The Ultimate Revelation Of Automotive Industry In India
With a better lifestyle, the Indian automotive market also boomed making it the 5th largest automotive industry in the world. The increase in the demand of people for a better version of the car also gave way to healthy competition that may have resulted in some of the unique newer technologies now.
The increasing industry also made the international brands that much more attracted to India and resulted in the new brand launches we see every year.
The Indian automotive industry ranges from wanting to own a small hatchback for small families, a luxury sedan for the higher class and muvs for larger families. Cars like SUVs and smaller trucks are especially popular in the rural area for business and ruggedness. The Indian car market gives way for lower-priced hatchbacks to one of the most luxurious cars we know.
History of Indian Automotive Industry:
The current state of the Indian automotive market was not that easy to achieve. With the population boom, availability of jobs and a better lifestyle made the impossible dream come true for the Indian automotive market.
The first car that ever sported on the Indian roads was in 1897 in Calcutta that was owned by an English man named Mr Foster. A year later 4 cars entered the Bombay (now known as Mumbai) roads one of which was owned by Jamshedji Tata. Even though the number of cars increased every year the cars were imported only till the early 1940s.
Indian automotive industry started existing after Hindustan motors were established in 1942. Another Mumbai based brand ‘premier’ was then established who has the ‘Premier Rio’ existing in the current market.
Mahindra and Mahindra that was established in 1945 began with assembling jeep. After independence in 1947, the government and private sector helped boom the automotive industry in India following a restriction on imports of fully build-up cars in 1953.
In 1952 a new tariff commission was appointed to kick start the growth of local Indian automation industry. According to the plan, it passed a capacity limit was placed for every manufacturing plant, increasing if need be. The new policies that were launched with the recommendation excluded the companies that only imported parts for assembling here as well as the companies with no Indian partner.
That lead companies like general motors, ford and roots club which had assembly only plants to move out of India. The ‘license raj’ impacted the Indian automotive industry in a negative way causing the demand to exceed supply causing a month-long wait for cars and two-wheelers. The categorised companies were classified as passenger cars, utility and light commercial vehicles, medium and heavy commercial vehicles, scooters, mopeds and motorcycles.
Even though by 1970s the automotive industries saw some growth, the cars still were a long shot for the middle class. Most of the personal vehicles were made for the rich and jeep was used in some rural regions and in government facilities and commercial vehicles. The only vehicle that was available for the middle-class budget was the motorcycle.
At the same time to help the green revolution, Russian and eastern bloc imports were brought in to meet the demand of tractors. The demand for tractors, commercial vehicles and scooters lead to an acceptable growth in this industry while the car was still considered a luxury item.
In that period diesel engine was not widely available and cars like jeep, commercial vehicles had petrol engines. The 1970s was still dominated by Hindustan and premier who sold outdated products of limited number though by 1980 a lot of competitors began entering the Indian market.
In 1980s brands like Suzuki, Toyota, Hyundai entered the Indian automotive industry. Out of which Maruti Suzuki was the first to achieve success. In 1991 India began liberalising the automobile market leading the foreign companies to have joint ventures with the existing Indian companies. By 2000 the Indian automotive industry had 12 well-established companies most of which were the sub-branches of a global brand.
Exports of the Indian market were slow at first since most Indian models were outdated the Indian automobile initially faced some loss while exporting. But to encourage the Indian automakers Indian government levies import tax of 125% on foreign import cars. The tax for import of components is as low as 10% this gave the carmakers an opportunity to assemble the car in the country.
Automotive Industry Exports:
By 2009, Indian exports grew and reached $4.5 billion especially to united kingdom followed by Italy, Germany, Netherlands and South Africa. India, as usual, pays more attention to the fuel efficiency and manufacturing low-cost vehicles with strong engineering that helped the foreign as well as Indian brands establish in the country and export large quantities of vehicles.
The South Korean carmaker, Hyundai Motors alone exported 240,000 cars that were made in India. Nissan exporting 250,000 vehicles manufactured in its India plant by 2011. Similarly, US automobile company, General Motors exported about 50,000 cars manufactured in India by 2011.
Current brands in the Indian automotive industry:
Just started with few brands the Indian automotive industry boomed in recent years is the 5th largest automobile industry in the world. With higher expectations, more and more brands started investing in India and the country has not let them down. Selling over 3397705 cars in the year of 2018 increasing the growth by 5% from last year, the Indian automotive industry is surely profitable for most brands.
