Automobile Industry in India Project Report

8/13/2019 Automobile Industry in India Project Report

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AUTOMOBILE

INDUSTRY


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Contents

1) INTRODUCTION

2) HISTORY

3) OVERVIEW

4) AUTOMOTIVE INDUSTRY ANALYSIS

5) NEW CHALLENGES FACED BY INDIAN AUTOMOTIVE INDUSTRY IN THE

NEW AGE

6) TOP AUTOMOBILE COMPANIES IN INDIA

7) SUPPLY CHAIN OF AUTOMOBILE INDUSTRY

PERFORMANCE

GROWTH POTENTIAL YEARLY SALES

8) INDIAN AUTOMOBILE EXPORT MARKET

9) THE COMPETATIVE NATURE OF AUTOMOBILE INDUSTRIES

10) GLOBAL PRODUCTION OF MOTOR VEHICLES

BY COUNTRY

BY MANUFACTURER

11) TOP VEHICLE MANUGACTURING GROUP

12) SALES AND DISTRIBUTION NETWORK13) PRODUCT AND SERVICE SEGMENTATION

14) MARKET CHARACTERISTICS

15) COMPANY RELATIONSHIPS

16) HONDA

CURRENT MARKET POSITION

MARKETING

PROMOTION STRATEGY

SWOT ANALYSIS ELECTRIC AND ALTERNATIVE FUEL VEHICLES

17) CONCLUSION


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Introduction

The automobile industry in Indiathe tenth largest in the world with an annual

production of approximately 2 million unitsis expected to become one of themajor global automotive industries in the coming years. A number of domesticcompanies produce automobiles in India and the growing presence of multinationalinvestment, too, has led to an increase in overall growth. Following the economicreforms of 1991 the Indian automotive industry has demonstrated sustained growthas a result of increased competitiveness and relaxed restrictions. The monthly salesof passenger cars in India exceed 100,000 units.

The Automotive industry inIndia is one of the largest in the world and one of the

fastest growing globally. India manufactures over 17.5 million vehicles (including2 wheeled and 4 wheeled) and exports about 2.33 million every year. It is theworld's second largest manufacturer of motorcycles, with annual sales exceeding8.5 million in 2009. India's passenger car and commercial vehicle manufacturingindustry is the seventh largest in the world, with an annual production of more than3.7 million units in 2010. According to recent reports, India is set to overtakeBrazil to become the sixth largest passenger vehicle producer in the world,growing 16-18 per cent to sell around three million units in the course of 2011-12.In 2009, India emerged asAsia's fourth largest exporter of passenger cars, behindJapan,South Korea,andThailand.

As of 2010, India is home to 40 million passenger vehicles and more than 3.7million automotive vehicles were produced in India in 2010 (an increase of33.9%), making the country the second fastest growing automobile market in theworld. According to the Society of Indian Automobile Manufacturers, annual carsales are projected to increase up to 5 million vehicles by 2015 and more than 9million by 2020. By 2050, the country is expected to top the world in car volumeswith approximately 611 million vehicles on thenation's roads.
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An automobile, auto car, motor caror caris a wheeledmotor vehicle used fortransporting passengers, which also carries its own engine or motor. Mostdefinitions of the term specify that automobiles are designed to run primarily onroads, to have seating for one to eight people, to typically have four wheels, and tobe constructed principally for thetransport of people rather than goods.

The term motorcar has also been used in the context of electrified rail systems todenote a car which functions as a small locomotive but also provides space forpassengers and baggage. These locomotive cars were often used on suburbanroutes by both interurban and intercity railroad systems.

There are approximately 600 million passenger cars worldwide (roughly one carper eleven people). Around the world, there were about 806 million cars and lighttrucks on the road in 2007; the engines of these burns over a billion cubic meters

(260 billion US gallons) of petrol/gasoline and diesel fuel yearly. The numbers areincreasing rapidly, especially inChina andIndia.

The Automotive industryinIndia is one of the largest in the world and one of thefastest growing globally. India manufactures over 17.5 million vehicles (including2 wheeled and 4 wheeled) and exports about 2.33 million every year. It is theworld's second largest manufacturer of motorcycles,with annual sales exceeding8.5 million in 2009. India's passenger car and commercial vehicle manufacturingindustry is theseventh largest in the world,with an annual production of more than

3.7 million units in 2010. According to recent reports, India is set to overtakeBrazil to become the sixth largest passenger vehicle producer in the world,growing 16-18 per cent to sell around three million units in the course of 2011-12.In 2009, India emerged asAsia's fourth largest exporter ofpassenger cars,behindJapan,South Korea,andThailand.

As of 2010, India is home to 40 million passenger vehicles and more than 3.7million automotive vehicles were produced in India in 2010 (an increase of33.9%), making the country the second fastest growing automobile market in theworld. According to the Society of Indian Automobile Manufacturers, annual carsales are projected to increase up to 5 million vehicles by 2015 and more than 9million by 2020. By 2050, the country is expected to top the world in car volumeswith approximately 611 million vehicles on thenation's roads.

A chunk of India's car manufacturing industry is based in and aroundChennai,alsoknown as the "Detroit of India" with the India operations of Ford, Hyundai,
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Renault andNissan headquartered in the city and BMW having an assembly planton the outskirts. Chennai accounts for 60 per cent of the country's automotiveexports.Gurgaon andManesar inHaryana are hubs where all of theMaruti Suzukicars in India are manufactured. The Chakan corridor near Pune, Maharashtra isanother vehicular production hub with companies like General Motors,Volkswagen,Skoda,Mahindra and Mahindra,Tata Motors,Mercedes Benz,LandRover,Fiat andForce Motors having assembly plants in the area.Ahmedabad withthe Tata Nano plant, Halol again with General Motors, Aurangabad with Audi,Skoda and Volkswagen,Kolkatta with Hindustan Motors,Noida with Honda andBangalore with Toyota are some of the other automotive manufacturing regionsaround the country

History

In 1953, the government of India and the Indian private sector initiatedmanufacturing processes to help develop the automobile industry, which hademerged by the 1940s in a nascent form. Between 1970 to the economicliberalization of 1991, the automobile industry continued to grow at a slow pacedue to the many government restrictions. The Indian auto industry is changing

rapidly. During the last decade, many international auto manufacturers, either bythemselves or in partnership with Indian companies, have started manufacturingactivities in India. The ancillary industries have also grown in tandem. The qualityof production in small- and medium-scale industries has improved to such anextent that they started exporting products to international manufacturers. Thesedevelopments in the auto sector have given new confidence to everyone related tothe auto industry and specifically to the government which resulted in theannouncement of the Auto Policy 2006-2016 by the Ministry of Heavy Industries.According to the Auto Policy, the Indian auto sector is expected to grow to US$216 billion by 2016 and add 2.5 million new jobs to the economy. Every year two

to three million people are expected to purchase new vehicles. Several millionvehicles and components are expected to be exported to both developed anddeveloping nations. To achieve these goals, it is important that the present GDPgrowth rate, which is more than 8 per cent, continues to remain at the same levelfor the next 8-10 years. The government is also giving some concessions to theauto industry. To realize the above growth predictions, it is important to overcome
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various challenges the industry is facing currently. Two of the foremost challengesare the spiraling cost of fuel and the paucity of highly skilled manpower.With a scintillating 2.3 million units produced in 2008 the Indian automobileindustry bagged the position of being the ninth largest in the world. Followingeconomic liberalization, Indian domestic automobile companies like Tata MotorsMaruti Suzuki and Mahindra and Mahindra expanded their production and exportoperations in and across the country and since then the industry has only shownsigns of growth. The automobile industry comprises of heavy vehicles (trucks,buses, tempos, and tractors), passenger cars, and two-wheelers.

