CHAPTER-1
INTRODUCTION: INDIAN AUTOMOBILE INDUSTRY
Invention of Wheel
“What a Lucky thing the Wheel was invented
Before the automobile; otherwise,
Can you imagine what awful screeching?”
-Samuel Hoffenstein
The above quote of Samuel Hoffenstein (famous screenwriter & musical composer)
defines that, ‘Wheel’ is the most important invention in man’s history.1 Today the
wheel is used everywhere on all our cars, aero planes, trains, wagons, machines and
farm equipments. Without wheel, the works on this earth would literally be stopped. 2
The exact time and place of the invention of the wheel has been disputed, but its
beginnings can be seen across ancient civilizations.3 It is a mystery as to who invented
the very first wheel. For this the credit is given to the ancient Mesopotamian culture
of Sumer in about 3500 B.C and this is where the oldest known wheel has ever been
found. It is believed to have been invented much earlier, however the Sumerians
improved upon the wheel by using it as transportation on their chariots.
The spoked wheel was a huge advancement in the development of the wheel. It is also
using till date. Improvement upon the wheel continued to be made. During the middle
ages, wheels started being used as gears. This allowed for the inventions of
mechanical devices such as clocks, water wheels, cogwheels and astrolabes for sailors
to navigate.
The invention of the wheel is probably the most important invention of all time as
without the wheel, the world simply wouldn’t exist. There are many modern
inventions that came into fruition with help from the ingenious wheel. As we know
without the wheel, there would be no automobiles, no airplanes, no turbine engine and
no space launches. Simply, Industrial revolution was the outcome of Invention of
wheel.
1
Introduction of Automobile
The word ‘Automobile’ comes, via the French automobile from the ancient greek
word (auto’s, “self”) and the latin mobiles (“Movable”), means a vehicle that moves
itself, rather than being pulled or pushed by a separate animal or another vehicle. The
alternate name ‘Car’ is believed to originate from the latin word Carrus or Carrum
(“Wheeled vehicle”), or the middle English Carre (“Cart”) (from old North French)4
By definition, an automobile or car is a wheeled vehicle that carries its own motor and
transport passengers, as we know the automobile was not invented in a single day or
by a single inventor.5
Today, Automobiles have become a crucial part of our lives, an extension of the
human body that provides us faster, cheaper and more convenient mobility every
passing day6 The history of Automobile is very fascinating as it reflects an evolution
of the Automobile that took place worldwide.7
History & Development of Automobile
The history of the automobile actually began about 4,000 years ago when the first
wheel was used for transportation in India. The automobile history begins as early as
1769, with the creation of steam engine automobiles capable of human transport. In
1806, the first car powered by an internal combustion engine running on fuel gas
appeared, which led to the introduction in 1885 of the ubiquitous modern gasoline or
petrol fueled internal combustion engine.
Cars powered by electric power briefly appeared at the turn of the 20th century. But
largely disappeared from use until the turn of the 21st century. The automobile history
can be divided into number of eras, based on the prevalent method of automotive
propulsion during that time.8
Invention Era
a)
Pioneer Inventors
“Germany is the birth place of automobile”. It was invented there. It went through its
first paces there and it was developed there to a high level of technical maturity.9
German inventor ‘Carl Benz’ is one of the many individuals given credit for the
2
creation of the first automobile.10 ‘Nicolas Otto’ of Germany created the four stroke
petrol (gasoline) internal combustion engine. ‘Rudolf Diesel’ of Germany also
invented the same four stroke diesel engine. The battery electric car owes its
beginnings to Hungarian Anyos Jedick, inventor of the electric motor and Gaston
Plante who invented the lead acid battery in 1859.11
b) Early Automobiles
b-1) Steam Automobiles
Captain Nicholas Cugnot, a Frenchman is considered to be the father of the
‘Automobile’. In 1969-70 he built the first self propelled road vehicle fitted with
steam engine12 By 1784, William Murdoch had build a working model of a steam
carriage in Redruth & in 1801 ‘Richard Trevithick’ was running a full sized vehicle
on the road in Camborne. Such vehicles were in vogue for a time, and over the next
decades such innovations as hand brakes, multispeed transmissions and better steering
developed.
In the 1780, in Russia, Ivan Kuliben started working on a human pedaled carriage
with a steam engine. In 1789, the first automobile patent in the United States was
granted to Oliver Evans13. In 1815, a professor at Prague Polytechnic, Josef Bozek,
built an oil-fired steam car. In 1838, ‘Walter Hancock’, builder and operator of
London steam buses, built a four seat steam phaeton14.
b-2) Electric Automobiles
The history of the electric vehicle began in the mid-19th century. The invention of the
electric vehicles is attributed to various people. In 1838, Scotsman Robert Davidson
built an electric locomotive that attained a speed of 4 miles per hour (6 Km/h). In
1840, a patent was granted for the use of rail tracks as conductors of electric current
and similar American patents were issued to Liley & Colten in 1847.
An electric powered two wheel cycle was put on display at the 1867 world exposition
in Paris by the Austrian inventor Frank Kravog15.
3
b-3) Internal Combustion Engines
The internal combustion engine was invented by Jean Joseph Etienne Lenoir (Belgian
born). In France Lenoir made the first internal combustion engine in 1860 that
provides a reliable and continuous source of power which was the gas engine using
coal gas16.
In 1876, Otto and Langen in Germany also invented and designed an internal
combustion engine. But the actual development of the modern automobiles dates back
to 1885. Gottlieb Daimler in Germany patented an internal combustion engine in
1885-86 and installed this engine in a bicycle.
In 1886, Carl Benz of Germany built a three wheeled carriage (Tricycle) propelled by
an internal combustion engine working on Otto cycle17. By 1890 Ransom E.Olds had
built his second steam powered car, one was sold to a buyer in India, but the ship it
was on was lost at sea. By 1891 the Daimler Motor Company, owned by Steinway,
was producing petrol engines for tramway cars, carriages, quadricycles, fire engines
and boats in a plant in Hartford.18
C) Veteran Era
Veteran era began in 1888. The first production of automobile was by Karl Benz in
1888 in Germany19. Throughout the Veteran car era, automobiles were seen as more
of a novelty than a genuinely useful device. In this era breakdowns were frequent, it
was very difficult to obtain fuel also there were scarcity of suitable roads for
travelling. Most cars were operated at a single speed.20 By 1900, there were many
automobiles beginning to spring up around France and the U.S. In this era, Ransom E
Olds dominated car production. By 1900 production of automobiles has started in the
countries Norway, Australia, Italy & Belgium21. The first Duryea automobile, one of
America’s first gasoline-powered cars, was built in Chicopee, Massachusetts by
brothers Charles E.and J.Frank Duryea in 1893. By 1896, the company had sold
thirteen cars of the model Duryea, an expensive limousine, which remained in
production into the 1920s.
Many modern advances including gas/electric hybrids, Multi-valve engines, Overhead
camshafts and four wheel drives were attempted and discarded at this time. In 1902,
the Stude baker brothers having become the world’s leading manufacturers of horse4
drawn vehicles, made a transition to electric automobiles and gasoline engines in
1904, they continued to build horse-drawn vehicles until 1919.22
C-1) Brass Era
The Brass era is also called as Edwardian era. The brass era lasted from roughly 1905
through to the beginning of World War I in 1914. Throughout this era, development
of automotive technology was rapid. One major invention in this era included the
electric ignition system, independent suspension and four wheel brakes. Some
examples of cars of the period included Ford Model-T (The most widely produced car
of the era), Mercer Race about (one of the first sports car), Bugati type 13 ( a notable
racing and touring model with advanced engineering and design)23.
D) Vintage Era
The Vintage era lasted from the end of World War I (1919) through the Wall Street
crash at the end of 1929. During this period, the front engine car came to dominate,
with closed bodies and standardized controls becoming the norm. This era is also
called as “Horseless Carriage”. In this period most American made automobiles had
replaced the dangerous hand crank with electric self-starters. Kerosene lanterns were
replaced with electric lighting, which resulted in better illumination for night driving.
In 1919, 90% cars sold were open and by 1929, 90% cars were closed. Exemplary
Vintage vehicles include: Austin 7 (1922-1939), Bugatti Type 35 (1924-1929), Lancia
Lambda (1922-1931), Hanomag (1925-1928), Ford model A (1927-1931) and
Cadillac V-16 (1930)24.
E) Pre-World War II Era
Pre World War II cars era (sometimes called the classic era) is defined as the period
starting with the great depression in the 1930s up to the recovery of World War II in
1948. During this period, cars start to exhibit a more streamlined design brought about
by integrated fenders fully closed bodies25.
By the 1930, most of the mechanical technology had been invented which is used in
today’s automobiles. Although some things were later ‘reinvented’ for e.g, front
wheel drive was re-introduced by Andre Citroen with the launch of the Traction
Avant in 1934. Few Pre-War automobiles includes: ‘Alvis Speed’20 and ‘Speed 25’-
5
the first cars with all synchromesh gearbox, Ford V8 (1932-1948), Bugatti Type
57(1934-1940), Cotroen Traction Avant (1934-1956), MG T series (1936-1955),
Volkswagen Beetle (1938-2003) and Rolls-Royce Phantom III (1936-1939) etc26.
F) Post War Era
As the world finally recovered from the dust of World War II, the automotive industry
experienced a revival which saws the introduction of new high powered V8 engine
models as well as a more integrated bodies by maker ‘General Motors’ Oldsmobile
and Cadillac27. In the year 1949, automobile companies regained control from the
great depression. Many details were beginning to spring up through the 1950s, engine
power and vehicle speeds rose, designs became more integrated and artful and cars
spread across the world.
European countries adopted better technology i.e they improved their cars. In the US
cars were starting to focus on performance. In year 1964 Ford Mustang came out. In
1967, another performance car i.e Camaro came out. In this era Nissan, Toyota and
BMW were also springing up. Some cars invented in this era includes Morris Minor-a
popular and typical post war car exported around the world, Mini, Jaguar E-type, Ford
Mustang, Datsun. On the technology front, the biggest developments of the era were
the widespread use of independent suspensions, wider application of fuel injection
and an increasing focus on safety in the design of automobiles.28
G) Modern Era
Through continuous improvement & the ingenious application of new technology, the
automobile reconfirmed and updated its status as a triumph of engineering throughout
the 20th century.29 Today the automobile remains the most voracious consumer of new
technology of any product in the marketplace. And promising new technological
developments, such as the use of fuel cells as a power source, will undoubtedly keep
the automobile on the leading edge of technology in the 21st century30. There are some
technical and design aspects that differentiate modern cars from antiques. Some
particularly notable advances in modern times are the wide spread of front wheel
drive and all wheel drive, the adoption of the V6 engine configuration and the
ubiquity of fuel injection. Nearly all modern passengers cars are front wheel drive
unibody designs with transversely mounted engine but this design was considered
6
radical just 20 years earlier. Body styles have changed as well in the modern era. The
modern era has also seen rapidly rising fuel efficiency and engine output. For e.g few
best selling cars in USA 2008 were Ford F series, Toyota Camry, Honda accord,
Toyota Corolla, Honda Civic, Honda CR-V, Nissan Altima31. The following table
depicts the modern cars in India.
Table 1.1: Modern Cars in India
Sr.no
Company
Brands
1
Maruti
Alto 800, Swift, SX4, Alto K10, Ritz, Wagon R, Eeco,
Omni, Ertiga
2
Hyundai
Eon, Santro, i10, i20, Verna Transform, Santa Fe
3
Tata
Nano, Manza, Indigo eCS, Indica Vista, Sumo, Safari
4
Ford
Figo, Fiesta, Endeavour, Classic
5
Mahindra
Scorpio, Xylo, XUV 500, Verito, Rexton
6
Fiat
Punto, 500, Linea
7
Volkswagen
Polo, Vento, Jetta
8
Mercedes Benz C 200, C 250, C 220, E 200
9
Skoda
Fabia, Laura, Superb, Yeti, Rapid
10
Chevrolet
Beat, U-va, Cruze, Sail, Enjoy
Source: Self construction by author from various sources
Green and Hybrid Vehicles
In today’s modern era with an intention to control the emission of vehicle & to protect
the environment various automobile manufacturers have focuses on manufacturing
Green vehicles along with conventional automobiles i.e Hybrid and Electric vehicles.
Currently, the Indian automobile market is crowded with lot of green vehicles which
are called as eco friendly vehicles. Green vehicles are powered by alternative
fuels and advanced vehicle technologies which includes hybrid electric vehicles, plugin
hybrid
electric
vehicles,
vehicles, hydrogen and fuel-cell
battery
vehicles,
electric
neat
vehicles, compressed-air
ethanol
vehicles, flexible-fuel
vehicles, natural gas vehicles, clean diesel vehicles, and some sources also include
vehicles using blends of biodiesel and ethanol fuel or gasohol.
Presently Reva of Mahindra & Mahindra is the first electric car which moves from
road to greenery. Today the Toyota Prius is the world'
s top selling hybrid car, with
7
cumulative global sales of 2.0 million units by September 2010 and has become the
icon of green cars. Commenting on hybrid vehicles the Deputy Managing Director
(Commercial) of Tata Kirloskar Motors Mr.Shekher Vishwanathan told Tata
Kirloskar Motors strongly believes that “Hybrid is the technology for tomorrow.
According to the view of Dr.Naveen Gautam, Managing Director, Hella India
Electronics, the Indian government has taken a lot of initiatives for making
automobile industry green. He spoke that the government is about to set up a National
Mission for Hybrid and Electric Hybrid Vehicles. It also plans to encourage the
automotive industry by reducing the excise duties for design and development of
related parts32.
The government has also approved a 230 billion rupee ($4.13 billion) for plan to spur
electric and hybrid vehicle production over the next eight years, setting itself an
ambitious target of near about 6 million cars by 202033. The best green cars of 2011
include Chevrolet Volt, Toyota Prius, Nissan Leaf, Ford Fiesta, Volkswagen Jetta
TDI etc. The upcoming awaited green cars are, 2013 Ford fusion hybrid titanium,
2013 Honda CR-Z hybrid, Ford focus electric, Volkswagen Golf TDI clean diesel,
Ford C-Max energy plug in hybrid, Mitsubishi I-MIEV electric car etc34.
Some awaiting green cars includes Chevrolet Volt, BMW Active E, Nissan Leaf,
Jaguar C-X75, Honda Civic, Honda CR-Z SH, Honda Insight, Mercedes F800S,
Mitsubishi IMIEV SA, Renault Kangoo, Suzuki Kizashi Eco charge, Renault Dezir,
VW L1 Concept, VW Bulli, Toyota FT-CH, Tesla Roadster, Renault Zoe concept
etc35.
World Automobile Industry: an Overview
Today the automobile industry is one of the largest industries in the world. This
industry is having great importance as it bridges the gaps between cultures and
countries36. According to International Organization of Motor vehicles manufacturers
the automobile industry is a leading driver of global economic growth. The global
automobile industry involves manufacture, sales of automobiles and sale of car parts.
According to the research done by Market line the industries yearly growth rate is
expected to increase 5.5 percent from 2010 to 2015 i.e reaching a value of more than
$5,132 billion by 2015. The automobile industry is a leading sector in the world
8
having 9 million people involved in manufacturing 55 to 60 million vehicles which
leads to 5 percent of manufacturing jobs globally and create indirect employment of
near about 50 million jobs37.
The rise of new car nations is also reshaping the industry and its various brands.
Indian and Chinese car brands are selling their models in markets as far away as
Brazil38. In 2010-11, the total global demand of passenger vehicles was 73 million
units, of which the volume in India was 3 million units (i.e 4 percent). In 2010-11,
India surpassed UK, France and Italy to become the 6th largest vehicle manufacturer
globally. During 2010-11, India exported 2.35 million vehicles to more than 40
countries which included 0.45 million passenger cars and 1.54 million two wheelers39.
The market of world automobile market has been segregated in various markets as
follows: Europe, European Union (new members), Other Europe, Turkey, America,
NAFTA, South America, Asia-Oceania, Africa and other etc. In 2011, the maximum
cars were sold in China than United States.40 The following table amply clears the
position of automobile manufacturers in world automobile market in sales. The sales
statistics are of year 2011.