India’s largest passenger carmaker with more than 45% of its market Share Maruti Suzuki India Limited (MSIL) previously known as ‘Maruti Udyog Limited’, started its production in 1983 in India. With its first car Maruti 800, the Japanese carmaker Suzuki motor cooperation is currently the highest shareholder with over 50% market share and has it's headquartered in New Delhi.
Maruti Suzuki has two types of brands, Arena and Nexa. Nexa is the premium chain of Maruti Suzuki's that sells The Ignis, Baleno, Ciaz and S-Cross from Nexa. Other Maruti Suzuki cars in India including the alto k10, 2018 swift, dzire and ertiga are retailed from the arena brand.
Maruti Suzuki has over 3000 sales outlets and even more service stations across India. The carmaker also offers its genuine spare parts over the counter under the MGP (Maruti genuine parts) brand name mainly to ensures that all Maruti Suzuki cars can be serviced or repaired using genuine spare parts even in some locations of the country where a Maruti service station doesn't exist.
Maruti Suzuki also sells its own range of accessories under the brand name MGA (Maruti genuine accessories) that can also be purchased from any Maruti Suzuki authorised dealership or service station. Maruti Suzuki was able to sell 17,31,450 units in the year 2018 making it the highest grossing brand in the Indian market and facing an 8.05% growth rate since last year.
Maruti Suzuki has 3 production houses in India located at Gurgaon, Haryana and Gujrat with an estimated production capacity of 17 lakh cars annually. With such production capacity, Maruti Suzuki has 17 car models on sale for India including 9 hatchbacks, 2 minivans, 2 sedans, 3 SUVs and 1 muv.
All Maruti Suzuki cars prices start with the alto 800 that has a starting cost of Rs. 2.53L and the most expensive Maruti car is the s-cross(sigma) that is priced at Rs. 8.85l. The Maruti Swift, Maruti Baleno, Maruti Vitara Brezza are the most popular cars from Maruti.
As the electric fuel option in India has increased in its demand hence, upcoming Maruti cars that are expected to launch in 2018-2019 include electric battery option as well. The new launches include Ertiga 2018, WagonR 2018, Baleno 2019, Grand Vitara and WagonR electric.
Hyundai Motor India
Hyundai Motor Company was later established in 1967. The South Korean carmaker has it’s headquarter located at seul. Currently, Hyundai has six research and development centres in the world, located in South Korea (three offices), Germany, Japan and India.
Hyundai Motor India Limited (HMIL) exports passenger cars to more than 110 countries from India such as Europe, Australia, Africa, Middle East, Latin America and throughout Asia.
Hyundai launched its first car santro which was the most popular car so far as it was advertised as a family car. The two manufacturing plants of Hyundai are located near Chennai and Tamil Nadu with a combined capacity of 600,000 units annually. The R & D facility is located in Hyderabad.
The word Hyundai means modern which the company tries to strive through its products, bringing modern technology and styles for every model. The symbol h in Hyundai is pretty thoughtful too as it represents Hyundai shaking hands with its customers, symbolizing trust.
The company had the most success with santro, though the gets did not do that well, the i10 and i20 are new forever favourites in the Indian market. Providing additional features compared to its competitors, these two cars are advertised as budget-friendly premium cars in India. Currently, all Hyundai cars in India include 10 car models which have 5 Hatchbacks, 3 Sedans and 2 SUVs.
The cheapest Hyundai model is the EON which has a starting price of Rs. 3.35 Lakh and the most expensive Hyundai car model is the Tucson priced at Rs. 18.64 Lakh. Apart from i10 and i20, creta is one of the most popular cars in the Indian market starting at rs.9.5l.
Hyundai has changed the market flow and up to his game with its launch of the new santro this year. The family favourite car is getting a lot of traction again and is estimated to be one of the top selling cars that are under 5l.