The Indian automobile industry seems to come a long way since the first car thatwas manufactured in Mumbai in 1898. The automobile sector today is one of thekey sectors of the country contributing majorly to the economy of India. It directlyand indirectly provides employment to over 10 million people in the country. The

Indian automobile industry has a well established name globally being the secondlargest two wheeler market in the world, fourth largest commercial vehicle marketin the world, and eleventh largest passenger car market in the world and expectedto become the third largest automobile market in the world only behind USA.A recent research conducted by the global consultancy firm Deloitte says that atleast one Indian automobile company will feature among the top six automobilecompanies that will dominate the car market by 2020. The Indian automobileindustry proved to be in good shape last year even after the economic downturn.This was majorly due to the fact of renewed interest shown by global automobileplayers like Nissan Motors which consider India to be a potential market. As far as

authorized dealer networks and service stations are concerned Maruti Suzuki is themost widespread. The other automobile companies are also showing rapidprogression in this field.

In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented thefirst automobile to run on roads. This automobile, in fact, was a self-powered,three-wheeled, military tractor that made the use of a steam engine. The range ofthe automobile, however, was very brief and at the most, it could only run at astretch for fifteen minutes. In addition, these automobiles were not fit for the roads

as the steam engines made them very heavy and large, and required ample startingtime. Oliver Evans was the first to design a steam engine driven automobile in theU.S.


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A Scotsman, Robert Anderson, was the first to invent an electric carriage between1832 and 1839. However, Thomas Davenport of the U.S.A. and Scotsman RobertDavidson were amongst the first to invent more applicable automobiles, makinguse of non-rechargeable electric batteries in 1842. Development of roads madetravelling comfortable and as a result, the short ranged, electric battery drivenautomobiles were no more the best option for travelling over longer distances.

Charles Kettering's invention of the electric starter in 1912 turned the process ofstarting automobiles faster and easier at the same time, doing away with the handtools. Crude oil being discovered in Texas, the automobiles driven by engines thatran on gasoline became even more affordable, as the prices of gasoline reduced.

The prices of electric automobiles were going through a constant rise, in spite ofthe fact that these were less efficient than the gasoline automobiles.

Jean Joseph Etienne Lenoir was the first to invent an internal combustion enginethat ran on petroleum and attached it to a three-wheeled carriage, and successfullytraversed a distance of fifty miles in 1863.

Karl Benz manufactured the first automobile (a three-wheeled car) that wasaffordable and compatible for travelling over long distances for its internalcombustion engine that ran on gas, in 1886.Later in 1887, Gottlieb Daimler was

the first to invent the predecessor of the modern automobile with an engine thathad a vertical cylinder in addition to a gasoline driven carburetor. First building atwo-wheeled automobile (Reitwagen), Daimler was again the first to build afour-wheeled automobile in 1886. The engines manufactured by Daimler wereimproved upon and these portable and fast engines made automobiles the way wesee them today.

The advanced engines turned the slow, expensive automobiles of the yesteryears, athing of the past, and cars became more affordable as both the prices of gasoline

and petroleum as well as the manufacturing costs reduced through their massmanufacture at the assembly lines of factories. Penhard and Levassor in 1889, andPeugeot in 1991 became the earliest mass manufacturers of the modernautomobiles.


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The automobile history dates back to the late 18th century. Nicolas Joseph Cugnot,a French engineer is credited with inventing the first self-propelled automobile.

Cugnot's vehicle used steam power for locomotion. The vehicle found militaryapplication in the French army. Cugnot's automobile was never commercially sold.

In the beginning automobile industry was dominated by steam-powered vehicles.The vehicles were expensive and difficult to maintain. The incidence of frequentboiler explosions also kept potential purchasers away. Commercial history ofautomobiles started with the invention of gasoline powered internal combustionengines. The German inventor, Karl Benz constructed his first gasoline poweredvehicle in 1885 at Mannheim, Germany. Commercial production of Benz carsstarted in 1888. Panhard ET Levassor of France was the first company toexclusively build and sell motor cars from 1889.

The early 1900s saw many automobile manufacturing companies coming intoexistence in a number of European countries and the United States. The first massproduced automobile in the United States was the curved-dash Oldsmobile. It wasa three-horsepower machine and sold 5,000 units by 1904. The economics of theUS car market was disrupted by the arrival of Henry Ford and his Model T car.The Model T was the world's first mass produced vehicle- a million units were soldby 1920- a space of 10 years.

Benz "Velo" model (1894)

Classification VehicleIndustry Various

Application Conveyance

Fuel Source Gasoline,Diesel,Electric

Powered Yes
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Self-Propelled Yes

Wheels 34

Axles 02

Inventor Ferdinand Verbiest

Passenger cars in 2000.

World map of passenger cars per 1000 people.

An automobile, auto car, motor car or car is a wheeled motor vehicle used fortransporting passengers, which also carries its own engine or motor. Mostdefinitions of the term specify that automobiles are designed to run primarily on

roads, to have seating for one to eight people, to typically have four wheels, and tobe constructed principally for thetransport of people rather than goods.

The term motorcar has also been used in the context of electrified rail systems todenote a car which functions as a small locomotive but also provides space forpassengers and baggage. These locomotive cars were often used on suburbanroutes by both interurban and intercity railroad systems.

There are approximately 600 million passenger cars worldwide (roughly one carper eleven people). Around the world, there were about 806 million cars and lighttrucks on the road in 2007; they burn over a billion cubic meters (260 billion USgallons) of petrol/gasoline and diesel fuel yearly. The numbers are increasingrapidly, especially inChina andIndia.
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Karl Benz,the inventor of the modern automobile

Although several other German engineers (including Gottlieb Daimler, WilhelmMaybach,andSiegfried Marcus)were working on the problem at about the sametime, Karl Benz generally is acknowledged as the inventor of the modernautomobile.

An automobile powered by his own four-stroke cycle gasoline engine was built inMannheim,Germanyby Karl Benz in 1885, and granted apatent in January of thefollowing year under the auspices of his major company,Benz & Cie.,which wasfounded in 1883. It was anintegral design, without the adaptation of other existing

components, and included several new technological elements to create a newconcept. He began to sell his production vehicles in 1888.

A photograph of the original Benz Patent-Motorwagen, first built in 1885 andawarded the patent for the concept
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In 1879, Benz was granted a patent for his first engine, which had been designed in1878. Many of his other inventions made the use of the internal combustion enginefeasible for powering a vehicle.

His first Motorwagen was built in 1885, and he was awarded the patent for itsinvention as of his application on January 29, 1886. Benz began promotion of thevehicle on July 3, 1886, and about 25 Benz vehicles were sold between 1888 and1893, when his first four-wheeler was introduced along with a model intended foraffordability. They also were powered with four-stroke engines of his own design.Emile Roger ofFrance,already producing Benz engines under license, now addedthe Benz automobile to his line of products. Because France was more open to theearly automobiles, initially more were built and sold in France through Roger thanBenz sold in Germany.

Bertha Benz,the first long distance automobile driver in the world

In August 1888Bertha Benz,the wife of Karl Benz, undertook the firstroad tripbycar, to prove the road-worthiness of her husband's invention.