Table 1.2: Sales Statistics of Automobile Giants: 2011
Manufacturer
Sales (In Millions)
General Motors
9.03
Volkswagen
8.156
Nissan/Renault
8.03
Toyota
7.91
Hyundai/Kia
6.53
Ford
5.3
Fiat-Chrysler
3.88
PSA Group (Peugeot Citroen)
3.5
Honda
3.1
Suzuki
2.73
Source: parts.olathetoyota.com
9
Above table depicted that in year 2011, General Motors secured first position in sales
whereas Volkswagen and Nissan/Renault secured second and third position
respectively. The total sale of General Motors’ was 9.03 million whereas the sale of
Honda was 3.1 millions. It was also depicted that the total sale of Ford in year 2011
was 5.3 million whereas Toyota sold 7.91 million vehicles in 2011.
The following table clearly highlights the production statistics of every country of
year 2011.
Table 1.3: Production Statistics of World Automobile: 2011 (In Numbers)
Country
Uzbekistan
USA
UK
Ukraine
Turkey
Thailand
Taiwan
Sweden
Spain
South Korea
South Africa
Slovenia
Slovakia
Serbia
Russia
Romania
Portugal
Poland
Netherlands
Mexico
Malaysia
Japan
Italy
Iran
Indonesia
India
Hungary
Germany
France
Finland
Egypt
Czech Repub.
China
Cars
1,46,300
2,966,133
1,343,810
97,585
639,734
537,987
288,523
188,969
1,819,453
4,221,617
312,265
168,955
639,763
25,494
1,738,163
310,243
141,779
722,285
40,772
1,657,080
488,441
7,158,525
485,606
1,413,276
561,863
3,038,332
211,218
5,871,918
1,931,030
2,540
53,072
1,191,968
14,485,326
10
Commercial
Vehicles
33,260
5,687,427
120,189
7,069
549,397
919,811
54,773
0
534,229
435,477
220,280
5,164
0
740
249,873
24,989
50,463
113,030
32,379
1,022,957
45,254
1,240,129
304,742
235,229
276,085
888,185
2,313
439,400
363,859
0
28,659
7,866
3,933,550
Total
179,560
8,653,560
1,463,999
104,654
1,189,131
1,457,798
343,296
188,969
2,353,682
4,657,094
532,545
174,119
639,763
26,234
1,988,036
335,232
192,242
835,315
73,151
2,680,037
533,695
8,398,654
790,348
1,648,505
837,948
3,926,517
213,531
6,311,318
2,294,889
2,540
81,731
1,199,834
18,418,876
Canada
Brazil
Belgium
Austria
Australia
Argentina
Brazil
Others
Total
990,483
2,534,534
560,779
130,343
189,503
577,233
2,534,534
367,138
59,946,698
1,144,410
871,616
34,305
22,162
34,690
252,925
871,616
128,009
20,160,866
2,134,893
3,406,150
595,084
152,505
224,193
830,158
3,406,150
495,147
80,107,564
Source: Report-International organization of Motor Vehicle Manufacturers (http://oica.net)
Above table disclosed that China is the country who secured number one position in
manufacturing Cars and Commercial vehicles in the year 2011. India’s total
production of Cars and Commercial vehicles in year 2011 reached to 3,926,517
vehicles. The total productions of Cars in year 2011 were 59,946,698 and the world’s
total production of commercial vehicles in year 2011 was 20,160,866 vehicles.41
Indian Automobile Industry: History
The history of the Indian automobile industry instigated about 4000 years ago when
the first wheel was used for transportation. Later in the 18th century the first car rolled
on to the streets what we now call as ‘Vintage Cars’.42
Indian automobile industry has come a long way since the first car ran on the streets
of Bombay (Mumbai) in 1898. In the early 1900 Mumbai had its first taxicabs.
Between 1910 and 1920 the Indian automobile industry had set up assembly plants in
Calcutta, Chennai & Mumbai.43 Until 1920s, cars were imported directly, but in very
small numbers. The automobile manufacturing industry in India really dates back to
1948. Till then cars were only being assembled in India, with G.Mackenzie &
Company making its debut in 1926.44
Before independence, India was considered as a market for imported vehicles. The
assembling of cars manufactured by General Motors and other leading brands was the
order of the day. Indian auto industry focused on servicing, dealership, financing and
maintenance of vehicles45. Hindustan Motors (HM) and Premier Automobile (PAL)
that were setup in 1940’s dominated the vehicle market and automobile industry46.
Following the independence in 1947, the government of India and the private sector
launched efforts to create an automotive component manufacturing industry to supply
11
to the automobile industry.
Manufacturing in the automotive sector began only in the decade after 1947. Till then
entrepreneurs focused on dealerships, servicing, financing & developing expertise in
handling any problem to do with the vehicle. They had to rely entirely on their own
ingenuity in developing locally available labor and training them in an industrial
culture. 47
In the 1950s, the government of India granted approval to only 07 car dealers to
operate in India namely Hindustan Motors, Premier Automobiles Ltd (PAL),
Mahindra & Mahindra (M&M), Telco, API, ALL & SMPIL48. In 1950s, the arrival
of Tata motors, Bajaj auto and Mahindra & Mahindra led to steadily increasing
vehicle production in India, while the 1960s witnessed the establishment of the two
and three wheeler industry in India. In year 1953, the Indian government took the first
step towards making the country self-sufficient in automobiles. This was part of the
government’s overall approach towards industrial self-reliance through import
substitution49.
The automotive industry in India was heavily regulated until the 1970s. The
automotive firms were obliged to obtain licenses from the Indian government for
various firm activities50. The year 1970 saw minor change except for the gradual
erosion of the market share experienced by Standard Motors. By the end of 1970 a
diesel engine was launched by Hindustan. By the end of 1970s, significant changes in
the auto industry were witnessed. New models like Contessa, The Rover and the
premier 118 NE hit the market51.
After 1970s, the automotive industry started to grow, but the growth was mainly
driven by Tractors, Commercial Vehicles & Scooters. In the 1980s the Indian car
industry started seeing growth. There were many global automotive giants coming to
India with intentions of building joint ventures52. Notable changes in the structure and
performance of the Indian automobile industry began in the early 1980s. Until then
only three manufacturers namely Premier automobiles, Hindustan Motors and
Standard Motors dominated the industry.
The automotive industry witnessed tremendous growth after the entry of Maruti
Udyog in the 1980s53. In the 1980s, a number of Japanese manufacturers launched
12
joint ventures for building motorcycles and light commercial vehicles following the
economic liberalization in and the gradual weakening of the license raj, a number of
Indian and multinational car companies launched operations.
In 1983, Hindustan Motors and Premier Automobiles declared plans to manufacturing
fuel efficient cars with latest & modern body styling. In 1984, Hero Honda
established & in 1985 it introduced four stroke engine motorcycles, since then the
Indian two wheeler market gradually switched from old technology scooters to the
fuel efficient motorcycles.54
Timeline of Indian Automobile Industry
The timeline of Indian automobile industry is very interesting which is summarized as
follows.
•
1897- First person to own a car in India-Mr.Foster of M/s Crompton Greaves,
Mumbai
•
1901- First Indian to own a car in India-Jamshedji Tata
•
1905- First woman to drive a car in India- Mrs.Suzanne RD Tata.
•
1905- Fiat Motors
•
1911- First taxi in India
•
1924- Formation of traffic police55
•
1928- Chevrolet Motors
•
1942- Hindustan Motors
•
1944- Premier Auto Limited
•
1945- Tata Motors
•
1947- Mahindra Motors
•
1948- Standard Motors
•
1953- Taken efforts to create a manufacturing industry to supply the
automotive industry with components get underway, spearheaded by the
Indian government and leading Entrepreneurs.56
•
1974- Sipani Motors
•
1981- Maruti Suzuki
13
•
1994- Rover Motors
•
1994- Mercedes Benz
•
1994- Opel Motors
•
1995- Ford Motors
•
1995- Reva Electric car company
•
1995- Daewoo Motors
•
1996- Hyundai Motors
•
1997- Toyota Kirloskar Motors
•
1997- Fiat Motors (Re-entry)
•
1998- San Motors
•
1998- Mitsubishi Motors
•
2001- Skoda Auto
•
2003- Chevrolet
•
2005- BMW
•
2007- Audi
•
2009- Land Rover and Jaguar57
Evolution of Indian Automobile Industry
The year 1898 saw the first car rolling out, on the streets of Mumbai. Since then
Indian auto industry has witnessed a lot of change. Later Indian automobile industry
was crowded with Premier automobile limited’s premier Padmini, Hindustan Motor’s
Ambassadors, Scooters, Trucks etc.
The following table highlights the evolution of Indian automobile industry.
14
Table 1.4: Evolution of Indian automobile Industry
Pre 1983
• Closed market
• Growth of market
limited by supply
• Outdated models
- Players
• Hindustan Motors
• Premier, Telco
• Ashok Leyland
• Mahindra & Mahindra
1983-1993
• Japanisation –
GOI-Suzuki joint venture to form
Maruti Udyog
• Joint ventures with companies in
commercial vehicles and
components
- Players
• Maruti Udyog, Hindustan Motor
• Premier, Telco, Ashok Leyland
• Mahindra & Mahindra
1993-2007
• De-licensing of sector in
1993
• Global major OEMs start
assembly in India (GM,
Ford, Honda, Hyundai)
• Imports allowed from April
2001 alignment of duty on
components and parts to
ASEAN levels
• Implementation of VAT
Source: www.ibef.org
The initial journey of Indian automobile industry was very tough as it has witnessed
and passed through various stages as follows:
Protectionism Stage (Pre 1980 Era)
In this era, the manufacturing of automobile especially cars was subject to strict
licensing, restrictive tariff structure and limited avenues for expansion58.
(1947-1965): The Indian automobile industry in the years 1947-1965 was the one
wherein the foreign competition was highly restricted by means of protective rates of
tariff and foreign investment licensing requirements. Foreign collaborations were
permitted only after diligent considerations and were subject to effective control
Indian entities. The domestic competition was also regulated by means of industrial
licensing, foreign exchange allocations and other governmental decrees.
(1966-1979): From 1975 onwards, minor relaxations were being made to the licensing
regulations. For e.g. since 1975 automatic growth rule was applicable to Commercial
vehicles, ancillaries and tractors. According to this rule, an automatic capacity
expansion of 5 percent per year (25 percent in total for 5 years) was permitted over
and above the 5 percent automatic growth permitted under IDRA 1951. Further, in
1978 the government also dismantled some of its stricter controls on foreign equity
collaborations.
15
Limited Liberalization and Foreign Collaboration: (1980-1990 Era)
In this phase the government undertook measures for making the industries more
competitive.
It
therefore
decided
to
ease
licensing
controls
and
other
restrictive/protective rules administering the industrial sector. It also decided to allow
adequate import of technology required for modernization.
Various relaxations were made to the regulations pertaining to capacity licensing and
foreign
collaborations.
Imports
of
capital
goods,
technology
and
raw
materials/components required for the modernization were also treated more liberally.
The encouragement for the development of Commercial Vehicle segment continued
in this phase59.
The advent of foreign technology collaboration came with the inception of Maruti
Udyog in collaboration with Suzuki of Japan in the passenger car segment in 198260.
In 1983, both Premier Automobiles and Hindustan Motors plans for manufacturing
fuel-efficient cars with some modern body look and style61. The government also
relaxed the import regulations to encourage the existing firms to upgrade their
technology. Fiscal incentives were provided to the passenger car manufacturers in
1984 to enable them to import technology and improve the fuel efficiency of their
vehicles.
The components segment was given due attention since its development was
considered critical for the modernization drive. The relaxations pertaining to
relatively liberal entry, growth and imports of foreign supplies were also available to
the auto components segment62. In the pre 1985 era, the auto component sector was a
protected market with high import tariffs. The market was oriented primarily towards
supply of components to domestic manufacturers. In 1990s global OEMs (Original
Equipment Manufacturers) and Tier 1 suppliers started operations in India. This leads
to a large number of new Joint ventures in the component industry with European and
American component manufacturers and gave the Indian component industry an all
round expertise to manufacture components for applications in Japanese, American
and European vehicles.63
16
Liberalisation & Globalisation: (1991 onwards)
In the early 1990s, with liberalization, some more Japanese manufacturers entered the
two wheeler and the commercial vehicle segment in a collaborative arrangement.
Automobile industry was de licensed in July 1991 with the announcement of new
industrial policy. The passenger car industry was however de licensed in 199364. After
de licensing in 1993, the automobile sector in India expanded drastically. After de
licensing, 17 new ventures came up, out of which 16 were for manufacture of cars65.
The liberalization concerning foreign investment encouraged several global players to
enter into the Indian market establishing Joint ventures with domestic players. The
automotive industry, which saw a negative annual growth rate of 10.1% in the
vehicles segment in the year 1991-92 recovered in the subsequent years of the post
reforms period. The excise duty on passenger cars was reduced from 66% to 55% and
that on LCV (Light Commercial Vehicles) from 15 % to 10% in 1992. The tariff
structure for auto related imports also underwent changes with the peak tariff rate
reduced from 150% in 1991 to 110 % in 1992, 85% in 1993, 65% in 1994 and 50% in
1995.66
Currently, the following situation exists in the automobile industry.
•
All imports and manufacturing are free from licensing and approvals.
•
100% FDI is permitted in the automobile sector.
•
Import tariffs have been reduced from 35% in 2001 to 12.5% in 200667 and
7.5% in 2009-1068.
Growth of Indian automobile Sector
The Indian automobile sector is one of the key drivers of Indian economy. Due to its
deep forward and backward linkages with several key segments of the economy,
automotive industry has a strong multiplier effect and acts as one of the drivers of
economic growth.
The Indian automobile industry comprising of the automobile and the auto component
sector has recorded considerable growth following the de-licensing and opening up of
the sector to FDI in 1993. The investment of Indian automobile industry which was
Rs.50,000 Crore in 2004-05 reached to Rs.85,000 Crore by 2007-08.
17
The Indian automotive industry currently producing wide variety of vehicles
including Passenger cars, light, medium and heavy commercial vehicles, multi utility
vehicles such as Jeeps, tractors along with two wheeler and three wheeler69.
As per the skill gap analysis report, the Indian automobile sector contributing nearly
5% to the country’s GDP and 17-18 % to the kitty of indirect taxes to the
Government. Due to economic liberalization, availability of skilled labors, availability
of ample resources, India is one of the prime business destination for global
automotive companies. The Indian automotive sector is providing direct and indirect
employment to over 13 million people70.
In 2010-2011, the total turnover of Indian automobile industry was USD 73 billion
(Rs.327,300 Crore) and its contribution to the manufacturing GDP and the excise duty
was 22% and 21% respectively. In 2010-11, India surpassed UK, Italy and France to
become the 6th largest global vehicle manufacturer. Today India is the largest tractor
manufacturers, second largest two wheeler manufacturers and fifth largest commercial
vehicle manufacturers in the world71. As per the report India overtook Brazil and
became the sixth largest passenger vehicle producer in the world, growing 16 to 18
per cent to sell around three million units in the course of 2011-1272.
Today India has become a favorite investment destination for global automobile
companies. The Indian automobile industry is currently manufactures 11 million
vehicles and exports about 1.5 million each year. The automobile market in India has
grown steadily over the last seven years.73 There are some growth drivers of Indian
automobile industry due to which this sector is performing well not only in Domestic
sales but also in Import, Export and production.
The following chart highlights few vital growth drivers of Indian automobile industry.
18
Chart 1.1: Growth Drivers of Indian Automobile Sector
%
$
$
"
#
!
Source: www.india-reports.com & compiled by author from various sources.
Apart from the above growth drivers there are few other growth drivers which have
also boosted the Indian automobile sector. The Indian automobile sector is presently
crowded with lot of national and international brands due to favorable automobile
policies. The Indian government has declared various favorable policies related to
automobile sector like to accelerate the growth by providing higher fiscal incentives
for R&D the Indian government formulated “auto policy 2002” along with 100
percent foreign direct investment.
According to official government of India estimates, poverty declined from 37.2% in
2004-05 to 29.8% in 2009-10. Rural poverty declined by 8 percentage points from
41.8% to 33.8% and urban poverty by 4.8 percentage points from 25.7% to 20.9%
over the same period.74 Hence due to rise in per capita income and growing number of
middle class people, the demand for passenger vehicles i.e car has been increased in
recent times. Also due to availability of variety of vehicles the customers today are
having lot of choices and alternatives.
