confederation of the

Indian industry is as follows:

Largest three-wheeler market

Second largest two-wheeler market

Tenth largest passenger car market

Fourth largest tractor market

Fifth largest commercial vehicle market

Fifth largest bus and truck segment

However, the year 2013-2014 has seen a decline in the industry’s otherwise

smooth-running growth. High inflation, soaring interest rates, low consumer

sentiment and rising fuel prices along with economic slowdown are the major

reason for the downturn of the industry.



12

Except for the two-wheelers, all other segments in the industry have been

weakening. There is a negative impact on the automakers and dealers who offered

high discounts in order to push sales. To match the decline in demand, automakers

have resorted to production cuts and lay-offs, due to which capacity utilization for

most automakers remains at a dismal level.

Alternative fuel has the potential to provide for the country's energy demand in the

auto sector as the CNG distribution network in India is expected to rise to 250 cities

in 2018. Also, the luxury car market could register high growth and is expected to

reach 1,50,000 units by 2020.

The growth of the Indian middleclass along with the growth of the economy over the

last few years has resulted in a host of global auto giants setting their foot inside the

Indian Territory. Moreover India also provides trained manpower at competitive

costs making the country a manufacturing hub for many foreign automobile

companies. India proves to be a potential market as compared to most of the other

countries which are witnessing stagnation as far as automobile industry growth is

concerned.

Despite the comprehensive market being under extreme burden, the luxury car

market has observed a robust double-digit hike during the year 2013-2014, as a

result of rewarding new launches at compelling lower price points. Further, with the

measured increases in the price of diesel, the overall market continues to shift

towards petrol-fuelled cars. This has lead to the growth in sales of the 'Mini' segment

of the PV market by of 5.5%.

1.3 Imported Car Brand in India:

Aston Martin: Aston Martin has two dealerships in India, one in Mumbai

and another one in Delhi.

Bentley: Bentley offers five models through its New Delhi showroom,

including the Arnage (RL saloon), Azure convertible, Brooklands coupe (two

allocated to India), Continental GT sports coupe, Continental Flying Spur

sports coupe and the Continental Flying Spur Speed super sedan. Bentley has

sold over 100 cars in India since its launch in 2003. Bentley allocates limited

numbers for each of its markets and sales for in 2008 were estimated 30-35



13

units. Ex-showroom (Delhi) prices range from Rs 16.5 million (Continental

Flying Spur) to Rs 40 million (Brooklands coupe).

Bugatti: Bugatti launched its Veyron 16.4 Grand Sport sports car in October

2010 with a price tag starting at Rs 165 million.

Ferrari/Maserati: National Garage of Mumbai is the dealer for Ferrari and

Maserati cars. Models available include the 430 Modena and Ferrari

Scaglietti and Maserati Quattroporte. A few Maseratis have already been

sold.

Jaguar India: Jaguar offerings include the XF, XJ and XK models. Jaguar

commenced the assembly of its XF in India in January 2013. JLR has sold

close to 2000 cars in the first 8 months of 2013.

Lamborghini: Exclusive Motors is Lamborghini's distributor in India. The

Gallardo, Gallardo Spyder and Murcielago models are available at price tags

of Rs 16.5 million, Rs 18.5 million and Rs 30 million respectively. Six cars

were sold by July 2006. Other Lamborghini models include the Gellardo

Superleggera. Lamborghini sold 11 cars in 2008.

Land Rover India: JLR assembles the Freelander 2 model in India. Other

imported models sold include the Discovery 4 and Range Rover series.

Porsche Cars India Pvt Ltd: Porsche has showrooms in Delhi, Mumbai and

Hyderabad. Chennai and Bengaluru will be the next cities to have Porsche

dealers. Porsche has sold around 650 cars till Oct 2008 (150 in 2008).

Porsche sells Boxter, Cayman, 911 coupe models and the Cayenne SUV

(including the diesel version) in India. The Cayenne is the best selling

Porsche in India. The four door Panamera coupe (price tag range Rs 14

milloin - 20 million) was launched in October 2009. The relatively low

volumes, as with all the more expensive cars sold in India, are partly due to

very steep import duties imposed on imported cars resulting in roughly twice

as hefty price tags on these luxury cars compared to those in the United

States.

Rolls-Royce: Roll-Royce cars are sold through RR dealers located in

Mumbai, Delhi, Hyderabad and Ahmedabad. Rolls-Royce has managed to

sell a dozen or so cars annually during the last few years. India is now RR's

third largest market in the Asia-Pacific region with estimated sales adding



14

upto 250 cars since the marque was relaunched in India in 2005. Earlier

India was a major market for Rolls-Royces. According to John M. Faisal, an

automobile historian, as many as 900 cars with the famous Spirit of Ecstasy

mascot on the bonnet were sold to Indian princes before 1947.

Volvo Car India: Volvo has 13 dealers located in Mumbai, Delhi, Gurgaon,

Bangalore, Ahmedabad, Coimbatore, Ludhiana, Chandigarh, Kochi,

Hyderabad, Pune, Vizag and Chennai. Car models on sale include the S60

and S80 sedans, XC60, XC90 SUV and V40 Cross Country (available Q3/

2013). These car models are priced at approx. Rs 4 million and Rs 5 million

respectively and are imported from Volvo's Gothenburg factory in Sweden.

Volvo sold 811 cars in 2012 and just below 1000 in 2013.

1.4 Passenger Car/Utility Vehicle Manufacturers in India:

Audi India: Audi sells the A4, A7, A8, Q5, Q7, TT, R8 and S/RS models in

India. Audi competes in a niche market along with BMW and Daimler-

Chrysler's Mercedes cars and sold 10 002 cars in 2013. Audi assembles the

A4, A6, Q5 and Q7 models (Q3 assembly is expected to commence in

H1/13) at SkodaAuto's plant located at Aurangabad, Maharashtra while the

other models are imported from Ingolstadt, Germany. Audi cars are available

through 25 dealers across India.

BMW India Pvt. Ltd.: BMW has an assembly plant in Chenglepet located

near Chennai that rolled out its 25,000th BMW car in July 2012. The plant

assembles BMW 3 and 5 series sedans and X1 SUVs while the other

available models are imported. The present local content in the assembled

cars is around 10 per cent. The current annual capacity of the plant is 11,000

cars. BMW imports the 7 series and the X3/X5 SUV's and the new X6 Sport

Activity Coupe. BMW sells its cars through a network of 25 dealers. BMW

launched its two-seater Roadster Z4 sport coupe in Oct 2009. BMW sold

9,375 cars in 2012. New models for 2013 include the 1 Series.

Fiat India Automobiles Ltd. (FIA): Fiat has had a long presence in India.

Prior to Fiat India, Fiat had a technical collaboration with Premier



15

Automobiles; the manufacturer of the Padmini model, a small sedan based

on the third generation Fiat 1100D dated from the early sixties. Fiat India's

earlier products included the Uno, Siena and Palio. Fiat's sales in India

accelerated to 8,401 units during April-July 2010 compared to 8,200 cars

sold in 2008-09. The product like Fiat Linea and Fiat Grande Punto.