In 1896, Benz designed and patented the first internal-combustion flat engine,

called boxermotor. During the last years of the nineteenth century, Benz was thelargest automobile company in the world with 572 units produced in 1899 and,because of its size, Benz & Cie., became ajoint-stock company.

Daimler and Maybach foundedDaimler Motoren Gesellschaft (DMG) inCannstattin 1890, and sold their first automobile in 1892 under the brand name, Daimler. Itwas a horse-drawn stagecoach built by another manufacturer that they retrofittedwith an engine of their design. By 1895 about 30 vehicles had been built byDaimler and Maybach, either at the Daimler works or in the Hotel Hermann, wherethey set up shop after disputes with their backers. Benz, Maybach and the Daimler

team seem to have been unaware of each others' early work. They never workedtogether; by the time of the merger of the two companies, Daimler and Maybachwere no longer part of DMG.

Daimler died in 1900 and later that year, Maybach designed an engine namedDaimler-Mercedes, that was placed in a specially ordered model built tospecifications set by Emil Jellinek. This was a production of a small number of
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vehicles for Jellinek to race and market in his country. Two years later, in 1902, anew model DMG automobile was produced and the model was named Mercedesafter the Maybach engine which generated 35 hp. Maybach quit DMG shortlythereafter and opened a business of his own. Rights to the Daimler brand namewere sold to other manufacturers.

Karl Benz proposed co-operation between DMG and Benz & Cie. when economicconditions began to deteriorate in Germany following theFirst World War,but thedirectors of DMG refused to consider it initially. Negotiations between the twocompanies resumed several years later when these conditions worsened and, in1924 they signed an Agreement of Mutual Interest, valid until the year 2000. Bothenterprises standardized design, production, purchasing, and sales and theyadvertised or marketed their automobile models jointly, although keeping their

respective brands. On June 28, 1926, Benz & Cie. and DMG finally emerged as theDaimler-Benz company, baptizing all of its automobiles Mercedes Benz, as abrand honoring the most important model of the DMG automobiles, the Maybachdesign later referred to as the 1902 Mercedes-35 hp, along with the Benz name.Karl Benz remained a member of the board of directors of Daimler-Benz until hisdeath in 1929, and at times, his two sons participated in the management of thecompany as well.

In 1890,mile Levassor andArmand Peugeot ofFrancebegan producing vehicleswith Daimler engines, and so laid the foundation of the automobile industry in

France.

The first design for an American automobile with a gasoline internal combustionengine was made in 1877 by George Selden of Rochester, New York. Seldenapplied for a patent for an automobile in 1879, but the patent application expiredbecause the vehicle was never built. After a delay of sixteen years and a series ofattachments to his application, on November 5, 1895, Selden was granted a UnitedStates patent (U.S. Patent 549,160) for a two-stroke automobile engine, whichhindered, more than encouraged, development of automobiles in theUnited States.

His patent was challenged byHenry Ford and others, and overturned in 1911.In 1893, the first running, gasoline-powered American car was built and road-tested by theDuryea brothers ofSpringfield, Massachusetts.The first public run ofthe Duryea Motor Wagon took place on September 21, 1893, on Taylor Street inMetro Center Springfield. To construct the Duryea Motor Wagon, the brothers hadpurchased a used horse-drawn buggy for $70 and then installed a 4 HP, single
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cylinder gasoline engine. The car had a friction transmission, spray carburetor, andlow tension ignition. It was road-tested again on November 10, when the TheSpringfield Republican newspaper made the announcement. This particular carwas put into storage in 1894 and stayed there until 1920 when it was rescued byInglis M. Uppercu and presented to theUnited States National Museum.

InBritain,there had been several attempts to build steam cars with varying degreesof success, withThomas Rickett even attempting a production run in 1860.Santlerfrom Malvern is recognized by the Veteran Car Club of Great Britain as havingmade the first petrol-powered car in the country in 1894 followed by FrederickWilliam Lanchester in 1895, but these were both one-offs.

Overview

The Indian Automobile Industry is manufacturing over 11 million vehicles andexporting about 1.5 million every year. The dominant products of the industry aretwo wheelers with a market share of over 75% and passenger cars with a market

share of about 16%. Commercial vehicles and three wheelers share about 9% ofthe market between them. About 91% of the vehicles sold are used by householdsand only about 9% for commercial purposes. The industry has attained a turnoverof more than USD 35 billion and provides direct and indirect employment to over13 million people.

The supply chain of this industry in India is very similar to the supply chain of theautomotive industry in Europe and America. This may present its own set ofopportunities and threats. The order of the industry arises from the bottom of thesupply chain i. e., from the consumers and goes through the automakers and climbsup until the third tier suppliers. However the products, as channeled in everytraditional automotive industry, flow from the top of the supply chain to reach theconsumers.

Interestingly, the level of trade exports in this sector in India has been medium andimports have been low. However, this is rapidly changing and both exports andimports are increasing. The demand determinants of the industry are factors like
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affordability, product innovation, infrastructure and price of fuel. Also, the basis ofcompetition in the sector is high and increasing, and its life cycle stage is growth.With a rapidly growing middle class, all the advantages of this sector in India areyet to be leveraged.

Note that, with a high cost of developing production facilities, limited accessibilityto new technology and soaring competition, the barriers to enter the IndianAutomotive sector are high. On the other hand, India has a well-developed taxstructure. The power to levy taxes and duties is distributed among the three tiers ofGovernment. The cost structure of the industry is fairly traditional, but theprofitability of motor vehicle manufacturers has been rising over the past fiveyears. Major players, like Tata Motors and Maruti Suzuki have material cost ofabout 80% but are recording profits after tax of about 6% to 11%.

The level of technology change in the Motor vehicle Industry has been high but,the rate of change in technology has been medium. Investment in the technologyby the producers has been high. System-suppliers of integrated components andsub-systems have become the order of the day. However, further investment innew technologies will help the industry be more competitive. Over the past fewyears, the industry has been volatile. Currently, Indias increasing per capitadisposable income which is expected to rise by 106% by 2015 and growth inexports is playing a major role in the rise and competitiveness of the industry.

Tata Motors is leading the commercial vehicle segment with a market share of

about 64%. Maruti Suzuki is leading the passenger vehicle segment with a marketshare of 46%. Hyundai Motor India and Mahindra and Mahindra are focusingexpanding their footprint in the overseas market. Hero Honda Motors is occupyingover 41% and sharing 26% of the two wheeler market in India with Bajaj Auto.Bajaj Auto in itself is occupying about 58% of the three wheeler market.

Consumers are very important of the survival of the Motor Vehicle manufacturingindustry. In 2008-09, customer sentiment dropped, which burned on theaugmentation in demand of cars. Steel is the major input used by manufacturersand the rise in price of steel is putting a cost pressure on manufacturers and cost isgetting transferred to the end consumer. The price of oil and petrol affect thedriving habits of consumers and the type of car they buy.

The key to success in the industry is to improve labour productivity, labourflexibility, and capital efficiency. Having quality manpower, infrastructure


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improvements, and raw material availability also play a major role. Access to latestand most efficient technology and techniques will bring competitive advantage tothe major players. Utilising manufacturing plants to optimum level andunderstanding implications from the government policies are the essentials in theAutomotive Industry of India.

Both, Industry and Indian Government are obligated to intervene the IndianAutomotive industry. The Indian government should facilitate infrastructurecreation, create favourable and predictable business environment, attractinvestment and promote research and development. The role of Industry willprimarily be in designing and manufacturing products of world-class qualityestablishing cost competitiveness and improving productivity in labour and incapital. With a combined effort, the Indian Automotive industry will emerge as thedestination of choice in the world for design and manufacturing of automobiles.