Currently the banking and financial sector in India is having lot of importance and
playing vital role regarding providing car loans to middle class customers. Due to rise
in per capita income of middle class and easy availability of finance from various
19
banks and financial institutions, the customers are moving to banks for vehicle loans.
Presently there are lots of banks who are providing car loans with attractive schemes
along with attractive rate of interest. State Bank of India, Bank of Maharashtra, Bank
of Baroda and Union Bank of India are the leading government banks who are on top
in providing vehicle loans.
Today, roads are considered as the dominant mode of transportation. The roads carry
almost 90 percent of the country’s passenger traffic and 65 percent of its freight. The
density of India’s highway network is at 0.66 km of highway per square kilometer of
land. The Indian transportation sector has contributed about 5.5 percent to the nation’s
GDP in the year 2007.
Table 1.5: Indian Road Network
Type of Road Network
Length (In K.m)
Expressways
200
National Highways
71,772
State Highways
1,31,899
Major District Roads
4,67,763
Rural and other roads
26,50,000
Total Length
33 Lakhs Kms (approx)
Source: Report by National Highway Authority of India (NHAI)
The above table depicted that the total length of Indian road network is spread across
33 lakhs kilometers. Out of which the total length of national highway is 71,772
kilometer. And the total length of state highways is 131899 kilometers. According to
National highway authority of India number of vehicles has been growing at an
average pace of 10.16 percent per annum over the last few years75.
Performance of Indian automobile Sector
a)
Domestic Sales
As per the report of Society of Indian automobile manufacturers it was noticed that in
year 2011-12, the growth rate for overall domestic sales was 12.24 percent amounting
20
to 17,376.624 vehicles. In the month of March 2012, domestic sales grew at a rate of
10.11 percent as compared to March 2011. As far as a passenger vehicle segment is
concerned, passenger vehicle segment grew at 4.66 percent during April-March 2012
over April-March 2011. Passenger cars grew by 2.19 percent, Utility vehicles grew by
16.47 percent and Vans by 10.01 percent during April-March 2012. In the month of
March 2012, domestic sales of passenger cars grew by 19.66 percent over the same
month last year i.e 2011. In March 2012, the sales growth of total passenger vehicles
was 20.59 percent as compared to March 2011. It was observed that for the first time
in history, car sales crossed two million in a financial year. During April-March 2012,
the overall Commercial vehicle segment registered growth of 18.20 percent as
compared to April-March 2011, Medium and Heavy commercial vehicles recorded
growth of 7.94 percent whereas Light Commercial vehicles grew at 27.36 percent.
It was revealed that, in three wheeler domestic market, the sales of three wheeler
declined by (-) 2.43 percent during April-March 2012 over April-March 2011. During
April-March 2012, passenger carriers segment registered negative growth by (-) 4.50
percent while Goods carriers segment grew by 6.31 percent during April-March 2012.
In March 2012, total Three wheelers sales declined by (-) 9.11 percent over March
2011.
As far as two wheeler sales are concerned, it was found that, during April-March
2012, Two Wheeler segment registered growth of 14.16 percent over April-March
2011. It was also noticed that during April-March 2012, Motorcycles, Mopeds and
Scooters grew by 12.01 percent, 11.39 percent and 24.55 percent respectively over
April-March 2011. As far as sales figures of March 2012 are concerned, the two
wheeler segment registered growth of 8.27 percent over March 201176.
After a lock out in July and August 2012, Maruti Suzuki India Limited registered
excellent production in September 2012. In September 2012, Maruti Suzuki’s sales
rose by 12.7 percent to 88,801 units whereas in utility vehicle segment the sales of
Mahindra & Mahindra increased by 22 percent & reached to 23,808 units.
It was disclosed that, the performance of Maruti Suzuki was boosted due to the
growing demand for multi utility vehicle Ertiga, which recorded sales of 7224 units in
September 2012.77
21
The following table depicts the domestic sales of passenger vehicles, commercial
vehicles, three wheelers and two wheelers during 2007-08 to 2011-12.
Table 1.6: Automobile Domestic Sales Trends (Number of Vehicles) (April-March)
Category
2007-08
2008-09
2009-10
2010-11
2011-12
Passenger
1,549,882
1,552,703
1,951,333
2,501,542
2,618,072
Vehicles
----
(0.18)
(25.67)
(28.19)
(4.65)
490,494
384,194
532,721
684,905
809,532
----
(-21.67)
(38.65)
(28.56)
(18.19)
364,781
349,727
440,392
526,024
513,251
----
(-4.12)
(25.92)
(19.44)
(-2.42)
7,249,278
7,437,619
9,370,951
11,768,910
13,435,769
----
(2.59)
(25.99)
(25.58)
(14.16)
9,654,435
9,724,243
12,295,397
15,481,381
17,376,624
Commercial
Vehicles
Three
Wheelers
Two
Wheelers
Total
Source: Report by Society of Indian Automobile Manufacturers (SIAM)
Note: The figures shown in brackets indicate percentage change over the previous year.
The above table depicted that the total domestic sales in the year 2011-12 was
17,376,624 vehicles whereas the total domestic sales in year 2010-11 was 15,481,381
vehicles i.e year 2011-12 witnessed a growth of 12.24 percent over previous year. The
domestic sales of commercial vehicles in the year 2011-12 were 809,532 vehicles i.e
year 2011-12 registered growth of 18.19 percent over 2010-11.
In three wheeler segment, it was revealed that the year 2011-12 registered domestic
sales of 513,251 vehicles i.e this year witnessed decline of (-) 2.42 percent over 201011 whereas in two wheeler segment, the total domestic sales in the year 2011-12 was
13,435,769 vehicles i.e the year 2011-12 recorded growth of 14.16 percent over 201011.
b)
Production
The following cumulative production data highlighted the production growth during
2007-08 to 2011-12. As far as overall production is concerned, it was noticed that the
year 2011-12 registered growth of 13.83 percent over 2010-11. In year 2011-12, the
automobile industry produced total 20,366,432 vehicles, out of which share of two
22
wheelers, passenger vehicles, three wheelers and commercial vehicles were 76
percent, 15 percent, 4 percent and 4 percent respectively.
The table below indicates the Production trends during 2007-08 to 2011-12.
Table 1.7: Automobile Production Trends (Number of Vehicles) (April-March)
Category
2007-08
2008-09
2009-10
2010-11
2011-12
Passenger
1,777,583
1,838,593
2,357,411
2,982,772
3,123,528
Vehicles
----
(3.43)
(28.21)
(26.52)
(4.71)
549,006
416,870
567,556
760,735
911,574
----
(-24.06)
(36.14)
(34.03)
(19.82)
500,660
497,020
619,194
799,553
877,711
----
(-0.72)
(24.58)
(29.12)
(9.77)
8,026,681
8,419,792
10,512,903
13,349,349
15,453,619
----
(4.89)
(24.85)
(26.98)
(15.76)
10,853,930
11,172,275
14,057,064
17,892,409
20,366,432
Commercial
Vehicles
Three
Wheelers
Two
Wheelers
Total
Source: Report by Society of Indian Automobile Manufacturers (SIAM)
Note: The figures shown in brackets indicate percentage change over the previous year.
From the above table it was revealed that in passenger vehicle segment the year 201112 witnessed highest production of vehicles as compare to previous years. In the year
2011-12 the production of commercial vehicles was 911,574 vehicles i.e year 2011-12
registered growth of 19.82 percent over 2010-2011. It was noticed that in the year
2011-12, the production of three wheeler was 877,711 vehicles i.e growth of 9.77
percent over 2010-11. It was also found that in two wheeler segment, the year 201112 recorded growth of 15.76 percent over 2010-11 by producing 15,453,619 vehicles.
C)
Exports
Today Indian automobile industry finding increasing recognition worldwide. Due to
continuous innovations and developments, the Indian automobile manufacturers are
exporting their brands to other countries. In India, Hyundai Motors India Limited is
known as the leading exporter of cars with 68 percent share in the total exports. India
exports about 2.33 million vehicles every year. In 2008, Hyundai Motors exported
2,40,000 cars made in India. In the year 2009, India’s automobile exports have
23
reached $4.5 billion. Currently United Kingdom is India’s one of the largest export
market followed by Germany, Italy and South Africa, Europe, Middle East.
The following table depicted that as far as total export is concerned, all segments i.e
passenger vehicles, commercial vehicles, three wheelers & two wheelers witnessed
gradual growth during 2007-08 till 2011-12. It was observed that, Indian automobile
industry exported 1,530,594 vehicles in year 2008-09 & registered growth of 23.60
percent over 2007-08. In year 2008-09, passenger vehicles registered growth of 53.72
percent whereas commercial vehicles, three wheelers and two wheeler segments
recorded growth of -27.74 percent, 4.84 percent and 22.50 percent respectively during
April-March 2009.
Table 1.8: Automobile Exports Trends (Number of Vehicles) (April-March)
Category
2007-08
2008-09
2009-10
2010-11
2011-12
Passenger
218,401
335,729
446,145
444,326
507,318
Vehicles
----
(53.72)
(32.88)
(-0.40)
(14.17)
58,994
42,625
45,009
74,043
92,663
----
(-27.74)
(5.59)
(64.50)
(25.14)
141,225
148,066
173,214
269,968
362,876
----
(4.84)
(16.98)
(55.85)
(34.41)
819,713
1,004,174
1,140,058
1,531,619
1,947,198
----
(22.50)
(13.53)
(34.34)
(27.13)
1,238,333
1,530,594
1,804,426
2,319,956
2,910,055
Commercial
Vehicles
Three
Wheelers
Two
Wheelers
Total
Source: Report by Society of Indian Automobile Manufacturers (SIAM)
Note: The figures shown in brackets indicate percentage change over the previous year.
From the above table it was revealed that the total export in year 2011-12 was
2,910,055 vehicles i.e year 2011-12 registered growth of 25.43 percent over 2010-11.
It was noticed that in passenger vehicle segment the export in year 2011-12 was
507,318 vehicles i.e year 2011-12 witnessed growth of 14.17 percent over 2010-11 in
passenger vehicle segment. In commercial vehicle segment it was observed that the
total export in year 2011-12 was 92,663 vehicles i.e year 2011-12 witnessed growth
of 25.14 percent over 2010-11.
24
As far as three wheeler segment is concerned it was revealed that, by exporting
362,876 vehicles the year 2011-12 witnessed growth of 34.41 percent over 2010-11
whereas in two wheeler segment 1,947,198 vehicles were exported in year 2011-12 i.e
year 2011-12 registered growth of 27.13 percent over 2010-11. In two wheeler
segments 1,140,058 vehicles were exported in year 2009-10 i.e year 2009-10
registered growth of 13.53 percent over 2008-09.78
Automobile Clusters in India
The Indian automobile industry is largely based around three important clusters in the
west, south, and north region of India. The southern cluster consisting of Chennai is
the biggest with 35% of the revenue share. The western hub near Mumbai and Pune
contributes to 33% of the market and the northern cluster near Delhi contributes
32%.79
As per the article of Mr.M.R.Venkatesh due to Industry friendly government policies,
proximity to the port, a traditional engineering base, good infrastructure, supportive
industrial policies and incentives are the key factors that have made the Chennai
‘Auto Hub’ of India. In today’s global era, Tamil Nadu is at the forefront in exporting
the small cars to Europe. Today, 7 out of 20 global automobile manufacturers have set
up their plants in Chennai and made Chennai as ‘Detroit of India’.
Besides Ford Motors and Hyundai Motors India Limited, the major automobile
manufacturers in Chennai are the German car maker BMW, Mitsubishi, Daimler and
Renault Nissan alliance plant at Oragadam (near Sriperumbudur). Exports have also
grown many fold as Hyundai exported 1,76,951 cars and Nissan exported 21,283 cars
in the April-December 2010 period. According to report, very soon one golden feather
is going to add in the crown of Chennai i.e a world-class ‘National Automotive
Testing R&D centre’ setting up at Oragadam which costs Rs.450 Crores. This centre
will provide various facilities to manufacturers like safety emission, test design and
performance standards etc80
.
The following table depicts major automobile manufacturers in Tamil Nadu state.
25
Table 1.9: Major Automobile Manufacturers in Tamil Nadu
Project Name
Investments
(Made and Proposed)
Products
Ford India
Rs.4576 Crore
Cars/SUVs, Engines
Hyundai Motors
Rs.4576 Crore
Cars/SUVs, Transmission
Renault-Nissan
Rs.4576 Crore
Cars/SUVs
BMW
Rs.4576 Crore
Luxury Cars
Daimler India
Rs.4300 Crore
Commercial Vehicles
HM-Mitsubishi
Rs.325 Crore
Premium Cars
Source: Report by Deccan Herald (http://deccanherald.com)
According to Eric Bellman, the Tamil Nadu state has been better than most Indian
jurisdiction at providing the land, road and electricity that the car industry needs. The
Hyundai Motor is currently capable to produce 6,50,000 cars a year81. The Northern
automobile cluster consists of Gurgaon and Manesar of Haryana, Delhi and nearby
places. This cluster consists of India’s largest automobile manufacturer Maruti Suzuki
India Limited, LML Limited, Hero Honda, Honda Motors, Yamaha Motors etc. This
northern automotive cluster has a large population and the highest per capital income
in the country. There are lots of automobile component manufacturing industries in
and around Delhi which are also major advantages to the region82.
The western automobile cluster is located in the state of Maharashtra i.e near Chakan
(Pune). This cluster consisted of various renowned automobile manufacturers like
Volkswagen, Daimler Chrysler, General Motors, Mahindra and Mahindra, Land
Rover, Jaguar cars, Force Motors and Fiat Motors, Audi India, Skoda Auto with their
assembling plants. This cluster also having Bajaj Auto, Swaraj Mazda and Kinetic
Motors Ltd. One emerging automobile cluster is in the state of Gujarat with
manufacturing facility of General Motor in Halol and upcoming plant of Tata Nano in
Sanand. 83
The following geographical chart focuses on various automobile clusters located in
East, West, South & North part of India.
26
Chart 1.2: Automobile Clusters in India
Source: Frost and Sullivan, 2009 & www.mapsof india.com
Auto Component Sector in India
Before the era of 1985, the Indian auto component sector was a protected market with
high import tariffs. In 1980, encouraged by the establishment of many Japanese
OEMs (Original Equipment Manufacturer) in the passenger car, two wheeler industry
in the country many Indian companies entered into joint ventures with Japanese
companies which lead to commencement of export. In the year 1990s, global OEMs
and Tier 1 suppliers started operations in India.
Presently the auto component industry is considered as the sun rising sector. Today
India is emerging as one of the leading auto components center in Asia. The auto
component sector manufactures a wide range of products in India for Domestic
consumption and for export. The total size of this sector is near about USD 14 billion
out of which USD 9.4 billion is the domestic OEM market, USD 2.6 billion is the
domestic aftermarket and USD 2.0 billion are the direct exports of the components.
The Indian auto component sector has over 500 organized players and 5000
unorganized sector players84.
The Indian auto component sector comprises of various product segments like Engine
parts, Drive transmission & steering parts, Suspension & braking parts, electrical parts
27
etc. This industry supports various industries like Automobiles, Machine tools,
Aluminum, Rubber, Plastics, Electrical, Electronics, Forgings & machining. Today
India is known as an outsourcing hub for auto parts for renowned giants in
automobiles like Ford Motors, General Motors, Fiat Motors, Toyota, Volkswagen
etc85.
The following table clearly depicts the Indian and Global original equipment
manufacturers.
Table 1.10: Original Equipment Manufacturers (OEM)
Indian OEM’s
Global OEM’s
Bajaj Auto
Toyota Motor
Hero Honda
Ford Motors
TVS Motors
Hyundai Motors
Ashok Leyland
Maruti Suzuki
Tata Motors
Honda
Mahindra & Mahindra
Skoda
Source: Compiled by researcher from various sources
The automobile component manufacturing industry has been exporting around 13
percent of its output. In the year 2010-11, this industry has exported US$ 5.2 billion.
Principal export items includes: Motorcycle parts, Piston rings, Engine valves, Fuel
pump nozzles, Fuel injection parts, Radiators, Gears, Clutch facings, Head lamps,
Auto bulbs, Spark plugs & Tractor parts etc86. As indicated by ACMA, the component
wise share of production is Engine parts-31 percent, Drive and Transmission parts-19
percent, Suspension & Braking parts-12 percent, Electricals-9 percent.
The following chart highlights on export of auto component industry during 2004-05
to 2009-10.
