AUTO INDUSTRY IN INDIA

Auto Industry in India is facing the twin problems of Fuel Price Hikes and High Interest Rates which have sharply reduced the growth of the industry.The Indian car companies were riding high in 2010 as the economy grew and many people in India graduated to the middle class.Some companies were showing triple digit growth rate as India become the hottest market in the world.All global car companies were in a rush to expand their India sales and distribution network at any cost.However 2011 has brought them down to earth with almost 50% increase in petrol prices keeping buyers away.On top of that car financing companies have also increased their interest rates for auto loans by around 2-3% which makes the servicing of the EMIs of car loan very difficult.This has made most buyers sit tight and wait for a better environment.The car companies which hiked price to pass on the increasing costs of steel and other commodities are in a pickle.They are being forced to sit on high inventories and can’t afford to give big discounts as well.

The sautomobile industry in India happens to be the ninth largest in the world. It is the fourth largest exporter of automobiles following Japan, South Korea and Thailand. It is the world’s second largest manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009. Several Indian automobile manufacturers have spread their operations globally. India manufactures over 17.5 million vehicles (including 2 wheeler and 4 wheeler) and exports about 2.33 million every year. India’s passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. In the commercial vehicle segment, Tata Motors is leader with a market share of about 64%, whereas Maruti Suzuki is leads the passenger vehicle segment with a market share of 46%. Hyundai Motor India and Mahindra and Mahindra are more interested in expanding their hold in the overseas market. (Source – Wikipedia).

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LIST OF CAR COMPANIES IN INDIA –

1. MARUTI SUZUKI INDIA LTD. – is a subsidiary of Suzuki Motor Corporation, Japan. It was formerly known as Maruti Udyog Limited. It has been the leader of the Indian car market for more than two decades. It has a production capacity of over a 1.2 million vehicles annually at its manufacturing units in Gurgaon & Manesar, New Delhi.The company has plans to expand its manufacturing capacity to 1.75 million by 2013. The recorded a sales of 36,128 crores in 2010-11 & a net profit margin of 6.06% in 2011.
2. The company offers a wide range of cars across different segments – Maruti 800, Omni and Eeco, international brands Alto, Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, Gypsy, SUV Grand Vitara, sedans SX4, Swift DZire and Kizashi. As a step forward to the environment friendly initiative, Maruti Suzuki introduced factory fitted CNG option on 5 models – Alto, Estilo, Wagon R and Sx4, in August 2010.
   In 2010-11, the company sold over 1.27 million vehicles including approximately 1,38,200 units of exports. With this, at the end of March 2011, Maruti Suzuki had a market share of 44.9% of the Indian passenger car market.
3. HONDA SIEL CARS INDIA LTD. – was incorporated in December 1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited. The company has an annual capacity of producing 1,60,000 units at its manufacturing units in Greater Noida, UP & Tapukara, Rajasthan.
   The company’s product range includes Honda Brio, Honda Jazz, Honda City, Honda Civic and Honda Accord.
4. MAHINDRA– The company has a growing presence in the automotive industry, aerospace, aftermarket, components, consulting services, defense, energy, financial services, logistics, real estate, retail, and two wheelers. A US $12.5 billion multinational group based in Mumbai, India, with more than 137,000 people in over 100 countries. It has a net profit margin of 8.64% in 2011. The much anticipated Mahindra XUV500 makes its global debut in Pune, India starting at an unbeatable price of Rs. 10.80Lacs replete with cheetah-inspired styling, refinement like never before and enhanced technology and safety features along with luxurious interiors, making the XUV500 an apt choice for sedan and SUV buyers.
   Its flagship company Mahindra & Mahindra Limited is the only Indian automobile manufacturer to feature in the top 10 list of the Carbon Disclosure Leadership Index in India – 2010, created by the Carbon Disclosure (CDP). In 2011, Mahindra acquired a majority stake in Korea’s SsangYong Motor Company.
5. TATA MOTORS – TATA group is a multinational company with different business segments like communications and information technology, automobiles, engineering, materials, services, energy, consumer products and chemicals. 65.8% of the ownership of Tata Group is held in charitable trusts. Tata Motors is India’s largest automobile company, with consolidated net profit of Rs.9,274 crore in 2010–11. It is the leader in commercial vehicles. The company should be given credit of fulfilling a common man’s dream to drive his own car, with the launch of NANO in India. Some of the other passenger vehicles in India are Vista, Indica, Indigo, Aria, Manza, Safari, Sumo, Winger. Ford sold Jaguar & Land Rover in 2008 to TATA Motors. Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune in India.
6. TOYOTA– Toyota is one of the biggest vehicle manufacturers, and one of the most widely known companies, in the world today. As of the end of March 2011, Toyota has 50 overseas manufacturing companies in 26 countries and regions. Toyota’s vehicles are sold in more than 170 countries and regions. Toyota has its presence in India through its manufacturing companies -Toyota Kirloskar Motor Pvt Ltd. manufacturing Corolla, Innova, Fortuner, Etios &
   Toyota Kirloskar Auto Parts Pvt Ltd. Manufacturing spare parts in southern India. The other car models manufactured by the company are Ca,ry, Prius, Land Cruiser Prado.
7. GENERAL MOTORS– It is a company of diverse brands, selling over 7.5 million vehicles in over 120 countries worldwide. General Motors India Private Limited is a partnership between General Motors(50%) and SAIC(50%). In 1994 GMIPL was formed as a joint venture, owned 50 percent by Hindustan Motors and 50 percent by General Motors, to produce and sell Opel branded vehicles. GM bought out the Hindustan Motors interest in 1999. It is the 5th largest automobile manufacturing company in India after Maruti Suzuki, Hyundai, Tata Motors and Mahindra. Chevrolet, Spark, Beat, Aveo, Tavera, Cruz are some of the well known brands from this company. It operates vehicle manufacturing plants in Halol, Gujarat and Talegaon Dabhade, Maharastra and a large technical center in Bangalore. The annual production capacity of its Halol and Talegaon Dabhade Manufacturing Plants is around 385,000 vehicles.