Upcoming Hyundai cars of 2018-2019 include Elantra 2019, Carlino, Santa Fe 2019, Grand i10 2019, Sonata, Kona Electric, EON. With the Kona electric providing the fourth fuel option of the electric battery, it is estimated to be priced below RS. 30L. Hyundai was able to sell 55,00,02 units in the year 2018 facing a 4.30% growth rate compared to the previous year
Mahindra and Mahindra
With most of Mahindra cars featuring larger size, the Indian carmaker has dominated the passenger car market in SUV for a long time. MAHINDRA AND MAHINDRA (M&M) started as an assembler for willy’s jeep and made its way to one of the oldest and most popular Indian car manufacturers in the country.
Mahindra and Mahindra have headquarter located in Mumbai and two manufacturing units in Mumbai and igatpuri. As Mahindra mostly concentrates on stronger built and ruggedness for its SUVs, it has become really popular in rural as well as the semi-urban parts of India.
As most of the Indian families consist of a bigger family, cars like Scorpio and bolero have become one of the top selling SUVs in India. Mahindra has a Korean subsidiary Ssangyong which is responsible for the development of Rexton SUV.
Currently, all Mahindra cars offered in the Indian market consists of 16 car models including 9 SUVs, 1 Minivan, 2 Hatchbacks, 2 Sedans and 2 muvs. The cheapest Mahindra model is the KUV100 NXT which has a starting price of Rs. 4.7 Lakh and the most expensive Mahindra car model is the XUV500 priced at Rs. 12.57 Lakh.
The Mahindra cars price list for Marazzo is at Rs 9.99 Lakh, Mahindra Scorpio at Rs 10.0 Lakh, Mahindra Thar at Rs 6.64 Lakh and are considered the most popular Mahindra cars in India. The Mahindra sold over 2,49,301 in 2018 with a growth rate of 2.85%.
Mahindra is the pioneer of the fourth fuel option of the electric battery in India. With already consisting of 2 events to its collection, Mahindra e verito at rs. 11.28l and Mahindra e20 starting at rs. 7.46l. Mahindra also owns the Italian car design firm ‘Pininfarina’ and is planning to launch a global luxury brand of electric cars which is assumed to be the huge rivals of Tesla.
Upcoming Mahindra Cars that are expected to launch in 2018-2019 include Alturas G4, ekuv100, TUV300 2019, S 201, XUV Aero. Again making a huge comeback and adding to its collection with ekuv100, the Indian carmaker is planning to keep the cost as low as Rs. 10 lakhs.
Tata motors limited was formally known as telco (Tata engineering and locomotive company) is the largest automobile manufacturer in India. This member of the tata group was established in the year 1945 as a locomotive manufacturer. Later in the year of 1954 tata motors built its first commercial vehicle in collaboration with DAIMLER-BENZ AG.
The passenger vehicle was later formulated in the year 1988 launching the first ever tata mobile followed by tata sierra in 1991. The most popular tata car model in Indian market tata indica was launched in 1998 followed by nano in 2008 which turned out to be the cheapest cars in the world.
That’s not all, Tata motors have acquired Jaguar and land rover, the British car makers from ford in 2008 and turned the company around and made it into a global luxury carmaker again. Back home, all the Tata cars in India have manufacturing and assembly plants in Pune and all over Gujrat. The international plants are established in Argentina, South Africa, Great Britain and Thailand as well.
Tata also has its individual research and development centres in Pune, Lucknow, Gujrat, South Korea, Great Britain and Spain. It is India’s only OEM(original equipment manufacturer) offering an extensive range of automobile solutions.
With the cheap costs, different models, excellent performance and bright and bold look, the Tata cars have made a huge impact on the global market. Tata is one of the most trusted brands, quality is never an issue and with its readily available service centres, maintenance is the easiest.
Tata has set foot not even in sedans and hatchbacks but SUVs too. With the versatile product like tata Tiago, the cheapest tata nano and the world-class SUVs Like Tata Hexa and Nexon, Tata motors are able to capture the Indian market and made its way to one of the top five best sellers in the country.
Tata cars sold 2,37,217 units in the year 2018 increasing its growth rate by 24.13%. It is not a huge surprise since Tiago was launched last year and it managed to achieve the title of the next crowd favourite car.this proves that tata is one of the fastest growing automotive brands in the country.
With the conventional fuel options like petrol, diesel and CNG, The tata car price list starts from RS. 2.38L for the cheapest car that is, tata genx nano (XE version). Tata motors offer a wide range of Tata cars models which includes Tata genx Nano, Tiago, Tigor, Nexon, Bolt, Indica, Zest, Indigo, Safari Storme, Sumo Gold, Xenon XT and Hexa SUV.
