The document provides an overview of the automobiles sector in India. Some key points:
1) India is the 4th largest automotive market and 7th largest manufacturer of commercial vehicles. The market is segmented into four-wheelers, three-wheelers, two-wheelers and passenger vehicles.
2) Domestic sales have grown at a CAGR of 7.01% between FY13-18 reaching 24.97 million vehicles sold in FY18. Two-wheelers and passenger vehicles dominate the domestic market.
3) Exports have increased at a CAGR of 6.86% between FY13-18 reaching 4.04 million vehicles exported in FY18, led
Despite short-term headwinds, 3W industry is expected to grow at a moderate volume CAGR of single digit figure over the next five years. The domestic 3W passenger segment will be benefitted from product up-gradation (2-stroke to 4-stroke, Petrol/Diesel to LPG/CNG) and opening of fresh permits by the state governments. Piaggio has also entered urban 3W space with the launch of their APE City model which run on cleaner fuel like LPG/CNG. The domestic 3W goods segment continues to benefit from its favorable operating economics despite stiff competition from 4W Small Commercial Vehicles (SCVs). Lastly, 3W exports are expected to remain robust due to rapid economic growth, rising disposable incomes, evolving travel & consumption patterns, improving road infrastructure, increasing demand for motorized transportation and inadequate public transport systems in target emerging markets like African, Latin American & South Asian countries. TVS has been making steady inroads in this segment with a exponential growth in the last financial year. Overall, the long-term sales growth is expected to be the highest in the exports segment, followed by that in the passenger carrier segment and the lowest in the goods carrier segment (due to intense competition from the SCV segment).
Apart from the domestic demand, India has also emerged as a major export hub for 3Ws with presence in some of the South Asian, African and Latin American markets that are replicating Indian 3W story with rising disposable incomes but inadequate public transport systems. Overall, the 3W industry has witnessed relatively healthy CAGR volume
growth driven by moderate domestic growth and robust exports growth. However, four-wheeled Small Commercial Vehicles (mainly Tata ACE in 2005-06) has altered the industry dynamics – especially for the cargo segment, considerably over the last few years. While high tonnage (0.75T and above) 3W cargo segment has already lost out to 4W SCVs that provide higher stability, safety, speed, space and style; SCVs are gaining popularity even in the lower tonnage (0.5T) Cargo and Passenger segments with introduction of some of the recently introduced smaller vehicles by CV OEMs. New segments & sub segments are emerging within SCVs with the success of Ashok Leyland Dost in the higher tonnage SCVs segment(Pickup trucks). While domestic 3W goods segment has degrown, SCVs have reported robust CAGR growth over the last few years. Besides, slowing economic growth, high inflation, increase in financing costs, rising fuel prices, absence of fresh permits by the state governments and overall high base has impacted domestic 3W passenger sales in FY13.
Despite short-term headwinds, 3W industry is expected to grow at a moderate volume CAGR of single digit figure over the next five years. The domestic 3W passenger segment will be benefitted from product up-gradation (2-stroke to 4-stroke, Petrol/Diesel to LPG/CNG) and opening of fresh permits by the state governments. Piaggio has also entered urban 3W space with the launch of their APE City model which run on cleaner fuel like LPG/CNG. The domestic 3W goods segment continues to benefit from its favorable operating economics despite stiff competition from 4W Small Commercial Vehicles (SCVs). Lastly, 3W exports are expected to remain robust due to rapid economic growth, rising disposable incomes, evolving travel & consumption patterns, improving road infrastructure, increasing demand for motorized transportation and inadequate public transport systems in target emerging markets like African, Latin American & South Asian countries. TVS has been making steady inroads in this segment with a exponential growth in the last financial year. Overall, the long-term sales growth is expected to be the highest in the exports segment, followed by that in the passenger carrier segment and the lowest in the goods carrier segment (due to intense competition from the SCV segment).