28
Chart 1.3: Auto Component Industry Export
1
%2
45 2 +
"6 7
89 2 +9
:
)&&/+0&
3'.
)&&.+&/
3'.
3',)
)&&-+&.
)'.-
)&&,+&)'*-
)&&(+&,
0',/
)&&*+&(
&
&'(
0
0'(
)
)'(
3
3'(
*
Source: Report-Automotive
utomotive Component Manufacturers Association (ACMA)
(ACMA)
From the above chart it was disclosed that the export in the year 2007-08
2007 08 is 3.62 US $
billion where as the year 2009-10
2009 10 saw an export of 3.8 US $ billion. The export in the
year 2008-09 and 2009-10
10 was
was same i.e 3.8 US $ billion means there is no growth in
export of auto component industry in the year 2009
2009-10
10 as compared to previous year.
Segmentation of Indian Automobile Sector
The Indian automobile sector has continuously invented itself whereas constant
innovations, technological changes and up gradations has always been the base of this
industry.
The Indian automobile sector has segmented in four categories which can be seen in
following chart.
29
Chart 1.4: Segmentation of Indian Automobile sector
Automobile
Sector Segmentation
Passenger
Vehicles
Commercial
Vehicles
Two
Wheelers
Three
Wheelers
Source: Society of Indian Automobile Manufacturers (SIAM)
From the above chart it was observed that the Indian automobile sector is basically
segmented in passenger vehicle, commercial vehicle, three wheeler and two wheeler.
The following chart highlights the domestic market share of Indian automobile sector
for the year 2010-11 and 2011-12.
Chart 1.5: Domestic Market Share of Indian Automobile Sector
Domestic Market Share (in %)
90
76
80
77.32
70
60
50
40
30
20
2010-11
2011-12
16.25 15.07
4.36
10
4.66
3.39 2.95
0
Passenger
Vehicle
Commercial Three Wheelers Two Wheelers
Vehicle
Source: Society of Indian Automobile Manufacturers (SIAM)
30
From the above chart it was revealed that the market share of Passenger vehicles in
the year 11-12 was 15.07 percent while the market share of passenger vehicle in the
year 10-11 was 16.25 percent i.e the year 2011-12 recorded negative growth of (-)
7.26 percent as compared to last year.
While in two wheeler segment the year 2011-12 recorded a growth by 1.73 percent
than last year. Also the market share of three wheeler segment in the year 2011-12
saw a negative growth as compare to 2010-11.87.
Passenger Vehicle
The passenger vehicle segment consists of passenger cars, utility vehicles (UVs) and
multipurpose vehicles (MPVs). At present there are 19 manufacturers of passenger
cars in India. There are various factors i.e growth drivers due to which the sales in
passenger vehicle segment have raised in last few years. But in September 2012,
passenger car segment has faced problems. As per the report of society of Indian
automobile manufacturers, in September 2012 passenger car sales dropped by 5.36
percent over September 2011.
The total sales of passenger vehicles grew around 5 percent in September 2012 over
September 2011. As far as export is concerned during April-September 2012, overall
automobile exports registered negative growth at (-5.96) percent. While passenger
vehicles grew by 2.77 percent. In September 2012, car exports grew by 10 percent
compared to last year i.e September 201188.
Passenger Cars
According to society of Indian automobile manufacturers (SIAM), the passenger cars
are classified as number of seats including driver not exceeding 6.89
The passenger cars has been categorized on the basis of various segments like A1, A2,
A3, A4, A5 and A6 along with length of vehicles which can be seen in following
table. The table also depicted various models which fall in all those segments.
31
Table 1.11: Classification of Passenger Cars
Segment
Name
Length of
Vehicle
Models / Existing Brands
(in mm)
A1
Mini
Up to 3400 mm
Maruti 800, Tata Nano
A2
Compact
3401-4000 mm
Fiat Palio, Ford Figo, Chevrolets
Beat, Honda Jazz, Hyundai I 10, I 20,
Maruti Alto, Wagon R, Swift, Ritz,
Nissan Micra, Volkswagen Polo
A3
Mid-size
4001-4500 mm
Ford Ikon, Chevrolet Aveo, Hyundai
Accent, Mahindra Logan, Maruti
SX4, Tata Indigo, Volkswagen
Vento
A4
Executive
4501-4700 mm
Fiat Linea, Chevrolet Optra, Cruze,
Honda Civic, Hyundai Elantra,
Maruti Kizashi, Mercedes Benz C
class, Toyota Corolla, Volkswagen
Jetta
A5
Premium
4701-5000 mm
BMW 5 & 6, Mercedes Benz EClass, Nissan Teana, Skoda Superb,
Toyota Prius, Honda Accord,
Hyundai Sonata
A6
Luxury
5001 mm &
BMW 7 series, Mercedes Benz S
above
Class, Volkswagen-Audi (Q7, A8)
Source: Society of Indian Automobile Manufacturers (SIAM)
The above table depicted that, Maruti 800 and Tata Nano fall in Mini i.e A1 segment,
Wagon R, Polo, Ritz fall in Compact i.e A2 segment whereas Maruti SX4,
Volkswagen Vento comes under Mid size i.e A3 segment.
It was also found that Chevrolet Cruze and Hyundai Elantra called as Executive car
which fall in A4 segment, Skoda Superb, Honda Accord, BMW 5 are Premium cars
which fall in A5 segment whereas BMW 7 series & Audi A8 are called as Luxury car
which comes in A6 segment.
32
The following chart focuses on the growth of passenger car segment during 19971997
2011.
Chart 1.6: Car Production (In Numbers)
3000000
)*(3003
2500000
0/),*.*
2000000
0()0.03
03))-).
1500000
000)(*)
0&)-.(.
.*3)3(
1000000
500000
0(0,/,-
(0-/&,&..(0
3/&3((
(-*3,/
(,*&()
*&0&&)
0
Source: Report by Automotive Component Manufacturers Association (ACMA) (2010-11)
The above chart depicted that the year 1998
1998-99
99 recorded negative growth of (-) 2.65
percent in the car production as compare to 1997
1997-1998.
1998. The same downsizing was
again seen in the year 2000
2000-2001. The year 2000-2001
2001 recorded negative growth of
(-)) 9.83 percent over 1999-2000.
1999
It was revealed that the year 2008
2008-2009 recorded negative growth of (-)) 0.31 percent
over 2007-08.
08. The car production in year 2010
2010-11
11 was 2453113 i.e this year recorded
90
growth of 27.33 percent over 2009-1010.
2009
It was also disclosed that the year 20
2009-10
10 registered growth of 26.99 percent over
2008-09.
33
The following table depicts company wise market share of passenger cars in India
during 2005-06 to 2008-09.
Table 1.12: Company-Wise Market Share of Passenger Cars (In %)
Passenger Cars
2005-06
2006-07
2007-08
2008-09
BMW India Pvt Ltd
----
0.03
0.17
0.22
Fiat India Automobiles Pvt Ltd
0.14
0.21
0.29
0.66
Ford India Pvt Ltd
3.07
3.70
2.57
2.07
General Motors India Pvt Ltd
1.32
1.58
3.76
3.77
Honda Siel Cars India Ltd
4.63
5.52
4.93
4.11
Hyundai Motor India Ltd
17.88
18.10
17.97
20.01
Maruti Suzuki India Ltd
51.72
51.02
51.35
52.21
Mercedes Benz India Pvt Ltd
0.20
0.19
0.24
0.26
Skoda Auto India Pvt Ltd
1.14
1.16
1.18
1.14
Tata Motors Ltd
17.11
16.63
13.88
13.16
Toyota Kirloskar Motor Pvt Ltd
1.09
0.72
0.60
0.70
Source: Report by Society of Indian Automobile Manufacturer (SIAM)
From the above table it was disclosed that, in the year 2008-09, the market share of
passenger cars of Maruti Suzuki India Ltd was 52.21 percent which was the highest
market share than other automobile brands.
In year 2008-09, Tata Motors occupied third position in passenger car segment
followed by Maruti Suzuki and Hyundai Motors India Ltd. In 2008-09 the market
share of Tata Motors was 13.16 percent i.e in year 2008-09, Tata Motor’s market
share was gradually declined as compared to last three years. 91
It was also noticed that, in year 2008-09 the market share of Ford India Pvt Ltd was
2.07 percent whereas the market share of Honda Siel cars India Ltd was 4.11 percent
i.e in year 2008-09 both companies market share was declined as compared to
previous year i.e 2007-08.
34
The following table focuses on domestic sales and market share of passenger cars for
year 2009-10 & 2010-11.
y
Table 1.13: Market Share Analysis of Passenger Cars
Manufacturers
Domestic Sales
(In Numbers)
2009-10 2010-11
Market Share
(In %)
2009-10 2010-11
BMW India Pvt Ltd
3,461
6,281
0.23
0.32
Fiat India Automobiles Pvt Ltd
24,804
21,112
1.62
1.06
Ford India Pvt Ltd
34,324
95,395
2.25
4.81
General Motors India Pvt Ltd
70,636
87,153
4.62
4.40
Honda Siel Cars India Ltd
61,329
58,951
4.01
2.97
Hyundai Motor India Ltd
3,14,967 3,58,904
20.61
18.10
Maruti Suzuki India Ltd
7,65,533 9,66,447
50.09
48.74
Mercedes Benz India Pvt Ltd
3,611
5,987
0.24
0.30
Skoda Auto India Pvt Ltd
17,502
21,693
1.15
1.09
13.18
12.92
Tata Motors Ltd
2,01,399 2,56,202
Toyota Kirloskar Motor Pvt Ltd
10,140
19,225
0.66
0.97
Volkswagen India Pvt Ltd
4,094
51,608
0.27
2.60
Source: Society of Indian Automobile Manufacturers (SIAM) (Report VII), 2010-11.
From the above table it was revealed that, in the year 2010-11, the domestic sales of
passenger cars of Maruti Suzuki India Ltd was 9,66,447 vehicles i.e in 2010-11
company registered a growth of 26.24 percent over 2009-10. As far as domestic sales
are concerned, in year 2010-11, Hyundai Motors India Ltd and Tata Motors Ltd
secured second and third position after Maruti Suzuki India Ltd.
It was disclosed that in year 2010-11, Hyundai Motors registered a growth of 13.94
percent over 2009-10 where as Fiat India automobile Pvt Ltd registered a negative
growth of (-) 14.88 percent in year 2010-11 over previous year.
35
As far as market share is concerned it was found that in year 2010-11 the market share
of Honda Siel cars India Ltd and General Motors India Pvt Ltd was declined over
2009-10.92
Utility Vehicles
Utility vehicle plays vital role in passenger vehicle segment. Utility vehicles are
specially designed for specific tasks. The Utility vehicles again categorized in two
parts, i.e B1-Max Mass up to 3.5 tonnes [(a)- Number of seats including driver less
than 7 or equal to 7, (b)-Number of seats including driver >7 but less than or equal to
9] and B2-Max Mass up to 5 tones [(a)-Number of seats including driver less than or
equal to 13.]
As per the report of Society of Indian Automobile Manufacturers, the passenger
vehicles segment grew at 6.96 percent during April-September 2012 over same period
last year in which the Utility Vehicles grew by 55.83 percent during April-September
2012 as compared to April-September 2011.
The following table depicts Utility vehicles of renowned automobile companies in
India93.
Table 1.14: Renowned Utility Vehicles in India
Company
Brand
BMW India Pvt Ltd
X3, X5, X6
Force Motors Ltd
Trax
Ford India Pvt Ltd
Endeavour
General Motors India Pvt Ltd
Tavera
Hindustan Motors Ltd
Pajero
Honda-Siel cars India Ltd
CR-V
Hyundai Motors India Ltd
Tucson
Mahindra & Mahindra Ltd
Bolero, Scorpio, Xylo
Skoda Auto India Pvt Ltd
Yeti
Tata Motors Ltd
Safari, Storme
Source: Society of Indian Automobile Manufacturers, Flash Report (March 2011)
36
The following table illustrates the company wise market share of Utility vehicles
during 2005-06 to 2008-09.
Table 1.15: Company-Wise Market Share of Utility Vehicles (In %)
Passenger Cars
2005-06
2006-07 2007-08 2008-09
---
----
0.05
0.13
Force Motors Ltd
3.71
3.86
3.31
2.24
Ford India Pvt Ltd
0.93
0.90
1.19
1.23
General Motors India Pvt Ltd
9.84
9.93
8.67
6.91
Honda Siel Cars India Ltd
0.96
0.85
1.40
0.99
Hyundai Motor India Ltd
0.64
0.18
0.08
0.02
Maruti Suzuki India Ltd
2.25
1.46
1.60
3.32
Mahindra & Mahindra Ltd
43.20
40.75
42.35
47.16
Tata Motors Ltd
19.49
21.75
20.27
18.52
Toyota Kirloskar Motors Pvt
Ltd
18.86
19.77
19.65
16.97
BMW India Pvt Ltd
Source: Report by Society of Indian Automobile Manufacturers (Statistical Profile 08-09)
The above table disclosed that in year 2008-09, Mahindra & Mahindra Ltd was the
leader in Utility vehicle segment with major market share of 47.16 percent whereas in
same year Tata Motors Ltd and Toyota Kirloskar Motors Pvt Ltd was occupied
second & third position respectively.
In year 2008-09, Hyundai Motors India Ltd, was unable to capture the major market
in Utility Vehicle segment & stood last as compared to other competitors.94 It was
observed that in year 2008-09, the market share of BMW India Pvt Ltd has improved
over 2007-08.
It was also noticed that in year 2008-09, the market share of General Motors India Pvt
Ltd and Honda Siel cars India Ltd was 6.91 and 0.99 percent respectively i.e in year
2008-09 those companies market share was declined as compared to 2007-08.
37
The following table represents domestic sales and market share of Utility vehicles for
year 2009-10 and 2010-11.
Table 1.16: Market Share of Utility Vehicles
Manufacturers
BMW India Pvt Ltd
Domestic Sales
(In Numbers)
2009-10
2010-11
Market Share
(In %)
2009-10 2010-11
480
798
0.18
0.25
Force Motors Ltd
5,917
8,645
2.17
2.67
Ford India Pvt Ltd
2,599
3,142
0.95
0.97
General Motors India Pvt Ltd
16,453
20,063
6.03
6.19
Honda Siel Cars India Ltd
474
512
0.17
0.16
Hyundai Motor India Ltd
14
467
0.01
0.14
Mahindra & Mahindra Ltd
150,627
170,214
55.23
52.50
3,932
5,666
1.44
1.75
149
683
0.05
0.21
0
1,276
0.00
0.39
Tata Motors Ltd
35,516
44,223
13.02
13.64
Toyota Kirloskar Motor Pvt
53,703
64,863
19.69
20.01
Maruti Suzuki India Ltd
Mercedes Benz India Pvt Ltd
Skoda Auto India Pvt Ltd
Ltd
Source: Society of Indian Automobile Manufacturers (SIAM) (Report VII, 2010-11)
It was amply clear from the above table that in year 2010-11, Mahindra & Mahindra
Ltd sold 170,214 vehicles in Utility vehicle segment & in same year company
recorded 52.50 percent market share. In year 2010-11, Honda Siel cars India Ltd sold
512 vehicles & recorded growth of 8 percent over 2009-10 whereas in 2010-11, Force
Motors Ltd by selling 8,645 vehicles registered growth of 46.10 percent over 200910.
As far as domestic sales are concerned, it was noticed that, in year 2010-11 Toyota
Kirloskar Motor Pvt Ltd and Tata Motors Ltd occupied second and third position in
utility vehicles segment followed by Mahindra & Mahindra Ltd.
38
It was also observed that the market share of Mercedes Benz India Pvt Ltd, Skoda
Auto India Pvt Ltd and Force Motors Ltd has improved in year 2010-11 over 200910.
In 2010-11, the market share of Hyundai Motor India Ltd was only 0.14 percent. It
was noticed that though Maruti Suzuki India Ltd has occupied prominent place in
passenger car segment, but in Utility vehicle segment, the market share of Maruti
Suzuki in year 2010-11 was just 1.75 percent.95
Multi Purpose Vehicles
As per the report of society of Indian automobile manufacturers, the multipurpose
vehicles are Van type vehicles & those vehicles whose Max Mass not exceeding 3.5
tones. Few companies in India who produces multipurpose vehicles are Force Motors
Ltd (Trip), Mahindra & Mahindra Ltd (Gio), Maruti Suzuki India Ltd (Omni,
Versa/EECO) and Tata Motors Ltd (ACE Magic).