Tata motors are all set to launch EVs (electric vehicle) as an alternative in next-gen tata nano and Tiago. The electric option is said to be available for the new SUV Tata Nexon within 2 years. The new idea of e-vision, a beautiful concept by Tata motors is to launch the evs in sedans giving it a more premium look than normal hatchback evs.
Honda Cars India
Formally known as Honda Siel cars India limited, the Japanese carmaker Honda entered the Indian market in 1995. Initially, Honda India was a joint venture between Honda motor company and usha international.
Honda soon bought all the shares from usha and became the sole subsidiary of Honda. Later changed to Honda car India Limited (HCIL), Honda has two manufacturing units in Greater Noida and Rajasthan. The plant in Noida has an estimated capacity of 100,000 units annually.
The most popular Honda car was the Honda city that was first launched in 1998 and still manages to attract the Indian market with timely updates. The Honda Accord and the CR-V let the company enter the premium car market. Initially, Honda made the debut only with petrol cars. The first diesel car introduced by Honda was a compact sedan Honda amaze that was based on the Brio hatchback.
Currently, Honda car in India has 8 cars in its collection on sale with 3 Hatchbacks, 2 Sedans, 2 SUVs and 1 Hybrid. The cheapest of all Honda car models is the Brio which has a starting price of Rs. 4.73 Lakh and the most expensive Honda car model price is Accord at Rs. 43.21 Lakh.
The Honda Amaze (Rs 5.8 Lakh), Honda City (Rs 8.77 Lakh) and Honda WRV at Rs 7.79 Lakh are the most popular cars from Honda. Honda sold 1,74,856 with a decline of 2.18% compared to last year.
Upcoming Honda Cars expected to launch in 2018-2019 include Civic, Vezel, Brio 2019. Since Honda has entered the diesel fuel option recently it does not show any sign of entering the fourth fuel option of the electric vehicle anytime soon.
Toyota motor corporation was founded by kiichiro Toyoda in 1937. It was a part of Toyota industries that produced automobiles.in 1934 it created its engine type A and in 1936 it created its first passenger car. The Toyota motors are responsible for 5 brands namely, Toyota, Hino, Lexus, ranz and Daihatsu.
The headquarters is based in Toyota city, Aichi, Japan. Along with stakes in different companies, Toyota has joint ventures in China, the Czech Republic and in India as Toyota Kirloskar.
Toyota Kirloskar Motor Pvt. Limited is a subsidiary of Toyota with Kirloskar group as a minority owner especially for the manufacturing and sales of Toyota cars in India. Toyota India is currently the 4th largest carmaker in India.
The joint venture was formed in the year 1997 with Toyota motor corporating owning 89% of the shares and the remaining 11% is owned by the Kirloskar group. The current plant in India, Karnataka is spread across 850 acres with a capacity of 110,000 units a year.
The second plant in Karnataka has a capacity of 210,000 vehicles per annum. Both plants have an employee strength over 6,400. Toyota Kirloskar has its headquarters in Bangalore, India. Toyota manages to sell 1,51,480 units in the Indian market in the financial year of 2018 with 8.54% growth rate.
Ford re-entered the Indian market in 1995 after the previous subsidiary of Ford motor Canada was shut down in 1954. The 1995 company Mahindra Ford India Limited (MFIA) was launched as a joint venture with Mahindra and Mahindra limited. Later in 1998, ford increased its share at 72% and renamed the company as ford India private limited.
Ford India is a multinational USA based cooperation which has headquarters in Michigan and Detroit. Expanding over to approximately 200 markets, Ford owns a share in Lincoln, mercury, Mazda (Japan) and Aston Martin (UK).the formally owned Jaguar and the land rover was later sold to Tata India in the year of 2008.
Being the 2nd largest in us and 4th largest in the world (numbers of cars sold annually), ford motors manufactures under the names of Lincoln and mercury among others.
The major manufacturing houses of ford are located in Canada, the UK, Germany, Turkey, Brazil, Argentina, Australia, China and even South Africa among others. Ford India is currently the 8th largest in India and offers 6 car models on sale for the Indian market that has 2 Hatchbacks, 1 Sedans, 2 SUVs and 1 Coupe in its collection. The currently available ford car models list in India is mentioned above.
