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Automotive industry in India

(Redirected from Society of Indian Automobile Manufacturers)

The automotive industry in India is the world's fourth-largest by production and valuation as per 2022 statistics.[1][2][3] As of 2023, India is the 3rd largest automobile market in the world in terms of sales.[4]

As of April 2022, India's auto industry is worth more than US$100 billion and accounts for 8% of the country's total exports and 7.1% of India's GDP.[5] According to the 2021 National Family Health Survey, 60% of Indian households own an automobile.[6][7] According to government statistics, India has barely 400 automobiles per 1,000 people.[8][9]

History

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A pre-Independence car showroom in Secunderabad, showing Fiat Topolino and Fiat 1100
 
Kolkata street traffic in 1945

In 1897, the first car ran on an Indian road. Through the 1930s, cars were imports only, and in small numbers.

An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was launched in 1942 building Morris products, long-time competitor Premier in 1944, building Chrysler Corporation products such as Dodge and Plymouth, and beginning in the 1960s, Fiat products.[10] Mahindra & Mahindra was established by two brothers in 1945 and began assembly of Jeep CJ-3A utility vehicles. In the same years, J. R. D. Tata, the chairman of Tata Group founded TATA Engineering and Locomotive Company (now Tata Motors) in Jamshedpur. Following independence in 1947, the Government of India and the private sector launched efforts to create an automotive-component manufacturing industry to supply to the automobile industry. In 1953, an import substitution programme was launched, and the import of fully built-up cars began to be restricted.[10]

1947–1970

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The Hindustan Ambassador dominated India's automotive market from the 1960s until the mid-1980s and was manufactured until 2014.
 
Fiat 1100D, built under license by Premier Automobiles, later re-christened 'Premier Padmini', was the Ambassador's only true competitor.

The 1952 Tariff Commission

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In 1952, the Indian government appointed the first Tariff Commission, whose purpose was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted its report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, under a licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per demands, in the future. The Tariff Commission recommendations were implemented with new policies that would eventually exclude companies that only imported parts for assembly, as well as those with no Indian partner. In 1954, following the Tariff Commission implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants in Mumbai, decided to move out of India.[11]

The Tariff commission policies, including similar restrictions that applied to other industries, came to be known as the Licence Raj, which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic red tape ended up causing demand to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.

Passenger cars
Utility and light commercial vehicles
  • Vehicle Factory Jabalpur – started manufacturing Jonga Light Utility Vehicles and Vahan 1 Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the main troop carriers of the Indian Armed Forces and much more powerful than any other vehicle of their class.Also, Nissan Power Wagon was added to their line.
  • Mahindra & Mahindra plant established in Mumbai – technical collaboration with Willys to manufacture CJ Series Jeep.
  • Bajaj Tempo, Pune, now Force Motors – entered into technical collaboration with Tempo to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.
  • Standard Motor Products of India – entered into technical collaboration from Standard and had licence to manufacture the Standard Atlas passenger van with panel van and one-tonne pickup variants.
Medium and heavy commercial vehicles
Scooters, mopeds and motorcycles

Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after the tariff commission was enabled.

However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, which hampered the growth of the Indian private sector.

1970 to 1983

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The beginning of the 1970s didn't see growth potential; and most of the collaboration license agreements came to an end, but with the option to continue manufacturing with renewed branding. Cars were still meant for the elite and Jeeps, now owned by American Motors Corporation, were largely used by government organizations and in some rural regions. By the end of the decade, some developments were made in commercial vehicle segments to facilitate the movement of goods. The two-wheeler segment remained unchanged except for increased sales to the middle class in urban areas. There was an emphasis on having more farm tractors, as India was embarking on a new Green Revolution; and Russian and Eastern bloc imports were brought in to meet the demand.

But after 1970, with restrictions on the import of vehicles set, the automotive industry started to grow; but the growth was mainly driven by tractors, commercial vehicles, and scooters. Cars still remained a major luxury item. In the 1970s, price controls were finally lifted, inserting a competitive element into the automobile market.[13] However, by the 1980s, the automobile market was still dominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers.[14] The rate of car ownership in 1981 was about one in every thousand citizens – understandable when the annual road tax alone cost about half the average income of an Indian at the time.[15]

During the eighties, a few competitors began to arrive on the scene. Of the 30,487 cars built in India in 1980, all but six came from the two main players Hindustan and Premier: Standard had led a shadow existence in the latter half of the 1970s, producing only a handful of cars to keep their license active.[15] A new contender was tiny Sipani, which had tried building locally developed three-wheeled vehicles since 1975 but introduced the Reliant Kitten-based Dolphin in 1982. Nonetheless, all eyes were on Maruti, which caused a major upheaval to the Indian automobile industry.[15]

The OPEC oil crisis saw increased need to install or redesign some vehicle to fit diesel engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks on Petrol engines.

