Thursday, 19 January 2012

INDIAN AUTO INDUSTRY


India became the sixth largest motor vehicle/car manufacturer in the world in 2010 and is expected to rise to the fourth position by 2014. Indian auto manufacturers produced a record 14.82 milion motor vehicles in 2010. 3.54 m (million) cars and commercial vehicles were produced in 2010¹ out of which 2.81 m were cars. Domestic passenger vehicle sales hit a new record in 2009-10 (Apr-Mar) when over 1.95 million vehicles were sold. India is the largest manufacturer of three-wheelers (444,000 in 2009-10) and the eighth largest commercial vehicle (0.53 m in 2009-10). India is also the largest tractor manufacturing country (around 1/3 of global output) having produced around 370,000 units in 2009-10. The luxury car segment grew at 76 % in 2008 over the previous year although actual sales figures were still very low at around 8,000 units.
India's automobile exports in 2008-09 (1,530,660 units in total) included 331,539 passenger cars and 1,004,174 two-wheelers. India is the second largest motorcycle (6.54 m produced in 2007-08) and the fourth largest commercial vehicle manufacturer in the world. India's auto industry produced a total of 14.1 million motor vehicles during 2009-10. Auto exports amounted to almost USD 2.3 billion in the year 2005-06. Over 13 million people work directly or indirectly in the auto industry. Indian car exports have increased at a rapid pace reaching 210,088 units (mostly Maruti-Suzuki and Hyundai models) during the first half (Apr-Sep) of 2009-10, well ahead of China.
The size of the Indian automotive component industry is estimated to be approx. USD 21 billion. Auto ancillary exports increased to USD 3.6 bn in 2007-08 while the total turnover of India's vehicle tyre industry amounted to an estimated Rs 142.5 bn in 2005-06. The total number of registered motor vehicles on Indian roads is approx. 100 million.
Established auto manufacturers and new entrants in the Indian auto market are expanding their production capacities on a large scale. Companies undergoing expansion include Maruti-Suzuki, GM, Tata Motors, VW Group, Toyota, Honda and Hyundai. The Renault-Nissan Alliance's new auto plant near Chennai commenced production in 2010. Peugeot-Citroen is planning a comeback to India and Mazda is entering the Indian passenger car market.
Cars have till now been affordable to only a fraction of India's over 200 m households. With the advent of the Tata minicar, the Nano, which received top marks for its styling and design, retails for approx. USD 3,000 (Delhi on-road) and therefore has created a completely new segment in the car market and made autos within the reach to a substantial segment of the approx. 50 million current 2-wheeler owners and first time car buyers. The market for cheap minicars seems to be a lot smaller than what was earlier projected. Sales of the Nano model have decreased substantially towards the end of '10 but witnessed a rebound during December when sales reached 5,784 units.

¹ Source: OICA (The International Organization of Motor Vehicle Manufacturers 2010 Statistics)

Video clip: Road traffic in Visakhapatnam, Andhra Pradesh - © Timir Mozumder

Video clips: Rush hour traffic in Hyderabad, Andhra Pradesh - © Timir Mozumder

Above video clips: Hyderabad's total motor vehicle population amounted to 1.76 million as at Oct 2007. Road congestion and air pollution, due to a rapid growth in the number of private vehicles and road infrastructure not keeping pace with the growth in vehicle volumes, is a problem as in all the other major urban areas of India. Hyderabad also lacks an efficient and extensive public transport due to which a large number of private vehicles are in use. A metro rail system is being planned for the city.
Chevrolet dealer
A Chevrolet dealer showroom in Bangalore. Models sold in India under the Chevrolet brand include Tavera, Aveo, Aveo U-VA, Optra Magnum, Cruze, Spark and the Captiva SUV.
Posted by ramya rani at 06:13

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