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Surfindia » Automobile » Automobile Industry » Vehicle Production

Vehicle Production

India is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks

Automobile Industry is the largest industry in India with an impressive growth in the last two decades. The reason behind the growth was abolition of licensing in 1991 and permitting automatic approval and successive liberalisation of the sector.

According to estimation the compound annual growth rate (CAGR) of Indian Automobile sales will grow at 9.5% and will touch a mark of 13,008 million by 2010. The figure for FY05 was 8.45 million units. To tap this large opportunity, the Indian Auto Companies along with the global giants have announced huge expansion plans.

Maruti Udyog Ltd. was the largest 4-Wheelers producer in 2005-06 followed by Tata Motors. Hyundai did well but the difference was nearly half of Tata Motors. In 2-Wheelres segment, Hero Honda is leading putting behind Bajaj Auto Ltd. Check the table below to get complete figure.

Current Scenario
  • The growth rate of Passenger Cars in 2004 was 30% in India where as the average growth rate of top 12 Passenger Cars producing countries were just 5.1%. In Heavy Trucks it was 32% and 14.6% respectively.
  • Component industry's growth was only 9% between 1997-2000. But between 2000-2005 it has grown to 20%. It is projected 17% between 2005-2014.
Overview
Snippets
  • Largest industry in India.
  • By 2010 there will be 13,008 million cars.
  • Maruti Udyog Ltd. is the leading 4-wheelers manufacturer.
  • Hero Honda is the leading 2-wheelers manufacturer.
  • 2-wheelers are produced most followed by 4-wheelers and 3-wheelers.
Production of 4-Wheelers
Manufacturers 2005-06
(Apr-Mar)
In Nos.
Manufacturers 2005-06
(Apr-Mar)
In Nos.
Japanese OEM Korean OEM
Maruti Udyog Ltd. 572,097 Hyundai Motor India Ltd. 260,440
Toyota Kirloskar Motor Pvt. Ltd. 44,975 American OEM
Honda Siel Cars India Ltd. 41,361 General Motors India Pvt. Ltd. 30,687
Swaraj Mazda Ltd. 11,946 Ford India Pvt. Ltd. 26,946
Total 670,379 Total 57,633
European OEM Indian OEM
Skoda Auto India Pvt. Ltd. 9.767 Tata Motors Ltd. 449,878
Daimler Chrysler India Pvt. Ltd. 1,780 Mahindra & Mahindra Ltd. 128,601
Volvo India Pvt. Ltd. 1,004 Ashok Leyland Ltd. 65,085
Tatra Trucks India Ltd. 125 Force Motors Ltd. 35,728
Fiat India Pvt. Ltd. 671 Eicher Motors Ltd. 24,348
Hindustan Motors Ltd. 15,458
Total 13,347 Total 719,098
Source: Automotive Component Manufacturers Association of India

Production of 2-Wheelers
Manufacturers 2005-06
(Apr-Mar)
In Nos.
Manufacturers 2005-06
(Apr-Mar)
In Nos.
Japanese Indian
Hero Honda Motors Ltd. 3,006,486 Bajaj Auto Ltd. 2,042,289
Honda Motorcycle & Scooter India (Pvt.) Ltd. 603,436 TVS Motor Company Ltd. 1,366,866
Yamaha Motors India Pvt. Ltd. 248,665 LML Ltd. 107,044
Suzuki Motorcycle India Pvt. Ltd. 2,328 Kinetic Engineering Ltd. 82,392
Majestic Auto Ltd. 56,819
Kinetic Motor Company Ltd. 53,880
    Royal Enfield (Unit of Eicher Ltd.) 30,596
Total 3,860,915 Total 3,739,886
Source: Automotive Component Manufacturers Association of India

If we take a quick look of almost a decade, it is seen that two-wheelers are the most produced in automobile industry followed by passenger cars and then three wheelers. The following are the number of units produced in 2003-04 and 2004-05 (April-Sept. 04) of different segment of vehicles:

Name of the Sector No. of units Production
2003-04 2004-05
(April-Sept. 04)
Commercial Vehicles 9 275224 156815
Cars 12 842437 465983
Multi-Utility Vehicles 5 146103 114739
2-wheelers 12 5624950 3023805
3-wheelers 4 340729 177554
Total 42 7229443 3938896



Production Range of Auto Components
  • Electrical Parts - 9%
  • Equipments - 10%
  • Suspension & Braking Parts - 12%
  • Body & Chassis - 12%
  • Drive Transmission & Steering Parts - 19%
  • Engine Parts - 31%
  • Others - 7%
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