1984 to 1992

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Chemical Biological Radiological and Nuclear Reconnaissance Vehicle (CBRN-RV) manufactured by the AVANI

From the end of the 1970s to the beginning of the 1980s India saw no new models, the country continuing to depend on two decades-old designs. The Sipani Dolphin, which arrived in 1982, was not a serious contender, with its plastic body and without rear doors - essential to Indian car buyers. This situation forced the government to encourage and let more manufacturers into fray.

In 1984 AVANI was established in Medak near Hyderabad. It started manufacturing Infantry Combat Vehicles christened as Sarath, the backbone of India's mechanised infantry. AVANI is still the only manufacturing facility of ICVs in India. To manufacture the high-power engines used in ICVs and main battle tanks, the Engine Factory was set up in 1987 in Avadi, near Chennai. In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The 1986 Expo was a showcase for how the Indian automotive industry was absorbing new technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India.

Post-1992 liberalisation

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Tata Indica, launched in 1998

Eventually multinational automakers such as Suzuki and Toyota of Japan and Hyundai of South Korea were allowed to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the first and the most successful of these new entries, in part the result of government policies to promote the automotive industry beginning in the 1980s.[14] As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The variety of options available to the consumer began to multiply in the nineties, whereas before there had usually only been one option in each price class. By 2000, there were 12 large automotive companies in the Indian market, most of them offshoots of global companies.[16]

Slow export growth

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Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets and neighbouring countries began early, and in 1987 Maruti Suzuki shipped 480 cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive.[17] This was not to last, and today India manufactures low-priced cars for markets across the globe. As of 18 March 2013, global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis.

Emission norms

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In 2000, in line with international standards to reduce vehicular pollution, the central government unveiled standards titled "India 2000", with later, upgraded guidelines to be known as Bharat Stage emission standards. These standards are quite similar to the stringent European emission standards and have been implemented in a phased manner.

Bharat Stage IV (BS-IV) was first implemented in 13 cities — Agra, Ahmedabad, Bengaluru, Chennai, Delhi (NCR), Kanpur, Kolkata, Lucknow, Hyderabad, Mumbai, Pune, Surat, Solapur — in April 2010, and then in the rest of the nation in April 2017.

In 2019, in line with international standards to reduce vehicular pollution, the central government of India announced the introduction of BS-VI norms to control air pollution, taking effect from 1 April 2020.[18]

Local manufacture encouraged

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Auto Expo 2014, Noida

India levies an import tax of 125% on foreign imported cars, while the import tax on components such as gearboxes, airbags, drive axles is 10%. The taxes are intended to encourage cars to be assembled in India rather than be imported as completely built units.[19]

Sub-4-metre rule

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In 2006, the government of India imposed a new tax structure, which massively impacted the segment. It enables vehicles shorter than 4.0 metres (157.5 in) to qualify for a significantly lower excise duty, which is 8 percent as opposed to 20 percent for longer vehicles.[20] Tata Motors was the first to exploit the new tax structure, which redesigned the rear portion of the Indigo sedan, dropping its length to 3,988 mm (157.0 in) and renamed it as the Indigo CS.[21] The model became significantly cheaper, becoming one of the largest selling three-box cars in the country.[22] Other manufacturers quickly adapted, which led to the release of the shorter Suzuki Swift Dzire, the Honda Brio Amaze, and others.[23]

Manufacturing facilities

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Isuzu's manufacturing plant at Sri City, Andhra Pradesh

The majority of India's car manufacturing industry is evenly divided into three "clusters". In the year 2010,around Chennai was the largest, with a 35% revenue share, accounting for 60% of the country's automotive exports, and home of the operations of Heavy Vehicles Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, Citroën and Datsun.[24][25]

Near Mumbai, Maharashtra, along the Chakan corridor near Pune, is the western cluster, with a 33% share of the market. Audi, Volkswagen, and Škoda are located in Aurangabad. Mahindra and Mahindra has an SUV and engine assembly plant at Nashik. General Motors, Tata Motors, Mercedes-Benz, Land Rover, Jaguar, Fiat, and Force Motors have assembly plants in the area.[26][27]

The northern cluster is around the National Capital Region, and contributes 30%. Gurgaon, Manesar and Kharkhoda in Haryana, are where the country's largest car manufacturer, Maruti Suzuki, is based.