The following table depicts domestic sales and market share of multipurpose vehicle
in year 2009-10 and 2010-11.
Table 1.17: Multi Purpose Vehicles (April-March)
Manufacturers
Domestic Sales
(In Numbers)
2009-10 2010-11
Market Share
(In %)
2009-10
2010-11
Force Motors Ltd
0
237
0.00
0.11
Mahindra & Mahindra Ltd
0
889
0.00
0.42
Maruti Suzuki India Ltd
101,325
160,626
67.43
75.23
Tata Motors Ltd
48,931
51,755
32.57
24.24
Total
150,256
213,507
100.00
100.00
Source: Society of Indian Automobile Manufacturers (SIAM) (Report VII, 2010-11)
From the above table it was disclosed that, in year 2010-11, Maruti Suzuki India Ltd
sold 1,60,626 vehicles & registered growth of 58.52 percent over 2009-10 whereas in
39
2010-11, Tata Motors by selling 51,755 vehicles recorded growth of 5.77 percent over
previous year.
It was also noticed that, in year 2010-11, the market share of Force Motors Ltd was
0.11 percent i.e in 2010-11, Force Motors Ltd secured last position as compared to
other competitors.96
Commercial Vehicles
The Commercial vehicle segment consists of Light Commercial Vehicle (LCV),
Medium and Heavy Commercial Vehicles (M&HCVs). According to Society of
Indian Automobile Manufacturer, the Medium and Heavy Commercial Vehicles
divided in Passenger Carriers and Goods Carriers.
The passenger carriers are categorized in A1: Max.Mass > 7.5 tonnes but less than or
equal to 12 tonnes, A2: Max.Mass > 12 but less than or equal to 16.2 tonnes and A3:
Max Mass > 16.2 tonnes. The Goods Carriers are categorized in B1: Max Mass > 7.5
tonnes but less than or equal to 12 tonnes & B2: Max.Mass less than or equal to 16.2
tonnes97.
According to the report of society of Indian automobile manufacturers, the overall
commercial vehicle (CV) segment registered growth of 3.71 percent in AprilSeptember 2012 as compared to the same period last year whereas medium and heavy
commercial vehicles (M&HCVs) registered negative growth of (-) 12.49 percent. It
was also found that in April-September 2012, light commercial vehicles segment
recorded growth of 16.04 percent over same period last year.98
The leading companies, manufactured passenger carriers & goods carriers includes
Ashok Leyland Ltd, Eicher Motors Ltd, Swaraj Mazda Ltd, Tata Motors ltd, Volvo
Buses India Pvt Ltd, Volvo India Pvt Ltd, Kamaz Vectra Motors Ltd, Mercedes Benz
India Pvt Ltd, Asia Motor Works Ltd.
40
The following table depicts the domestic sales and market share of commercial
vehicles for year 2009-10 and 2010-11.
Table 1.18: Commercial Vehicles (April-March)
Manufacturers
Ashok Leyland Ltd
Asia Motor Works Ltd
Domestic Sales
(In Numbers)
2009-10
2010-11
57,947
83,799
Market Share
(In %)
2009-10
2010-11
10.88
12.39
3,792
6,793
0.71
1.00
0
214
0.00
0.03
11,509
16,458
2.16
2.43
179
67
0.03
0.01
86,316
103,661
16.20
15.33
215
83
0.04
0.01
Piaggio Vehicles Pvt Ltd
11,094
9,124
2.08
1.35
SML Isuzu Ltd
9,364
12,103
1.76
1.79
Tata Motors Ltd
323,621
393,145
60.75
58.12
607
560
0.11
0.08
Daimler India Commercial
Vehicles Pvt Ltd
Force Motors Ltd
JCBL Ltd
Mahindra & Mahindra Ltd
Mercedes Benz India Pvt Ltd
Volvo Buses India Pvt Ltd
Source: Society of Indian Automobile Manufacturers (Report VII, 2010-11)
The above trend shows that in year 2010-11, Tata Motors Ltd registered highest
growth in commercial vehicle segment by selling 3,93,145 vehicles. In year 2010-11,
Tata Motors recorded growth of 21.48 percent over 2009-10. It was noticed that in
year 2010-11, Mahindra & Mahindra Ltd registered growth of 20.09 percent whereas
Ashok Leyland Ltd recorded a growth of 44.61 percent over 2009-10.
It was also disclosed that, as far as domestic sales are concerned, JCBL Ltd, Mercedes
Benz India Pvt Ltd & Piaggio Vehicles Pvt Ltd recorded negative growth in the year
2010-11 over 2009-10. In year 2010-11, JCBL Ltd by selling 67 vehicles recorded
negative growth of (-) 62.56 percent over 2009-10.
As far as market share is concerned, it was noticed that in year 2010-11, the market
share of Piaggio vehicle Pvt Ltd & Volvo Buses India Pvt Ltd was declined as
compared to previous year99.
41
The following chart clearly focuses on production statistics of Light commercial
vehicles during 1997-98
98 to 2010
2010-11.
316437
450000
224587
171781
138896
83195
65756
63869
61213
100000
55371
150000
65069
200000
108917
250000
254049
350000
300000
225724
400000
408193
Chart 1.7: Light Commercial Vehicle Production (In Number)
50000
0
Source: Report by Automotive
utomotive Component Manufacturers Association (ACMA)
ACMA) (2010-11)
The above chart disclosed that the production of light commercial vehicles in year
1998-1999 was
as 55,371 vehicles i.e the year 1998
1998-1999
1999 registered negative growth of
(-)) 14.90 percent over 1997-98.
1997
During year 1999-2000
2000 till year 2007
2007-2008
2008 there was a gradual growth in production
of light commercial vehicles. Due to recession, in year 2008
2008-09
09 there was decrease in
production due to which this year recorded negative growth of ((-)) 11.59 percent over
2007-2008.
It was also noticed that, the year 2009
2009-10
10 registered growth of 40.89 percent over
2008-09
09 while the year 2010
2010-11
11 recorded growth of 28.99 percent over 2009
2009-10. 100
42
The following table clearly focuses on domestic sales of Medium and Heavy
commercial vehicles for year 2009-10 and 2010-11.
Table 1.19: Medium & Heavy Commercial Vehicles (Goods Carrier)
Manufacturers
Domestic Sales
(In Numbers)
(April-March)
2009-10
2010-11
Ashok Leyland Ltd
40,730
62,674
Asia Motor Works Ltd
3,792
6,793
Daimler India Commercial Vehicles Pvt Ltd
0
214
Mahindra Navistar Automotives Ltd
0
843
215
83
SML ISUZU Ltd
3,864
4,447
Tata Motors Ltd
133,036
171,431
VE CVs-Eicher
19,218
27,748
VE CVs-Volvo
1,006
1,002
201,861
275,235
Mercedes Benz India Pvt Ltd
Total
Source: Society of Indian Automobile Manufacturer (2010-11), Report VII, Page No.7
The above table disclosed that in the year 2010-11, Tata Motors Ltd, by selling
1,71,431 vehicles secured top position in medium & heavy commercial vehicle
segment and registered growth of 28.86 percent in year 2010-11 over 2009-10.
It was disclosed that Ashok Leyland Ltd, by selling 62,674 vehicles occupied second
position and registered growth of 53.87 percent in year 2010-11 over 2009-10 while
Eicher Motors by selling 27,748 vehicles grabbed third position in medium & heavy
commercial vehicle segment. In year 2010-11, Eicher Motors registered growth of
44.38 percent over 2009-10.
It was also noticed that in year 2010-11, Mercedes Benz registered negative growth of
(-) 61.39 percent over last year. Also in 2010-11, VE-CVs-Volvo registered negative
growth of (-) 0.39 percent over 2009-10.101
43
Three Wheelers
Three wheelers plays vital role in the transportation of goods as well as passengers.
Three wheelers sales recorded marginal growth at 0.59 percent in April-September
2012. The passenger carriers grew by 4.29 percent during April-September 2012 and
goods carriers registered de-growth at (-13.21) percent during this period.
Today, the three wheeler market is dominated by Bajaj Auto Ltd, Piaggio vehicles pvt
Ltd and Mahindra & Mahindra Ltd.
The three wheeler segment consisted of passenger carrier vehicles which are
categorized by A1: No. of seats including driver less than or equal to 4 & Max.Mass
is less than or equal to 1 tone. And A2: No. of seats including driver > 4 but less than
or equal to 7 & Max.Mass less than or equal to 1.5 tones. The Goods Carrier segment
categorized by B1:Max.Mass less than or equal to 1 tone.
The following table focuses on domestic sales and market share of three wheeler for
year 2009-10 and 2010-11.
Table 1.20: Market Share of Three Wheeler (April-March)
Manufacturers
Atul Auto Ltd
Domestic Sales
(In Numbers)
2009-10
2010-11
12,288
19,150
Market Share
(In %)
2009-10
2010-11
2.79
3.64
39.98
39.09
0.39
0.03
10.09
11.81
41.05
38.51
2.66
2.67
3.04
4.25
100.00
100.00
(55.84 %)
Bajaj Auto Ltd
176,050
205,603
(16.78 %)
Force Motors Ltd
1,699
143
(-91.58 %)
Mahindra & Mahindra Ltd
44,438
62,142
(39.83 %)
Piaggio Vehicles Pvt Ltd
180,797
202,591
(12.05 %)
Scooters India Ltd
11,720
14,036
(19.76 %)
TVS Motor Company Ltd
13,400
22,357
(66.84 %)
Total
440,392
526,022
Source: Society of Indian Automobile Manufacturer (2010-11), Report VII, Page No.10
Note: The figures shown in brackets indicate percentage change over the previous year.
44
The above table depicted that, in year 2010-11 Bajaj Auto Ltd occupied number one
position by selling 205,603 vehicles. In the same year, Bajaj Auto Ltd registered
growth of 16.78 percent over 2009-10 whereas the market share of Bajaj Auto Ltd in
2010-11 was 39.09 percent.
It was noticed that in year 2010-11, Piaggio vehicles and Mahindra & Mahindra Ltd
occupied second and third position followed by Bajaj Auto Ltd. In year 2010-11,
Piaggio vehicles Pvt Ltd recorded growth of 12.05 percent over 2009-10, Mahindra &
Mahindra Ltd registered growth of 39.83 percent in 2010-11 over previous year
whereas in year 2010-11, Force Motors Ltd registered negative growth of (-) 91.58
percent over 2009-2010
It was also revealed that in year 2010-11, the market share of Atul Auto Ltd was 3.64
percent whereas in 2010-11, TVS motor company Ltd grabbed 4.25 percent market
share.102
Two Wheelers
The Indian automobile is highly dominated by two wheelers which nearly accounts
for 75 percent of the total vehicles sold in the country. There is lot of positive driving
forces factors which boosted this segment. Increasing number of population of youths,
Growing population, easy availability of vehicles, Increasing per capita income of
middle class, availability of loans from various banks & financial institutions,
increasing competition made this segment very energetic and evergreen.
The two wheelers registered a growth of only 3.12 percent during April-September
2012. Scooters and Mopeds grew by 20.46 percent and 0.80 percent respectively. In
April-September 2012 Motorcycles declined by -0.79 percent over same period last
year. However in September 2012, Motorcycles and Mopeds registered negative
growth at (-18.85) and (-10.36) percent respectively over September 2011.
According to Society of Indian Automobile Manufacturer, the Market Share of Two
wheeler segment in the year 2010-11 was 76 percent and the Market Share in the year
2011-12 was 77.32 percent. It is expected that the market for two wheelers in India is
expected to reach 30 million.103
One of the vital characteristics of Indian automobile sector regarding two wheeler is
India’s two wheeler market is the second largest two wheeler market in world.
45
Because of its fuel efficiency, easy availability, Majority of Indians especially, the
youngsters prefer Motorcycles rather than Cars. At present there are lots of renowned
companies who have captured the major market share of Indian automobile market
like Bajaj Auto, TVS Motors, Hero Motors (Earlier Hero Honda), Honda, Yamaha,
Royal Enfield, Mahindra, Suzuki, Yo-bike (Electric Two wheeler).
Presently, the available models in Two Wheeler market are Bajaj Pulsar, Discover,
Hero Motor’s Splendor Plus, TVS Apache, Wego, Suzuki Zeus, Access, Honda
Shine, Activa, Yamaha RTZ, Mahindra Rodio, are the top selling two wheelers.
The
Two
Wheeler
market
is
segmented
in
four
categories
namely
Scooters/Scooterate, Motorcycles, Mopeds and Electric Two Wheelers. According to
Society of Indian Automobile Manufacturer,
The Scooter/Scooterettee segment is categorized as followsA1: Engine Capacity < 75 cc
A2: Engine Capacity greater than and equal to 75 cc but < 125 cc,
A3: Engine Capacity greater than and equal to 125 cc but < 250 cc,
The Motor Cycles segment is categorized as followsB1: Engine Capacity < 75 cc
B2: Engine Capacity greater than and equal to 75 cc but < 125 cc
B3: Engine Capacity greater than and equal to 125 cc but < 250 cc
B4: Engine Capacity greater than and equal to 250 cc.
And C: about Moped, Engine Capacity < 75 cc and with fixed transmission, big
wheel- size >12”, Engine Capacity < 75 cc Mopeds.104
The following chart depicts the segmentation of Two Wheeler industry.
46
Chart 1.8: Segmentation of Two Wheeler
Scooters / Scooterate
Motorcycle
Two Wheeler
Segmentation
Mopeds
Electric Two Wheelers
Source: Society of Indian Automobile Manufacturers (SIAM)
In India, there is huge demand for two wheelers and the Indian two wheeler market is
very booming market.
The following table highlights the sales of two wheeler including export during 19972008.
Table 1.21: Sales (Inclusive of Exports) of two wheeler (In Numbers)
Year
Scooters
Two Wheelers (Calendar Year)
Motorcycles
Mopeds
Electric Two
Wheelers
1997
1,276,832
1,083,919
646983
-------------
1998
1,291,356
1,302,788
668765
-------------
1999
1,281,285
1,662,692
702,258
-------------
2000
1,013,737
2,122,489
731,548
-------------
2001
897,223
2,675,086
527,516
-------------
2002
867,378
3,691,464
386,066
-------------
2003
888,164
4,151,272
328,514
-------------
2004
999,675
4,996,863
347,829
--------------
2005
970,409
5,951,221
367,894
---------------
2006
966,855
7,015,137
384,852
22,421
2007
1,075,601
6,633,529
427,237
21,911
2008
1,142,545
6,754,238
438,086
24,196
Source: Society of Indian Automobile Manufacturers (SIAM) (2008-09)
47
The above table disclosed that, in Scooters section, the year 2008 by selling 1,142,545
Scooters, registered growth of 6.22 percent over year 2007, whereas in Motorcycle
segment the year 2007 recorded negative growth of (-) 5.43 percent over 2006. In
Moped segment the year 2008 recorded growth of 2.53 percent over last year i.e 2007.
In 2008, the total sales of Moped segment was 4,38,086 vehicles.
The total sale of Electric two wheelers in year 2008 was 24,196 vehicles i.e. year
2008 saw growth of 10.42 percent over 2007. Presently Yo bikes are quite popular
among Electric two wheeler segment & have captured good market share in the
Indian automobile market.105
The following table shows the production trend of two wheelers during 2004-05 to
2008-09.
Table 1.22: Two Wheeler Production Trend (In Numbers)
Segment
2004-05
2005-06
2006-07
2007-08
2008-09
Scooter/
Scooterettee
987,498
1,021,013
943,944
1,074,933
1,157,432
(3.39 %)
(-7.54 %)
(13.87 %)
(7.67 %)
Motor Cycles
5,193,894
6,207,690
7,112,281
6,503,532
6,801,964
(19.51 %)
(14.57 %)
(-8.55 %)
(4.58 %)
379,994
379,987
430,827
435,513
(9.05 %)
(-0.0018)
(13.37 %)
(1.08 %)
-------
30,454
17,389
23,717
(-42.90 %)
(36.39 %)
Mopeds
Electric Two
348,437
------
Wheelers
Source: Society of Indian Automobile Manufacturer (SIAM) (2008-09)
Note: The figures shown in brackets indicate percentage change over the previous year.