Apart from the domestic demand, India has also emerged as a major export hub for 3Ws with presence in some of the South Asian, African and Latin American markets that are replicating Indian 3W story with rising disposable incomes but inadequate public transport systems. Overall, the 3W industry has witnessed relatively healthy CAGR volume
growth driven by moderate domestic growth and robust exports growth. However, four-wheeled Small Commercial Vehicles (mainly Tata ACE in 2005-06) has altered the industry dynamics – especially for the cargo segment, considerably over the last few years. While high tonnage (0.75T and above) 3W cargo segment has already lost out to 4W SCVs that provide higher stability, safety, speed, space and style; SCVs are gaining popularity even in the lower tonnage (0.5T) Cargo and Passenger segments with introduction of some of the recently introduced smaller vehicles by CV OEMs. New segments & sub segments are emerging within SCVs with the success of Ashok Leyland Dost in the higher tonnage SCVs segment(Pickup trucks). While domestic 3W goods segment has degrown, SCVs have reported robust CAGR growth over the last few years. Besides, slowing economic growth, high inflation, increase in financing costs, rising fuel prices, absence of fresh permits by the state governments and overall high base has impacted domestic 3W passenger sales in FY13.
Presently India’s economy continues to grow at a rapid pace, the automobile industry is be
a key beneficiary. This is true in whole automotive markets—from those serving customers
with two-wheelers and four-wheelers to those offering commercial vehicles. The major
determinants behind such growth are the increasing affluence of the average consumer,
overall growth in GDP, the arrival of ultra-low-cost cars, and the increasing maturity of
Indian original equipment manufacturers (OEMs).Automotive Industry in India is
presently working in terms of the dynamics of an open market. In India, automobile sector
is one of the largest growing industries. Many joint ventures have been set up in India with
foreign collaboration. India also has one of the fastest growing economies, and many U.S.
companies view India as a potentially lucrative market. This paper gives an overview of
Indian Automobile Industry.
An Analysis of Automobile Industry of India as a Market StructureMuhammad Anowar
Automobile industry is a symbol of technical marvel by human kind. Being one of the fastest growing sectors in the world its dynamic growth phases are explained by nature of competition, product life cycle and consumer demand. Today, the global automobile industry is concerned with consumer demands for styling, safety, and comfort; and with labor relations and manufacturing efficiency. The industry is at the crossroads with global mergers and relocation of production centers to emerging developing economies.
Asia has become the major consumer as well as supplier of automobiles. India is concentrating on Middle East and south Asia beside traditional developed country destinations. With the gradual opening up of the component sector, now the challenge is for individual governments to support the development of domestic critical component and sub-system suppliers through, improvement in the investment environment, stronger patent regimes and incentives for R&D.
Automobile Industry Analysis- Indian marketRiya Aseef
• With sales of around 40,000 luxury cars in 2017, India became the 27th most attractive luxury market in the world.
• The luxury car market in India is expected to grow at 25 per cent CAGR till 2020.
• Audi is launching its luxury electric SUV in India in 2019. The electric SUV will be called e-Tron.
• Premium motorbike sales in India crossed one million units in FY18.
• As of February 2019, Lamborghini sold 45 units in the year 2018 and expects a jump in sales by 60 per cent in the year 2019.
• Volvo plans to assemble hybrid electric cars in India and also scale its market share to 10 per cent by 2020 in Indian luxury car segment.
• As of May 2019, Jaguar Land Rover launched its locally assembled Range Rover Velar making the JLR cars more affordable by quite some margin.
• BMW crosses 10,000 unit mark for the first time in a calendar year 2018. BMW along with Mini grew 13 per cent compared to 2017. Mini sales rose by a staggering 66 per cent in 2018.
Industry analysis and discussion about top 5 companies in Automobile industry, Its 5 years CAGR, Discussion about porters 5 force analysis, Industry growth, and its future prospects.
Asia-Pacific countries have contributed to growth of the global automobile sector. Developing Asia Pacific region will contribute 62.2% of auto and auto components sector growth for the period 2015-19. The quantitative growth in this region is expected to reach 101mn units in 2017 at a CAGR of 5%. India is a significant contributor from this region with a potential to become the 4th largest automobile producer by 2020. Automobile sector contributes 7.1% to the Indian GDP and was more than 45% of manufacturing GDP in FY14. Karnataka is the 4th largest state in automotive production with output of USD 2.8 bn, contributing 8.5% to national sector output. The automotive industry provides employment to more than 55,000 workers in the state of Karnataka.