An emerging cluster is the state of Gujarat, with a manufacturing facility of MG Motors in Halol, Atul Auto in Rajkot, Ford, Oculus Auto in Sabarkantha,[28] Maruti Suzuki, and Peugeot-Citroën plants are also planned for Gujarat.[29]

Uttarakhand with Tata Motors, Telangana with Hyundai, Ordnance Factory Medak, Hyderabad Allwyn and Mahindra & Mahindra, Noida with Honda, and Bengaluru - Karnataka region with Toyota, Volvo and Scania, Andhra with Isuzu and Kia and Kolkata - Jamshedpur belt also known as East India belt with companies such as Hindustan Motors, Heavy Engineering Corporation, Tata Hitachi Construction Machinery, TIL Tractos, Tata Daewoo and Tata Motors are other automotive manufacturing regions around the country.[30][31][32]

Andhra Pradesh

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Commercial and passenger vehicles
Two wheelers
Off-highway vehicles

Gujarat

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Two wheelers
Passenger vehicles
Commercial vehicles

Haryana

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Two wheelers
Passenger vehicles
Commercial vehicles
Agricultural vehicles

Himachal Pradesh

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Two wheelers
Passenger vehicles
Commercial vehicles

Jharkhand

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Commercial vehicles

Karnataka

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Two wheelers
Passenger vehicles
Commercial vehicles

Kerala

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Commercial vehicles

Madhya Pradesh

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Two wheelers
Commercial vehicles

Maharashtra

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Two wheelers
Passenger vehicles
Commercial vehicles

Punjab

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Commercial vehicles

Rajasthan

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Two Wheelers
Passenger vehicles
Commercial vehicles

Tamil Nadu

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Two wheelers
Passenger vehicles
Commercial vehicles

Telangana

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Defence
Commercial vehicles

Uttar Pradesh

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Two wheelers
Commercial vehicles

Uttarakhand

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Two wheelers
Commercial vehicles

West Bengal

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Commercial vehicles

Exports

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2007 Mahindra Scorpio in service with Italy's CNSAS

India's automobile exports have grown consistently and reached $4.5 billion in 2009, with the United Kingdom being India's largest export market, followed by Italy, Germany, the Netherlands, and South Africa.[104]

According to The New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies like Hyundai, Nissan, Toyota, Volkswagen, and Maruti Suzuki.[105]

In 2008, South Korean multinational Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors planned to export 250,000 vehicles manufactured in its India plant by 2011.[106] Similarly, US automobile company, General Motors had announced its plans to export about 50,000 cars manufactured in India by 2011.[107]

In September 2009, Ford Motors announced its plans to set up a plant in India with an annual capacity of 250,000 cars, for US$500 million. The cars were manufactured both for the Indian market and for export.[108] The company said that the plant was a part of its plan to make India the hub for its global production business.[109] Fiat Motors had announced that it would source more than US$1 billion worth auto components from India.[110]

 
A Tata Safari on display in Poznań, Poland

In 2009, India (0.23m) surpassed China (0.16m) as Asia's fourth largest exporter of cars after Japan (1.77m), Korea (1.12m) and Thailand (0.26m).[111]

In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing €700M in the operation.[112] Citroën entered the market in 2021 with their first offering being the Citroën C5 Aircross.[113]

In recent years, India has emerged as a leading center for the manufacture of small cars. Maruti Suzuki and Hyundai are the two biggest exporters of cars from the country. Nissan also exports small cars from its Indian assembly line. Tata Motors exports its passenger vehicles to several Asian and African markets. In the 2000s, Mahindra & Mahindra prepared to introduce its pickup trucks and small SUV models in the U.S. market, but canceled its plans. As of 2019, it is assembling and selling an off-road vehicle (Mahindra Roxor; not certified for road use) in limited numbers in the U.S.[114] It is also sold in Canada. While the possibilities for the Indian automobile industry are impressive, there are challenges that could thwart future growth. Since the demand for automobiles in recent years is directly linked to overall economic expansion and rising personal incomes, industry growth will slow if the economy weakens.[115]

Mahindra's major overseas markets include Australia, South Africa, New Zealand, United States and South Asia.[116]

Top 10 export destinations

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India exported $14.5 billion worth of automobiles in 2014. The 10 countries below imported 47.8% of that total.[117]

Rank Country Value (US$) Share
1 United States 1.2 billion 8.4%
2 Mexico $1 billion 6.9%
3 South Africa $888.8 million 6.1%
4 United Kingdom $637.4 million 4.4%
5 Sri Lanka $596.9 million 4.1%
6 Bangladesh $592.1 million 4.1%
7 Turkey $580.4 million 4%
8 Nigeria $546.8 million 3.8%
9 United Arab Emirates $433.6 million 3%
10 Colombia $428.9 million 3%

Exports of Vehicles in India decreased to US$1478.68 Million in 2020 from US$11332.49 Million in 2019.