   FORD – Ford Motor Company is the world’s second largest automaker with approximately 350,000 employees, and operating in more than 200 markets on six continents.Ford India Private Limited is a wholly owned subsidiary of the Ford Motor Company in India. it operates in India through Ford India Pvt. Ltd. head quartered in Chengalpattu, Tamil Nadu. It is the sixth largest car manufacturer in India after Maruti Suzuki, Hyundai, Tata, Mahindra and Chevrolet. The company is committed towards total customer satisfaction & pollution control. The company manufactures cars – Fiesta & Figo (hatchback) & SUVs -Endeavour. In the year 2010, FIPL recorded sales of 83,887 vehicles and registered a sales growth of 172%.

8. MERCEDES-BENZ – Mercedes-Benz has been associated with India for more than 50 years. The business in India covers local production of Mercedes-Benz cars, making available imported Mercedes-Benz cars, Commercial Vehicle operations, Global sourcing of auto components & research and development. The various series of Mercedes cars are C,CL,CLS,E,GL,M,SL & SLK Class. The Mercedes-Benz brand is known for its fascinating details, innovative power and unmatchable design. It has a variety to offer ranging from cars of automotive history design or sporty or multimedia entertprovides options. Mercedes provides a comprehensive brand experience.
9. VOLKSWAGEN – With its headquarters in Pune, Maharashtra (India), the Volkswagen Group is represented by three brands in India: Volkswagen, Audi and Skoda. Its headquarters is in Pune, Maharashtra & it has completed 10 years of its Indian journey. It began its Indian journey with the Skoda brand in 2001 & expanded its business line with Audi and Volkswagen brand in 2007. Each brand has its own character and operates as an independent entity in the market.
   Volkswagen has nine brands globally – Audi, Bentley, Bugatti, Lamborghini, Scania, Seat, Skoda, Volkswagen Commercial Vehicles (Volkswagen Nutzfahrzeuge) and Volkswagen Passenger Cars. The product range extends from low-consumption small cars to luxury class vehicles and trucks. The Group operates 60 production plants around the world. In total more than 370,000 employees produce more than 26,600 vehicles or are involved in vehicle-related services each working day.
10. HYUNDAI – Hyundai Motor India Limited (HMIL) is the second largest car manufacturer in India. It is the fastest growing automobile manufacturer in India. It is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea and is the largest passenger car exporter. HMIL presently markets 7 models of passenger cars- Santro, i10, i20, Accent, Verna, Sonata Transform and the SUV segment includes the Santa Fe. The other models are Elantra, Eon,Getz.
    The annual production capacity is 600,000 units. Its manufacturing plant is near Chennai & the second plant came up in 2008. Its research and development facility is located in Hyderabad. It is the number one exporter of passenger car of the country & achieved the figure of 10 lakh cars export in just over a decade. HMIL currently exports cars to more than 115 countries across EU, Africa, Middle East, Latin America and Asia Pacific. In calendar year 2010, HMIL grew by 7.8% cumulatively registering total sales of 603,819 units of which domestic sales accounted for 356,717 units & Overseas sales accounted for 247,102 units.