The above table disclosed that in year 2008-09 the production of Motorcycle was
6,801,964 vehicles i.e year 2008-09 recorded growth of 4.58 percent over 2007-08. In
Scooter/Scooterettee segment the year 2006-07 registered negative growth of (-) 7.54
percent over 2005-06.
It was also revealed that in Moped segment there was steady growth since year 200405 until year 2008-09 except year 2006-07. In the year 2008-09 the total production of
Mopeds was 435,513 i.e year 2008-09 recorded growth of 1.08 percent over 2007-08.
48
In Electric Two Wheelers segment, it was noticed that the production was decreased
in year 2007-08 & this year registered negative growth of (-) 42.90 percent over 200607. 106
The following chart depicts the market share of domestic sales of scooter/scooterettee
for year 2009-10 and 2010-11.
Chart 1.9: Market Share of Scooter/Scooterettee (Domestic Sales)
(April-March) (In %)
21.61
20.47
TVS Motor Company Ltd
11.12
9.64
Suzuki Motorcycle India Pvt Ltd
7.65
4.79
Mahindra Two Wheelers Ltd
43.08
Honda Motorcycles & Scooter
India
16.54
14.25
Hero Honda Motors Ltd
2010-11
2009-10
50.59
0
0.26
Bajaj Auto Ltd
0
20
40
60
Source: Society of Indian Automobile Manufacturers (2010-11) (Report VII)
The above chart disclosed that in year 2010-11, Honda Motorcycles & Scooter India’s
market share in domestic sales was decreased as compared to its market share of
previous year. Honda Motorcycle’s markets share in year 2010-11 was 43.08 percent
whereas in year 2009-10, its market share was 50.59 percent.
In 2010-11, TVS Motor Company Ltd & Hero Honda Motors Ltd secured second and
third position followed by Honda Motorcycles & Scooter India. It was noticed that in
year 2010-11 the market share of TVS Motor in domestic sales was 21.61 percent
whereas the market share of Hero Honda Motor was 16.54 percent.
It was also noticed that Bajaj Auto Ltd’s market share in year 2010-11 was 0.00
percent whereas Bajaj’s market share in year 2009-10 was 0.26 percent. 107
49
The following chart depicts the market share of domestic sales of Motorcycles for
year 2009-10 and 2010-11
Chart 1.10: Market Share Analysis of Motorcycles (Domestic Sales)
(April-March) (In %)
7.01
TVS Motor Company Ltd
6.71
0.56
Suzuki Motorcycle India Pvt Ltd
0.65
0.6
Royal Enfield (Unit of Eicher Ltd)
0.68
0.06
Mahindra Two Wheelers Ltd
0
3.08
India Yamaha Motor Pvt Ltd
3.04
7.3
Honda Motorcycles & Scooter India
6.16
54.62
Hero Honda Motors Ltd
2010-11
Bajaj Auto Ltd
2009-10
58.49
26.77
24.27
0
10
20
30
40
50
60
70
Source: Society of Indian Automobile Manufacturers (SIAM)
The above bar chart disclosed that in year 2010-11, Hero Honda Motors Ltd secured
first position whereas in same year Bajaj Auto Ltd & Honda Motorcycles & Scooter
India secured second & third position. It was revealed that the market share of Suzuki
Motorcycles in year 2010-11 was declined as compared to 2009-10 & reached to 0.56
percent whereas the Market Share of TVS Motor Company in year 2010-11 was
improved and reached to 7.01 percent.
It was noticed that in the year 2010-11, the market share of Bajaj Auto Ltd was
improved & reached to 26.77 percent whereas the market share of Bajaj Auto in year
2009-10 was 24.27 percent. It was also disclosed that the market share of India
Yamaha Motor Pvt Ltd in year 2010-11 was little bit improved & reached to 3.08
percent over previous year. At a glance, the above chart shows that Hero Honda
Motors Ltd, Bajaj Auto Ltd and Honda Motorcycles & Scooter India (Pvt) were the
leading motorcycle companies who grabbed the major Market Share in year 201011.108
50
Government Policies Regarding Automobile Sector
The Indian automobile sector occupies prominent place on the canvas of Indian
economy. The automobile sector in India record sales of more than one million
Passenger cars per year. The automobile industry has shown its capability in exports
also. Today this industry has spread its wings not only in India but all over the world.
At present lot of successful Joint Ventures took place in India which is also
considered as one of the positive growth driver for Indian automobile industry. This
sector employs 450,000 people directly and 100,00,000 people indirectly.
Presently lot of national and multinational companies have set up their manufacturing,
assembling, research & tasting labs, in India. Also with an intention to boost the
Indian automobile sector few automobile clusters have been formed by government.
If we try to find out the basic reason why such development took place in India? We
would come to know that there is lot of impact of government policies on Indian
automobile sector. With an intention to boost this sector and made this sector alive the
government of India had taken lot of vital decisions, initiatives and framed new
automobile policies & altered it time to time.
In the pre 1985 era, the auto component sector was a protected market with high
import tariffs. Under modernization programme, for infusing fuel efficient
technologies and creating competition into the automobile industry, the government
of India made policy decisions in early 1980s. Modernization programme included
relaxations in new entries, imports of technology and machinery, foreign equity
collaboration etc. Due to this programme several Joint ventures were established
between the India and Japan.
There was a significant positive impact of modernization programme on the
development of India’s automobile industry. Due to this programme several vehicle
models available to the Indian customer were increased. Another positive impact of
this programme was the improvement in quality and product technology.109.
In the 1980s, the manufacturing of automobiles especially cars was subject to strict
licensing, restrictive tariff structure and there were very little scope for expansion. In
this era the India saw a successful collaboration i.e a Joint venture of Maruti Udyog
Ltd, India and Suzuki Corporation of Japan. In early 1985, the government of India
51
announced the policy of broad banding of licenses, under which vehicle
manufacturers could rework their licenses hitherto given for specific products like
Scooters, heavy motorcycles, light motorcycles, cars and Jeeps to cover an entire
category and firms were free to choose the mix of products in each category. This was
the first loosening of the draconian license system.
In the early 1990’s with liberalization, few more Japanese companies through
collaboration entered the commercial vehicle and two wheeler segments. In July
1991, the Indian automobile Industry was de-licensed with the announcement of the
new industrial policy. Also the passenger car industry was de-licensed in 1993 and in
this era the controls and protection came to an end. Curbs on capacity were done away
with, decrease in customs and excise duties which leads to affordability of vehicles.110
Few vital policy decisions of the liberalization package were de-licensing, 51 percent
FDI (Foreign Direct Investment) via automatic route, relaxations for critical imports
and suspension of local content requirements. Under this de-licensing policy the
automobile firms i.e companies were free to enter, expand, diversify and relocate
based on their judgments. After de-licensing of the cars in 1993, 17 new ventures had
come up out of which 16 were for manufacture of cars.
In 1980s, the Phased Manufacturing Programme introduced which required the
automotive firms to attain indigenization level of 95 percent, was dropped under the
liberalization regime. In general liberalization have raised the technological
competence level of Indian automobile sector.111
In order to give a boost to the growth in Automobile Sector, the Indian government
has taken several vital initiatives as followsAuto Policy 2002
In order to accelerate and sustain advancements in the automobile sector, the
department of Heavy Industry, Ministry of Heavy Industries and Public Enterprises
has undertaken various policy measures and incentives. The most important being the
announcement of the ‘Auto Policy’ 2002, which aims to establish a globally
competitive automotive industry in India and double its contribution to the economy
by 2010.
The policy seeks to set out the direction of growth for the sector and promote
52
Research and Development therein so as to ensure continuous up gradation of
technology along with building up of better designing capacities. It also emphasizes
on low emission fuel auto technologies and availability of appropriate auto fuels in
order to take auto manufacturing to a self sustaining level. 112
The prime objectives of Auto policy 2002 were:
•
To promote a globally competitive automotive industry & emerge as a global
source for auto components.
•
To exalt the sector as a lever of Industrial growth and employment and to
achieve a high degree of value addition in the country.
•
To Establish an international hub for manufacturing small, affordable
passenger cars and a key center for manufacturing Tractors and Two-wheelers
in the world;
•
To conduce incessant modernization of the industry and facilitate indigenous
design, research and development;
•
Development of domestic safety and environmental standards at par with
international standards.
•
To steer India’s software industry into automotive technology.113
The Auto Policy, 2002 recognizes the need to provide direction to the growth and
development of the automotive industry. As a result of constant persuasion by the
Department of Heavy Industry (DHI), few objectives of the Auto Policy have been
achieved. Imposition of excise duty on body building activity of commercial vehicles,
lower excise duty on the Small cars, extension of 150 percent weighted deduction on
Research & Development expenditure to the automotive sector; increased budgetary
allocation for Research & Development activities in the sector and moving towards a
lower duty regime are some of the significant achievement and steps are being taken
to further strengthen the capability of the sector. 114
National Automotive Testing and Research & Development Infrastructure
Project (NATRIP)
With an intention to boost the Indian automotive industry, the government approved
National Automotive Testing and Research & Development Infrastructure Project in
year 2005. The NATRIP project aims to create core global competencies in
53
automotive sector and facilitate its integration with the world economy.
The NATRIP project seeks to develop ‘state of the art testing’, validation and
Research & Development infrastructure in the country with a view to support the
growth and development effort of the automotive industry to reach international
levels. NATRIP is also slated to make a significant contribution to improving the road
safety scenario in the country.
India, accounting for nearly 10 percent of global road facilities, loses more than
80,000 human lives every year in road accidents. These accidents cost the national
economy in excess of Rs.55,000 crore annually as per an estimate by the planning
commission. NATRIP is also aimed to ensure better safety and performance profile of
vehicles. NATRIP envisages setting up of world-class and homologation facilities in
India with a total investment of Rs.1,718 crore within the three automotive hubs of the
country. Those hubs are Manesar in Northern India; Chennai in Southern India; and
Ahmednagar and Pune in Western India. 115
The NATRIP envisages setting up the following broad facilitiesa)
A full-fledged testing and homologation centre called the International Centre
for Automotive Technology (ICAT), within the northern hub of automotive
industry at Manesar in the state of Haryana was set up in 2006. ICAT, Manesar,
is working dedicatedly to materialize its objective of providing world class
support and services including design, homologation, testing, validation and
research for the automotive industry including component industry.116
b)
A full-fledged testing and homologation centre called G-ARC (Global
Automotive Research Centre, Chennai) within the southern hub of automotive
industry at Oragadam, near Chennai, Tamil Nadu.
This centre is having
facilities to conduct a full spectrum of homologation and performance testing of
automobiles ranging from two and three wheelers to heavy commercial vehicles.
This centre is also having centre of Excellence for Passive Safety, ElectroMagnetic Compatibility (EMC) and Infotronics. 117
c)
Comprehensive up gradation of existing testing and homologation facilities in
the western hub at Automotive Research Association of India (ARAI), Pune and
at Vehicle Research and Development Establishment (VRDE), at Ahmednagar
in Maharashtra. The ARAI is one of the premier testing facilities of the country
54
which carries out more than 90 percent of the India’s homologation activities
presently.
d)
A world-class proving ground (NATRAX- The National Automotive Test
Tracks) on more than 4,000 acres of land at Pithampura, near Indore in Madhya
Pradesh;
e)
A Centre for Testing of Tractors and Off-Road Vehicles in the Northern region
of the country, with national facility for accident data analysis and specialized
driving training at Rae Bareilly in Uttar Pradesh; and
f)
A Specialized hill Area Driving Training Centre and an In-Use Vehicle
Management Centre in the North Eastern region at Silchar in Assam. 118
Automotive Mission Plan (2006-2016)
With an objective to improve the automobiles in the Indian domestic market, to
provide world class facilities of automotive testing and certification and to ensure a
healthy competition among the manufacturers at a level playing field the Ministry of
Heavy Industry in consultation with the industry, the planners, the academia and
stakeholders formulated the Automotive Mission Plan 2006-2016.
This plan has been formulated with a vision, “To emerge as the destination of choice
in the world for design and manufacture of automobiles and auto components with
output reaching a level of US$ 145 billion accounting for more than 10 percent of the
GDP and providing additional employment to 25 million people by 2016.
This plan consists of developing a supply base in terms of manpower and technical
capabilities, achieving economies of scale and lowering costs, overcoming
infrastructural problems. This plan also speaks about stimulating domestic demand
along with future challenges of Indian automobile sector.
The Automotive Mission Plan has recommended some vital interventions for growth
of this sector as follows:
55
Recommended Interventions by Automotive Mission Plan (2006-16)
a)
Investment
Appropriate Tariff Policy will be followed to attract more investment. Some of
the specific policies, that industry has requested for consideration include-
•
Tax holiday for Automotive Industry for investment exceeding Rs.500 crore (as
given to Power projects, firms engaged in exports, Infrastructure projects)
•
Tax deductions of 100 percent of export profits
•
Deduction of 30 percent of net (total) income for 10 years for new industrial
undertakings.
•
Concession of import duty on machinery for setting up of new plant or capacity
expansion
b) Infrastructure
Infrastructure plays vital role in the development of any industry. Infrastructure
should keep pace with growth in the manufacturing sector and trade.
For Road Infrastructure-
•
Developing urban transportation system, flyovers etc, with cohesive integration
of urban transport including Bus Rapid Transit Systems, Infrastructure and land
use policies.
•
Arresting delays in completing planned road development.
•
Ensuring last mile connectivity between ports and auto hubs.
•
Better connectivity and streamlining procedures for border trade
For Rail Infrastructure-
•
Developing a comprehensive blueprint for railway development on the
lines of NHAI/NHDP
•
Develop faster rail connectivity between dry ports and sea ports.
For Port Infrastructure-
•
Creation of specialized port infrastructure for handling vehicle exports as for
India it is must to become a global automotive hub.
•
Creation of three automobile export hubs near Mumbai, Chennai and Kolkata,
each equipped to handle output of 5 lakh vehicle annually by 2015.
56
•
Execution of port connectivity of the five automotive hubs with JNPT, Mumbai,
Kolkata and Chennai ports on priority.
c) Exports to be encouraged.
d) National Road Safety Board to act as the coordinating body for promoting
safety.
e) Policy initiatives for competitiveness and development of technology would be
taken
f) Centers for automotive manufacturing excellence to be created
g) NATRIP to act as Centre of Excellence for Technical Design Data
h) Setting up of virtual SEZ (Special Economic Zone) and Auto Parks for auto
component industry would be considered. 119
Marathwada Region
The Marathwada Region is one of the important regions of Maharashtra State.
Marathwada consists of eight districts namely Aurangabad, Jalna, Beed, Osmanabad,
Latur, Hingoli, Parbhani & Nanded.
Cotton is the economic backbone of Marathwada Region. In the past few years, the
industrial growth in Marathwada has been accelerated. Skoda and Audi have
manufacturing plants at Aurangabad. Hindalco, Parle, Siemens, and Radico have
started their major projects in Marathwada.
Videocon International Ltd, Apollo Tyres, Garware Polyster, Sterlite Industries,
Wockhardt Industries, Lupin Chemicals, Nirlep Industries Nath Group, Colgate
Palmolive, Endress Houser, Ajanta Pharma, BDA, Ceekay Daikin, Crompton
Greaves, Mahyco Seeds Ltd, Rajuri Steel Ltd, Kalika steel Ltd, NRB Bearings Ltd,
Varroc, Dagerforst, SABMiller India, Johnson & Johnson, PepsiCo, Goodyear have
been playing a significant role in the development of the region. 120
Marathwada is also called as education hub. Dr.Babasaheb Ambedkar Marathwada
University, Aurangabad is one of the oldest & renowned universities in this region.
Also Swami Ramanand Teerth Marathwada University, Nanded is the young but
popular universities in Marathwada region.
Aurangabad is the headquarter of Marathwada region. Aurangabad is not only called
Asia’s fast development city but is major industrial city in Maharashtra.121
57
Aurangabad is now classic example of efforts of state government towards balanced
industrialization of state. The Shendra (Five star MIDC), Chikalthana and Waluj
MIDC industrial areas are prominent industrial zones on the outskirts of the city, with
various major multinational groups having set up manufacturing or processing plant
in and around the city.
