Trade Analytics
Browse

This is the ARCHIVED section of the website. To visit the current content of the website please CLICK here

Automobiles

Go Back

Automobiles

October, 2011

Indian Automobile Industry: Brief Introduction

India, the world's second-fastest growing auto market, is in top-gear growth. The country is a hot destination for automobile manufacturers due to its robust economic growth, favourable demographics, higher disposable income, changing lifestyle and positive industrial eco-system. India is expected to become the third biggest automaker in the world within next decade, according to Diane H Gulyas, President, DuPont Performance Polymers. Owing to its vertical and horizontal integration with other key segments of the economy, the industry is said to be a major growth driver.

Market Dynamics

For FY 2011, Maruti Suzuki held a reasonable market share of 48.74 per cent while that of Hyundai was around 18.10 per cent. Tata Motors' market share stood at 12.92 per cent for the period. General Motors India (GMI) and Honda Siel cars India (HSCI) had a market share of 4.40 per cent and 2.97 per cent respectively during FY2011.

According to the data released by the Society of Indian Automobile Manufacturers (SIAM), Maruti held 43 per cent of the total Indian passenger-car market in the six months ended September 2011 as against Hyundai's 20 per cent pie.

Key Statistics

  • SIAM expects India's car sales to grow 2-4 per cent in the fiscal year ending March 2012 while a growth of 13-15 per cent is projected in commercial vehicles' sales segment.
  • Car sales in September 2011 stood at 165,925 cars.
  • Sales of commercial vehicles (a key indicator of the country's economic activity), increased by 18.05 percent to 70,634, while motorcycle sales rose 19.93 percent to 933,465 of them in September.
  • Total sales of vehicles across categories witnessed a growth of 19.39 per cent to 1571,342 units in September 2011 from 1316,118 units in the corresponding period last year.
  • The sales of scooters increased by 50.74 per cent to 231,710 units (from 153,716 units in September 2010) while that of three-wheelers stood at 49,255 units (from 48,814 units in September 2010) in September 2011.
  • Overall automobile exports registered a growth rate of 32.31 per cent during April-December 2011. Passenger Vehicles registered growth at 21.01 percent in this period while two-wheelers, commercial vehicles and three wheelers segments recorded growth of 32.34 per cent, 35.91 per cent and 49.55 per cent respectively.

Indian Automobile Industry: Major Developments & Investments

Seoul-based Hyundai Motor Company has launched its cheapest car model 'Eon' in Indian markets to give in a face-off to Maruti Suzuki India Ltd and the company expects to sell 140,000-150,000 Eon cars a year.

With a view to add a model that could vie for international markets, India's largest utility vehicle maker Mahindra and Mahindra Ltd (M&M) has introduced a new sport utility vehicle (SUV) XUV500; nine years after the launch of Scorpio.

Marking its first motor export from India, Toyota Kirloskar Motor Pvt Ltd (TKM) would commence export of the 'Etios' series sedan and hatchback to South Africa in March 2012. The company is targeting emerging economies to increase its sales.

Swedish company Volvo's Indian bus-making unit has unveiled its plan to invest around Rs 4 billion (US$ 80 million) over 2011-15 to increase its annual output to 5000 buses and revenue to Rs 490 billion (US$ 1 billion) by 2015 to cater to the burgeoning Indian market.

German luxury car makers are on their toes to achieve top slot in the Indian markets and they would enhance their sales network by 2012 to a great extent to accomplish the same. While Mercedes Benz will add 8 dealerships in 2012, Audi plans to increase the number of sales outlets from 13 to 25 in 2012. Also, BMW is working on a project to triple its dealerships by 2015. The company plans to add 18 of them by October 2012 to take the total number to 40.