India Exports by Country Last Previous
United States 485.03 469.28 INR Billion Nov/22
United Arab Emirates 211.45 179.69 INR Billion Nov/22
Netherlands 146.98 118.23 INR Billion Nov/22
Israel 122.55 44.07 INR Billion Nov/22
Brazil 91.30 72.88 INR Billion Nov/22
China 86.57 83.21 INR Billion Nov/22
Germany 66.84 63.42 INR Billion Nov/22
Saudi Arabia 60.38 66.42 INR Billion Nov/22
Indonesia 58.89 51.32 INR Billion Nov/22
Singapore 55.63 63.31 INR Billion Nov/22
Hong Kong 51.40 62.34 INR Billion Nov/22
Belgium 51.05 53.36 INR Billion Nov/22
Nepal 50.69 36.95 INR Billion Nov/22
Italy 49.29 45.34 INR Billion Nov/22
France 45.78 41.27 INR Billion Nov/22
South Africa 43.83 47.85 INR Billion Nov/22
Malaysia 40.15 42.70 INR Billion Nov/22
Japan 37.21 33.27 INR Billion Nov/22
Australia 34.64 44.76 INR Billion Nov/22
Nigeria 33.16 38.53 INR Billion Nov/22
Thailand 32.57 37.15 INR Billion Nov/22
Sri Lanka 27.95 35.21 INR Billion Nov/22
Canada 26.50 22.95 INR Billion Nov/22
Spain 25.97 30.04 INR Billion Nov/22
Russia 24.72 23.06 INR Billion Nov/22
Egypt 22.94 20.94 INR Billion Nov/22
Kenya 20.10 11.64 INR Billion Nov/22
Iraq 16.64 15.62 INR Billion Nov/22
Taiwan 13.58 15.32 INR Billion Nov/22
Philippines 12.80 13.78 INR Billion Nov/22
Portugal 9.58 4.35 INR Billion Nov/22
Switzerland 8.82 12.34 INR Billion Nov/22
Iran 8.33 6.05 INR Billion Nov/22
Denmark 6.03 4.59 INR Billion Nov/22
Sweden 5.60 5.49 INR Billion Nov/22
Ireland 4.26 3.12 INR Billion Nov/22
Greece 3.91 3.65 INR Billion Nov/22
Pakistan 3.70 3.20 INR Billion Nov/22
New Zealand 2.81 2.85 INR Billion Nov/22
Finland 2.78 2.45 INR Billion Nov/22
Luxembourg 0.24 0.25 INR Billion Nov/22

Passenger vehicle manufacturers in India

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Main article: List of vehicle plants in India

India is the 4th largest passenger vehicle producer in the world. In 2018–19, it produced 4.06 million cars.[118] Currently, there are an estimated 30 million cars in India.[119]

This list is of cars that are officially available and serviced in India.

Indian brands

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Models currently manufactured by Indian brands

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Mahindra XUV700
 
Tata Safari

Defunct Indian brands

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Joint-venture (JV) brands

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Foreign-owned brands

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MG, Hyundai, Renault, Nissan, Citroën, Jeep, Honda, Toyota, KIA, Volkswagen, Škoda, Audi, Mercedes-Benz, BMW and MINI are the foreign automotive companies that manufacture and market their products in India.

Vehicles currently manufactured in India

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Foreign-owned makes that were officially marketed in India after 1991

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  • Peugeot stopped selling passenger cars in India in 1997.
  • Daewoo Motors stopped selling passenger cars in India in 2003.
  • Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.
  • General Motors India stopped producing Chevrolet passenger cars for the Indian market in late 2017.
  • Fiat left the Indian market in 2018.
  • Mitsubishi Motors stopped selling passenger cars in India in the late 2010s.
  • Ford India stopped producing passenger cars for the Indian market in late 2021.
  • Nissan stopped selling Datsun passenger cars in India in 2022.