The cheapest Ford car in India is the Freestyle which has a starting cost of Rs. 5.23 Lakh while the most expensive Ford model in India is the Mustang priced at Rs. 74.62 Lakh. The Ford ecosport, Ford Freestyle, Ford Endeavour are the most popular cars from Ford. Even so, ford has a huge manufacturing unit 45kms from Chennai with the capacity of 100,000 units production per annum.
The upcoming cars from ford include of an SUV and a hatchback. The two new ford car models, ford Endeavour 2019 and Ford Figo 2018 will be launched in India by 2019.
Although the new Ford Figo will have CNG as a fuel option, Sadly the ford brand does not provide the 4th fuel option, Electric battery to any its current and near future models. Ford sold over 97,804 units in the year 2018 with a growth rate of 10.91%.
The French carmaker, Renault established Renault motors in 1899. Renault has also manufactured cars as well as trucks and vans in the past. In 2016, Renault has rewarded the ninth biggest automaker in the world based on production. At 2017, Renault-Nissan became the biggest seller of light vehicles surpassing Volkswagen AG. Renault has headquarters in Boulogne-Billancourt near Paris.
The Renault group is made up of subsidiaries alpine, automobile Dacia from Romania, Renault Samsung motors from South Korea and avtovaz of Russia. Renault group also has 43.4% in Nissan of Japan, 1.55% in Daimler AG of Germany.
Renault also owns subsidiaries of RCI Banque, Renault Retail Group and Motrio. Renault has few joint ventures, including Oyak-Renault of turkey, Renault Pars of Iran. The French government has a 15% ownership of Renault.
The production facility that was started as a joint production between Renault and Nissan was established with an initial investment of rs.45 billion. The plant has a combined facility to produce 400,000 vehicles annually.
To provide the best possible features at a very low-cost Renault recently launched Renault kwid which is one of the most popular cars under the 5 lakh mark and also very popular amongst youngsters. Unfortunately, Renault was able to sell only 82,368 units in the country and a drop of 26.78% compared to last year.
Volkswagen group was founded by the German labour front in 1937. It has headquarters in Wolfsburg, Germany. Volkswagen was the largest automaker in the year 2016-17 with China being its biggest market with 40% of total sales. Volkswagen means ‘people’s car’ in German and the group has always tried to make that happen.
It is The founding name and a member of the Volkswagen group that includes, Audi, SEAT, Porsche, Lamborghini, Bentley, Bugatti, Scania, MAN, and Škoda. Volkswagen has manufacturing and assembling plants in Mexico, United States, Slovakia, China, India, Indonesia, Russia, Malaysia, Brazil, Argentina, Portugal, Spain, Poland, the Czech Republic, Bosnia and Herzegovina, Kenya and South Africa.
Volkswagen India has a manufacturing plant in Chakan, Pune, Maharashtra with a capacity of 200,000 vehicles per year. Volkswagen has 119 showrooms and 147 service centres across the country. Volkswagen managed to sell 37,018 units in India in 2018 with a drop rate of 22.47% compared to 2017.
Fiat, the Italian automaker was founded in 1899 with 9 founding members. Later the first fiat car plant was established in 1900 with a staff capacity of 35 making 24 cars. With a strong determination, talented staff and best engineering fiat mae some relatively good profit and produced 135 cars by 1903. In the next 3 years, that is in 1906 fiat went ahead and produced 1149 cars. The company went public by selling its stock in Milan stock exchange.
Fiat was led by one of the co-founders Giovanni Agnelli till 1945. The first ever car that was made by fiat, 3 and a half cv was a lot similar to the Benz we see now. By 1910, under the leadership of Agnelli, fiat became the largest automobile company in Italy. Since the beginning fiat not only produced cars but also developed trucks, aircraft engines and also taxis which were very popular in Europe in 1908.
FCA India automobiles private limited is a fully owned subsidiary of FCA Italy and was formed in 2012. The fiat produces cars as well as engines under the name of fiat, Abarth and jeep. A lot of the commercial cars in this age has fiat’s engine installed in them so you know when it comes to engineering, fiat doesn’t go wrong. Fiat first came in India in 1997 as a joint venture with Tata Motors.
