Infographic : India Automobile Industry | Market , Investments & Regulations

By - CEM Team

Automobile Industry Statistics

• Indian automobile market estimated to become 3rd largest in world by 2016 and to account for > 5% of global vehicle sales.
• Passenger vehicles market is estimated to triple to 9.4 million units by 2026 and is estimated to increase at a CAGR of 18% during FY 2014–21
• Electric vehicles sales are estimated to amount to 6-7 Million units by 2020.
• Tractor sales are expected to grow at CAGR of 8-9% in the next five years.
• Two wheeler production has grown from 8.5 Million units annually to 15.9 Million units in the last 7 years. Also, Two Wheelers sales registered growth of 8.09% in April-March 2015 over April-March 2014.
• Three Wheelers sales grew by 10.80 percent in April-March 2015 over the same period last year.
• Commercial vehicles expected to register a CAGR of 19% during FY 2014–21.
• In April-March 2015, overall automobile exports grew by 14.89 percent over the same period last year. 

• 100% Foreign Direct investment (FDI) is allowed under the automatic route in the auto sector with no minimum investment criteria; Subject to all the applicable regulations and laws.
• Manufacturing and imports in this sector are exempt from licensing and approvals.
• Multiple schemes rolled out by government to promote investments in automobile industry are:

1. Auto Mission Plan (AMP) 2016-26 : Focusses on enabling India emerge as world’s destination of choice for design and manufacture of automobiles and auto components with output reaching a level of USD 145 Billion, accounting for more than 10% of the GDP and providing additional employment to 25 Million people by 2016
2. The National Mission For Electric Mobility 2020: The objective of this body is to encourage reliable, affordable and efficient xEVs (hybrid and electric vehicles) that meet consumer performance and price expectations through government-industry collaboration, for the promotion and development of indigenous manufacturing capabilities, required infrastructure, consumer awareness and technology
3. National Automotive Testing and R&D Infrastructure Project (NATRIP): The project has been set up at a total cost of USD 388.5 Million to enable the industry to adopt and implement global performance standards. Projects focusses on providing low-cost manufacturing and product development solutions.
4. The National Electric Mobility Mission 2020: Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India (FAME) – to encourage the progressive induction of reliable, affordable and efficient electric and hybrid vehicles in the country

• Japanese two-wheeler manufacturer Honda Motorcycle  and  Scooter India (HMSI) opened its 4th and world’s largest scooter plant in Gujarat, set up to initially produce 600,000 scooters per annum to be scaled up to 1.2 million scooters per annum by mid-2016.
• Mercedes Benz doubles India production capacity to 20k units.
• Nissan Motor India expects 20% growth of sales in North East region during FY 2017.With 219 outlets currently, company plan to have 300 outlets by end of 2017 fiscal year.
• General Motors plans to invest US$ 1 billion in India by 2020.
• US-based car maker Chrysler has planned to invest US$ 513.5 million.
• Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent shares in France-based Peugeot Motorcycles (PMTC).
• India’s largest car maker – Maruti Suzuki has started export of LCV to South Africa, Tanzania.
• Ford Motor Corporation invested $1 billion to set up second manufacturing unit in India in Gujarat. In September 2015, company confirmed a new investment towards Chennai plant capacity expansion and set up of global engineering and technology center, which added to company’s existing investment of $2 billion in India. With the then installed annual capacity of manufacturing 200,000 vehicles and 340,000 engines, Ford India exports Made-in-India products to 50 countries across the globe. As per leading news sources, Company invested an estimated $760 million in Chennai R&D centre.
• Piaggio, Italian two wheeler brand has launched new category in the premium two-wheeler segment : Aprilia SR 150 , scheduled to be available from August 2016.
• USD 230 million investment plans by Volkswagen, the German automaker to increase localization and manufacture cost effective products.
• In 2014, company exported 65,000 cars, which is 60 per cent of their production from the Chakan plant in Gujarat. Company plans to increase their exports by 7% to reach 70,000 exports by 2015, thereby also increasing production capacity of both Chakan and Aurangabad manufacturing units in next two years. By 2018, Volkswagen plans to increase production to 200,000 units and add more new models from the 130,000 units Chakan plant.
• BMW increased its India investment from $60 million to $75 million towards localization. Company also invested $17 million in its financial arm in India, reinforcing its long term commitment to the country.
• With Indian operations started in 2005, Renault India registered a growth of 160% in domestic sales in December 2015. Company launched the new Renault DUSTER in March 2016