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INDUSTRY PROFILE

The origin of automobile is not certain. The automobile industry has changed the way people live and work. The earliest of modern cars was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As the century turned, three cars were imported in Mumbai. Within decade there were total of 1025 cars in the city.

The dawn of automobile actually goes back to 4000years when the first wheel was used for transportation in India. In the beginning of 15th century Portuguese arrived in Chin and the interaction of two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By 1600s small powered engine models was developed, but it took another century before a full-sized engine-powered vehicle was created.

The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank Duryea. It was the first internal combustion motor car of America, and it was followed by Henry Ford’s first experimental car that same year.

One of the highest- rated early luxury automobiles was the 1909 Rolls Royce Silver Ghost that featured a quite 6-cylinder engine, leather interior, folding windscreens and hood, and an alluminium body. It was usually driven by chauffeurs and emphasis was on comfort and style rather than spped.

During 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel wheels and four wheel brakes. Graham Paige DC Phaeton of 1929 featued an 8-cylinder engine and an alluminium body.

The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more to the needs of families. In 1930s vehicles were less boxy and more streamlined than their predecessors. The 1940s saw features like automatic transmission, sealed-beam headlights and tubeless tyres.

The year 1957 bought high-performance cars such as Mercedes-Benz 300SL. It was built on compact and stylized lines and was capable of 230 kmh (144mph).

INDIAN AUTOMOTIVE INDUSTRY

The Indian automotive industry is the 2nd fastest growing in the world. About 8 million vehicles are produced annually in this country today. During 2005-2006, India has emerged as the 3 rd largest market in the Asia Pacific Region. With various car manufacturing companies setting up their units in different parts of the country, the production of the cars will increase at a very fast rate. The car reports indicate that India will soon become one of the top 10 car manufacturing countries , leaving behind the U.K. Car statistics also show that by the end of the fiscal year 2006-2007, the car production capacity in India will exceed the mark of 2 million. Thus, the production of cars will increase by 70% from the present capacity of 1.2 million.


The major car manufacturers in India are Maruti Udyog, Hyundai Motors India Ltd., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd., Toyota Kirloskar Motor Ltd., Hindustan Motors etc

The Indian automotive industry has flourished like never before in the recent years. The extra-ordinary growth that the Indian automotive industry has witnessed is a result of two major factors namely the improvement in the living standards of the middleclass, and an increase in the disposable incomes.

Moreover, the liberalization steps, such as, relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and refining the banking policies, initiated by the Government of India, have played an equally important role in bringing the Indian automotive industry to great heights. It is estimated that the sale of passenger car have tripled compared to their sale in the last five years. Thus the sale of cars has reached a figure of 1 million users and is expected to increase further. It is also to be noted that the demand of luxurious models, SUVs, and mini cars for family owners have shot up largely due to increase in consumers buying capacity.

The increased demand for Indian Automobiles has resulted in a large number of multi-national auto companies, especially from Japan, U.S.A and Europe, entering the Indian market and working in collaboration with the Indian firms. Also, the institutionalization of automobile finance has further paved the way to sustain a long-term high growth for the industry.


According to SIAM India - Society of Indian Automobile Manufacturers

Automobile Production Trends
Category / 2005-06 / 2006-07 / 2007-08 / 2008-09 / 2009-10(No of Vehicles)
Passenger Vehicles / 1,309,300 / 1,545,223 / 1,777,583 / 1,838,593 / 2,351,240
Commercial Vehicles / 391,083 / 519,982 / 549,006 / 416,870 / 566,608
Three Wheelers / 434,423 / 556,126 / 500,660 / 497,020 / 619,093
Two Wheelers / 7,608,697 / 8,466,666 / 8,026,681 / 8,419,792 / 10,512,889
Grand Total / 9,743,503 / 11,087,997 / 10,853,930 / 11,172,275 / 14,049,830
Automobile Domestic Sales Trends
Category / 2005-06 / 2006-07 / 2007-08 / 2008-09 / 2009-10 (No of Vehicles)
Passenger Vehicles / 1,143,076 / 1,379,979 / 1,549,882 / 1,552,703 / 1,949,776
Commercial Vehicles / 351,041 / 467,765 / 490,494 / 384,194 / 531,395
Three Wheelers / 359,920 / 403,910 / 364,781 / 349,727 / 440,368
Two Wheelers / 7,052,391 / 7,872,334 / 7,249,278 / 7,437,619 / 9,371,231
Grand Total / 8,906,428 / 10,123,988 / 9,654,435 / 9,724,243 / 12,292,770
Automobile Exports Trends
Category / 2005-06 / 2006-07 / 2007-08 / 2008-09 / 2009-10 (No of Vehicles)
Passenger Vehicles / 175,572 / 198,452 / 218,401 / 335,729 / 446,146
Commercial Vehicles / 40,600 / 49,537 / 58,994 / 42,625 / 45,007
Three Wheelers / 76,881 / 143,896 / 141,225 / 148,066 / 173,282
Two Wheelers / 513,169 / 619,644 / 819,713 / 1,004,174 / 1,140,184
Grand Total / 806,222 / 1,011,529 / 1,238,333 / 1,530,594 / 1,804,619