The company houses about 2600 employees currently with undertaking contract for manufacturing of engines for Maruti Suzuki India Ltd & Premier Automobiles. Premier Automobiles uses fiat’s engine for its compact SUV Premier Rio.
Maruti Suzuki cars that use Fiat’s 1.3 Multijet engines in the Indian market include – Ritz, Swift, Swift dzire, SX4 & Ciaz, S-Cross, Vitara Brezza, Baleno. In the financial year of 2018 fiat sold 18,408 cars with a growth rate of 16.23%.
Chevrolet was first founded by a Swiss race car driver and automotive engineer Louis Chevrolet and William c. Durant, William little, James h. Whiting, dr. Edwin r. Campbell in 1911 in Detroit. The first ever factory of Chevrolet was established in Michigan.
Chevrolet is one of the most recent brands that was introduced in India by general motors, a company owned by Durant. Originally it was a joint venture with Hindustan motors and it sold only Opel models till 2003. It started its production in 2003 in Gujarat with Astra and Corsa.
Till 2005 all cars sold in the Indian market were imported from fuji heavy industries in Japan. Later Cruze and Tavera were built in the Gujrat plant. In 2017 Chevrolet stopped the sale and production of cars in India but continued the service centres.
New brands recently launched in India in the year 2019
Morris garages, a Chinese owned British automotive brand (previously known as MG car company limited) begun its sports car production in 1920 in Oxford, UK. Privately owned by W. R. Morris till the year 1935 and later sold it to his holding company Morris motors limited which later went public in 1936.
Morris garages have had a lot of issues with ownership and had multiple ownerships over the period of time. It was later sold to Nanjing automobile group in 2005 which was later merged in Shanghai automobile industry corporation. MG celebrated its 90th birthday as a brand and was also voted third for best manufacturer category in auto express in the year 2014.
The distribution and sale of the MG brand have been continued in a lot of countries (with England and USA being its top markets) but for the first time this year, MG has decided to launch its new car hector in the Indian market.
The 2019 Mg hector is scheduled to launch this year in June in the Indian market and the company has not failed to create the much-needed hype the new brand needs. The term hector is inspired by Trojan warrior hero, Prince Hector of Troy. Hector symbolizes for Strong, bold, trustworthy and dependable.
South Korea's 2nd largest automobile manufacturer, Kia Motors has planned to step into the Indian automobile market soon. With its new project, Kia sp that is scheduled to be launch in September 2019 has already received a lot of traction.
Founded in 1944, Kia motors is now a subsidiary of Hyundai-Kia automotive group. In 1973, The company opened its first integrated automotive assembly plant. In 1981, due to the industry Consolidation, Kia backed out from the passenger car market ad concentrated on light trucks.
That all changed when fort partnered up with Kia in 1986. Initially, Kia produced a few Mazda derived cars. With the new models, Kia expanded across thirty states by 1995, selling a record 24,740 automobiles.
But during the Asian financial crisis in 1997, Kia faced bankruptcy and by 1998 derived a contract with Hyundai motor company for the exchange of ownership. Initially starting with 51% of shares, ford soon disinvested causing Hyundai to own about 1/3 rd of the company share right now.
The largest automobile manufacturer in South Korea, Hyundai currently owns the majority shares in Kia motors with Kia motors owning shares in more than 20 Hyundai subsidiaries. The amount of shares held by Kia ranges from 4.9% to 45.37%.
Kia motors are currently responsible for the production of 1.5 million vehicles a year in 13. Manufacturing and assembly operations in eight countries. The cars are currently sourced over 173 countries and have 40,000 full-time employees worldwide and annual revenues of over US$14.6 billion.
The world is looking at India as one of the fastest growing automotive industry. With the increase in population and jobs, a common man’s lifestyle has also gotten better. The changes in lifestyle, ease of availability, dependable engineering, newest technologies and cheaper rates are attracting the people of this country towards buying a car.
The concept of ‘impulse buying’ can even be seen in this scenario where the car sometimes exceeds the number of family members. As for the middle and lower middle-class families, having 1 or 2 cars in every household has become a common sight.
Currently standing at the 5th largest automobile industry in the world, a lo has expected by the automakers. And with the ever rising competitions, even the newer brands enter the race to try their luck. The Indian automotive industry has never seen better days before and it is expected to grow even more in coming years.
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