Ford India Ltd.: Ford India sold more than 60,000 cars in the January-June

2011 period as compared to 83,887 cars in 2010. Car export destinations

include countries such as South Africa, the Middle East region and a few

European countries. Ford is planning to commission a new auto plant in

Sanand, Gujarat in 2014. The plant would have a capacity to manufacture

upto 2,40,000 cars and 2,70,000 engines.

Ford New Fiesta

Ford Fiesta Classic

Ford Figo 100,000 Figo's have been sold till June 2011.

Ford Endeavour - A 3 litre turbo diesel SUV.

General Motors India Ltd.(GMIL): The capacity of GMIL's

manufacturing planta at Halol (Gujarat) and Talegaon (Maharashtra) have a

combined capacity of 2,25,000 cars per annum. GMIL sold 1,10,804 in 2010.

GM has a design studio center in Bangalore in 2007 where it employs around

1,000 powertrain and vehicle engineers. GM's other investments in India

include the setting up of an engine plant with an annual capacity of 1,60,000

units at Talegaon.

Chevrolet Cruze sedan

Chevrolet Spark min icar

Chevrolet Aveo sedan

Chevrolet Aveo U-VA A 1.2 L hatchback Aveo

Chevrolet Optra Magnum - 1.8 liter premium class sedan in the C-

plus segment of which 9 191 units were sold in 2004.

Chevrolet Tavera 22,000 Tavera MUVs have been sold till date.

Chevrolet Captiva - The Captiva SUV is powered by a 148 bhp 2

liter common-rail diesel engine.



16

Hindustan Motors Ltd.: HM is a Kolkata-based car manufacturer with

manufacturing facilities at Uttarpara (West Bengal), Pithampur (Madhya

Pradesh), Thiruvallur (Tamil Nadu) and Hosur (Karnataka). HM sold 9,211

motor vehicles in 2008-09 including Mitsubishi models. HM manufactures

Mitsubishi Lancers/Cedias, Pajeros, Outlanders and Montero SUV's at its

Thiruvallur plant located near Chennai.

HM-Shifeng Winner HM's new mini-truck with a one ton payload

capacity.

Ambassador (petrol, diesel and CNG) - arguably the most dated car

model being commercially produced as the Ambassador is based on

the early 50's Austin Oxford model. Over 8,00,000 Ambassador's

have been manufactured till date. Despite its dated looks and

technology the Ambassador still sells at 600-700 units per month.

Governmental institutions are a major buyer for the Ambassador.

Ambassador Grand

Ambassador Avigo - The Avigo features most distinctly a new

restyled rounded bonnet and many other minor alterations.

Contessas are now a rare sight on Indian roads. The Contessa's body

is based on the early-seventies Vauxhall Victor (Opel Rekord).

Production of the Contessa spanned two decades from 1982.

Production ended in 2002. The Contessa was one of the few more

luxurious cars built in India (alongwith the Standard Motors'

Standard 2000 model) prior to economic reforms in the early nineties.

Multi-utility vehicles - HM's MUV range includes the Trekker, Porter

and Pushpak models.

RTV - Rural Transport Vehicle. Production has stopped.

Hindustan Motors Ltd. - MITSUBISHI MOTORS: HM manufactures

Mitsubishi Lancers/Cedias, Pajeros, Outlanders and Montero SUV's at its

Thiruvallur plant located near Chennai. The new Lancer is expected to be

launched by April 2010.

Mitsubishi Cedia

Mitsubishi Montero



17

Mitsubishi Outlander

Mitsubishi Pajero - The 3.2 litre Pajero is imported while a 2.8 liter

version is being locally manufactured.

Honda Siel Cars India Ltd. (HSCI): HSCI manufactures the Jazz, Brio,

City, Civic, CR-V and Accord models. HSCI's two auto plants are located in

Surajpur, Greater NOIDA, U.P and Tapukara (Bhiwadi), Rajasthan with a

capacity to manufacture 100,000 cars per annum. Honda-Siel's sales

amounted to 54,427 cars in 2011-12. Honda SIEL has produced over

300,000 cars by August '08. Honda began exporting Brio cars to South

Africa/SADC countries in October 2012.

Honda Amaze Honda's new entry-level sedan to be launched in Apr

2013.

Honda Brio

Honda Accord

Honda Civic The Civic sedan is powered by a 132 PS 1.8 liter petrol

engine.

Honda City This popular sedan has sold over 1,23,000 units since its

launch in 1998.

Honda CR-V Honda manufactures the CR-V model at its Greater

NOIDA plant. A total of almost 13,000 CR-V's have been sold in

India since its launch in 2003.

Honda Jazz - Honda's new supermini hatchback is powered by a 1.2

liter petrol engine with 89 bhp output. Production of the current Jazz

model will end in March 2013 and a new generation version will be

launched in early 2014. Honda has sold 23,000 Jazz cars till

February 2013.

Hyundai Motor India Ltd.: Hyundai Motor India's two adjacent car plants

at Irungattukotai near Chennai have a combined capacity of 600,000 cars per

annum, the parent company's largest auto manufacturing facilities outside of

South Korea. HMIL sold 6,41,281 in 2012, second only to Maruti Suzuki.

HMIL had reached a new milestone in Aug 2010 having produced its 3

millionth car (1.6 million domestic bound and 1 million (February 2010)



18

exported). Hyundai is India's largest car exporter. Hyundai is planning to

make its Indian operations a small car export hub (Santro Xing, Getz, Accent

and i10 models) with in-house research and development. HMIL export base

encompasses some 110 countries across the globe. Domestic auto sales

amounted to 3,91,276 units while exports tallied at 2,50,005 cars in 2012.

i10 - This 1.1 litre A-class car is the first of the new i-series of

models to be launched. Over 3,00,000 (1,44,000 domestic and

156,000 exports) i10's have been produced till mid-March 2009.

i20 - a premium compact car which has become popular both in India

and overseas. 19,000 i20's were shipped to Europe during the

January-March 2009 period. A 1.5l diesel version is expected by end-

2009.

Santro Xing - A 1086 cc 63 bhp 4-door subcompact. HMIL has

produced over a million Santros/Santro Xings till date. Europe is a

major export market where this model is branded as "Hyundai Altos".

Verna HMIL's new mid-size sedan offering.

Accent HMIL's mid-size sedan offering.

Sonata Transform HMIL's D-class car model features a 175 bhp

DOHC engine. A 2.0 l diesel version is also available.

Getz Prime super-B segment car available with 1.1 and 1.3 Litre

petrol engines. A diesel (CDRi) variant will be introduced next year.

Tucson Hyundai's SUV, priced at approx. Rs 1.5 million, features a 2

l Common-rail turbocharged diesel engine.

International Cars And Motors Ltd: ICML, a unit of the Sonalika Group,

manufactures the Rhino MUV. ICML's auto plant is located at Amb,

Himchal Pradesh and has a capacity to produce 24,000 units per annum.

Mahindra & Mahindra: M & M sold 1,78,229 vehicles (breakdown:

1,27,856 utility vehicles, 33,700 three-wheelers and 8,652 light commercial

vehicles) including 8,021 units exported during 2006-07 and recorded net

sales of Rs 82.2 billion in 2005-06. Navistar, North America's largest truck

and Bus Company, has finalised through its operating company,

International Truck and Engine Corporation, a joint venture (Mahindra



19

International) with M&M to produce a range of commercial vehicles from

January 2010. Mahindra launched a completely new MPV, the Xylo, in

January 2009. A new generation SUV, the XUV500, was launched in

October 2011.