Statistics

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Top 10 best-selling automobile models in India (new passenger and commercial vehicles), 1985–2023
Source:[125][126][127][128]
Year Models and Ranking
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th
1985 Maruti 800 Premier Padmini Hindustan Ambassador Mahindra Jeep Maruti Van Mahindra FJ/XJ Force Matador Force Trax Hindustan Contessa Hindustan Trekker
1986 Maruti 800 Premier Padmini Hindustan Ambassador Maruti Van Mahindra Jeep Mahindra FJ/XJ Force Matador Maruti Gypsy Tata 407/608/609 Force Trax
1987 Maruti 800 Premier Padmini Maruti Van Mahindra Jeep Hindustan Ambassador Force Matador Tata 407/608/609 Mahindra FJ/XJ Premier NE118 Maruti Gypsy
1988 Maruti 800 Premier Padmini Maruti Omni Mahindra Jeep Hindustan Ambassador Tata 407/608/609 Force Matador Mahindra FJ/XJ Maruti Gypsy Premier NE118
1989 Maruti 800 Premier Padmini Maruti Omni Mahindra Jeep Hindustan Ambassador Tata 407/608/609 Maruti Gypsy Force Matador Premier NE118 Mahindra FJ/XJ
1990 Maruti 800 Premier Padmini Maruti Omni Mahindra Jeep Hindustan Ambassador Tata 407/608/609 Maruti Gypsy Force Matador Premier NE118 Mahindra FJ/XJ
1991 Maruti 800 Maruti Omni Premier Padmini Mahindra Jeep Tata 407/608/609 Hindustan Ambassador Premier NE118 Force Matador Maruti Gypsy Force Trax
1992 Maruti 800 Mahindra Jeep Maruti Omni Tata 407/608/609 Hindustan Ambassador Premier Padmini Force Matador Premier NE118 Force Trax Maruti Gypsy
1993 Maruti 800 Mahindra Jeep Maruti Omni Tata 407/608/609 Hindustan Ambassador Premier Padmini Force Matador Maruti 1000 Premier NE118 Force Trax
1994 Maruti 800 Mahindra Jeep Maruti Omni Tata 407/608/609 Hindustan Ambassador Premier Padmini Force Matador Maruti 1000 Force Trax Premier NE118
1995 Maruti 800 Mahindra Jeep Tata 407/608/609 Maruti Esteem Maruti Omni Hindustan Ambassador Maruti Zen Premier Padmini Tata Sumo Force Matador
1996 Maruti 800 Mahindra Jeep Tata 407/608/609 Maruti Omni Maruti Zen Tata Sumo Maruti Esteem Hindustan Ambassador Daewoo Cielo Force Trax
1997 Maruti 800 Mahindra Jeep Maruti Zen Maruti Omni Tata Sumo Tata 407/608/609 Hindustan Ambassador Maruti Esteem Daewoo Cielo Opel Astra
1998 Maruti 800 Maruti Zen Maruti Omni Mahindra Jeep Tata 407/608/609 Tata Sumo Hindustan Ambassador Maruti Esteem Hyundai Santro Honda City
1999 Maruti 800 Maruti Zen Maruti Omni Hyundai Santro Mahindra Jeep Tata Indica Tata 407/608/609 Daewoo Matiz Tata Sumo Maruti Esteem
2000 Maruti 800 Hyundai Santro Maruti Zen Maruti Omni Mahindra Jeep Tata Indica Daewoo Matiz Tata 407/608/609 Tata Sumo Toyota Qualis
2001 Maruti 800 Hyundai Santro Maruti Zen Maruti Omni Tata Indica Mahindra Jeep Maruti Alto Toyota Qualis Tata 407/608/609 Tata Sumo
2002 Maruti 800 Hyundai Santro Tata Indica Maruti Zen Maruti Omni Mahindra Jeep Maruti Wagon R Tata 407/608/609 Fiat Palio Maruti Alto
2003 Maruti 800 Hyundai Santro Tata Indica Maruti Zen Maruti Omni Maruti Wagon R Maruti Alto Mahindra Jeep Toyota Qualis Tata 407/608/609
2004 Maruti 800 Maruti Alto Hyundai Santro Tata Indica Maruti Wagon R Maruti Zen Maruti Omni Mahindra Jeep Toyota Qualis Tata Indigo
2005 Maruti Alto Hyundai Santro Tata Indica Maruti 800 Maruti Wagon R Maruti Omni Maruti Zen Mahindra Jeep Maruti Swift Tata Indigo
2006 Maruti Alto Hyundai Santro Tata Indica Maruti Wagon R Maruti 800 Maruti Omni Maruti Swift Tata Ace Honda City Mahindra Jeep
FY07-08 Maruti Alto Tata Indica Maruti Wagon R Hyundai Santro Maruti Swift Maruti Omni Maruti 800 Maruti Zen Estilo Hyundai i10 Toyota Innova
2008 data unavailable
2009 Maruti Alto Maruti Wagon R Hyundai i10 Tata Indica Maruti Swift Maruti Omni Hyundai Santro Maruti Swift Dzire Mahindra Bolero Honda City
2010 Maruti Alto Hyundai i10 Maruti Wagon R Maruti Swift Tata Indica Maruti Swift Dzire Maruti Omni Hyundai Santro Tata Indigo Mahindra Bolero
