Vehicle Production in India

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.

• 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.

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.

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

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