Similar to Automobiles Sector Report - March 2019 (16)
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Where can I sell my pi coins at a high rate.
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A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
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@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
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Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
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Currently there are no website or exchange that allow buying or selling of pi coins..
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Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
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Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
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Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
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The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
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The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
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1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
2. Table of Content
Executive Summary……………….……3
Advantage India……………………..…..4
Market Overview ………..…….………..6
Recent Trends & Strategies....…...…..13
Growth Drivers and Opportunities……17
Key Industry Organisations…………..22
Useful Information……….……….........24
3. For updated information, please visit www.ibef.orgAutomobiles3
EXECUTIVE SUMMARY
Sources: SIAM, OICA, Aranca research, Business Standard
4th largest auto market in 2017 with sales increasing 9.5 per cent year-on-year to 4.02 million units
(excluding two wheelers) in 2017.
7th largest manufacturer of commercial vehicles in 2017.
Presence of established domestic and international original equipment manufacturers (OEMs).
Strong market in terms of both, the domestic demand and exports.
4th largest automobile
market
Automobile sector split into four segments, each having few market leaders.
Two-wheelers and passenger vehicles dominate the domestic demand.
Two-wheelers accounted for 81 per cent of domestic demand in 2017-18.
Segmented Market
Automobile exports grew 15.54 per cent year-on-year during April 2018-February 2019.
Indian automotive industry (including component manufacturing) is expected to reach Rs 16.16-18.18
trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers are expected to grow 9 per cent in 2018.
Strong policy support from government.
Indian auto industry is expected to see 8-12 per cent increase in its hiring during FY19.
Positive growth
prospects
5. For updated information, please visit www.ibef.orgAutomobiles5
ADVANTAGE INDIA
Sources: Automotive Mission Plan (2016–2026), Make in India, SIAM, ICRA, Federation of Automobile Dealers Association
Indian automotive industry targeting to
increase exports of vehicles five times in
2016-26.
Domestic automobile sales increased at
7.01 per cent CAGR between FY13-18.
Domestic two wheeler industry is expected
to grow at 8-10 per cent during FY19.
Indian automobile retail has grown by 8.5
per cent m-o-m in January 2019 at
1,565,150 vehicles.
Focus shifting on electric cars to reduce
emissions.
Innovation is likely to intensify among
engine technology & alternative fuels.
Government aims to build India into an
R&D hub.
India could be a leader in shared mobility
by 2030, providing opportunities for
electric and autonomous vehicles.
India has significant cost advantages; auto
firms save 10-25 per cent on operations
vis-à-vis Europe & Latin America.
Cumulative FDI inflows of around US$
20.85 billion in automobiles sector
between April 2000 – December 2018.
The Government of India expects
automobile sector to attract US$ 8-10
billion in local and foreign investments by
2023.
Automotive Mission Plan : 2016-26 shows
clear vision of government.
The government aims to develop India as
a global manufacturing centre.
Reforms like GST to help boost the
sector’s growth
Incubation centre to be set up for startups
working in electric vehicles space.
ADVANTAGE
INDIA
7. For updated information, please visit www.ibef.orgAutomobiles7
EVOLUTION OF THE SECTOR
Sources: Tata Motors, Society of Indian Automobile Manufacturers (SIAM), Aranca Research
Indian government & Suzuki
formed Maruti Udyog and
commenced production in 1983
Component manufacturers
entered the market via JV
Buyer’s market
Automotive Mission Plan 2016-26 launched in
2015
Bharat Stage IV emission norms since April
2017
29.1 million vehicles produced in 2017-18
More than 40 companies operating in the
country in 2018
Sector de-licensed in 1993
Major Original Equipment Manufacturers (OEMs) started
assembly operations in India
Imports permitted from April 2001
Introduction of value- added tax in 2005
Closed market
5 players
Long waiting periods & outdated models
Seller’s market
Before
1982
2015
Onwards
1992-20071983-1992
8. For updated information, please visit www.ibef.orgAutomobiles8
MARKET OVERVIEW
Automobile Sector
Commercial Vehicles Three-wheelersTwo-wheelers Passenger vehicles
Source: Aranca Research, Annual Report
Mopeds and electric
scooters
Scooters
Motorcycles
Utility Vehicles
Passenger cars
Multi-purpose
vehicles
Light commercial
vehicles
Medium & heavy
commercial vehicles
Passenger carriers
Goods carriers
9. For updated information, please visit www.ibef.orgAutomobiles9
MARKET OVERVIEW
Number of automobiles produced in India (in millions) Number of automobiles sold in India (in millions)
The automotive manufacturing industry comprises the production of commercial vehicles, passenger cars, three & two-wheelers.