2011 Maruti Alto Maruti Wagon R Hyundai i10 Maruti Swift Tata Indica/Vista Maruti Swift Dzire Mahindra Bolero Maruti Omni Hyundai i20 Tata Indigo/Manza
2012 Maruti Alto Maruti Swift Maruti Swift Dzire Maruti Wagon R Mahindra Bolero Hyundai i10 Tata Indica/Vista Hyundai Eon Hyundai i20 Tata Nano
2013 Maruti Alto Maruti Swift Maruti Swift Dzire Maruti Wagon R Mahindra Bolero Hyundai Eon Hyundai i10 Hyundai i20 Toyota Innova Maruti Ertiga
2014 Maruti Alto Maruti Swift Dzire Maruti Swift Maruti Wagon R Hyundai i10 Mahindra Bolero Hyundai Eon Honda City Maruti Omni Hyundai i20
2015 Maruti Alto Maruti Swift Dzire Maruti Swift Maruti Wagon R Hyundai i20 Hyundai i10 Mahindra Bolero Maruti Celerio Honda City Hyundai Eon
2016 Maruti Alto Maruti Swift Dzire Maruti Wagon R Maruti Swift Hyundai i10 Hyundai i20 Maruti Baleno Renault Kwid Hyundai Creta Maruti Celerio
2017 Maruti Alto Maruti Dzire Maruti Baleno Maruti Swift Maruti Wagon R Hyundai i10 Maruti Vitara Brezza Hyundai i20 Hyundai Creta Maruti Celerio
2018 Maruti Dzire Maruti Alto Maruti Swift Maruti Baleno Maruti Vitara Brezza Maruti Wagon R Hyundai i20 Hyundai i10 Hyundai Creta Maruti Celerio
2019 Maruti Alto Maruti Dzire Maruti Swift Maruti Baleno Maruti Wagon R Maruti Vitara Brezza Hyundai i20 Maruti Eeco Hyundai i10 Hyundai Creta
2020 Maruti Swift Maruti Alto Maruti Baleno Maruti Wagon R Maruti Dzire Maruti Eeco Hyundai Creta Kia Seltos Hyundai i10 Maruti Vitara Brezza
2021 Maruti Wagon R Maruti Swift Maruti Baleno Maruti Alto Hyundai Creta Maruti Dzire Maruti Vitara Brezza Maruti Eeco Maruti Ertiga Tata Nexon
2022 Maruti Wagon R Maruti Baleno Maruti Swift Tata Nexon Maruti Alto Maruti Dzire Hyundai Creta Maruti Ertiga Maruti Brezza Tata Punch
2023 Maruti Swift Maruti Wagon R Maruti Baleno Maruti Brezza Tata Nexon Maruti Dzire Hyundai Creta Tata Punch Maruti Eeco Maruti Ertiga
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th
  Indigenous manufacturer     Local listed-foreign manufacturer (ex- foreign JV)      Foreign manufacturer
See also : Best-selling models in
2022 passenger car sales data[129]
Rank OEM 2022 sales Share 2021 sales Share
1 Maruti Suzuki   1,576,026   41.6% 1,364,788 44.4%
2 Hyundai   552,511   14.6% 505,033 16.4%
3 Tata Motors   526,821   13.9% 331,182 10.8%
4 Mahindra   333,054   8.8% 201,454 6.5%
5 Kia   254,556   6.7% 181,543 5.9%
6 Toyota   160,375   4.2% 130,749 4.2%
7 Honda   95,022   2.5% 89,153 2.9%
8 Renault   87,118   2.3% 95,878 3.1%
9 Škoda   53,721   1.4% 23,849 0.8%
10 MG Motor   48,063   1.3% 40,273 1.3%
11 Volkswagen   42,452   1.1% 26,930 0.9%
12 Nissan   34,565   1.2% 35,956 0.9%
13 Jeep   13,499   0.4% 11,863 0.4%
14 Citroën   6,066   0.2% 624 0.0%
15 Datsun   512   0.0% 4,296 0.1%
2022 best-selling cars in India[127]
Rank Model 2022 sales 2021 sales
1 Maruti Suzuki Wagon R 217,317 183,851
2 Maruti Suzuki Baleno 185,665 172,237
3 Maruti Suzuki Swift 176,424 175,052
4 Tata Nexon 168,278 108,577
5 Maruti Suzuki Alto 162,548 166,233
6 Maruti Suzuki Dzire 159,919 116,222
7 Hyundai Creta 140,895 125,437
8 Maruti Suzuki Ertiga 133,814 114,408
9 Maruti Suzuki Brezza 130,563 115,962
10 Tata Punch 129,895 22,571
11 Maruti Suzuki Eeco 125,074 114,524
12 Hyundai Venue 120,703 108,007
13 Hyundai Grand i10 Nios 106,222 95,515
14 Kia Seltos 101,569 98,147
15 Mahindra Bolero 94,332 65,313
16 Kia Sonet 86,251 79,289
17 Hyundai i20 75,572 72,292
18 Maruti Suzuki Celerio 72,729 32,853
19 Tata Tiago 67,259 64,994
20 Mahindra XUV700 65,371 11,964
21 Maruti Suzuki S-Presso 65,276 65,478
22 Mahindra Scorpio 64,179 36,945
23 Kia Carens 62,756 0
24 Mahindra XUV300 60,260 47,432
25 Tata Altroz 58,590 69,744
26 Maruti Suzuki Ignis 56,986 32,735
27 Toyota Innova 56,569 55,250
28 Tata Tigor 48,349 18,900
29 Hyundai Aura 47,076 37,584
30 Honda Amaze 46,528 39,697