XUV500 - Mahindra's most contemporary SUV offering.

Verito - Mahindra produces the newly branded Verito (previously

Renault Logan) sedan from a plant located in Nashik. The plant has

an annual capacity of 50,000 cars. The Verito is available with 1.4 L

and 1.6 L petrol engines and a 1.5 L diesel variant and is

competitively priced. 14,404 Logans were sold in 2008-09.

Xylo - Mahindra's MPV

Scorpio - A stylish sports utility vehicle (SUV) available with diesel,

CRDi (Scorpio 2.6 Turbo) and petrol engines. A new upgrade variant

called the M-Hawk features a 2.2 liter 120 bhp CRD engine. This

variant is expected to be available in export markets as well.

Bolero - features a 63 bhp 2.5 liter turbo diesel engine.

MaXX

Naya Commander 650 DI

Savari

Major

Champion three-wheeler

Maxximo mini truck

Gio mini truck

Thar

Maruti Suzuki India Ltd. (MSIL): MSIL began manufacturing Suzuki

Alto model cars in December 1983 in Gurgaon after which it quickly

overtook both Hindustan Motors and Premier Auto to become India's largest

car manufacturer as early as the mid-eighties. The company's consolidated

income amounted to Rs 375 billion while total auto sales grew to 1.27

million units (incl. 1,38,266 cars exported) in 2010-11 (March- April).

Suzuki Motor Corporation of Japan has a 54.2 % stake in MSIL. MSIL's



20

total auto production had exceeded 10 million in April 2011 and the 10th

million car for the domestic was rolled out in February 2012.

MSIL currently operates four assembly plants including an

auto/transmission/engine plant in Manesar (Haryana) through a joint

venture (Maruti Suzuki Automobiles India) with Suzuki Motor Corp.

MSIL has a total auto manufacturing capacity of 1.55 million units

per annum.

Maruti Kizashi

Maruti Ritz (marketed as the Splash model in overseas markets)

compact hatchback comes with two engine options: a 84 bhp 1.2 liter

petrol and a 74 bhp 1.3 liter diesel engine. Price range (ex-showroom

Delhi): Rs 390,000 to 490,000. The 100,000 production in units mark

for the Ritz was achieved in November 2010.

Maruti A-Star A popular export model, the 100,000 milestone (units

produced) was achieved in August 2009, The A-Star is also exported

under the Nissan brand as the Pixo model.

Maruti SX4 Maruti's newest sedan offering, built on a modified Swift

platform, features a 1.6 liter 102 BHP petrol engine.

Maruti Swift The Swift model is available with a 1.3 liter 86 bhp

petrol engine and a 1.3 liter DDiS diesel engine. A saloon version of

the Swift, the DZire is also available. The DZire replaces the old

Esteem sedan which was launched in 1994. The sedan will be

available with both diesel and petrol engines. Maruti has sold

6,85,000 Swift's till February 2012.

Suzuki Grand Vitara XL 7, imported directly from Japan, is available

with 2.7 liter petrol engine.

Maruti Gypsy King (soft top and hard top) - Suzuki off-road vehicle

(1.3 liter 81 bhp petrol engine).

Maruti Omni - Maruti mini-van offering. Over 1.4 million Omnis

have been produced for the domestic market till February 2012.



21

Maruti Wagon R - a 1061 cc 64 BHP spacious mini car with a high

roof. MSIL has sold over 1.1 million Wagon R s in the domestic

market till February 2012.

Maruti Eeco - a compact Suzuki MPV (sold earlier on as the Versa).

Maruti Alto - Maruti's small car (796 cc 47 BHP petrol engine). The

Alto is exported to various countries around the world and ranks

consistently among India's top selling car models. 1.91 million Altos

have been produced for the domestic market till February 2012 since

the time of the Alto's launch in September 2000.

Maruti Estilo - A 1061 cc car based on the Suzuki MR Wagon. The

Estilo has replaced the Zen model, production of which ended in

March 2006 with total sales amounting to 8,80,000 units since 1993.

Maruti 800 - A 796 cc 3-cylinder mini car (based on the first

generation Suzuki Alto model from the early 1980's) was once India's

best selling car models due to its reasonable price tag and

maintenance costs. Sales figures for this mini car have gradually

decreased (2,345 in April 2009). A total of 2.8 million 800's (2.64

million for the domestic market till February 2012) have been sold

since its launch in Dec 1983. The on-road price of a standard variant

800 model is Rs 2,18,000 in Delhi. An LPG version is also available.

Maruti's sprawling manufacturing complex in Gurgaon has a capacity to

manufacture 7,00,000 cars per year. Maruti's total manufacturing capacity

amounts to 9,00,000 million incl. plants at both Gurgaon and Manesar. Total

car production amounted to 1.02 million units in 2009-10. The total capacity

is expected to increase to 1.1 million by 2011. Maruti Suzuki cars are sold

through 702 outlets in 478 cities and towns across India.

Mercedes-Benz India: Mercedes-Benz India's sales in 2013 amounted to

9,003 cars. Total sales since 1995, starting with the assembly of the E-class

W 124 model, would have crossed 50,000 in January 2014. Mercedes-Benz

India manufactures S-series 320 L , E-series E200, E230 and E250 and C-

series cars. Mercedes-Benz India's local auto component vendors exported

auto parts worth € 80 million in 2004 to Mercedes-Benz plants worldwide.



22

Mercedes-Benz also sells the luxurious May bach sedan in limited numbers

and launched its A-class hatchback in 2013.

Two variants of the heavy-duty imported Actros range of tippers were

launched in 2006. 240 trucks (Actros 4840K) were sold in 2008. Mercedes-

Benz's plant located on a 100 acre site in Chakan, Maharashtra has a capacity

to produce 10,000 cars (to be increased to 20,000) and 1,200 commercial

vehicles per annum.

Nissan Motor India Pvt. Ltd. : Nissan sells its a range of six cars in the

Indian market through a 95 dealer network. Nissan's production in India

includes the manufacture of its new Micra model at its new plant (initial

capacity: 2,00, 000 units per year) located near Chennai. Nissan sold 33,275

cars in 2011-12.

Premier Ltd.: Premier produces a compact SUV called the RIO with total

sales till date (November 2011) amounting to 2000 units. Premier, the

erstwhile manufacturer of the Premier Padmini small sedan made a

comeback with the launch of the RIO mini SUV, based on the Chinese Zotye

Nomad model. The RIO is reasonably priced at less than Rs 5,00,000 and is

powered by the Peugeot TUD5 1.5 l diesel engine. Premier also

manufactures LCV's.

Renault India: Renault India currently sells the Fluence sedan. Renault

launched the Koleos SUV in October 2011 and next in line is the Pulse sub-

compact model.

Renault Nissan Automotive India Pvt. Ltd.: A 50:50 joint venture floated

jointly by Renault and Nissan. A auto plant at Oragadam near Chennai

manufactures Nissan models including the new Micra. Renault manufactures

the mid-sized Fluence sedan and Koleos compact SUV models from the new

plant in 2011. A sub-compact car named as "Pulse" will be launched early

next year.