India became the 4th largest auto market in 2017 with sales (excluding two-wheelers) increasing 9.5 per cent year-on-year to 4.02 million units in
2017. Overall domestic automobiles sales increased at 7.01 per cent CAGR between FY13-18 with 24.97 million vehicles getting sold in FY18.
Domestic automobile production increased at 7.08 per cent CAGR between FY13-18 with 29.07 million vehicles manufactured in the country in
FY18. During April 2018-January 2019, automobile production increased by 9.84 per cent year-on-year to reach 26.26 millionvunits.
During April 2018-January 2019, highest year-on-year growth in domestic sales among all the categories was recorded in commercial vehicles at
22.79 per cent, followed by 14.79 per cent year-on-year growth in the sales of three-wheelers.
17.79 18.42
19.72 20.47
21.86
24.97
0.00
5.00
10.00
15.00
20.00
25.00
30.00
FY13 FY14 FY15 FY16 FY17 FY18
Source: Society of Indian Automobile Manufacturers (SIAM), The Economic Times
20.65 21.50
23.36 24.02
25.33
29.07
26.26
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
FY13 FY14 FY15 FY16 FY17 FY18 FY19*
CAGR^ 7.08% CAGR 7.01%
Note: * - Up to January 2019, ^ - CAGR upto FY18
10. For updated information, please visit www.ibef.orgAutomobiles10
13
3
3
81
0 20 40 60 80 100
Passenger Vehicle
Commercial Vehicle
Three Wheelers
Two Wheelers
MARKET OVERVIEW
Segment-Wise Domestic Market Share in FY18 (%) Number of automobiles exported (in millions)
Two-wheelers and passenger vehicles dominate the domestic Indian auto market. Passenger car sales are dominated by small and mid-size cars.
Two-wheelers and passenger cars accounted for 81 per cent and 13 per cent of over 24.97 million vehicles sold in FY18, respectively.
Overall automobile exports reached 4.04 million vehicles in FY18, implying a CAGR of 6.86 per cent between FY13-18. Two-wheelers made up
69.7 per cent of the exported vehicles, followed by passenger vehicles at 18.5 per cent, three-wheelers at 9.4 per cent and commercial vehicles at
2.4 per cent.
Overall automobile exports increased by 15.54 per cent year-on-year during April 2018-February 2019.
Source: Society of Indian Automobile Manufacturers (SIAM)
2.90
3.11
3.57 3.64
3.48
4.04
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
FY13 FY14 FY15 FY16 FY17 FY18
CAGR 6.86%
11. For updated information, please visit www.ibef.orgAutomobiles11
CLUSTERS AND LEADING COMPANIES
Delhi–
Gurgaon–
Faridabad
Kolkata–
Jamshedpur
Chennai–
Bengaluru– Hosur
Mumbai–
Pune–Nashik–
Aurangabad
Ashok
Leyland
Force
Motors
Piaggio
Swaraj
Mazda
Amtek Auto
Eicher
Honda SIEL
Maruti
Suzuki
Tata Motors
Bajaj Auto
Hero Group
Escorts
ICML
JCB
Yamaha
Mahindra
Suzuki
Motorcycles
North
List of companies
Ashok
Leyland
Bajaj Auto
FIAT
GM
M&M
Eicher
Skoda
Bharat
Forge
Tata Motors
Volkswagen
Renault-
Nissan
John Deere
Mercedes
Benz
Tata Hitachi
Volvo Eicher
West
TataMotors
Hindustan
Motors
Simpson &
Co
International
Auto
Forgings
JMT
Exide
East
Ashok
Leyland
Ford
M&M
Toyota
Kirloskar
Volvo
Sundaram
Fasteners
Enfield
Hyundai
BMW
Bosch
TVS Motor
Company
Renault-
Nissan
TAFE
Daimler
Caterpillar
Hindustan
Motors
South
Sources: ACMA, Aranca Research
Over the past few years four specific regions in the country have become large auto manufacturing clusters, each present with a different set of
players.