Auto companies

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Indian brands

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Joint-venture (JV) brands

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Foreign-owned brands

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Defunct commercial vehicle manufacturers of India

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  • Automobile Products of India or API - founded in 1949 at Bombay (now Mumbai), by the British company Rootes Group,[146] and later bought by M. A. Chidambaram of the MAC Group from Madras (now Chennai).[146] The company manufactured Lambretta scooters, API Three Wheelers under licence from Innocenti of Italy and automobile ancillaries, notably clutch and braking systems. API's registered offices were earlier in Mumbai, later shifted to Chennai, in Tamil Nadu. The manufacturing facilities were located in Mumbai and Aurangabad in Maharashtra and in Ambattur, Chennai.[147] The company has not been operational since 2002.
  • Escorts Yamaha - in 1984 Escorts formed a joint venture with Yamaha to manufacture motorcycles. In 2008, it became India Yamaha Motor.
  • Hero Motors is a former moped and scooter manufacturer based in Delhi, India. It is a part of multinational company Hero Group, which also currently owns Hero Motocorp (formerly Hero Honda) and Hero Cycles, among others. Hero Motors was started in the 1960s to manufacture 50cc two-stroke mopeds but gradually diversified into making larger mopeds, mokicks and scooters in the 1980s and the 1990s. Noteworthy collaborators and technical partners were Puch of Austria and Malaguti of Italy. Due to tightening emission regulations and poor sales, Hero motors have discontinued the manufacture of all gasoline powered vehicles and transformed itself into an electric two-wheeler and auto parts manufacturer.
  • Ideal Jawa - motorcycle company based in Mysore, sold licensed Jawa and ČZ motorcycles beginning in 1960 under the brand name Jawa and later Yezdi.
  • Kinetic Honda - a joint venture between Kinetic Engineering Limited, India and Honda Motor Company, Japan. The joint venture operated during 1984 - 1998, manufacturing 2-stroke scooters in India. In 1998, the joint venture was terminated after which Kinetic Engineering continued to sell the models under the brand name Kinetic until 2008[148] when the interests were sold to Mahindra.
  • Mopeds India Limited - produces the Suvega range of Mopeds under technical collaboration with Motobécane of France.
  • Standard - produced by Standard Motor Products in Madras from 1949 to 1988. Indian Standards were variations of vehicles made in the U.K. by Standard-Triumph.Standard Motor Products of India Ltd. (SMPI) was incorporated in 1948,[149] and their first product was the Vanguard, which began to be assembled in 1949. The company was dissolved in 2006 and the old plant torn down.
  • Tatra Vectra - Initial truck partnership with India by Vectra. Replaced by KamAZ. Tatra trucks for sale in India are now manufactured in collaboration with Bharat Earth Movers Limited.
  • AMW[150]

Electric vehicle and Hybrid vehicle (xEV) industry

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Further information: Electric vehicle industry in India

During April 2012, the Indian government planned to unveil the road map for the development of domestic electric and hybrid vehicles (xEV) in the country.[151] A discussion between the various stakeholders, including Government, industry, and academia, was expected to take place during 23–24 February.[151] The final contours of the policy would have been formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad framework for the sector. Along with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and managing director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-chairman, Toyota Kirloskar), were involved in this task.[151] The Government has also proposed to set up a Rs 740 crore research and development fund for the sector in the 12th five-year plan during 2012–17.[151] The idea is to reduce the high cost of key imported components such as the battery and electric motor, and to develop such capabilities locally. In the year 2017, An Amaravati, Andhra Pradesh based Electric Vehicles manufacturing company called AVERA[152] New & Renewable Energy started electric scooters manufacturing[153] and are ready to launch their two models of scooters by the end of December 2018.[154]

Electric cars are seen as economical long-term investments, as one doesn't need to purchase gas, but needs only to recharge the battery, using renewable energy sources. According to the United States Department of Energy, electric cars produce half as much CO2 emissions as compared to a gas-powered car.[155] According to The Economic Times, 60% of Indian customers expect fuel prices to go up in the next 12 months and 58% expect to buy a new car in the same time frame. Most consumers are looking to buy a car which gives good mileage. According to the same source, 68% of Asian drivers expect higher mileage from their cars due to the higher fuel prices. This has encouraged 38% of Indian automobile consumers to switch to electric or hybrid cars.[156] Due to this change in the market, many companies, such as Toyota, have planned to introduce electric vehicles in India; and Suzuki has tested almost 50 electric prototypes in India already, according to Mashable.In 2019, Hyundai launched India's first electric car, the Kona Electric .[157]