Mahindra Reva Electric Vehicles Pvt. Ltd.: RECC has introduced a

concept car called the Reva-NXG, designed by Dilip Chhabria. Reva has

sold around 2,500 vehicles as at January 2008. A large portion of Reva's

production has found a home in export markets such as the UK, Norway,

Spain and Italy. The company's car manufacturing capacity, currently at



23

6,000 cars a year, is being expanded to 30,000 per year. The new NXR

model is expected to be launched early 2010.

Skoda Auto India Ltd.: Skoda Auto India's product range includes the

Fabia, Octavia (1st generation), Laura (2nd generation Octavia) and Superb

models. The Fabia, Octavia and Laura models are assembled at Skoda's

Aurangabad plant, Skoda Auto's first auto assembly plant setup outside of

Europe. The Yeti soft-roader was launched in late 2010 and the production of

the Rapid compact car began in October 2011. The current capacity is 50,000

units per annum. Skoda sold 30,005 cars in 2011 through a network of 90

dealers across India.

The Fabia hatchback model, launched in January 2008, has sold 25,000 units

till October 2010. Skoda Auto's plant is also houses the assembly of both the

Volkswagen Passat and Audi A6 models. These two models share the same

platform with the Octavia model. The assembly of VW and Fabia models

will be shifted to new VW plant coming up at Chakan. Skoda Auto India has

sold 1,32,000 cars till the end of 2011.

Tata Motors Ltd.: Tata Motors is India's largest (2011-12 gross revenues -

Rs. 543 billion) and the world's fifth largest medium and heavy commercial

vehicle manufacturer. Tata sold 9,26,000 units during the year ended on

March 2012. Domestic passenger vehicle sales amounted to 2,00,159 units

while commercial vehicles sales added upto 2,65,012 units in 2008-09.

Exports amounted to 33,410 vehicles in the same year. Tata Motors has sold

over one million passenger cars (as in October 2005) since the first model;

the Tata Sierra was introduced in 1991. Tata Motors has begun the

manufacture of the 300 hp Novus range of heavy commercial vehicles in

collaboration with Daewoo Commercial Vehicles at a new plant in

Jamshedpur with an initial capacity of 6000 units per annum. Tata's low-cost

(approximately 2,500 USD) people's car, the 4-door Nano, was unveiled at

the AutoExpo 2008 in Delhi and launched on Mar 23 '09. Tata has invested

approximately Rs 17 billion developing and producing the Nano. A

dedicated auto plant (with an annual production capacity of 2,50,000 units)

for the Nano at Sanand, Gujarat was inaugurated in June 2010. Tata unveiled

the Nano Europa (export variant) and Indica Vista EV (Electric Vehicle) at



24

the 2009 Geneva Motor Show. The Indica Vista EV will be produced in

association with Miljo Grenland/Innovasjon based in Norway. Tata Motor's

UK subsidiary Tata Motors European Technical Centre plc has a 50.3

percent stake in the company specializing in solutions for electric vehicles.

The Indica Vista EV is expected to launched later in 2009 in Norway. Tata

Motors offers a range of Land Rover and Jaguar models (Jaguar XJ, XF, XK

and the Land Rover Freelander 2, Discovery 4, Range Rover Sport and

Range Rover) in India. Tata Marcopolo Motors Ltd. (TMML) manufactures

fully built buses and coaches including low-floor intra-city models. TMML

bus sales amounted to 190 units in 2007-08.

Tata Motors and Ashok Leyland made low-floor buses are used on an

increasing number of bus routes throughout Delhi comprising a fleet of over

600 buses (total bus fleet is 3,850), a few of which are AC CNG buses.

Delhi's first Bus Rapid Transit System (BRTS) pilot route (5.8 kilometer in

length) was launched in April 2008 on a trial bases. The 14.5 kilometer

route, once completed, will run from Dr. Ambedkar Nagar to Delhi Gate.

The BRTS is supervised by Delhi Integrated Multi-Model Transit System

(DIMTS). By 2010, Delhi's bus fleet should be contemporary by any

standards. Quite a few other Indian urban transport companies, including

those operating in Bangalore, Chennai, Pune, Indore, Kolkata, Mysore, Navi

Mumbai and Mumbai (54 cities in total) are gradually deploying modern

buses under a funding scheme provided by the Jawaharlal Nehru National

Urban Renewal Mission (JNNURM) for the financing of new passenger

transport equipment (14,240 buses as of February 2009). The majority of

intracity buses in India are built on Ashok Leyland or Tata truck chassis

which make them rather uncomfortable and entry/exit difficult.

Tata has sold over a million Indicas/Indigo cars.

Tata Indicruz - Tata's new crossover (new platform coded X2) is

expected be launched in Feb 2010 and will be powered by a 2.2 liter

TD engine.

Tata Grande MKII Tata's new SUV.

Tata Nano Tata's new low-cost mini car was launched on March 23rd

2009. Deliveries began in July 2009 with sales tallying to 77,000 till



25

the end of 2010. The Nano is powered by a two-cylinder 35 PS 624cc

rear-mounted engine with a top speed of 105 km/h. Although only

3.1 million long (a tad longer than the Morris Mini), the Nano is very

tall at 1.6 million and boasts 20 % more space than the Maruti 800

(based on the early 80's Suzuki Alto). Three variants with different

trim levels are available. Export, diesel and even electric variants are

expected in the coming years.

Tata Nano test drives

Tata Indica 1405 cc hatchback (petrol, diesel and CNG variants

available). Tata has produced almost 1.13 million Indica platform

cars till August 2008. The Indica model was launched in December

1998. The top variants now feature ABS brakes and front seat

airbags.

Tata Indica Vista - a completely new model, the Indica Vista, is

initially available in seven variants.

Tata Indigo - a 3-box sedan version of the Indica. An estate variant,

the Indigo Marina is also available. Some 2,75,000 Indigo/Indigo

Marinas have been sold till date.

Tata Indigo Manza

Tata Safari - A five-door sports utility vehicle (both 2WD and 4WD).

The Safari DICOR (Direct Injection Common Rail Engine) features a

3 liter 115 BHP and a smaller 2 liter 90 BHP turbo-charged inter-

cooled diesel engine is also available. The petrol version features a

quite capable 2092cc 127 PS engine. Over 26 000 Safaris have been

sold in India till date.

Tata Sumo- A sturdy and very spacious no-frills MPV powered by a

1948 cc diesel engine. Over 300 000 Sumos have been sold till date.

Tata Xenon XT- Tata's new 4-door 5-seater cross-terrain pickup

model.

Tata Winger- Tata's new maxi van offering.



26

Tata Magic- Tata's new rural transport vehicle.

Tata Ace- a newly launched mini-truck which has proven to be a

success with over 100,000 sold till date (March 2007).