The ninth largest automobile industry in the world, the Indian automobile industrymade a yearly production of more than 2.3million in the year 2008. The previousyear saw the Indian automobile industry to become the fourth largest automobilesexporter in Asia. With over 2 million new automobiles being manufactured by theautomobile giants in India, the automobile industry in India has become the fastestexpanding industries throughout the world. India has the biggest market for threewheelers in the world. Over the years, the automobile sale and purchase in Indiahas grown in many folds.

Automobile Sale and Purchase in India in 2009

In November, last year, the automobile industry in India made a record of 63%increase in the sales of automobiles by the automobile giants in India. One of themajor automobile in India, Maruti Suzuki, made a sale of 87,807 in 2009November, which is 66.57% more than November 2008 sale. November 2008 hadseen sale of 47,704 units.

The Indian automobile industry, the seventh largest in the world, has demonstrateda phenomenal growth. The industry has grown significantly over the last ten years,during which industry volumes have increased by 3.2 times, from a level of 4.7million numbers to 14.9 million numbers, according to Vishnu Mathur, DirectorGeneral, and Society of Indian Automobile Manufacturers (SIAM).


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The industry, by virtue of its deep connects with several key segments of theeconomy, occupies a prominent place in the countrys growth canvas. It exhibits astrong multiplier effect and has the ability to be the key driver of economic growth.A robust transportation system plays a key role in a country's rapid economic andindustrial development, and the well-developed Indian automotive industryjustifies this catalytic role by producing a wide variety of vehicles, which includepassenger cars, light, medium and heavy commercial vehicles, multi-utilityvehicles such as jeeps, scooters, motorcycles, mopeds, three wheelers, tractors etc.

Automotive I ndustry Analysis

Overview of Automotive Industry Analysis

The development of the automobile came from many different people fromdifferent countries. The development stated in 1769 in France, with the inventionof a three-wheeler that was powered by steam (Gale, 2003). Then in 1800's the firstinternal combustion engine was created in Belgian and the first gasoline poweredvehicle was constructed in 1885 in Germany (Gale, 2003). Henry Ford built the

first car in 1896 (Gale, 2003). He then revolutionized the industry with theinvention of the assembly line. The assembly line allowed him to mass produce thecars making them more affordable to the consumers.

Political

Laws and government regulations have affected this industry since the 1960's.Almost all of the regulations come from consumers increasing concerns for theenvironment and the concern for safer automobiles. The first safety act passed byCongress was in 1966 and was called the National Traffic and Motor VehicleSafety Act (Gale, 2004). This act forced manufacturers to improve the safety forthe passengers, the driver visibility, and the braking of the car. It also stated thatmanufacturers had to inform the public when it had a recall on the cars. Themotivation for the passing of this safety act was Ralph Nadar's 1965 novel Unsafeat Any Speed: The Designed-in Dangers of the American Automobile. (Gale,2004) Safety concerns were not the only concerns during this period. There was


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also growing concern for the environment even before the oil crisis. According tothe article "Motor Vehicles and Passenger Car Bodies", Congress passed acts in1965 and in the 1970's. The Vehicle Air Pollution and Control Act were passed in1965. This was the first act to set standards for automobile pollution. Then in the1970's, Congress passed the Clean Air Act that demanded a 90% decrease inautomobile emission within the next six years (Gale, 2004).

In the 1970's the oil crisis caused another act to be passed. The Energy Policy andConservation Act of 1975 stated that all automobiles must meet a certain mileageper gallon. The act demanded that all automobiles had to meet a standard of 20mpgby the 1980 model and then 27.5 mpg for the 1985 model. Then in 1992, theIntermodal Surface Transportation Act required the installation of front airbags.(Motor Vehicles and Passenger Car Bodies, 2004)

Demographics

For many years now, the baby boomers generation has been the main target marketfor just about every product. As their generation is getting ready to retire and spendless money, the automakers are looking at the younger generations. Right now, thefocus is starting to turn towards the baby boomers children (Generation X) who arein their mid 20's and 30's and Generation Y (winter, 2002). GenYer's are nowhitting the age where they are able to buy cars. According to Drew Winter,"Analysts say that five years from now Gen X and Gen Y combined will accountfor at least 40% of vehicle sales."

Americans today are choosing to purchase larger vehicles over passenger sizevehicles. Today's generations are still buying the trucks, minivan and especially theSUV's, even with the ridiculous gas prices. It is not only the younger generationseither; the boomers who are all reaching the retirement age are more interested inthe bigger vehicles (Fetto, 2001). There activities after retirement are way moreactive than their parents. They are not just sitting around and playing golf or goingon vacations. They are still working in some ways and being more active in theirgrandchildren's lives. Since the boomers are still active, they want to drive thesame vehicles that their children drive in order to make life that much easier.

Studies show that trucks, minivans and SUV's report increased sales nearly everyyear (Fetto, 2001).

The manufactures target the sales of their cars to certain people and theirgeographic location. Convertibles are not marketed toward people who live in partsof the world that are cold all year round. A good example of targeting markets is inParis. A new is trying to be passed that SUVs are not allowed inside the city. They


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are taking up to much room and the vehicles use a lot of fuel. If this law is passedthen SUV's will not be marketed toward people who live in Paris. Another exampleis that minivans are mainly marketed toward "soccer moms". They are marketedtoward the moms because they are perceived, as needed a lot of room to haul kidsaround and the easy access the minivans provide.

Economic

The automobile industry has a huge impact on the U.S. economy. The Universityof Michigan and the Center for Automotive Research stated that this industry is themajor user of computer chips, textiles, aluminum, copper, steel, iron, lead, plastics,vinyl, and rubber. (Gale, 2004) The study also showed that for every autoworkerthere are seven other jobs created in other industries (Gale, 2004). These industriesinclude anything from the aluminums to lead to vinyl. In 2001, the total sales of

automobiles were 3.7% of the nation's gross domestic product. This percentageworks out to be $375 billion dollars in sales.

Technology

The internet has affected just about every industry in the world and has also had ahuge impact on the automobile industry. A study was conducted by J.D. Power andAssociates in 2002 and involved more 27,000 new vehicle buyers. The studyshowed that 60% of the buyers referred to the internet before making theirpurchases and out of that 60%, 88% went to the auto websites before going and

taking a test drive. Business-to-business marketplaces have given the industrymany opportunities because of the internet, such as more efficiency and lower cost.Ford, GM, and Daimler Chrysler announced in 2000 their plans to create a globalonline exchange for suppliers and the original equipment manufacturers. Theexchange was originally called New Co, and then it was changed to Convisint.According to Motor Vehicles and Passenger Car bodies, "In August 2002 GeneralMotors announced it was about to begin sending requests for quotes to suppliersthrough Covisint using a tool called Quote Manager."

Concerns for the economy and global warming have caused the automobile

industry to develop alternate fuel vehicles. In the beginning, automakers did notwant to look into the development because of the high cost and the many risksinvolved. Because of new legislation, they had no choice but to come up with thetechnology to make the fuel-efficient cars. The automakers decided that electriccars would be the best way to meet the legislation demands. "Early models wereunpopular because of slow cruising speeds and lack of performance, but by the endof the century, electric car production began to be practical."(Motor Vehicles) At


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New Challenges faced by Indian Automotive

I ndustry in the new age

The Indian automotive industry has been facing new challenges due to the rapid

changes taking place during the last decade. This article discusses those challenges

and initiatives taken by the government to overcome them.