12. For updated information, please visit www.ibef.orgAutomobiles12
KEY PLAYERS
Each segment in the Indian automobiles sector has few established key players which hold major portion of the market.
Market leader in the passenger vehicles segment and held around 50 per cent market share in the segment in
FY18. The company recorded its highest ever sales of 1,779,574 units during 2017-18, a year-on-year increase of
13.4 per cent.
To promote green technology footprint in India, the company announced launch of WagonR S(Smart) which
comes with factory fitted CNG.
The company crossed its cumulative production milestone of four million two wheelers from its Gurugram-based
plant in 2018.
Market leader in the commercial vehicles segment held 44 per cent market share in FY18. Company’s commercial
vehicles sales increased 26 per cent year-on-year to 39,859 units in August 2018.
Global wholesale for February 2019, including Jaguar Land rover, stood at 110,262 units.
As of January 2019, Tata to soon unveil the electric car based on its newly developed Alpha Platform as a long
term plan for sustainable mobility.
Bajaj Auto is a leader in three wheelers with 58.15 per cent market share in FY18.
As of February 2019, Bajaj Auto will launch its new all electric brand Urbanite in India in the coming six to nine
months.
Piaggio Vehicles is the second leader in three wheelers with 24.05 per cent market share in FY18.
Source: Aranca Research, Autocar India, Financial express
Hero MotoCorp and Honda are the top two players in the two-wheelers segment, with market share of 37.67 per
cent and 30.9 per cent, respectively in Q1 FY19.
Bajaj Auto recorded domestic motorcycle sale of 1.57 million units in December 2018, up by 39 per cent over
December 2017.
Honda Cars India had a cumulative growth of 3.7 per cent year-on-year by selling 134,797 units during April-
December 2018.
14. For updated information, please visit www.ibef.orgAutomobiles14
RECENT TRENDS
Luxury Vehicles
With sales of around 40,000 luxury cars in 2017, India became the 27th most attractive luxury market in the
world. The luxury car market in India is expected to grow at 25 per cent CAGR till 2020.
Audi is launching its luxury electric SUV in India in 2019. The electric SUV will be called e-Tron.
Mercedes-Benz crossed 16,000 annual sales for the first time in India and sold 16,236 units in 2017-18, recording
a 22.5 per cent growth during the year. The company ranked first in sales satisfaction in the luxury vehicles
segment according to J D Power 2018 India Sales Satisfaction Index (luxury).
Premium motorbike sales in India crossed one million units in FY18. As of February 2019, Lamborghini sold 45
units in the year 2018 and expects a jump in sales by 60 per cent in the year 2019.
Volvo plans to assemble hybrid electric cars in India and also scale its market share to 10 per cent by 2020 in
Indian luxury car segment.
BMW crosses 10,000 unit mark for the first time in a calendar year 2018. BMW along with Mini grew 13 per cent
compared to 2017. Mini sales rose by a staggering 66 per cent in 2018.
Sources: Society of Manufacturers of Electric Vehicles, Aranca Research, Moneycontrol, News Articles,
Note: CAGR – Compounded Annual Growth Rate
Catering Indian needs
Most of the firms including Ford & Volkswagen have adapted themselves to cater to the large Indian middle class
by dropping their traditional structure and designs.
This allows them to compete directly with domestic firms making the sector highly competitive.
BMW India has launched its online sales channel in India to enable customers to browse all products, choose a
preferred dealership and even book a test drive online.