Toyota Kirloskar Motor Pvt. Ltd. (TKML): TKML sold 74,759 (55,497

in 2009) cars in 2010. The 432 acre Toyota factory site is located at Bidadi,

Karnataka. TKML is investing Rs 9 billion in the expansion of its two auto

plants to a capacity of 3,10,000 units by 2013. Toyota currently

manufactures Corolla Altis sedans and Innova MPV's in India, the Camry,

Prius and Land cruiser Prado models are imported. Toyota began producing

Qualis MUV's in late 1999 at its Indian plant and today holds 89 percent

equity stake in TKML while the Kirloskar Group holds the remaining 11

percent.

Etios Liva - A Q-class hatchback

Etios - A Q-class sedan

Innova MPV- Over 1,32,000 Innovas have been sold till Mar 2008.

A CNG (Compressed Natural Gas) version is also available.

Corolla Altis - A midsize sedan (1.8 liter 132 PS engine)

Camry - an imported premium sedan

Prius

Land Cruiser Prado- imported SUV

Land Cruiser 200 - imported SUV

Fortuner SUV - 41,000 sold till December 2012

Volkswagen India: Volkswagen operates an auto plant in Chakan near Pune

(Maharashtra) with an annual capacity of 1,10,000 cars. The plant

manufactures VW Vento, Polo and Skoda Rapid models and rolled out its

4,00,000th manufactured car in July 2014. VW Jetta and Passat models are

assembled at Skoda's plant located in Aurangabad.



27

1.5 Two Wheeler Manufacturers:

Mahindra Two Wheelers Ltd.: Mahindra Two Wheelers manufactures

the Stallio motorcycle and various scooter models. The company sold

134,570 units in 2011-12.

Lohia Auto Industries: Lohia Auto manufactures electric scooters at its

plant located in Kashipur, Uttarakhand.

Hero Honda Motors Ltd.: Hero Honda, the world's largest motorcycle

manufacturer, sold around 3.72 million two-wheelers (mainly motorcycles)

in 2008-09. Its plants are located at Dharuhera, Gurgaon and Haridwar

(Uttarakhand). Net sales amounted to Rs 123 billion in 2008-09.

Bajaj Auto Ltd.: India's 2nd largest two/three-wheeler manufacturer

(2007-08 net sales Rs 87 billion) and the world's third largest in terms of

volumes. Bajaj Auto sold 4.35 million (incl. 1.58 million exported)

two/three-wheelers in 2011-12. Bajaj Auto's three plants are located at

Waluj (Aurangabad, Maharashtra), Chakan (Dist. Pune) and Pantnagar

Uttarakhand.

TVS Motor Company Ltd.: TVS Motor Co., the eight largest 2-wheeler

manufacture in the world, recorded a turnover of Rs 32.9 and sold 1.28

million two-wheelers in 2007-08. TVS's plant is located at Hosur, Karnataka.

TVS launched its first 3-wheeler, the TVS King, on March 9 2008. The 3-

wheeler segment was till now dominated by Bajaj Auto and Piaggio.

Honda Motorcycle & Scooter Pvt. Ltd.: Honda's Gurgaon factory

manufactures four-stroke scooters and motorcycles. The company sold 2.107

million two wheelers in the year ended March 2012.

India Yamaha Motor Pvt. Ltd.: Yamaha Motor India sold 2,12, 985

motorcycles during 2004-05. Yamaha has announced Rs 4 billion investment

plan for the expansion of its existing manufacturing capacity and a new plant

to be opened in 2008.



28

LML LTD.: LML sold approx. 75 000 two-wheelers in 2005-06. LML

manufactures lifestyle motorcycles (150 cc), motorcycles (110 to 125 cc)

and scooters (150 cc).

Kinetic Engineering Ltd. (KEL): Kinetic Engineering produced 1,22, 012

motorbikes, scooters and mopeds in 2005-06, including Hyosung Motors

(South Korea) GF-series motorbikes.

Majestic Auto Ltd.: Majestic Auto sold 32 067 mopeds in 2005-06.

Royal Enfield Motors Ltd.: Manufacturer of the legendary "Bullet"

motorcycles. The Indian Police and defence forces use "Bullet"

motorcycles. Royal Enfield sold 38,528 motorcycles during 2007-08.

Royal Enfield operates two factories located at Chennai and Jaipur.

Monto Motors Ltd.: Monto Motors manufactures the Avanti range of

mopeds, motorbikes, off road bikes, ATVs and trollies.

Indus Elec-Trans: This division of ElectroTherm, manufactures YObykes

electric two-wheelers in a factory located in Kutch. Future products include

electric three/four wheelers and hybrid electric buses.

Suzuki Motorcycle India Pvt. Ltd.: Suzuki Motor India sold 1,601

motorcycles in 2005-06.

Ultra Motor India: Ultra Motor manufactures electric scooters in its plant

at Hyderabad. A second plant is coming up at Maneasr, Haryana. The

Types of Vehicles % of Market Share

2012-13 2013-14

Two Wheelers 77% 80%

Passenger Vehicles 15% 14%

Commercial Vehicles 4% 3%

Three wheelers 4% 3%

Source: http://www.ibef.org/industry/india-automobiles.aspx



29

1.6 Market share of Indian automobile industry by volume

Two wheelers dominate production volumes; in FY 2013, the segment accounted for

77 percent of the total automotive production in India.

Table: 3 Domestic Market Share for 2012-13

Types of Vehicles % of Market Shares 2012-13 2013-14

Two Wheelers 77 % 80 % Passenger Vehicles 15 % 14 % Commercial Vehicles 4 % 3 % Three Wheelers 4 % 3 %


Figure: 2 Domestic market shares of different types of vehicles

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Two Wheelers Passenger Vehicles Commercial Vehicles

Three wheelers

% a

ge o

f Mar

ket S

hare

Types of Vehicles

Domestic Market Share

2012-13 2013-14



30

Table: 4 Automobile Domestic Sales Trends (Number of Vehicles)

Category 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Passenger Vehicles 15,52,703 19,51,333 25,01,542 26,29,839 26,65,015 25,03,685

Commercial Vehicles 3,84,194 5,32,721 6,84,905 8,09,499 7,93,211 6,32,738

Three Wheelers 3,49,727 4,40,392 5,26,024 5,13,281 5,38,290 4,79,634

Two Wheelers 74,37,619 93,70,951 1,17,68,910 1,34,09,150 1,37,97,185 1,48,05,481

Grand Total 97,24,243 1,22,95,397 1,54,81,381 1,73,61,769 1,77,93,701 1,84,21,538 Source: SIAM – Society of Indian Automobile Manufacturers

The overall growth in domestic sales during April-March 2013 was 2.61 percent

over the same period last year. While in March 2013 overall sales fell by - 7.76

percent over March 2012.

Passenger Vehicles segment grew at 2.15 percent during April-March 2013 over

same period last year. Passenger Cars declined by (-) 6.69 percent, Utility Vehicles

grew by 52.20 percent and Vans grew only by 1.08 percent during April-March

2013 as compared to the same period last year. However, in March 2013 passenger

car sales further declined by (-) 22.51 percent over March 2012. Total passenger

vehicles sales also declined by (-) 13.01 percent in March 2013 over same month

last year.

The overall Commercial Vehicles segment registered de-growth of (-) 2.02 percent

in April-March 2013 as compared to the same period last year. While Medium &

Heavy Commercial Vehicles (M&HCVs) declined by (-) 23.18 percent, Light

Commercial Vehicles grew at 14.04 percent. In March 2013, M&HCVs sales further

declined by (-) 26.16 percent over March 2012.