The Indian auto industry is changing rapidly. During the last decade, many

international auto manufacturers, either by themselves or in partnership with Indian

companies, have started manufacturing activities in India. The ancillary industrieshave also grown in tandem. The quality of production in small- and medium-scale

industries has improved to such an extent that they started exporting products to

international manufacturers. The major breakthrough of recent years is the

unveiling of "Nano" by Tata Motors during the auto expo 2007. This has received

worldwide attention and proved that India can not only design an automobile of

international standards but also execute the project at a much lower cost through

innovative choice of components, materials, engine design etc.

These developments in the auto sector have given new confidence to everyone

related to the auto industry and specifically to the government which resulted in the

announcement of the Auto Policy 2006-2016 by the Ministry of Heavy Industries.

According to the Auto Policy, the Indian auto sector is expected to grow to US$

216 billion by 2016 and add 2.5 million new jobs to the economy. Every year twoto three million people are expected to purchase new vehicles. Several million

vehicles and components are expected to be exported to both developed and

developing nations. To achieve these goals, it is important that the present GDP

growth rate, which is more than 8 per cent, continues to remain at the same level


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for the next 8-10 years. The government is also giving some concessions to the

auto industry. To realize the above growth predictions, it is important to overcome

various challenges the industry is facing currently. Two of the foremost challenges

are the spiraling cost of fuel and the paucity of highly skilled manpower.

Top Automobile Companies in I ndia

Tata Motors:

Tata Motors is the largest automobile manufacturing companies in India.Established way back in 1945 Tata Motors is a multinational automobile companywith its headquarters in Mumbai. Previously known as Telco TATA Engineeringand Locomotive Company Tata Motors belongs to Tata Group. This companymanufactures compact medium sized utility vehicles. Over the last few decades ithas stood as the undisputed leader in the commercial vehicles segment. It is alsothe third largest producer of passenger cars in India. This automobile company inIndia is listed on both the Bombay Stock Exchange and the New York StockExchange. The revenues earned by Tata Motors in 2010 accounted to $20.572

billion. Some of the well known cars manufactured by Tata Motors are: TataIndigo, Tata Indica, Tata Sumo Tata Indigo Marina and Tata safari.


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H industan Motors L imi ted:

Hindustan Motors Limited was founded in the year 1942 by B.M Birla. It is anoperative subsidy of the Birla Technical Services group. This company held thetitle of the biggest manufacturer of cars in India before Maruti Udyog. HindustanMotors was the pioneer in manufacturing automobiles in India. The companyaccounted for a sales turnover of Rs 150.66 crore in 2010. Some of the importantcars and multi utility vehicles manufactured by Hindustan Motors Limited include;Mitsubishi Lancer, Trekker, Contessa, Ambassador, Porter, Pushpak and theMitsubishi.

Ashok Leyland:

Ashok Leyland is a leading commercial vehicle manufacturer in India. It wasestablished in 1948. The company over the years has become synonymous with theproduction of trucks, passenger buses and emergency military vehicles. It happens

to be the second largest commercial vehicle producer in India holding a marketshare of almost 30 percent. The company holds a record for selling almost 60, 000vehicles and almost 7000 engines per years. Ashok Leyland accounted forconsolidated revenues of US$ 1.4 billion in 2009. Some of the popular products bythis company are; Panther BS-II Muti-axle Vehicles, Cheetah Bus-III, Tractors andEcomet, Lynx BS-II, Diesel and Natural Gas gensets from 15KVA to 250KVA.

Maruti Suzuki I ndia Limi ted:

Maruti Suzuki India Limited was established in 1981. A part of this company isowned by Suzuki Motor Corporation of Japan. It is the country's largest passengercar manufacturing company. Credited for having brought in the automobilerevolution in the country Maruti Suzuki India Limited was known as MarutiUdyog Limited till 2007. With its headquarters in Delhi this automobile company


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in India happens to be the largest producer and market share holder of cars. Thecompany accounted for consolidated revenues of US$4.8 billion in 2010. MarutiSuzuki India Limited is credited for manufactures a variety of passenger carsSUVs, and Sedans. Some of Maruti's most popular cars are: Alto, Gypsy, Omni,Wagon R, Maruti 800, Versa, Zen, Esteem, Baleno and Swift.

Hyundai Motor India L imited:

Hyundai Motor India Limited (HMIL) is owned entirely by Hyundai Motors ofSouth Korea. Hyundai Motors happens to be the largest car manufacturer in SouthKorea and the sixth largest in the world. This automobile company in India is alsothe largest passenger cars exporter in India. Established on May 6 1996 thiscompany in a short span of time has taken the Indian automobile industry by storm.Some of the popular cars manufactured by this company are; Santro, Getz Prime,Hyundai i10, Hyundai i20 Accent and the Verna and Sonata

Bajaj Auto:

Bajaj Auto is another important automobile manufacturing company in India. It isone of the India's most trusted car manufacturers. It is an operative subsidy of the

Bajaj Group. Bajaj Auto happens to be the largest two and three wheelermanufacturer in India and also ranks in this field across the globe. This automobilecompany was established on 2 November 1945. The company was then known asM/s Bachraj Trading Corporation Private Limited. The company made a modestbeginning by importing and then selling two and three wheelers in India. TodayBajaj Auto has become synonymous with two and three wheelers in the country.Some of its popular two wheelers are; Pulsar 220DTS and Kawasaki Ninja 250R.


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Tata Motors

One of the leading automobile manufacturing giant in India, Tata Motors, made asale of 29,408 units of commeruicial vehicles in the Indian market, thereby,

making a 81% increase in comparison to sales made in November 2008. On theother hand, the passenger vehicles sale in the domestic market was 22,671 units in2009 November, making it the highest in the financial year of 2009. Tata Motorshave sold around 3,406 units of Nano cars in 2009 November. In addition, theexports of Tata Motors amounted at 3,994 units, which is an increase of 37% incomparison to November 2008.

Mahindra & Mahindra

Automobile manufacturing giant Mahindra & Mahindra made a sale of 15,193units of both SUV and MUV vehicles. In the three-wheeler sales, the number stoodat 5,137 in November 2009. In addition, the company sold 778 units of LCV lastyear in November.

F iat Automobil es

Fiat Automobiles in India earlier this year, has witnessed a growth in sales by 78%,majority of sales came from Fiat Punto and Fiat Linea. In addition, the export ofthe Fiat cars amounted to 2235 units in February 2010.

General Motors

General Motors, which is one of the leading automobile manufacturing industries

in India, witnessed a sales growth at 48.51% with the sale of 7,654 units incomparison to September 2008. The sale of the company in September 2009recorded at 1,329 units of MUV, 123 numbers of Chevrolet Captiva, 753 units ofthe hatchback Aveo U-Va, 319 units of the luxury sedan Chevrolet Optra and 424units of the sedan Chevrolet Aveo.


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Hero Honda

In the sector of two-wheelers, the major two-wheeler manufacturer of India, Hero

Honda, sold 3, 53,342 in March 2009, thereby, registered a growth of 10% in thesale. The company is reported to have sold 37.22 lakh two-wheelers in 2009 incomparison to 33.37 lakh units in 2008 in the fiscal year of 2009.