Hyundai has entered into a strategic alliance with shared mobility company Revv under which it will provide cars
on subscription in six cities in India. This will provide customers the opportunity to use Hyundai’s models with
hassle-free ownership, flexibility and limited commitment.
New Financing Options
Carmakers such as BMW, Audi, Toyota, Skoda, Volkswagen & Mercedes-Benz have started providing
customised finance to customers through NBFCs. Auto finance business of NBFCs in India is expected to grow
at a CAGR of 15 per cent by FY20 on the back of better macroeconomic environment and government’s focus on
infrastructure and rural areas.
HDFC Bank Ltd started providing customised car loans to its customers in Mumbai, which will help them to buy
cars at a lower EMI.
15. For updated information, please visit www.ibef.orgAutomobiles15
STRATEGIES ADOPTED…(1/2)
Source: Media sources
Capacity Addition
Hero MotoCorp will invest Rs 2,500 crores (US$ 387.9 million) by FY21 to increase its production capacity in
India. Hyundai announced it will be increasing its production capacity of its Chennai plant from 713,000 to
750,000 units in 2019.
With the total investment of around US$ 163.7 million, Honda Motorcycle & Scooter India expanded its production
of Activa in three variants at Ahmedabad plant.
As of October 2018, Honda Motors Company is planning to set up its third factory in India for launching hybrid
and electric vehicles with the cost of Rs 9,200 crore (US$ 1.31 billion), its largest investment in India so far.
In November 2018, Mahindra Electric Mobility opened its electric technology manufacturing hub in Bangalore with
an investment of Rs 100 crore (US$ 14.25 million) which will increase its annual manufacturing capacity to
25,000 units.
Electric Vehicles
Volvo plans to come out with hybrid version of its upcoming S60 sedan in India along with a PHEV (Plug-in Hybrid
Electric Vehicle) version of the S60.
India's electric vehicle (EV) sales increased to 25,000 units during FY 2016-17 and are poised to rise further on
the back of cheaper energy storage costs and the Government of India’s vision to see 6 million electric and hybrid
vehicles in India by 2020.
Avan motors, an electric scooter start up announced in December 2018 that it plans to have total sales of 100,000
units in the coming two to three years.
As of September 2018, China’s leading Electric Vehicle (EV) company, Sunra, is planning to enter into Indian
markets and set up a factory in Bangalore, Karnataka.
As of December 2018, local arm of Finland based energy company Fortum India is planning to install about 720
charging facilities for electric vehicles by 2020 in seven cities in India.
EV Motors, in partnership with DLF, ABB India and Delta Electronics, is also planning to invest US$ 200 million to
set up 6,500 electric vehicles (EV) charging stations in the next five years. They launched Plugngo, first public
electric vehicle charging outlet in Delhi in November 2018.
Electric policy finalised by the Government of Kerala has a aim to get 6,000 electric buses for the state road
transport corporation by 2025.
16. For updated information, please visit www.ibef.orgAutomobiles16
STRATEGIES ADOPTED…(2/2)
Launch of new models
Honda is planning to launch three new car models in India by 2020 and will localise the engines to keep the prices
low.
Ashok Leyland has planned a capital expenditure of Rs 1,000 crore (US$ 155.20 million) to launch 20-25 new
models across various commercial vehicle categories in 2018-19.
Hero MotoCorp will launch five new two-wheelers in FY19.
Hyundai will launch its first electric vehicle in India in 2019.
Jawa motorcycles, competing Royal Enfield in 300-cc segment are sold out till September 2019.
Maruti Suzuki is planning to start testing prototypes of its electric vehicles in India in October 2018.
Superbike seller Motoroyale Kinetic Pvt Ltd is planning to develop 300cc-500cc bikes in India by 2021. The
company is also planning to set up a plant in Supa, Maharashtra with a capacity of 60,000 units.
As of November 2018, Volvo Cars India Ltd is planning to launch four plug-in hybrid vehicles in the next three
years.
As of February 2019, Triumph motorcycles is all set to launch its 2019 Triumph Street Twin and Street Scrambler.