Three Wheelers sales grew by 4.87 percent in April-March 2013. Passenger Carriers

grew by 8.58 percent during April-March 2013 and Goods Carriers registered de-

growth at (-) 9.20 percent during this period.

Two Wheelers registered growth of only 2.90 percent during April-March 2013.

Scooters, mopeds and motorcycles grew by 14.24 percent, 1.53 percent and 0.12

percent respectively over same period last year. However, in March 2013 all sub-



31

segments of two wheelers, scooters, motorcycles and mopeds registered de-growth

at (-) 3.18 percent, (-) 8.32 percent and (-) 4.54 percent respectively.

1.7 Indian Automobile Export market: A recent research conducted by the global consultancy firm Deloitte says that at

least one Indian automobile company will feature among the top six automobile

companies that will dominate the car market by 2020.

India is a very favorable market for small cars by it production, sales or export.

Since the Indian automobile industry is the largest manufacturer of small cars

companies like Hyundai and Nissan Motors export about 2,40,000 and 2,50,000

annually. India emerged as Asia's fourth largest exporter of automobiles, behind

Japan, South Korea and Thailand. The Indian automobile exports registered a 22.30

percent growth in the year 2009. The growth trend was as follows: Two Wheelers-

32.31 percent, Commercial Vehicle - 19.10 percent and Passenger Cars grew by -

19.10 percent.

Table: 5 Automobile Exports Trends (Number of Vehicles)

Category 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Passenger Vehicles 3,35,729 4,46,145 4,44,326 5,08,783 5,59,414 5,93,507

Commercial Vehicles 42,625 45,009 74,043 92,258 80,027 77,056

Three Wheelers 1,48,066 1,73,214 2,69,968 3,61,753 3,03,088 3,53,392

Two Wheelers 10,04,174 11,40,058 15,31,619 19,75,111 19,56,378 20,83,938

Grand Total 15,30,594 18,04,426 23,19,956 29,37,905 28,98,907 31,07,893

Source: SIAM – Society of Indian Automobile Manufacturers



32

1.8 Passenger vehicle exports from India

Passenger vehicle exports from India stood at 0.5 million during FY 2013.

Table: 6 Passenger vehicle exports from India

Year Exports (figure in million)

2013 0.5

2012 0.5

2011 0.5

2010 0.5

2009 0.3

2008 0.2

2007 0.2

2006 0.2

2005 0.2


During April-March 2013, overall automobile exports registered de-growth of (-)

1.34 percent compared to the same period last year. Passenger Vehicles grew by

9.02 percent, while the other segments like Commercial Vehicles, Three Wheelers

and Two Wheelers fell by (-)13.35 percent, (-) 16.22 percent and (-) 0.72 percent

respectively. In March 2013, Passenger Vehicles, Two & Three Wheelers grew by

3.07 percent, 3.51 percent and 7.50 percent respectively. While Commercial

Vehicles declined by (-) 28.33 percent.



33

Table: 7 Automobile Production Trends (Number of Vehicles)

Category 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Passenger Vehicles 18,38,593 23,57,411 29,82,772 31,46,069 32,31,058 30,72,651

Commercial Vehicles 4,16,870 5,67,556 7,60,735 9,29,136 8,32,649 6,98,864

Three Wheelers 4,97,020 6,19,194 7,99,553 8,79,289 8,39,748 8,30,120

Two Wheelers 84,19,792 1,05,12,903 1,33,49,349 1,54,27,532 1,57,44,156 1,68,79,891

Grand Total 1,11,72,275 1,40,57,064 1,78,92,409 2,03,82,026 2,06,47,611 2,14,81,52

Source: SIAM – Society of Indian Automobile Manufacturers

1.9 Passenger vehicle production in India

A passenger vehicle was the fastest growing segment, representing a CAGR of 12.9

percent.

Table: 8 Passenger vehicle productions in India

Year Production (figure in mn)

2013 3.2

2012 3.1

2011 3.0

2010 2.4

2009 1.8

2008 1.6

2007 1.3

2006 1.3

2005 1.2 Source: http://www.ibef.org/industry/india-automobiles.aspx

The cumulative production data for April-March 2013 shows production growth of

only 1.20 percent over the same period last year. The industry produced 1,685,355



34

vehicles in March 2013 as against 18,45,868 in March 2012, which declined by (-)

8.70 percent.

1.10 SWOT Analysis:

SWOT analysis is applied in industrial evaluation as well as in evaluating individual

organisations. SWOT analysis involves an examination of the industries strengths,

weakness, opportunities, and threats. It helps to evaluate an industry’s position to

exploit its competitive advantages or defend against its weaknesses. Strengths and

weaknesses involve identifying the industry’s own abilities or lack thereof.

Opportunities and threats include external situations such as competitive forces,

technologies, and Government regulations, domestic and international economic

trends and so on.



35

SWOT Analysis of Automobile Industry of India

STRENGTHS

Large domestic market

Cost advantage

Engineering skills

Competitive auto component vendor base

WEAKNESSES

Research & development

Infrastructure & facilities

Low labour productivity

High interest costs

OPPORTUNITIES

Increasing disposable income

Vehicle switchovers

Infrastructure development stirs demand

Rising rural demand

THREATS

Integration of Indian economy with global economy

Pollution and emission controls

Increased competition

1.11 Key Players in Indian Auto Mobile Industry:

The top players in the Indian automobile industry have played a key role in the

growth and development of the automobile industry in India. Companies like Bajaj

Auto, Hindustan Motors, Maruti Suzuki, Hero, Honda, and TVS Motors, with their

ever expansive car dealing networks, promotional, convenient customer care

services, have marked India among the leading automobile Industries.

Among macro-economic factors, the falling crude oil prices have come as a boon to

the CV sector. Passing on the benefits of the falling international oil prices to the

consumer, the government has announced another cut in diesel prices. Oil marketing

companies have reduced the retail price of diesel by Rs 0.84 per liter on

November 1.



36

Table: 9 Market Capitalization of Automobile Company:

Company Name Share Price as on 2/12/2014

Equity Capitalization (as on 2/12/2014

Tata Motors Ltd. 529 1,70,042.09

Eicher Motors Ltd. 14349.9 41,039.85

MRF Ltd. 34293.05 15,636.01

Bharat Forge Ltd. 986.75 23,173.23

Apollo Tyres Ltd. 235.15 12,066.43

Maruti Suzuki India Ltd. 3360.9 1,02,707.22

Mahindra & Mahindra Ltd 1265.55 79,375.61

Hero MotoCorp Ltd 3220.25 63,646.40

Bajaj Auto Ltd. 2602.85 75,336.70

Ashok Leyland Ltd. 54.8 15,652.32

TVS Motor Company Ltd. 232.3 11,748.90

Force Motors Ltd. 1239.65 1,690.32 General Motors India Private

Limited (GM India) 93.4 112.3

Hindustan Motors 8.09 172.35 Source: www.bseindia.com as on 2/12/2014

Table: 10 List of Four Wheel Company in India

Sr. No. Company Name 1 AMW Motors Limited 2 Ashok Leyland Ltd 3 Atul Auto Ltd 4 Bajaj Auto Ltd 5 BMW India Pvt Ltd 6 Cummins India Ltd 7 Daimler India Commercial Vehicles Pvt. Ltd 8 Fiat India Automobiles Pvt Ltd 9 Force Motors Ltd