Supply Chain of Automobile Industry

The supply chain of automotive industry in India is very similar to the supply chainof the automotive industry in Europe and America. The order of the industry arisesfrom the bottom of the supply chain i. e., from the consumers and goes through theautomakers and climbs up until the third tier suppliers. However the products, aschanneled in every traditional automotive industry, flow from the top of the supplychain to reach the consumers. Automakers in India are the key to the supply chainand are responsible for the products and innovation in the industry.

The description and the role of each of the contributors to the supply chain arediscussed below.

Third Tier Suppliers: These companies provide basic products like rubber, glass,steel, plastic and aluminum to the second tier suppliers.

Second Tier Suppliers: These companies design vehicle systems or bodies for First

Tier Suppliers and OEMs. They work on designs provided by the first tiersuppliers or OEMs. They also provide engineering resources for detailed designs.Some of their services may include welding, fabrication, shearing, bending etc.

First Tier Suppliers: These companies provide major systems directly toassemblers. These companies have global coverage, in order to follow theircustomers to various locations around the world. They design and innovate in order


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Second Tier Suppliers: These companies design vehicle systems or bodies for FirstTier Suppliers and OEMs. They work on designs provided by the first tiersuppliers or OEMs. They also provide engineering resources for detailed designs.Some of their services may include welding, fabrication, shearing, bending etc.

First Tier Suppliers: These companies provide major systems directly toassemblers. These companies have global coverage, in order to follow theircustomers to various locations around the world. They design and innovate in orderto provide black-box solutions for the requirements of their customers. Black-box solutions are solutions created by suppliers using their own technology to meetthe performance and interface requirements set by assemblers.

First tier suppliers are responsible not only for the assembly of parts into completeunits like dashboard, breaks-axel-suspension, seats, or cockpit but also for the

management of second-tier suppliers.Automakers/Vehicle Manufacturers/Original Equipment Manufacturers (OEMs):After researching consumers wants and needs, automakers begin designingmodels which are tailored to consumers demands. The design process normallytakes five years. These companies have manufacturing units where engines aremanufactured and parts supplied by first tier suppliers and second tier suppliers areassembled. Automakers are the key to the supply chain of the automotive industry.Examples of these companies are Tata Motors, Maruti Suzuki, Toyota, andHonda. Innovation, design capability and branding are the main focus of these

companies.

Dealers: Once the vehicles are ready they are shipped to the regional branch andfrom there, to the authorized dealers of the companies. The dealers then sell thevehicles to the end customers.

Parts and Accessory: These companies provide products like tires, windshields,and air bags etc. to automakers and dealers or directly to customers.

Service Providers: Some of the services to the customers include servicing of

vehicles, repairing parts, or financing of vehicles. Many dealers provide theseservices but, customers can also choose to go to independent service providers.
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Performance

Unfortunately, during the global meltdown in 2008, auto companies suffered adouble whammy with rapidly rising oil prices and escalating raw material costscoupled with a drastic drop in demand of their fuel guzzling SUVs due to changesin consumer buying habits. As consumers tightened their purse strings, manylooked for more fuel efficient, smaller cars while others re-evaluated their privatevehicle usage, deciding to switch to public transport and delaying their autopurchases. As a result, many leading manufacturers, including the American BigThree (Chrysler, Ford and General Motors) and Japans Toyota suffered majorlosses and were forced to seek government assistance, shut down manufacturingplants, retrench large numbers of workers, re-organize their line-ups and offersubstantial discounts across their existing ranges.

Leveraging its burgeoning demand and domestic low cost production, China wasone of few countries to experience significant growth in 2009, becoming both thelargest automobile producer and market in the world. The Indian domestic markettoo, managed to escape the downturn relatively unscathed, due primarily to therelatively inelastic demand for compact vehicles and 2 wheelers, the launch of newvariants by all major players and reduced excise duty in the 2008-09 Budget.

The largest automotive companies in India are Maruti Suzuki, Hyundai MotorIndia, Tata Motors and Mahindra & Mahindra. The Indian automobile industrygathered momentum rapidly, with Indian Automotive citing April 2009's overall

vehicle sales rising by 9.83 percent year-on-year. According to figures released bythe Society of Indian Automobile Manufacturers, the domestic passenger car salesmanaged a growth of 17.15 percent.

Growth Potential

The automotive industry remains one of the highest revenue-earning industries inIndia and contributed over 5% to Indias GDP in 2009, providing direct andindirect employment to more than 13 million people. The market outlook for theindustry remains promising, especially in the small car segment. The Indianautomobile market is currently dominated by the two-wheeler segment but with anexpanding middle class population, growing earning power and industrial


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development, the demand for passenger cars and commercial vehicles will increaseexponentially.

Also, the low vehicle presence (with passenger car stock of only around 11 per1,000 populations in 2008) indicates a very low base with significant growth

potential. As per Just-Auto analyst reports, salesof passenger cars in 2008-2016are expected to grow at a CAGR of around 10%.

In addition to increased domestic demand, there is also likely to be increasedinvestment by global auto manufacturers to India due to its strong technologicalcapability and availability of trained manpower at competitive prices. Currently,the foreign auto companies with assembly plants in India include, General Motors,Ford, Hyundai, Honda, Suzuki, Nissan Motors, Toyota, Volkswagen, Audi, Skoda,BMW, Fiat and Mercedes Benz.

With the introduction of the Tata Nano, the cheapest car in the world at USD 2200,and FDI from Suzuki Motor Corp, Hyundai Motor Co, and Nissan Motor Co tomake India their manufacturing hub for small cars, India has made huge inroads inthe compact car segment. In fact, in 2009, India overtook China in the global autoexports of compact cars for the first time.

Future Prospects

All in all, this bodes very well for the industry outlook over the forthcoming years.

As a result, the job opportunities in this sector are going to remain huge, especiallyfor trained professionals involved in key production areas. Foreign firms looking tocapitalize on the local talent are likely to offer attractive remuneration and provideaccelerated growth prospects for ambitious individuals, and local firms hoping togrow their footprints are also likely to step-up their hiring and upward movementof staff.


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Key automobile manufactures in India:

Maruti Udyog General Motors Ford India Limited Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motors India Limited Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Limited

In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the

first automobile to run on roads. This automobile, in fact, was a self-powered,

three-wheeled, military tractor that made the use of a steam engine. The range of

the automobile, however, was very brief and at the most, it could only run at a

stretch for fifteen minutes. In addition, these automobiles were not fit for theroads as the steam engines made them very heavy and large, and required ample

starting time. Oliver Evans was the first to design a steam engine driven

automobile in the U.S.

A Scotsman, Robert Anderson, was the first to invent an electric carriage between

1832 and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert

Davidson were amongst the first to invent more applicable automobiles, making

use of non-rechargeable electric batteries in 1842. Development of roads madetravelling comfortable and as a result, the short ranged, electric battery driven

automobiles were no more the best option for travelling over longer distances.

The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk

production of cars. This lead to the development of the industry and it first begun


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In 2008, Hyundai Motors alone exported 240,000 cars made in India. NissanMotorsplans to export 250,000 vehicles manufactured in its India plant by 2011.Similarly, General Motors announced its plans to export about 50,000 carsmanufactured in India by 2011.

In September 2009,Ford Motors announced its plans to setup a plant in India withan annual capacity of 250,000 cars for US$500 million. The cars will bemanufactured both for the Indian market and for export. The company said that theplant was a part of its plan to make India the hub for its global production business.Fiat Motors also announced that it would source more than US$1 billion worthauto components from India.

