Automobile Industries Of India

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Automobile Industries of India

The Indian auto Industry became the 4th largest in the world with sales increasing 9.5 per cent year-on-year to 4.02 million units (excluding two wheelers) in 2017. It was the 7th largest manufacturer of commercial vehicles in 2017.

The Two Wheelers segment dominates the market in terms of volume owing to a growing middle class and a young Population. Moreover, the growing interest of the companies in exploring the rural markets further aided the Growth of the sector.

India is also a prominent auto exporter and has strong export growth expectations for the near future. Automobile exports grew 15.54 per cent during April 2018-February 2019. It is expected to grow at a CAGR of 3.05 per cent during 2016-2026. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the two-wheeler and four wheeler market in the world by 2020.


Market Size

Domestic automobile production increased at 7.08 per cent CAGR between FY13-18 with 29.07 million vehicles manufactured in the country in FY18. During April 2018-January 2019, automobile production increased 9.84 per cent year-on-year to reach 26.26 million vehicle units.

Overall domestic automobiles sales increased at 7.01 per cent CAGR between FY13-18 with 24.97 million vehicles getting sold in FY18. During April 2018-January 2019, highest year-on-year growth in domestic sales among all the categories was recorded in commercial vehicles at 22.79 per cent followed by 14.79 per cent year-on-year growth in the sales of three-wheelers.

Premium motorbike sales in India crossed one million units in FY18. During January-September 2018, BMW registered a growth of 11 per cent year-on-year in its sales in India at 7,915 units. Mercedes Benz ranked first in sales satisfaction in the luxury vehicles segment according to J D Power 2018 India sales satisfaction index (luxury).

Sales of electric two-wheelers are estimated to have crossed 55,000 vehicles in 2017-18.


Major Manufacturers in Automobile Industry

  • Maruti Udyog Ltd.
  • General Motors India
  • Ford India Ltd.
  • Eicher Motors
  • Bajaj Auto
  • Daewoo Motors India
  • Hero Motors
  • Hindustan Motors
  • Hyundai Motor India Ltd.
  • Royal Enfield Motors


Investments

In order to keep up with the growing demand, several auto makers have started investing heavily in various segments of the industry during the last few months. The industry has attracted Investment/”>Foreign Direct Investment (FDI) worth US$ 20.85 billion during the period April 2000 to December 2018, according to data released by Department of Industrial Policy and Promotion (DIPP).

Some of the recent/planned investments and developments in the automobile sector in India are as follows:

  • Ashok Leyland has planned a Capital Expenditure of Rs 1,000 crore (US$ 155.20 million) to launch 20-25 new models across various commercial vehicle categories in 2018-19.
  • Hyundai is planning to invest US$ 1 billion in India by 2020. SAIC Motor has also announced to invest US$ 310 million in India.
  • Mercedes Benz has increased the manufacturing capacity of its Chakan Plant to 20,000 units per year, highest for any luxury car manufacturing in India.
  • As of October 2018, Honda Motors Company is planning to set up its third factory in India for launching hybrid and electric vehicles with the cost of Rs 9,200 crore (US$ 1.31 billion), its largest investment in India so far.
  • In November 2018, Mahindra Electric Mobility opened its electric technology manufacturing hub in Bangalore with an investment of Rs 100 crore (US$ 14.25 million) which will increase its annual manufacturing capacity to 25,000 units.


Government Initiatives

The Government of India encourages foreign investment in the automobile sector and allows 100 per cent FDI under the automatic route.

Some of the recent initiatives taken by the Government of India are –

  • The government aims to develop India as a global manufacturing centre and an R&D hub.
  • Under NATRiP, the Government of India is planning to set up R&D centres at a total cost of US$ 388.5 million to enable the industry to be on par with global standards
  • The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for introduction of electric vehicles (EVs) in their public transport systems under the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The government will also set up incubation centre for start-ups working in electric vehicles space.
  • In February 2019, the Government of India approved the FAME-II scheme with a fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22.


Achievements

Following are the achievements of the government in the past four years:

  • Number of vehicles supported under FAME scheme increased from 5,197 in June 2015 to 192,451 in March 2018. During 2017-18, 47,912 two-wheelers, 2,202 three-wheelers, 185 four-wheelers and 10 Light commercial vehicles were supported under FAME scheme.
  • Under National Automotive Testing And R&D Infrastructure-2/”>INFRASTRUCTURE Project (NATRIP), following testing and research centres have been established in the country since 2015
    • International Centre for Automotive Technology (ICAT), Manesar
    • National Institute for Automotive Inspection, Maintenance & Training (NIAIMT), Silchar
    • National Automotive Testing Tracks (NATRAX), Indore
    • Automotive Research Association of India (ARAI), Pune
    • Global Automotive Research Centre (GARC), Chennai
  • SAMARTH Udyog – Industry 4.0 centres: ‘Demo cum experience’ centres are being set up in the country for promoting smart and advanced manufacturing helping SMEs to implement Industry 4.0 (automation and data exchange in manufacturing technology).