37

10 Ford India Pvt Ltd 11 Foton Motors Manufacturing India Pvt Ltd 12 General Motors India Pvt Ltd 13 Greaves Cotton Ltd 14 H-D Motor Company India Pvt Ltd 15 Hero MotoCorp 16 Hindustan Motors Ltd 17 Honda Cars India Ltd 18 Honda Motorcycle & Scooter India Pvt Ltd 19 Hyundai Motor India 20 India Kawasaki Motors Private Ltd 21 India Yamaha Motor Pvt Ltd 22 International Cars & Motors Ltd. 23 Isuzu Motors India Pvt Ltd 24 J C B L Ltd 25 Kinetic Motor Company Ltd 26 LML Ltd 27 Mahindra & Mahindra Ltd 28 Mahindra Reva Electric Vehicles Pvt Ltd 29 Mahindra Two Wheelers Ltd 30 Maruti Suzuki India Ltd 31 Mercedes Benz India Pvt Ltd 32 Nissan Motor India Pvt Ltd 33 Piaggio Vehicles Pvt Ltd 34 Premier Ltd 35 Renault India Pvt Ltd 36 Royal-Enfield (Unit of Eicher Ltd) 37 Scania Commercial Vehicles India Pvt Ltd 38 Scooters India Ltd 39 Simpson & Co. Ltd 40 SkodaAuto India Pvt Ltd 41 SML ISUZU LTD 42 Suzuki Motorcycle India Pvt Ltd. 43 Tata Motors Ltd



38

44 Toyota Kirloskar Motor Pvt Ltd 45 Triumph Motorcycles (India) Pvt Ltd 46 TVS Motor Company Ltd 47 VE Commercial Vehicles Ltd 48 Volkswagen India Pvt Ltd 49 Volvo Buses India Pvt Ltd



39

Table: 11 Domestic Sales and Growth Data of Last Year

Domestic Sales Data Nov-14 Nov-13 Growth %

Cars Maruti Suzuki 100,024 85,510 16.97%

Hyundai Motor India 35,511 33,501 6.00%

Honda Cars India 15,263 9,332 63.56%

Mahindra & Mahindra 13,765 16,771 -17.92%

Ford India 5,661 7,909 -28.42%

Toyota Kirloskar Motor 12,175 10,208 19.27%

Tata Motors 12,021 10,376 15.85%

GM India 4,157 6,214 -33.10%

Two Wheelers Bajaj Auto 261,948 278,703 -6.01%

Hero Motocorp 547,413 530,530 3.18%

HMSI 354,010 306,477 15.51%

India Yamaha Motor 44,678 39,777 12.32%

Mahindra Two Wheelers 13,052 23,831 -45.23%

Royal Enfield 27,198 17,752 53.21%

Suzuki Motorcycle India 33,400 32,799 1.83%

TVS Motor Co 179,453 135,218 32.71%

Commercial Vehicles Ashok Leyland 7,732 5,375 43.85%

Mahindra & Mahindra 12,748 13,186 -3.32%

Mahindra Trucks & Buses 582 443 31.38%

Tata Motors 25,406 26,816 -5.26%

VECV-Eicher 2,233 1,928 15.82% Source: http://www.autocarpro.in/analysis-sales/india-sales-analysis-november-

2014-6992



40

As vehicle manufacturers across segments revealed their November 2014 sales

numbers, there seems to be an uptick across the key passenger car and medium and

heavy commercial vehicle (M&HCV) segments. The perceived improvement in

consumer sentiment is yet to translate into better sales for the automotive industry. A

lackluster festive season was certainly not what the industry expected. While we are

confident of the long-term growth potential of the Indian market, we continue to be

cautiously optimistic in the near-term.

Figure: 3 Passenger car market share in India in FY 2014, by

manufacturer

Source: http://www.statista.com/statistics/316850/indian-passenger-car-market-

share/

42.08

15.18

9.15

5.59 5.36 5.183.37

0

5

10

15

20

25

30

35

40

45

Maruti Suzuki

Hyundai Motors

Mahindra & Mahindra

Tata Motors Honda Cars Toyota Kirloskar Motors

Ford India

% a

ge o

f Mar

ket S

hare

Company Name

Passenger car market share in India in FY 2014, by manufacturer Market Share (%)



41

1.12 Factors determining the growth of the industry:

Following are the factors determining the growth of the Indian automobile industry:

Fuel economy and demand for greater fuel efficiency is a major factor that

affects consumer purchase decision that will bring leading companies across

two-wheeler and four-wheeler segment to focus on delivering performance-

oriented products

Sturdy legal and banking infrastructure

Increased affordability, heightened demand in the small car segment and the

surging income of the Indian population

India is the third largest investor base in the world

The Government technology modernization fund is concentrating on

establishing India as an auto-manufacturing hub.

Availability of inexpensive skilled workers

Industry is perusing to elevate sales by knocking on doors of women, youth,

rural and luxury segments

Market segmentation and product innovation

Largest three-wheeler market

Second largest two-wheeler market

Tenth largest passenger car market

Fourth largest tractor market

Fifth largest commercial vehicle market

Fifth largest bus and truck segment

However, the year 2013-2014 has seen a decline in the industry’s high inflation,

soaring interest rates, low consumer sentiment and rising fuel prices along with

economic slowdown are the major reason for the downturn of the industry. But end

of the year 2014, it became recover market by reducing the price of fuel, etc.



42

1.13 Investments:

To match production with demand, many auto makers have started to invest heavily

in various segments in the industry in the last few months. Some of the major

investments and developments in the automobile sector in India are as follows:

Ashok Leyland plans to invest Rs 450–500 crore (US$ 73.54–81.71 million)

in India, by way of capital expenditure (capex) and investment during FY

2015. The company is required to manage Rs 6,000 crore (US$ 980.56

million) of assets in seven locations across the world, for which maintenance

capex is needed.

Honda Motors plans to set up the world's largest scooter plant in Gujarat to

roll out 1.2 million units annually and achieve leadership position in the

Indian two-wheeler market. The company plans to spend around Rs 1,100

crore (US$ 179.76 million) on the new plant in Ahmedabad, and expand its

range with a few more offerings.

Yamaha Motor Co has restructured its business in India. Now, Yamaha

Motor India (YMI) will take care of its India operations. “The restructuring

is part of Yamaha’s mid-term plan aimed at improving organisational

efficiency,” as per Mr Hiroyuki Suzuki, Chief Executive and Managing

Director. YMI would be responsible for corporate planning and strategy,

business planning and business expansion, quality control, and regional

control of Yamaha India Business.

Tata Motors plans to use the 'hub-and-spoke' model in which India will be

the key manufacturing base while it will have mini-hubs in overseas markets.

The company also plans to set up mini hubs in potential markets like Africa,

Middle-East and South East Asia.