In July 2010, The Economic Times reported that PSA Peugeot Citron wasplanning to re-enter the Indian market and open a production plant in Andhra

Pradesh with an annual capacity of 100,000 vehicles, investing EUR 700M in theoperation. PSA's intention to utilize this production facility for export purposeshowever remains unclear as of December 2010.

ATata Safari on display inPoznan,Poland.

In 2009 India (0.23m) surpassed China (0.16m) as Asia's fourth largest exporter ofcars after Japan (1.77m), Korea (1.12m) and Thailand (0.26m) by allowing foreigncarmakers 100% ownership of factories in India, which China does not allow.[5]

In recent years, India has emerged as a leading center for the manufacture of smallcars.Hyundai,the biggest exporter from the country, now ships more than 250,000cars annually from India. Apart from shipments to its parent Suzuki,Maruti Suzukialso manufactures small cars for Nissan,which sells them in Europe. Nissan willalso export small cars from its new Indian assembly line. Tata Motors exports itspassenger vehicles to Asian and African markets, and is in preparation to launch
http://en.wikipedia.org/wiki/Nissan_Motorshttp://en.wikipedia.org/wiki/Nissan_Motorshttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Ford_Motorshttp://en.wikipedia.org/wiki/Fiathttp://en.wikipedia.org/wiki/PSA_Peugeot_Citro%C3%ABnhttp://en.wikipedia.org/wiki/Tata_Safarihttp://en.wikipedia.org/wiki/Poznanhttp://en.wikipedia.org/wiki/Polandhttp://en.wikipedia.org/wiki/Automotive_industry_in_India#cite_note-bloomberg1-4http://en.wikipedia.org/wiki/Automotive_industry_in_India#cite_note-bloomberg1-4http://en.wikipedia.org/wiki/Automotive_industry_in_India#cite_note-bloomberg1-4http://en.wikipedia.org/wiki/Hyundaihttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/File:Tata_Safari_II_front_-_PSM_2009.jpghttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Hyundaihttp://en.wikipedia.org/wiki/Automotive_industry_in_India#cite_note-bloomberg1-4http://en.wikipedia.org/wiki/Polandhttp://en.wikipedia.org/wiki/Poznanhttp://en.wikipedia.org/wiki/Tata_Safarihttp://en.wikipedia.org/wiki/PSA_Peugeot_Citro%C3%ABnhttp://en.wikipedia.org/wiki/Fiathttp://en.wikipedia.org/wiki/Ford_Motorshttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Nissan_Motorshttp://en.wikipedia.org/wiki/Nissan_Motors


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electric vehicles in Europe in 2010. The firm is also planning to launch an electricversion of its low-cost carNano in Europe and theU.S.Mahindra & Mahindra ispreparing to introduce its pickup trucks and smallSUV models in the U.S. market.Bajaj Auto is designing a low-cost car for the Renault Nissan Automotive India,which will market the product worldwide. Renault Nissan may also join domesticcommercial vehicle manufacturer Ashok Leyland in another small car project.[39]While the possibilities are impressive, there are challenges that could thwart futuregrowth of the Indian automobile industry. Since the demand for automobiles inrecent years is directly linked to overall economic expansion and rising personalincomes, industry growth will slow if the economy weakens.

Automobil e Expor ts

Type of Vehicle 2004-20052005-2006 2006-2007 2007-2008 2008-2009

Passenger Vehicles 166,402 175,572 198,452 218,401 335,739Commercial Vehicles 29,940 40,600 49,537 58,994 42,673

Three Wheelers 66,795 76,881 143,896 141,225 148,074

Two Wheelers 366,407 513,169 619,644 819,713 1,004,174

Total 629,544 806,222 1,011,529 1,238,333 1,530,660

The competi tive nature of the automobile industry

The competitive nature of the automobile industry has prompted the companies totake up new and innovative marketing strategies to thwart the competition. The Bsegment of cars is the segment which sees maximum competition as the consumerhas a number of models to choose from and it's the volumes which drive themargins.

All the companies as a part of their marketing strategy offers a range of vehicles inall the segment to make sure that the customer is driving one of their vehicles only.

Advertisements on the Audio visual medium are a rage as it gives the car makersan opportunity to flaunt their cars. Flashy cars can be demonstrated on televisionbut when it comes to the finger prints of the cars, print and online media comes tothe rescue.
http://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/U.Shttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindrahttp://en.wikipedia.org/wiki/SUVhttp://en.wikipedia.org/wiki/Bajaj_Autohttp://en.wikipedia.org/wiki/Renault_Nissan_Automotive_India_Private_Limitedhttp://en.wikipedia.org/wiki/Ashok_Leylandhttp://en.wikipedia.org/wiki/Automotive_industry_in_India#cite_note-thomaswhite.com-38http://en.wikipedia.org/wiki/Automotive_industry_in_India#cite_note-thomaswhite.com-38http://en.wikipedia.org/wiki/Automotive_industry_in_India#cite_note-thomaswhite.com-38http://en.wikipedia.org/wiki/Automotive_industry_in_India#cite_note-thomaswhite.com-38http://en.wikipedia.org/wiki/Ashok_Leylandhttp://en.wikipedia.org/wiki/Renault_Nissan_Automotive_India_Private_Limitedhttp://en.wikipedia.org/wiki/Bajaj_Autohttp://en.wikipedia.org/wiki/SUVhttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindrahttp://en.wikipedia.org/wiki/U.Shttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Tata_Nano


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The online medium offers a greater flexibility to the car companies since theycome with a lot of interactive features like demonstrating the interiors of the carwith its salient features.

The print medium on the other hand provides an opportunity to the car makers toexplain the function of a car in detail.

Celebrity endorsements and testimonial advertisements have come a long way andthey are also doing their bit to sell the cars. Super star Shahrukh Khan has beenassociated with Hyundai Motor Company for a long time and he comes regularlyon television to promote the Santro car. Similarly Ford has roped in Junior Bachanfor the promotion of the latest offering from the company Ford Fiesta. On a similarnote Saif Ali Khan and Rani Mukherjee is shown chasing each other with aChevrolet aveo.

Aamir Khan who is considered to be one of the most talented actors in the industryis frequently seen changing roles on screen to promote the Toyota Innova, a carwhich is generations ahead of its predecessor Toyota Qualis.

Cricketers haven't been left behind in the race of promoting cars; Fiat Palio hadreceived a great thrust when the promotion of the car was taken up by the battingmaestro Sachin Tendulkar.In addition to the publicity and advertisement which isdone by the companies there are certain innovative strategies which are taken upby the companies to beat the competition from time to time.