Avan motors launched its new electric scooter Trend E, which is powered by lithium-ion batteries.
18. For updated information, please visit www.ibef.orgAutomobiles18
GROWTH DRIVERS
Rising income and a large young population.
Greater availability of credit and financing options.
Demand for commercial vehicles increasing due to high level of activity in infrastructure sector.
Growing demand
Clear vision of Indian government to make India an auto manufacturing hub.
Initiatives like ‘Make in India’, ‘Automotive Mission Plan 2026’, and NEMMP 2020 to give a huge boost to
the sector.
Introduction of a new National Auto Policy and Faster Adoption and manufacture of Hybrid and Electric
Vehicles (FAME) II for a clean future in mobility to be launched soon.
In February 2019, the Government of India approved the FAME-II scheme with a fund requirement of Rs
10,000 crore (US$ 1.39 billion) for FY20-22.
Policy Support
Improving road infrastructure.
Established auto ancillary industry giving the required support to boost growth.
5.10 per cent of total FDI inflows to India from April 2000 to December 2018 went into the automobiles
sector.
Support infrastructure and
high investments
Source: Society of Indian Automobile Manufacturers (SIAM), Aranca Research
Note: NEMMP – National Electric Mobility Mission Plan
19. For updated information, please visit www.ibef.orgAutomobiles19
POLICIES AND INITIATIVES
Support from the Indian government in the form of new policies and initiatives has been crucial in development and growth of Indian automobile sector.
Source: Aranca Research
Setting up of R&D centres at a total cost of US$ 388.5 million to enable the industry to be on par with global
standards.
Under National Automotive Testing And R&D Infrastructure Project (NATRIP), five testing and research
centres have been established in the country since 2015
NATRiP
Planning to implement Faster Adoption & Manufacturing Of Electric Hybrid Vehicles (FAME) till 2020 which
would cover all vehicle segments, all forms of hybrid & pure electric vehicles. Under the scheme, the
Government of India is planning to provide grants of up to Rs 105 crore (US$ 16.33 million) to each of the
selected city with population of more than a million, for buying electric buses, cars and three-wheelers in
FY18. Additional funds will be provided for charging infrastructure.
The Government of India has shortlisted 11 cities in December 2017 to have electric vehicle based public
transportation systems under this scheme. Number of vehicles supported under FAME scheme has
increased to 192,451 in March 2018 from 5,197 in June. FAME Phase-I has been extended up to March
31, 2019. The Government of India is expected to launch the second phase soon.
In February 2019, the Government of India approved the FAME-II scheme with a fund requirement of Rs
10,000 crore (US$ 1.39 billion) for FY20-22.
FAME
Worked towards reduction of excise duty on small cars and increase budgetary allocation for R&D
Weighted increase in R&D expenditure to 200 per cent from 150 per cent (in-house) & 175 per cent from
125 per cent (outsourced).
Department of Heavy
Industries & Public
Enterprises
AMP 2026 targets a 4-fold growth in the automobiles sector in India which includes the manufacturers of
automobiles, auto components & tractor industry over the next 10 years.
The Automotive Mission
Plan 2016-26
(AMP 2026)
20. For updated information, please visit www.ibef.orgAutomobiles20
INVESTMENT SCENARIO
Sources: Company websites, media sources, Aranca Research, Autocar India
Planning to double its current investment level of about US$ 2.5 billion over the next five years
Aims to raise its market share to 5 per cent by 2022.
To increase the Chennai Plant capacity to 400,000 units a year in a few years time. The company plans to
launch eight new car models in India by 2021. As of December 2018, the company opened its first global
digital hub at techno park in Trivandrum.
Nissan
Increased the plant capacity of 20,000 units per year in Chakan Plant, which is the largest for any luxury
car manufacturer in India.
Expansion of MIDC, to invest US$ 244 million for capacity expansion in Chakan, Pune.
Mercedes-Benz
Toyota is planning to invest US$ 165 million on its new engine plants and projects.Toyota
Plans to invest US$ 1 billion in India by 2020. As of February 2019, the company will make an investment
of Rs 7,000 (US$ 970.20 million) crore approved by the Tamil Nadu Government for expansion into electric
car division.