Electric vehicle manufacturers in India

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Growth initiatives

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Automotive Research Association of India and standards

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The Government of India felt the need for a permanent agency to expedite the publication of standards and development of test facilities[167] in parallel with the work of the preparation of the standards - as the development of improved safety critical parts could be undertaken only after the publication of the standard and commissioning of test facilities. The Ministry of Surface Transport (MoST) constituted a permanent Automotive Industry Standards Committee (AISC) . The Standards prepared by AISC will be approved by the permanent CMVR Technical Standing Committee (CTSC). After approval, the Automotive Research Association of India (ARAI)[168] will publish this standard.[citation needed]

Intelligent Transport Systems (ITS) are globally proven systems to optimize the utilization of existing transport infrastructure and improve transportation systems in terms of efficiency, quality, comfort and safety. Having realized the potential of ITS, Government bodies and other organizations in India are presently working towards implementing various components of ITS across the country.[citation needed]

The first step taken for creation and implementation of ITS was holding a National Workshop titled "User Requirements for Interactive ITS Architecture",[169] which was conducted as a collaboration between SIAM and ASRTU on 26 & 27 February 2015. This was primarily focused on ITS in Public Bus Transportation. Nonetheless, the workshop helped to create the outline for "National Intelligent Transport System Architecture and Policy for Public Transport (Bus)", which was submitted by ASRTU and SIAM to the government[citation needed]

In the 44th & 45th CMVR-TSC, Chairman had directed - standardization activities to be initiated on Intelligent Transportation Systems (ITS) - Vehicle Location Tracking, Camera Surveillance System and Emergency Request Button. The committee intended to extend the above user requirements to all public transportation namely –buses, taxis, etc. The current document covers the requirements for Vehicle Location Tracking and Emergency Button. The other ITS components like PIS, CCTV system, Fare collection etc. are deliberated and would be addressed in later phase and could be added as separate parts to the current document.[citation needed]

Based on these directions, the AISC Panel on ITS has prepared this AIS-140 titled,"Intelligent Transportation Systems (ITS) - Requirements for Public Transport Vehicle Operation". The panel also deliberated and identified the necessary elements for an effective implementation of vehicle level ITS system.[citation needed]

For AIS-140 Devices, in India, connectivity to report location, and Emergency Panic Button signal is though wireless cellular connectivity. There are device focused Cellular Connectivity Offerings like 'eSIM4Things[170]' available in India, which cater to connectivity requirements of AIS-140 devices.[171] eSIM4Things[170] is fully compatible with all AIS-140 devices and with a connectivity manager and a range of tariff plans.

Driverless Technology in India

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While there is controversy on possibility of driverless cars in India,[172][173] many startups are working on this technology:

  • Flux Auto
  • FishEyeBox
  • Hi Tech Robotic Systemz
  • EC Mobility Pvt. Ltd.
  • ATImotors
  • Netradyne
  • Swaayat Robots
  • Auro Robotics
  • OmniPresent Robotics
  • Mahindra & Mahindra
  • SeDrica 1.0[174]

In Auto Expo 2018, Hi Tech Robotic Systemz launched an artificial intelligence-based driver behaviour sensor technology called Novus Aware in partnership with Daimler India Commercial Vehicles (DICV).[175][176]

Performance-linked incentives scheme for future tech

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Automotive sector is part of 13 sectors that GoI has introduced Rs 1.97 lakh cr (US$28 b) performance-linked incentives (PLI) schemes for five years in 2021-22 budget.[177] In Sept 2021, to boost the automotive industry with the newer and green technology the Government of India (GoI) launched 3 PLI schemes, a Rs. 26,000 cr (US$3.61 b) scheme for production of electric vehicles and hydrogen fuel vehicles (PEVHV), the Rs 18,000 crore (US$2.5 b) "Advanced Chemistry Cell" (ACC) scheme for new generation advance storage technologies which are useful for the electric vehicles, and Rs 10,000 crore (US$1.4 b) "Faster Adaption of Manufacturing of Electric Vehicles" (FAME) scheme to go green by expediting production of more electronic vehicles and replacement of other types of existing vehicles with the greener vehicles.[178] The Rs. 26,000 cr (US$3.61 b) PLI scheme to boost automotive sector to boost the production of electric vehicles and hydrogen fuel vehicles will also generate 750,000 direct jobs in auto sector.[177] These schemes will reduce pollution, climate change, carbon footprint, reduce oil and fuel import bill through domestic alternative substitution, boost job creation and economy.[178] Society of Indian Automobile Manufacturers welcomed this as it will enhance the competitiveness and boost growth.[177]

See also

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References

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Bibliography

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