Aurangabad is a historical city surrounded by various historical places like Ajanta
Caves, Ellora, Bibi ka Makbara, Devgiri (Daulatabad) fort etc. Presently, Aurangabad
is also declared as Tourist Capital of Maharashtra. The city is a major silk and cotton
textile production centre along with many winery and bottling plants. Paithani silk
saris are made in Paithan, Aurangabad.
Aurangabad also has 5 star hotels like ITC Welcome group’s The Rama International,
The Ajanta Ambassador, The Taj Residence, The Lemon tree (formerly the President
Park) and the Aurangabad Gymkhana, etc.122
With an intention to support & motivate the small scale entrepreneurs, Chamber of
Marathwada Industries & Agriculture, Marathwada Association of Small Scale
Industries and Agriculture and Maharashtra Centre for Entrepreneurship Development
(MCED) are working continuously.
Recently, Aurangabad became the third city in Maharashtra (after Pune & Nashik) to
host an auto cluster namely Marathwada Auto Cluster (MAC). This auto cluster have
catered to more than 1,200 ancillary and engineering units and generated lot of
jobs.123
According to statistical book 10-11 of Maharashtra Transport, the Marathwada
Region is basically divided in three regions as follows (Refer Appendix-I, Table
No.11)
•
Aurangabad Region
•
Latur Region
•
Nanded Region
The following table clearly depicts the districts & major taluka’s comes under
Aurangabad RTO Region.
58
Table 1.23: RTO offices under Aurangabad Region
Code No
Name of Office
20
Aurangabad
21
Jalna
23
Beed
Region
Aurangabad Region
Source: Motor Transport Statistics of Maharashtra, 2010-2011 (www.mahatranscom.in)
In the above table the code number is the common vehicle passing code applicable
for all the vehicles in that concerned district.
The following table focuses on the district and major taluka’s fall under Latur RTO
region.
Table 1.24: RTO offices under Latur Region
Code No
Name of Office
24
Latur
25
Osmanabad
44
Ambejogai
Region
Latur Region
Source: Motor Transport Statistics of Maharashtra, 2010-2011 (www.mahatranscom.in)
The following table focuses on the district and major taluka’s fall under Nanded RTO
region. The code number in the table is the common vehicle passing code applicable
for all the vehicles in that concerned district.
Table 1.25: RTO offices under Nanded Region
Code No
Name of Office
26
Nanded
22
Parbhani
38
Hingoli
Region
Nanded Region
Source: Motor Transport Statistics of Maharashtra, 2010-2011 (www.mahatranscom.in)
The above three RTO regions (covering eight districts) can clearly seen in the
following map of Marathwada Region.
59
Map 01: Marathwada Region
Source: mapsofindia.com
The following table depicts the motor vehicles on road as on 31st March, during 2006
to 2011 in Aurangabad Region (office wise & year wise) (Refer Appendix-I, Table
No.11)
Table 1.26: Motor Vehicles on Road in Aurangabad Region (Vehicle in Number)
Code
Name of
No
Region
20
Aurangabad
21
23
2006
2007
2008
2010
2011
398015 441933 489450 534077
583027
634909
Jalna
83150
100280 126887
141055
162934
Beed
106387 113688 121734 129271
138039
148250
Aurangabad
587552 648212 711464 790235
862121
946093
9.09
9.74
92591
2009
Region (Total)
% increase or
decrease over
previous year
--
10.32
9.76
11.07
Source: Motor Transport Statistics of Maharashtra, 2010-11
The above table disclosed that, in year 2011, Aurangabad region registered 6,34,909
motor vehicles on road whereas in same region (office) 5,83,027 motor vehicles were
60
on road in year 2010 i.e Aurangabad region (RTO office) registered growth of 8.89
percent in year 2011 over 2010.
It was noticed that, in year 2011, Jalna region registered 1,62,934 motor vehicles on
road & recorded growth of 15.51 percent over year 2010 whereas the Beed Region
recorded growth of 7.39 percent in year 2011 over 2010.
It was also disclosed that, as far as overall motor vehicle registration is concerned, in
year 2009, Aurangabad region (total) registered growth of 11.07 percent over 2008.
The year 2010 recorded growth of 9.09 percent over year 2009 whereas the year 2011
registered growth of 9.74 percent over year 2010. In year 2011, Aurangabad region
(total) registered 9,46,093 motor vehicles on road.
The following table depicts the motor vehicles on road as on 31st March, 2006 to 2011
in Latur Region (office wise & year wise) (Refer Appendix-I, Table No.11)
Table 1.27: Motor Vehicles on Road in Latur Region (Vehicle in Number)
Code
Name of
No
Region
2006
2007
2008
2009
2010
2011
24
Latur
118083 134196
145933
161082 190225
214757
25
Osmanabad
59036
68486
79526
88688
99422
114102
44
Ambejogai
8156
18057
24964
30018
38249
48714
185275 220739
250423
279788 327896
377573
Latur
Region (Total)
% increase or
decrease over
previous year
--
19.14
13.45
11.73
17.19
15.15
Source: Motor Transport Statistics of Maharashtra, 2010-11
From the above table it was disclosed that, Latur region registered 2,14,757 motor
vehicles on road in year 2011 whereas in same region 1,90,225 vehicles were on road
in year 2010 i.e Latur region, in year 2011 registered growth of 12.89 percent over
2010.
In year 2011, Osmanabad region recorded growth of 14.76 percent over 2010,
whereas the Ambejogai region by registering 48,714 vehicles on road recorded
growth of 27.36 percent in year 2011 over 2010.
61
As far as overall motor vehicle registration is concerned it was noticed that, Latur
region in year 2007 recorded growth of 19.14 percent over 2006. The year 2009
registered growth of 11.73 percent over year 2008 whereas in year 2011, overall Latur
region has registered 3,77,573 motor vehicles on road and recorded growth of 15.15
percent over 2010. It was observed that in overall Latur region, the motor vehicle
population gradually increased during 2006 to 2011.
The following table illustrates the motor vehicles on road registered as on 31st March,
during 2006 to 2011 in Nanded Region (Refer Appendix-I, Table No.11)
Table 1.28: Motor Vehicles on Road in Nanded Region (Vehicle in Number)
Code
Name of
No
Region
2006
2007
2008
2009
2010
2011
26
Nanded
121526
135485
149349
162051
182123
209153
22
Parbhani
66413
76462
84835
93241
105660
125885
38
Hingoli
41607
46405
54772
62406
69476
77675
229546
258352
288956
317698
357259
412713
--
12.55
11.85
9.95
12.45
15.52
Nanded Region
(Total)
% increase or
decrease over
previous year
Source: MotorTransport Statistics of Maharashtra, 2010-11
From the above table it was disclosed that in year 2011, the total motor vehicles on
road in Nanded RTO region were 2,09,153 whereas Nanded region recorded 1,82,123
vehicles on road in year 2010 i.e in year 2011, Nanded region registered growth of
14.84 percent over 2010.
In year 2011, Parbhani region registered 1,25,885 vehicles on road and recorded
growth of 19.14 percent over 2010 whereas in year 2011 the Hingoli region registered
77,675 motor vehicles on road and recorded growth of 11.80 percent over 2010.
As far as overall motor vehicle registration is concerned, it was observed that, in year
2007 overall Nanded region recorded growth of 12.55 percent over 2006 whereas this
region in year 2010 registered growth of 12.45 percent over 2009. It was disclosed
that, in overall Nanded region 4,12,713 motor vehicles were registered on road in year
62
2011 i.e in year 2011, overall Nanded region recorded growth of 15.52 percent over
2010.124
The details of office wise, region wise and category wise motor vehicle population on
road as on 31st March, 2011 of Aurangabad, Latur & Nanded region (RTO)
(Marathwada Region) can be seen in Appendix-II, III and IV, Table No.13
respectively.
On the basis of above discussions few observations are summarized as follows1. It was observed that the Indian automobile sector is one of the core industries of the
Indian economy, whose prospect is reflective of the economic resilience of the
country. After de licensing in 1991 and approval of 100 percent FDI, the Indian
automobile sector has grown at a spectacular rate. Presently the automobile industry is
providing direct and indirect employment to 1.31 crore people.
2. It was noticed that the Indian automobile sector has segmented in four categories i.e
passenger cars, commercial vehicles, two wheelers and three wheelers. India’s
passenger car and commercial vehicle manufacturing industry is the sixth largest in
the world, in 2011. In commercial vehicle segment, Tata motors occupied prominent
place recording near about 64 percent market share whereas Maruti Suzuki is the
leading vehicle manufacturer in India with a market share of 46 percent.
3. It was revealed that the Indian automobile sector has been performing well not only in
domestic sales, but also in Export, Import and Production just because of few vital
growth drivers like growth in road infrastructure, rise in per capita income, rising
working and middle class, urbanization, favorable government policies, easy
availability of finance from banks, availability of ample raw material, changing
lifestyle, presence of strong industry associations (like SIAM, FADA, ARAI) etc.
4. It was disclosed that with an intention to promote & boost the Indian automobile
sector, the government of India has taken several initiatives and policies like
Modernization Programme, Phased Manufacturing Programme, Auto Policy 2002,
NATRIP Project, Automotive Mission Plan 2006-2016 etc. Also it has been noticed
that the Indian automobile industry has grown in clusters of interconnected
companies. The major clusters are in and around Manesar in North, Pune in West,
Chennai in South, Jamshedpur Kolkata in East and Indore in central India.
63
5. According to the report of Society of Indian automobile manufacturer, it was noticed
that, the domestic sales of passenger cars grew by 2.19 percent whereas utility vehicle
segment grew by 16.47 percent during April 2011 to March 2012. It was observed
that the overall commercial vehicle segment recorded growth of 18.20 percent during
April-March 2012 as compared to April-March 2011 whereas the domestic sales of
three wheeler vehicles recorded a decline of 2.43 percent in April-March 2012 over
April-March 2011. The domestic sales of two wheeler vehicles recorded a growth of
14.16 percent during April-March 2012 over April-March 2011.
6. It was disclosed that, in commercial vehicle production the year 2011-12 registered
growth of 19.82 percent over 2010-11 whereas the passenger vehicle segment
registered growth of 4.71 percent in year 2011-12 over 2010-11. It was also observed
that the two wheeler production in year 2011-12 witnessed growth of 15.76 percent
over 2010-11 whereas in year 2011-12, by producing 8,77,711 vehicles, the three
wheeler segment recorded growth of 9.77 percent over previous year. (Table 1.7)
7. It was noticed that, in automobile export, three vehicle segment recorded growth of
34.41 percent in year 2011-12 over 2010-11 and the passenger vehicle segment
recorded growth of 14.17 percent in 2011-12 over 2010-11. In year 2011-12, the
commercial vehicle segment recorded growth of 25.14 percent over previous year
whereas the two wheeler segment recorded growth of 27.13 percent over 2010-11.
(Table 1.8)
8. It was observed that, according to Maharashtra Transport statistical book 10-11,
Marathwada region is divided in three regions namely Aurangabad region, Latur
region and Nanded region. As far as Aurangabad region was concerned, it was
noticed that, in year 2011, the motor vehicles registered as on 31st March was
9,46,093 i.e the year 2011 saw increase of 9.74 percent over 2010 (Table 1.26). It was
also noticed that in Latur region, the motor vehicles registered in year 2011 was
3,77,573 i.e the year 2011 recorded growth of 15.15 percent over 2010 (Table 1.27).
Also in Nanded region, the year 2011 recorded growth of 15.52 percent over 2010 by
registering 4,12,713 vehicles (Table 1.28).
Due to continuous growth of automobile sector, experts predict that this industry is
poised to enhance its contribution from 5 percent of GDP in 2006 to 10 percent in
2016.
64
Select References
1. Hoffenstein, S. (2011). Samuel Hoffenstein Quotes. Retrieved February
2012, from Successories: www.successories.com/quote/author
2. Bellis, M. (2009). The Invention of the Wheel. Retrieved January 2010,
from About.com inventors: inventors.about.com
3. Ibid
4. Harris, A. (2008). Invention of the Wheel. Retrieved December 2009, from
Hub Pages: angelaharris.hubpages.com
5. Automobile. (2009). Retrieved February 2010, from
Wikipedia: en.wikipedia.org/wiki/automobile
6. Surveys. (2009) Retrieved January 2010, from India mart:
auto.indiamart.com/surveys
7. Birth, Death & Rebirth of the automobile. (2010, March 8). Retrieved
June 2010, from Carazoo: www.carazoo.com
8. History of the Automobile. (2009). Retrieved December 2009, from
Wikipedia: en.wikipedia.org/wiki
9. Narang, G. (2001). Invention of Automobile. Automobile Engineering (8th
Edition ed., pp. 1-2). Khanna publication.
10. Carl Benz Biography. (2006). Retrieved November 2009, from
Book Rags: http://www.bookrags.com/biography/carl-benz
11. History of the Automobile. (2009). Retrieved November 2009, from
Wikipedia: en.wikipedia.org/wiki
12. Narang, G. (2001). Invention of Automobile. Automobile Engineering
(8 th Edition ed., pp. 2-3). Khanna publication.
,
13. Bellis, M. (2009). The History of the Automobile, Retrieved January
2010, from About.com inventors: www.inventors.about.com
14. Nicolette. (2013, February 27). Car Evolution. Retrieved March 2013,
from Google Drive Bus118:
http://googledrivebus118.wordpress.com/2013/02/27/car-evolution
15. History of the Automobile. (2009). Retrieved April 2010, from
Wikipedia: http://en.wikipedia.org
16. Internal Combustion Engine. (2010). Retrieved September 2010, from
Oracle Think Quest: http://library.thinkquest.org
17. Narang, G. (2001). Invention of Automobile. Automobile Engineering
(8 th Edition ed., pp. 2-3). Khanna publication.
18. Bottorff, W.W. (2010). What was the First Car? A Quick History of
Automobile for Young People. Retrieved October 2010, from Austin
Business Computers: http://www.ausbcomp.com
19. Automobile Eras. (2008). Retrieved October 2010, from
Classic Cars Global: http://classiccarsglobal.com
65
20. Garvery, N.L. (2011, November 18). Veteran Era Cars. Retrieved
January 2012, from http://nlg-steampunk.blogspot.in
21. John. (2012, July 16). The history of the Automobile. Retrieved August
2012, from Hubpages: http://johnb0127.hubpages.com
22. Duryea, F., & Duryea, C. (2009). The First Automobile, Retrieved
October 2010, from Cajundude: http://www.cajundude.com
23. History of the Automobile: Brass Era Car. (2010). Retrieved October
2010, from Wikipedia: en.wikipedia.org
24. Tony, & Hamer, M. (2010). Classic Cars: Vintage Automobiles 1916
Through 1924. Retrieved November 2010, from About.com:
http://classiccars.about.com
25. Pre World War-II cars 2010, December). Retrieved January 2011, from
http://www.vintagecarsforsaleuk.com,
26. History of the Automobile: Pre World War–II Era. (2010, December).
Retrieved January 2011, from Wikipedia: http://en.wikipedia.org/wiki
27. History of the Automobile: Post War Era. (2010, December). Retrieved
January 2011, from Wikipedia: http://en.wikipedia.org/wiki
28. John. (2012, July 16). The history of the automobile. Retrieved August
2012, from Hub pages: http://johnb0127.hubpages.com/hub
29. Petersen, D.E. (2011). Automobile. Retrieved March 2011, from The
Great Engineering Achievements: http://www.greatachievements.org
30. ibid
31. History of the Car. (n.d) . Retrieved January 2011, from
Anti Essays: http://www.antiessays.com
32. Gautam, N. (2012, April 1). Green & Hybrid Vehicles. Auto car
Professional, VIII (8), pp.58-59.
33. The Financial Express, New Delhi. (2012, August 30). Govt approves
$4.1 bn green vehicle plan. Retrieved October 2012, from The Financial
Express: http://www.financialexpress.com
34. Lokhande, M.A., & Rana, V.S. (2012). Indian Automobile Sector: on top
Velocity. International Journal of Research and Development, I(1), 7-8.
35. Ghosh, R. (2011). Drives of a Green future. Auto Bild (23), 48-53.
36. Narain, R. (2006). Segmentation, and the Indian Automobile Industry.
Retrieved December 2010, from Nottingham eDissertations:
http://edissertations.nottingham.ac.uk/791/1/06MAlixrn3.pdf.