Hero Cycles through its unit OPM Global has acquired a majority stake in

German bicycle company Mitteldeutsche Fahrradwerke AG (MIFA) for €15

million (US$ 19.11 million). The company plans to invest an additional €4

million (US$ 5.09 million) as capital expenses in restructuring the acquired

company.



43

1.14 Market size:

With the festival season coming up, the Indian auto sector will see a rise in demand

which is expected to bring in major growth. An auto dealer survey by firm UBS

suggested that the Indian auto industry, riding on trends like the upcoming festival

season and decline in fuel price, will observe a 12 percent growth in FY 2015.

The cumulative Foreign Direct Investment (FDI) inflows into the Indian automobile

industry during the period April 2000 – August 2014 was recorded at US$ 10,119.68

million, as per data by Department of Industrial Policy and Promotion (DIPP).

Data from industry body Society of Indian Automobile Manufacturers (SIAM)

showed that 137,873 passenger cars were sold in July 2014 compared to 131,257

units during the corresponding month of 2013. Among the auto makers, Maruti

Suzuki, Hyundai Motor India and Honda Cars India emerged the top three gainers

with sales growth of 15.45 percent, 12 percent and 11 percent, respectively.

The three-wheeler segment posted a 24 percent growth to 51,461 units on the back

of increased demands from the urban market. Total sales across different vehicle

segments grew 12 percent year on year (y-o-y) to 15,86,123 units.

Scooter sales have jumped by 29 percent in the ongoing fiscal, and now form 27

percent of the total two-wheeler market from just 8 per cent a decade back. The

ever-rising demand for scooters, which has far outstripped supply has prompted

Honda to set up its first dedicated scooter plant in Ahmedabad.

Tractor sales in the country are expected to grow at a compound annual growth rate

(CAGR) of 8–9 percent in the next five years making India a high-potential market

for many international brands.

1.15 Government Initiatives:

SIAM and the Automotive Component Manufacturers Association of India (ACMA)

are two apex bodies appointed by the Government of India to work for the

development of the automobile industry in India. The government aims to develop

India as a global manufacturing as well as a research and development (R&D) hub.

It has set up National Automotive Testing and R&D Infrastructure Project

(NATRIP) centres as well as a National Automotive Board to act as facilitator

between the government and the industry.



44

The Government of India encourages foreign investment in the automobile sector

and allows 100 percent FDI under the automatic route. To boost manufacturing, the

government had lowered excise duty on small cars, motorcycles, scooters and

commercial vehicles to eight per cent from 12 per cent, on sports utility vehicles to

24 percent from 30 percent, on mid-segment cars to 20 percent from 24 percent and

on large-segment cars to 24 percent from 27 percent.

The government’s decision to resolve VAT disputes has also resulted in the top

Indian auto makers namely, Volkswagen, Bajaj Auto, Mahindra & Mahindra and

Tata Motors announcing an investment of around Rs 11,500 crores (US$ 1.87

billion) in Maharashtra.

The Automobile Mission Plan for the period 2006–2016, designed by the

government is aimed at accelerating and sustaining growth in this sector. Also, the

well-established Regulatory Framework under the Ministry of Shipping, Road

Transport and Highways, plays a part in providing a boost to this sector.

The Government of India-appointed SIAM and Automotive Components

Manufacturers Association (ACMA) are responsible in working for the development

of the Indian automobile industry. Also, ACMA's active involvement in trade

promotion, upgrade in technology, quality enhancement and collection and

dissemination of information has made the body a vital catalyst for the industry's

development.

The Indian government encourages foreign investment in the automobile sector and

allows 100 percent FDI under the automatic route. It is a fully de-licensed industry

and free imports of automotive components are allowed. Moreover, the government

has not laid down any minimum investment criteria for the automobile industry and

has formulated the Automotive Mission Plan for the period 2006-2016 which aims

to accelerate and sustain growth in this sector. The plan also aims to double the

contribution of the automotive sector to the country's GDP by taking its turnover to

US$ 145 billion and providing additional employment to 25 million people by 2016.



45

1.16 Employment Opportunities:

There are a wide range of jobs available in the automobile industry. With the

number of vehicles available on the road today, the need and requirement for people

who can fix these machines is fast increasing. Careers like automobile technician,

car or bike mechanics are a great option. Becoming a diesel mechanic is also a

significant alternative. Diesel mechanics are responsible for repairing and servicing

diesel engines. As they are also required to repair engines of trucks and buses, other

than cars, they are provided with hefty wages.

If communication with people instead of repairing cars is what interests you, then

you have the opportunity of becoming a salesperson or sales manager in an

automobile company. Career opportunities in automobile design, paint specialists,

job on the assembly line and insurance of vehicles is also available.

1.17 Employment Trends: The Automotive Mission Plan for the period of 2006-2016 aims to make India

emerge as a global automotive hub. The idea is to make India as the destination

choice for design and manufacture of automobiles and auto components, with

outputs soaring to reach US$ 145 billion which is basically accounting for more than

10% of the GDP. This would also provide further employment to over 25 million

people by 2016 making the automobile the sunrise sector of the economy. According

to the Confederation of Indian Industry, the automobile sector currently employs

over 80 lakh people. An extension in production in the automobile industry is

forecasted, it is likely to rise to Rs. 6,00,000 crore by 2016.

1.18 FDI in Indian automobile industry:

As per the data published by Department of Industrial Policy and Promotion (DIPP),

Ministry of Commerce, Government of India, the cumulative FDI inflows into the

Indian automobile industry during April 2000 to October 2013 was noted to be US$

9,079 million, which amounted to 4% of the total FDI inflows in terms of US $. The

production of compact superbikes is also expected to take place in India. The

country has a mass production base of 16 million two-wheelers and the several

global as well as Indian bike makers are looking forward to use it as an advantage in



46

order to roll out sports bikes in the 250 cc capacity. FDI inflows in the Indian

automotives sector aggregated to US$ 10,846.71 million (Rs. 54,469 crores) during

April 2000-September 2014 which carries 4.67% proportion of total inflow of FDI

in India.

Table: 12 FDI inflows in India in Automotive sector

Year Amount (Rs. In Crore)

2013-14 9027

2012-13 8384

2011-12 4347

2010-11 6008

2009-10 5754

2008-09 5212

Sources: http://dipp.nic.in/English/Publications/FDI_Statistics/FDI_Statistics.aspx

1.19 Future Trends in the Automobile Industry:

As the auto-shows began in January 2014, the industry promised a blend of

technology and automotives. With the recession trend breaking its leashes form the

past two years, 2014 is expected to get back on track with the sales of automobiles in

the country.

Almost Self-governing cars are predicted to be on the streets by 2020

More than half the cars on the streets are going to be powered by diesel by

2020

Industry watcher Gartner indicates that 30 percent of motorists want parking

info. The facility is likely to come up after glitches in the infrastructure catch

up.

High Performance Hybrid cars are likely to gain greater popularity among

consumers.

The Indian automobile industry has a prominent future in India. Apart from meeting

the advancing domestic demands, it is penetrating the international market too.

Favored with various benefits such as globally competitive auto-ancillary industry;



47

production of steel at lowest cost; inexpensive and high skill manpower; entrenched

testing and R & D centers etc., the industry provide immense investment and

employment opportunities.

chapter: 1 introduction and overview of indian...

Documents