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Global production of motor vehicles

(Cars and commercial vehicles)

Year Production Change Source

1997 52,987,000 [6]

1998 57,987,000 -2.70% [6]

1999 56,258,892 2.98% [7]

2000 58,374,162 3.80% [8]

2001 56,304,925 -3.50% [9]

2002 58,994,318 4.80%[10]

2003 60,663,225 2.80% [11]

2004 64,496,220 6.30% [12]

2005 66,482,439 3.10% [13]

2006 69,222,975 4.10% [14]

2007 73,266,061 5.80% [15]

2008 70,520,493 -3.70% [16]

2009 60,986,985 -13.50%[17]

2010 77,857,705 26.00% [18]

By countr y

Motor vehicle production (units)

Country

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

11,000,000

12,000,000

13,000,000

14,000,00015,

000,00016,000,00017,000,000
http://en.wikipedia.org/wiki/Automotive_industry#cite_note-OICA9798-5http://en.wikipedia.org/wiki/Automotive_industry#cite_note-OICA9798-5http://en.wikipedia.org/wiki/Automotive_industry#cite_note-OICA9798-5http://en.wikipedia.org/wiki/Automotive_industry#cite_note-OICA9798-5http://en.wikipedia.org/wiki/Automotive_industry#cite_note-6http://en.wikipedia.org/wiki/Automotive_industry#cite_note-6http://en.wikipedia.org/wiki/Automotive_industry#cite_note-7http://en.wikipedia.org/wiki/Automotive_industry#cite_note-7http://en.wikipedia.org/wiki/Automotive_industry#cite_note-8http://en.wikipedia.org/wiki/Automotive_industry#cite_note-8http://en.wikipedia.org/wiki/Automotive_industry#cite_note-9http://en.wikipedia.org/wiki/Automotive_industry#cite_note-9http://en.wikipedia.org/wiki/Automotive_industry#cite_note-10http://en.wikipedia.org/wiki/Automotive_industry#cite_note-10http://en.wikipedia.org/wiki/Automotive_industry#cite_note-11http://en.wikipedia.org/wiki/Automotive_industry#cite_note-11http://en.wikipedia.org/wiki/Automotive_industry#cite_note-12http://en.wikipedia.org/wiki/Automotive_industry#cite_note-12http://en.wikipedia.org/wiki/Automotive_industry#cite_note-13http://en.wikipedia.org/wiki/Automotive_industry#cite_note-13http://en.wikipedia.org/wiki/Automotive_industry#cite_note-14http://en.wikipedia.org/wiki/Automotive_industry#cite_note-14http://en.wikipedia.org/wiki/Automotive_industry#cite_note-15http://en.wikipedia.org/wiki/Automotive_industry#cite_note-15http://en.wikipedia.org/wiki/Automotive_industry#cite_note-16http://en.wikipedia.org/wiki/Automotive_industry#cite_note-16http://en.wikipedia.org/wiki/Automotive_industry#cite_note-16http://en.wikipedia.org/wiki/Automotive_industry#cite_note-17http://en.wikipedia.org/wiki/Automotive_industry#cite_note-17http://en.wikipedia.org/wiki/Automotive_industry#cite_note-17http://en.wikipedia.org/wiki/Automotive_industry#cite_note-16http://en.wikipedia.org/wiki/Automotive_industry#cite_note-15http://en.wikipedia.org/wiki/Automotive_industry#cite_note-14http://en.wikipedia.org/wiki/Automotive_industry#cite_note-13http://en.wikipedia.org/wiki/Automotive_industry#cite_note-12http://en.wikipedia.org/wiki/Automotive_industry#cite_note-11http://en.wikipedia.org/wiki/Automotive_industry#cite_note-10http://en.wikipedia.org/wiki/Automotive_industry#cite_note-9http://en.wikipedia.org/wiki/Automotive_industry#cite_note-8http://en.wikipedia.org/wiki/Automotive_industry#cite_note-7http://en.wikipedia.org/wiki/Automotive_industry#cite_note-6http://en.wikipedia.org/wiki/Automotive_industry#cite_note-OICA9798-5http://en.wikipedia.org/wiki/Automotive_industry#cite_note-OICA9798-5


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18,000,00019,000,000

China

18,264,667

Japan

9,625,940

United

States

7,761,443

Germany

5,905,985

SouthKo

rea

4,271,941

Brazil

3,648,358

India

3,536,783

Spain

2,387,900

Mexico

2,345,124

Franc

2,227,742
http://en.wikipedia.org/wiki/People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/People%27s_Republic_of_China


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e

Canada

2,071,026

Thailand

1,644,513

Iran

1,599,454

Ru

ssia

1,403,244

UK

1,393,463

Turkey

1,097,554

CzechRep.

1,076,385

Poland

869,736

Italy

857

,359

Argentina

716,540
http://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Polandhttp://en.wikipedia.org/wiki/Polandhttp://en.wikipedia.org/wiki/Polandhttp://en.wikipedia.org/wiki/Polandhttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Polandhttp://en.wikipedia.org/wiki/Polandhttp://en.wikipedia.org/wiki/Polandhttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/France


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By manufacturer

Total motor vehicle production

Group1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,0007,000,000 8,000,0009,000,00010,000,000

Key CarsLight CommercialVehicles

HeavyCommercialVehiclesHeavy

BusesToyota

8,557,351GM

8,476,192

Volkswagen

7,341,065

HyundaiMotor

5,764,918

Ford

4,988,031

Nissan 3,982,162

Honda

3,643,057PSA

3,605,524

Suzuki

2,892,945Renault

2,716,286

Fiat

2,410,021DaimlerAG

1,940,465

Chrysler 1,578,488

Key CarsLight CommercialVehicles

HeavyCommercialVehicles HeavyBuses

Total: Cars: 60,343,756 LCV: 13,370,432 HCV:
http://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Volkswagen_Grouphttp://en.wikipedia.org/wiki/Volkswagen_Grouphttp://en.wikipedia.org/wiki/Hyundai_Motor_Grouphttp://en.wikipedia.org/wiki/Hyundai_Motor_Grouphttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Nissan_Motorshttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/PSA_Peugeot_Citro%C3%ABnhttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Renaulthttp://en.wikipedia.org/wiki/Fiathttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Chryslerhttp://en.wikipedia.org/wiki/Chryslerhttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Fiathttp://en.wikipedia.org/wiki/Renaulthttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/PSA_Peugeot_Citro%C3%ABnhttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Nissan_Motorshttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Hyundai_Motor_Grouphttp://en.wikipedia.org/wiki/Hyundai_Motor_Grouphttp://en.wikipedia.org/wiki/Volkswagen_Grouphttp://en.wikipedia.org/wiki/Volkswagen_Grouphttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Toyota


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77,743,862 3,510,681HeavyBus: 518,993

Top vehicle manufactur ing groups (by volume)

The table below shows the world's largest motor vehicle manufacturing groups,along with themarquesproduced by each one. The table is ranked by 2010 end ofyear production figures from the International Organization of Motor Vehicle

Manufacturers (OICA) for the parent group, and then alphabetically by marque.Joint ventures are not reflected in this table. Production figures of joint venturesare typically included in OICA rankings, which can become a source ofcontroversy.

MarqueCountry of

originOwnership Markets

1.Toyota Motor Corporation( Japan)

Daihatsu

SubsidiaryGlobal, except North Americaand Australia

Hino

SubsidiaryAsia Pacific, North Americaand South America

Lexus

Division GlobalScion Division North AmericaToyota

Division Global2.General Motors Company( United States)

Buick DivisionNorth America, China, Israel,Taiwan

Cadillac Division North America, Europe, Asia,Middle East, Africa

Chevrolet DivisionGlobal, except Australia, NewZealand

GMC Division North America, Middle EastHolden Subsidiary Australia, New Zealand
http://en.wikipedia.org/wiki/Marquehttp://en.wikipedia.org/wiki/International_Organization_of_Motor_Vehicle_Manufacturershttp://en.wikipedia.org/wiki/International_Organization_of_Motor_Vehicle_Manufacturershttp://en.wikipedia.org/wiki/Marquehttp://en.wikipedia.org/wiki/Country_of_originhttp://en.wikipedia.org/wiki/Country_of_originhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Daihatsuhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Hino_Motorshttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Lexushttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Scion_%28car%29http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Buickhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Cadillachttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Chevrolethttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/GMC_%28automobile%29http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Holdenhttp://en.wikiped

Documents

Automobile Industry in India Project Report