 


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The automobile industry in India is one of the largest and fastest growing in the world. The industry is made up of a number of major manufacturers, including Maruti Suzuki, Hyundai, Tata Motors, and Mahindra & Mahindra. These companies produce a wide range of vehicles, from small cars to SUVs and trucks.

The automobile industry in India has a long history. The first cars were imported into India in the early 1900s, and the first Indian-made car was produced in 1947. The industry grew rapidly in the 1980s and 1990s, and it is now one of the largest in the world.

The automobile industry in India is a major driver of economic growth. The industry employs millions of people, and it contributes billions of dollars to the Indian economy. The industry is also a major source of exports. In 2018, India exported over 3 million vehicles, making it the world’s sixth-largest exporter of automobiles.

The automobile industry in India is facing a number of challenges. One challenge is the rising cost of fuel. The price of gasoline and diesel has been increasing in recent years, and this has made it more expensive to own and operate a car. Another challenge is the increasing pollution caused by automobiles. Cars are a major source of Air Pollution in India, and the government is taking steps to reduce this pollution.

Despite these challenges, the automobile industry in India is expected to continue to grow in the coming years. The Indian government is encouraging the development of the industry, and it is expected that the number of vehicles on Indian roads will double by 2020.

The automobile industry in India is a major force in the country’s economy. It is a major employer, and it contributes billions of dollars to the Indian economy. The industry is also a major source of exports. The automobile industry in India is facing a number of challenges, but it is expected to continue to grow in the coming years.

Here are some additional details about the automobile industry in India:

Here are some frequently asked questions and short answers about the automobile industry:

  1. What is the automobile industry?
    The automobile industry is a global industry that designs, manufactures, markets, and sells motor vehicles. It is one of the largest and most important industries in the world, with annual revenues of over $2 trillion.

  2. What are the different types of automobiles?
    There are many different types of automobiles, including passenger cars, light trucks, heavy trucks, buses, and motorcycles. Passenger cars are the most common type of automobile, accounting for over 50% of all vehicles sold worldwide. Light trucks include pickup trucks, vans, and SUVs. Heavy trucks include tractor-trailers, semi-trailers, and dump trucks. Buses are used for public transportation, while motorcycles are used for personal transportation.

  3. What are the major automobile manufacturers in the world?
    The major automobile manufacturers in the world include Toyota, Volkswagen, General Motors, Ford, Honda, Nissan, Hyundai, and Kia. These companies account for a significant share of the global automobile market.

  4. What are the major trends in the automobile industry?
    The automobile industry is constantly evolving, with new technologies and trends emerging all the time. Some of the major trends in the industry include the rise of electric vehicles, the increasing popularity of autonomous vehicles, and the growing demand for shared mobility services.

  5. What are the challenges facing the automobile industry?
    The automobile industry is facing a number of challenges, including the need to reduce emissions, the increasing cost of raw materials, and the changing preferences of consumers. The industry is also facing competition from new technologies, such as ride-sharing and self-driving cars.

  6. What is the future of the automobile industry?
    The future of the automobile industry is uncertain, but it is clear that the industry is undergoing a period of significant change. The rise of new technologies, such as electric vehicles and autonomous vehicles, is likely to have a major impact on the industry in the years to come.

  1. Which of the following is not a type of automobile?
    (A) Car
    (B) Truck
    (C) Airplane
    (D) Bus

  2. Which of the following is the largest automobile manufacturer in the world?
    (A) Toyota
    (B) Volkswagen
    (C) General Motors
    (D) Ford

  3. Which of the following is the largest automobile manufacturer in India?
    (A) Maruti Suzuki
    (B) Tata Motors
    (C) Hyundai Motor India
    (D) Mahindra & Mahindra

  4. Which of the following is the first electric car to be manufactured in India?
    (A) Tata Nexon EV
    (B) MG ZS EV
    (C) Hyundai Kona Electric
    (D) Mahindra eVerito

  5. Which of the following is the largest automobile market in the world?
    (A) China
    (B) United States
    (C) Japan
    (D) Germany

  6. Which of the following is the largest automobile market in India?
    (A) Uttar Pradesh
    (B) Maharashtra
    (C) Gujarat
    (D) Tamil Nadu

  7. Which of the following is the most popular type of automobile in India?
    (A) Car
    (B) Motorcycle
    (C) Truck
    (D) Bus

  8. Which of the following is the most popular brand of automobile in India?
    (A) Maruti Suzuki
    (B) Tata Motors
    (C) Hyundai Motor India
    (D) Mahindra & Mahindra

  9. Which of the following is the most popular model of automobile in India?
    (A) Maruti Suzuki Alto
    (B) Tata Nano
    (C) Hyundai i10
    (D) Mahindra Scorpio

  10. Which of the following is the most popular fuel type for automobiles in India?
    (A) Petrol
    (B) Diesel
    (C) CNG
    (D) Electric

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