Automobile Industry

In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014.

Industry Overview:

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford.

A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian economy.

Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03 broad categories : Cars, two-wheelers and heavy vehicles.


  • The first automobile in India rolled in 1897 in Bombay.
  • India is being recognized as potential emerging auto market.
  • Foreign players are adding to their investments in Indian auto industry.
  • Within two-wheelers, motorcycles contribute 80% of the segment size.
  • Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
  • Tata Motors dominates over 60% of the Indian commercial vehicle market.
  • 2/3rd of auto component production is consumed directly by OEMs.
  • India is the largest three-wheeler market in the world.
  • India is the largest two-wheeler manufacturer in the world.
  • India is the second largest tractor manufacturer in the world.
  • India is the fifth largest commercial vehicle manufacturer in the world.
  • The number one global motorcycle manufacturer is in India.
  • India is the fourth largest car market in Asia - recently crossed the 1 million mark.

Segment Knowhow:

Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS makes 82% of the mopeds in the country.

40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market share. Among the passenger transport, Bajaj is the leader by making 68% of the three-wheelers.

Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles Mahindra holds 42% share.

In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer.

Cars by Price Range:

Under Rs. 3 Lakhs
Rs. 3-5 Lakhs
Rs. 5-10 Lakhs
Rs. 10-15 Lakhs
Rs. 15-30 Lakh
Rs. 30-90 Lakhs
Above Rs. 1 Crore

The following links will give you the complete picture of Indian Auto Industry:

Automobile History

The first auto vehicle rolled out in India at the end of 19th century. Today, India is the the 2nd largest tractor and 5th largest commercial vehicle manufacturer in the world. Hero Honda with 1.7M motorcycles a year is now the largest motorcycle manufacturer in the world.


Industry Investment

On the cost front, OEMs eyeing India in a big way to source products and components at significant discounts to home market. On the revenue side, OEMs are active in the booming passenger car market in India.


Industry Growth

The passenger car and motorcycle segment in Indian auto market is growing by 8-9 per cent. The two-wheeler segment will clock 11.5% rise by 2007. Commercial vehicle to grow by 5.2 per cent.


Vehicle Production

India is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks. Maruti Udyog Ltd. is the leading 4-wheelers manufacturer. Hero Honda is the leading 2-wheelers manufacturer.


Auto Export

Passenger vehicle exports have grown over five times and two-wheeler exports have reached more than double. Exports of auto components, whose manufacturing costs are 30-40 per cent lower than in the West, have grown at 25% a year between 2000 to 2005.


Auto Companies

Hero Honda is the largest manufacturer of motorcycles. Hyundai Motors India is the second largest player in passenger car market. Tata Motors is the fifth largest medium & heavy commercial vehicle manufacturer in the world.


Vehicle Distribution

Know about the number of vehicles registered as Transport or Non-Transport in the Indian states and Union Territories.



Get all the contact details of Automobile Association of Upper India (AAUI), Automotive Research Association of India (ARAI), Automobile Association of Southern India (AASI), Automotive Component Manufacturers Association of India (ACMA) and more