Hyundai
Indian automobile sector has seen huge investments from both domestic and foreign manufacturers. FDI inflows to the sector were US$ 20.85 billion in
automobiles sector between April 2000 – December 2018.
Chinese state owned auto major, SAIC Motor has announced investment of over US$ 310 million in India.
It is expected to start operations in 2019. In March 2018, SAIC announced that its subsidiary MG Motor
India will invest Rs 5,000 crore (US$ 775.8 million) in India over the next six years.
SAIC
Note: MIDC – Maharashtra Industrial Development Corporation; MoU – Memorandum of Understanding
As of October 2018, Honda Motors Company is planning to set up its third factory in India for launching
hybrid and electric vehicles with the cost of Rs 9,200 crore (US$ 1.31 billion), its largest investment in India
so far.
Honda Motor Company
Superbike seller Motoroyale Kinetic is planning to establish a plant in Supa, Maharashtra with an outlay of
Rs 12 crore (US$ 1.71 million) by 2021.
Motoroyale Kinetic
21. For updated information, please visit www.ibef.orgAutomobiles21
OPPORTUNITIES
Strong support from the government; setting up of NATRIP centres.
Private players, such as Hyundai, Suzuki, GM, keen to set up R&D base in India.
Strong education base, large skilled English-speaking manpower. Comparative advantage in terms of cost.
Firms both national and foreign are increasing their footprints with over 1,165 R&D centres.
Nissan to open a global digital Research & Development hub in Technopark in Thiruvananthapuram of
Kerala for autonomous/driver-less cars by March 2019.
India is fast emerging
as a global R&D hub
Mahindra & Mahindra targeting on implementing digital technology in the business.
Bajaj Auto, Hero Honda & M&M plan to jointly develop a technology for 2-wheelers to run on natural gas.
Tata Motors to launch MiniCAT, a car running on compressed air,
Hyundai is planning to enter the hybrid vehicles segment, to explore alternative fuel technology & to avail
the government incentives.
Opportunities for
creating sizeable
market segments
through innovations
General Motors, Nissan & Toyota announced plans to make India their global hub for small cars.
Passenger vehicle market is expected to touch 10 million units by 2020. Sales crossed 3.2 million in FY18.
Strong export potential in ultra low-cost cars segment (to developing & emerging markets).
Maruti Suzuki launched facelift version of Alto 800, after the success of earlier model
Small-car
manufacturing hub
Sources: Automotive Mission Plan 20216-2026, media sources, Aranca Research
Note: NATRIP – National Automotive Testing and R&D Infrastructure Project
25. For updated information, please visit www.ibef.orgAutomobiles25
GLOSSARY
CAGR: Compound Annual Growth Rate
CV: Commercial Vehicle
FDI: Foreign Direct Investment
FY: Indian Financial Year (April to March)
• So FY17 implies April 2016 to March 2017
GOI: Government of India
HCV: Heavy Commercial Vehicle
INR: Indian Rupee
LCV: Light Commercial Vehicle
OEM: Original Equipment Manufacturers
SIAM: Society of Indian Automobile Manufacturers
26. For updated information, please visit www.ibef.orgPUNJAB26
EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR INR Equivalent of one US$
2005–06 44.28
2006–07 45.29
2007–08 40.24
2008–09 45.91
2009–10 47.42
2010–11 45.58
2011–12 47.95
2012–13 54.45
2013–14 60.50
2014-15 61.15
2015-16 65.46
2016-17 67.09
2017-18 64.45
Q1 2018-19 67.04
Q2 2018-19 70.18
Q3 2018-19 72.15
Year INR Equivalent of one US$
2005 44.11
2006 45.33
2007 41.29
2008 43.42
2009 48.35
2010 45.74
2011 46.67
2012 53.49
2013 58.63
2014 61.03
2015 64.15
2016 67.21
2017 65.12
2018 68.36
Source: Reserve Bank of India, Average for the year
27. For updated information, please visit www.ibef.orgAutomobiles27
DISCLAIMER
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