37. Global Automotive Industry. (2010). Retrieved March 2011, from
Report Linker: http://www.reportlinker.com
38. Naidu-Ghelani, R. (2011, September 12). World’s 10 largest Auto
Markets. Retrieved December 2011, from CNBC: www.cnbc.com
66
39. Ministry of Heavy Industry-Government of India. (2012). Report of the
working group on Automotive sector for the 12th five year plan 20122017. Retrieved October 2012, from Department of Heavy Industries &
Public Enterprises: http://www.dhi.nic.in
40. 2011 World Car Sales Statistics-An Infographic. (2011). Retrieved
February 2012, from Olathe Toyota: http://parts.olathetoyota.com
41. 2011 Production Statistics. (2011). Retrieved March 2012, from OICA:
http://oica.net
42. India automobiles. (2011, January 18). Retrieved November 2011, from
Facts About India: http://www.factsaboutindia.org
43. Burange, L.G., & Yamini, S. (2008, February). Competitiveness of firms
in Indian Automobile Industry. Working paper UDE (CAS)
23/(8)/1/2008, Department of Economics, University of Mumbai.
44. Bhargava, R.C., & Seetha. (2010). Assembling a Dream. In The Maruti
Story (Seetha, Trans., pp.2-3). India: Harper Collins Publishers.
45. Indian Mirror. (2012, December 10). Indian Automobile Industry.
Retrieved February 2013, from Indian Mirror:
http://www.indianmirror.com/Indian-industries
46. Hans, M.H. (2010). The Indian Automotive Scenario-Past-Stable,PresentBright, Future-Promising! Retrieved March 2011, from Federation of
Automobile Dealers Association: http://www.fadaweb.com
47. Srinivasan, V. (2007, August 15). The Story of a Transformation.
Retrieved March 2010, from The Hindu (Online edition):
http://www.hindu.com
48. Pandya, V. A. (2011). A Comparative Analysis of Liquidity &
Profitability of Indian Car Industry, thesis PhD. Saurashtra University,
from http://etheses.saurashtrauniversity.edu/613
49. Bhargava, R.C., & Seetha. (2010). Assembling a Dream. In The Maruti
Story (Seetha, Trans., pp.3-4). India: Harper Collins Publishers.
50. Ranawat, M., & Tiwari, R. (2009, March). Influence of Government
Policies on Industry Development: The case of India’s Automotive
Industry. Working Paper No.57, Hamburg University of Technology,
Institute of Technology & Innovation Management, from
http://www.global-innovation.net
51. Sumantran, V., & Andrea, D.J. (1993, August). The Indian Automobile
Industry; a Primer describing its Evolution & Current State. Technical
Report, University of Michigan Transportation Research Institute,
from http://deepblue.lib.umich.edubitstream2027.pdf
52. Alvares, D. (2010, May 31). Indian Automobile Sector. Retrieved
October 2010, from EZineArticles: http://ezinearticles.com
53. Parhi, M. (2011). Dynamics of Inter firm Interactions in Indian
Automotive Industry: A Social Network Perspective. 7th Annual
Conference on Economic Growth and Development (pp.1-22). New
67
Delhi: Indian Statistical Institute, from http://www.isid.ac.in.pdf
54. Bhargava, R.C., & Seetha. (2010). Assembling a Dream. In The Maruti
Story (Seetha, Trans., pp.104-105). India: Harper Collins Publishers.
55. Khanak. (2006, November 29). Indian Auto Industry Timeline. Retrieved
December 2009, from TEAM-BHP: http://www.team-bhp.com
56. Timeline: India’s automotive industry. (2007, April 3). Retrieved
December 2009, from BBC News: http://news.bbc.co.uk
57. Khanak. (2006, November 29). Indian Auto Industry Timeline. Retrieved
December 2009, from TEAM-BHP: http://www.team-bhp.com
58. Chillibreeze. (2011). Evolution and Growth of Indian Auto Industry.
Retrieved 2012, from Chillibreeze: http://www.chillibreeze.com
59. Ranawat, M., & Tiwari, R. (2009, March). Influence of Government
Policies on Industry Development: The case of India’s Automotive
Industry. Working Paper No.57, Hamburg University of Technology,
Institute of Technology & Innovation Management, from
http://www.global-innovation.net
60. Chillibreeze. (2011). Evolution and Growth of Indian Auto Industry.
Retrieved 2012, from Chillibreeze: http://www.chillibreeze.com
61. Bhargava, R.C., & Seetha. (2010). Assembling a Dream. In The Maruti
Story (Seetha, Trans., pp.104-105). India: Harper Collins Publishers.
62. Ranawat, M., & Tiwari, R. (2009, March). Influence of Government
Policies on Industry Development: The case of India’s Automotive
Industry. Working Paper No.57, Hamburg University of Technology,
Institute of Technology & Innovation Management, from
http://www.global-innovation.net
63. Department of Heavy Industry, Government of India. (2006). Evolution
of Indian Automotive Industry: Automotive Mission Plan 2006-16.
Retrieved October 2011, from www.dhi.nic.in
64. Chillibreeze. (2011). Evolution and Growth of Indian Auto Industry.
Retrieved 2012, from Chillibreeze: http://www.chillibreeze.com/articles
65. Srikumar, U. J. (2007). The Auto Industry in India-Exploring New
Avenues and Horizons. In T.P.Rajmanohar (Ed.), Indian Automobile
Industry-an Introduction (1st Edition ed., p.16). The ICFAI University
press
66. Ranawat, M., & Tiwari, R. (2009, March). Influence of Government
Policies on Industry Development: The case of India’s Automotive
Industry. Working Paper No.57, Hamburg University of Technology,
Institute of Technology & Innovation Management, from
http://www.global-innovation.net
67. Mani, Rajan; (2007). The Growth of India’s Auto Industry. In
T.P.Rajmanohar (Ed.), Indian Automobile Industry-an Introduction (1st
Edition ed., p.08). The ICFAI University Press
68
68. Automotive Component Manufacturers Association of India. (2010).
Indian Auto Component Industry: an overview. Retrieved September
2011, from ACMA: http://acmainfo.com
69. Department of Heavy Industry, Ministry of Heavy Industries & Public
Enterprises, Government of India. (2006, August). Report of Working
Group on Automotive Industry, Eleventh five year plan 2007-2012.
Retrieved from www.dhi.nic.in
70. National Skill Development Corporation. (2009). Human Resource and
Skills Requirements in the Auto and Auto Components Sector. Retrieved
October 2010, from http://www.nsdcindia.org
71. Department of Heavy Industry, Ministries of Heavy Industries & Public
Enterprises, Government of India. (2011). Report of the Working Group
on Automotive Sector for the 12th five year plan 2012-2017. Retrieved
March 2012, from www.dhi.nic.in
72. Passenger vehicles sales grow 29% in 2010-11, set to overtake Brazil.
(2011, April 9). Retrieved December 2011, from Business Standard:
http://www.business-standard.com
73. Indian automotive industry growing from strength to strength. (2010,
December 11). Retrieved June 2011, from India Times:
http://timesofindia.indiatimes.com/business
74. India Overview. (2011). Retrieved October 2012, from The World Bank:
http://www.worldbank.org/en/country/india/overview
75. Indian Road Network. (2012). Retrieved February 2013, from National
Highway Authority of India: http://www.nhai.org/roadnetwork.html
76. Society of Indian Automobile Manufacturers. (2012). Overview of the
Automobile Industry; industry performance in 2011-12. Retrieved
December 2012, from SIAM: http://www.siamindia.com
77. Maruti, M&M prop up September car sales. (2012, October 2). Retrieved
December 2012, from Business Standard:
http://www.business-standard.com
78. Society of Indian Automobile Manufacturers. (2012). Domestic Sales
Trend, Export Trend & Production Trend. Retrieved December 2012,
from SIAM: http://www.siam.in
79. Menon, J. (2010, December 11). South Emerges Largest Auto Cluster
in India. Retrieved November 2011, from Sulekha:
http://automotivehorizon.sulekha.com
80. Venkatesh, M.R. (2012). Chennai has Emerged as India’s Detroit.
Retrieved December 2012, from Deccan Herald:
http://www.deccanherald.com
81. Bellman, E. (2010, July 8). A New Detroit Rises in India’s South. The
Wall Street Journal.
82. Bapat, S., Chaturvedi, A., Drewery, W., F.F., & Hepfer, E. (2012).
Microeconomics of Competitiveness, Tamil Nadu Automotive
69
Cluster Analysis. Project, Harvard Business School, Institute for Strategy
and Competitiveness.
83. Automotive Industry in India. (2011). Retrieved January 2012, from
Wikipedia: http://en.wikipedia.org/wiki
84. Ministry of Heavy Industries & Public Enterprises, Government of India.
(2006), Automotive Mission Plan (2006-2016)
85. Lokhande, M.A., & Rana, V.S. (2011). Scenario of Indian Automobile
Industry. Vision Research, I (1), 79-80.
86. The Automobile Component Manufacturing Industry; industry statistics.
(2012). Retrieved January 2013, from ACMA:
http://www.acmainfo.com
87. Domestic Market Share of Indian Automobile Sector. (2012). Retrieved
January 2013, from Society of Indian Automobile Manufacturers:
http://www.siam.in
88. Auto industry domestic sales down exports negative. (2012, October
10). Retrieved December 2012, from Society of Indian Automobile
Manufacturers: http://www.siamindia.com
89. Society of Indian Automobile Manufacturers 2008-09. (2010, January)
Passenger Cars. In Statistical Profile of Automobile Industry in India
(pp.12-13). New Delhi, India: SIAM.
90. Automobile Component Manufacturers Association. (2012). Cars
Production. Retrieved February 2013, from ACMA:
http://www.acmainfo.com
91. Society of Indian Automobile Manufacturers 2008-09. (2010, January).
Company wise Market Share, Summary Report. In Statistical Profile of
Automobile Industry in India (pp.134-135). New Delhi, India: SIAM.
92. Society of Indian Automobile Manufacturers. (2011, April 8). Market
Share Analysis of Passenger Cars. In Performance of the Automobile
Industry in India in 2010-11 (p.2). New Delhi, India: SIAM.
93. Society of Indian Automobile Manufacturers. (2011, April 8). Flash
Report for March 2011. In Performance of the Automobile Industry in
India in 2010-11 (p.3). New Delhi, India: SIAM.
94. Society of Indian Automobile Manufacturers. (2010, January). Market Share,
Summary Report. In Statistical Profile of Automobile Industry in India
2008-09 (pp.134-135). New Delhi, India: SIAM.
95. Society of Indian Automobile Manufacturers. (2011, April 8). Market
Share Analysis of Utility Vehicles, Report VII. In Performance of the
Automobile Industry in India in 2010-11 (p.3). New Delhi, India: SIAM.
96. Society of Indian Automobile Manufacturers. (2011, April 8). Market
Share Analysis of Multi Purpose Vehicles, Report VII. In Performance
of the Automobile Industry in India in 2010-11 (p.4). New Delhi, India:
SIAM.
70
97. Society of Indian Automobile Manufacturers. (2010, January).
Company Wise Market Share. In Statistical Profile of Automobile
Industry in India 2008-09 (pp.138-139). New Delhi, India: SIAM.
98. Auto industry domestic sales down exports negative. (2012, October
10). Retrieved December 2012, from Society of Indian Automobile
Manufacturers: http://www.siamindia.com
99. Society of Indian Automobile Manufacturers. (2011, April 8). Market
Share Analysis of Commercial Vehicles, Report VII. In Performance
of the Automobile Industry in India in 2010-11 (p.5). New Delhi, India:
SIAM.
100. Light Commercial Vehicles Production. (2011). Retrieved December
2012, from ACMA: http://www.acmainfo.com
101. Society of Indian Automobile Manufacturers. (2011, April 8). Market
Share Analysis of Medium and Heavy Commercial Vehicles (Goods
Carrier), Report VII. In Performance of the Automobile Industry in
India in 2010-11 (p.7). New Delhi, India: SIAM.
102. Society of Indian Automobile Manufacturers. (2011, April 8). Three
Wheelers. In Performance of the Automobile Industry in India in 201011 (p.10). New Delhi, India: SIAM.
103. Auto industry domestic sales down exports negative. (2012, October
10). Retrieved December 2012, from Society of Indian Automobile
Manufacturers: http://www.siamindia.com
104. Society of Indian Automobile Manufacturers. (2010, January).
Statistical Profile of Automobile Industry in India 2008-09 (pp.116117). New Delhi, India: SIAM.
105. Society of Indian Automobile Manufacturers. (2010, January).
Sales (Inclusive of Exports) of Vehicles. In Statistical Profile of
Automobile Industry in India 2008-09 (pp.4-5). New Delhi, India:
SIAM.
106. Society of Indian Automobile Manufacturers. (2010, January).
Category Wise Production Trend. In Statistical Profile of Automobile
Industry in India 2008-09 (p.6). New Delhi, India: SIAM
107. Society of Indian Automobile Manufacturers. (2011, April 8). Market
Share Analysis (Scooter/Scooterettee), Domestic Sales, Report VII. In
Performance of the Automobile Industry in India in 2010-11 (p.14). New
Delhi, India: SIAM.
108. Society of Indian Automobile Manufacturers. (2011, April 8). Market
Share Analysis (Motorcycles), Domestic Sales. In Performance of the
Automobile Industry in India in 2010-11(p.15). New Delhi, India:
SIAM.
109. Ranawat, M., & Tiwari, R. (2009, March). Influence of Government
Policies on Industry Development: The case of India’s Automotive
Industry (pp.43-44). Working Paper No.57, Hamburg University of
71
Technology, Institute of Technology & Innovation Management, from
http://www.global-innovation.net
110. Chillibreeze. (2011). Evolution and Growth of Indian Auto Industry.
Retrieved 2012, from Chillibreeze: http://www.chillibreeze.com/articles
111. Ranawat, M., & Tiwari, R. (2009, March). Influence of Government
Policies on Industry Development: The case of India’s Automotive
Industry (pp.46-47). Working Paper No.57, Hamburg University of
Technology, Institute of Technology & Innovation Management, from
http://www.global-innovation.net
112. Automobile Industry. (2011). Retrieved August 2012, from Business
Portal of India: http://business.gov.in
113. Department of Heavy Industry, Ministry of Heavy Industries and Public
Enterprises, Government of India, New Delhi. (2002, March). Auto
Policy. Retrieved October 2010, from http://dhi.nic.in/autopolicy.aspx
114. Department of Heavy Industry, Ministry of Heavy Industries & Public
Enterprises, Government of India. (2006, August). Report of working
group on Automotive Industry, Elevanth Five Year Plan 2007-2012
(p.8). from Planning Commission: http://planningcommission.nic.in
115. Automobile Industry. (2011). Retrieved August 2012, from Business
Portal of India: http://business.gov.in
116. Ministry of Heavy Industry, Government of India. (2009). The facilities
at NATRIP Centers, Annual Report 2008-09 (p.14). Retrieved
November 2011, from National Automotive Testing and R&D
Infrastructure Project: http://www.natrip.in
117. National Automotive Testing and R&D Infrastructure Project,
Government of India. (2009). Global Automotive Research Centre,
Retrieved October 2011, from NATRIP: http://www.natrip.in
118. Ministry of Heavy Industries & Public Enterprises, Government of
India. (2012). Government of India, Outcome Budget 2011-12 (p.33).
Retrieved February 2013, from http://dhi.nic.in
119. Ministry of Heavy Industries & Public Enterprises, Government of
India. (2006). Automotive Mission Plan 2006-2016 (pp.56-72).
Retrieved October 2011, from http://www.dhi.nic.in
120. Unhale, S. (2005, September 6). MEDC to promote industries in
Marathwada, Aurangabad. Retrieved November 2011, from Business
Standard: http://www.business-standard.com/india/news
121 . About Marathwada. (2011). Retrieved September 2012, from
Wikipedia: http://en.wikipedia.org/wiki/Marathwada
122. Directorate of Industries, Government of Maharashtra. (2012). Vision-2020
Document (pp.4-5). Retrieved January 2013, from District Industries Centre,
Aurangabad: http://aurangabad.nic.in
72
123. Joshi, M. (2009, November 22). Aurangabad gets its auto cluster.
Retrieved July 2011, from The Indian Express:
http://www.indianexpress.com
124. Motor Transport Statistics, Government of India. (2010-11). Motor
Vehicles on Road as on 31st March, 2006 to 2011 in Maharashtra
State. In Motor Transport Statistics of Maharashtra 2010-11 (p.44).
Mumbai, Maharashtra.
73