CAR COMPANIES

Ford Motor Company

The Ford Motor Company has a rich legacy of translating better motoring ideas to the roads. It has manufactured notable brands such as the Ford, Lincoln, Mercury and the Jaguar. It is among the top five industrial corporations in the world and is available in more than 200 countries around the world.

Ford has entered the Indian market through a tie - up with Mahindra Motors to manufacture the Ford Escort. Sold to over 18 million owners worldwide, the models available in India are specially engineered for Indian conditions. Ford has sold over 260,000,000 vehicles around the world, and is all geared to make India a global player in automobiles.

The Ford brand won the 2010 Ideal Popular Brand and Top Brand Overall Awards from Auto Pacific, announced Fargo Ford dealer Nelson.

Small car / Mid size car / Premium car
Ford Figo / Ford Ikon / Ford Mondeo Ghia Duratec
Ford Fiesta

Maruti Suzuki India Ltd

Established in December 1983, Maruti Suzuki India Ltd. has ushered a revolution in the Indian car industry. This car is meant for an average Indian individual who is affordable as well as has elegant appeal. Maruti Suzuki India Ltd. is the result of collaboration of Maruti with Suzuki of Japan. At this time, the Indian car market had stagnated at a volume of 30,000 to 40,000 cars for the decade ending 1983. This was from where Maruti took over.

The company has crossed the milestone of becoming the first Indian company in March 1994, by manufacturing in totality one million vehicles. It is known for its mass-production and selling of more than a million cars. Maruti Suzuki India Ltd. is the India's largest automobile company which entered in the market with affirmed aim to render high quality fuel – efficient and low – cost vehicles.

Maruti Suzuki India's Swift car wins the Frost & Sullivan 2010 Aspirational Car of the Year Award in the B Segment cars.

Small car / Mid size car / Premium car
Maruti Suzuki Alto / Maruti Versa / New Maruti Suzuki SX4
Maruti Suzuki Cervo / Maruti Esteem / Maruti Suzuki Cervo
Maruti Alto / Maruti Baleno
Maruti 800 / Maruti Swift
Maruti Omni / New Maruti Suzuki Zen Estilo
Maruti Suzuki SX4
Maruti A-Star
Swift DZire

Nissan Motor Co. Ltd.

Jidosha Seizo Co. Ltd. was the founder of Nissan Motor Company. Ltd. The company was established in Yokohama in the year 1933. After a year in 1934, Japan based Nissan Motor Company Limited changed its name from Datsum.

Nissan Motors started capturing Indian automobile market with the introduction of Nissan X-TRAIL and compact Sports Utility Vehicles. Widely scattered dealer network of Nissan Motors Pvt. Ltd. is in India covers Delhi, Mumbai, and Chennai etc. The company is engaged in joint ventures abroad, and Nissan has established assembly plants in several foreign countries, including Australia, Peru, Mexico, the United States, and Germany.

Small car / Premium car
Nissan Micra / Nissan 370Z
Nissan Teana

Tata Motors Limited

Tata Motors Limited is India's largest automobile company, and is revered as one of the most dynamic, reliable and futuristic automobile manufacturers of the world. Tata Motor cars and vehicles are favored worldwide for their versatile technology features and utility. With more than 130 auto models spanning a wide range of passenger cars, commercial vehicles, and multi-utility vehicles, Tata Motors stands out as a premiere growth booster of Indian automobile industry.

Over 3.5 million Tata vehicles including Tata Motors cars are presently plying on Indian roads since 1954. The company's manufacturing plant is located at Jamshedpur, Sanand, Pune and Lucknow. Tata Motors believe in constant evolution in technology. So, it keeps lunching new vehicles in the market. Tata Nano was a landmark launch in the small car category.

The Tata Nano, which was launched in March 2009, has been declared as the 2010 Indian Car of the Year (ICOTY), an award instituted jointly by six publications – Auto Bild India, Auto India, Business Standard Motoring, Car India, Overdrive and Top Gear India. It has been individually declared as the Car of the Year by CNBC TV18 Overdrive Awards, the ET-ZigWheels Car & Bike of the Year Awards, and the Bloomberg UTV Autocar Awards.

Small car / Mid size car / Premium car
Tata Nano / Tata Indigo Manza / Tata Indigo e-CS
Tata Magic / Tata Indica / Tata Indigo CS
Tata Indigo XL
Tata Indigo
Tata Indigo Vista

Hindustan Motors

Hindustan Motors is one of the leading Electric Motors Manufacturers in India having ISO 9001 Certification. It is the first Indian Car Company to start production in India in 1942. Since then, it has emerged as a vast company manufacturing cars like the sturdy Ambassador, the elegant Contessa, and in collaboration with Mitsubishi of Japan now manufactures the new Mitsubishi Lancer.

The company launched its new model Ambassador Nova in 1990 and brings out Ambassador 1800 ISZ in 1993. Though the sturdy Ambassador does not find many takers in India, with people looking to more fancy cars, its export has been steadily increasing, mainly in the British and Japanese markets.

Mid size car
Ambassador
Avigo
Grand

Chevrolet

Chevroletis one of the most trustworthy, luxurious and dependable brand in the Global market of vehicles. A large amount of Chevrolets were imported in India between 1918 and 1928.

The company has made a king like entry in India in the year 1928 with its National Series AB touring. The 171 cubic inches, 24.7hp four cylinder engine of Chevrolet has proved the reliability of this car. First office of Chevrolet was established at Mumbai and its assembly plant was in Sewree. General Motors, the parent company of Chevrolet, was the first in setting up assembly plant in India.It is among the newest brands in India launched by General Motors Indian operations. Chevrolet was brought to India on 6th June 2003.

Mid size car / Premium car
Chevrolet Beat / Chevrolet Cruze Automatic
Chevrolet Aveo / Chevrolet Cruze
Chevrolet Aveo U-VA / Chevrolet Optra
Chevrolet Spark / Chevrolet Optra Magnum

Fiat India Pvt Ltd

Fiat India Pvt. Ltd.is an Industrial Joint Venture, incorporated onJanuary 02, 1997, between Fiat Group Automobiles and Tata Motors Limited originally. This joint venture resulted in the formation of Fiat Automobiles Pvt. Ltd. which has manufacturing locations in 60 countries. It was hoped that this new venture would produce cars which give good performance, are beautiful and which would be suitable for Indian conditions.

Mid size car
Fiat Linea
Fiat Palio
Fiat Petra
Fiat Grand Punto

Honda Siel Cars

Honda Siel Cars India Ltd., (HSCI) was set up in December 1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited to manufacture passenger cars in India.

The company has brought about three models in India - Honda City, Honda Accord, and Honda CR-V. Its first model was launched in 1997. Very recently Honda Siel Cars has launched one more market friendly model, Honda Civic on 9th July 2006 in India. Honda Siel Cars India Ltd. is ISO 9002 & ISO 14001 certified.

Mid size car / Premium car
Honda Jazz / Honda Accord
Hyundai i20 Era / Honda City
Hyundai i20 Sportz / Honda Civic
Hyundai i10
Hyundai i20

Hyundai Motors

Established in year 1996, Hyundai Motor India Ltd. is a sub division of the giant South Korean multinational, the Hyundai Motor Company. It is Korea's top automobile manufacturer, capturing the Indian market and giving a strong competition to its rivals in the same segment. The company success story is based on a profitable Indian - Korean partnership where Indian skills and workmanship combine with Korean design and technology to produce one of the best cars.