Indian Automobile Companies

India is the 11th largest Passenger Cars producing countries in the

world and 4th largest in Heavy Trucks.

Current Scenario

Hero Honda is the largest manufacturer of motorcycles.

Hyundai Motors India is the second largest player in passenger car market.

Sundram Fasteners, Sundaram Clayton, Bharat Forge and Rico Auto supplies
components to global majors like Ford, General Motors and Land Rover.

Tata Motors is the fifth largest medium & heavy commercial vehicle manufacturer in
the world.

Overview

Snippets

In 1980s Hindustan Motors (HM) was leading car manufacturer in India.

HM is popular with its Ambassador model.

In 1970s, Sanjay Gandhi, son of Indira Gandhi envisioned "People's Car."

Maruti Udyog Ltd. was set up to manufacture budget cars.

In 1993 foreign auto makers entered the Indian market.

Facts & Figures

The onset of automobile industry in India saw companies like Hindustan Motors, Premier
Automobiles and Standard Motors catering to the manufacture of automobiles for Indian customers.
The era, 1950s - early 1990s was known as 'license raj,' when India was closed to the world and
imports. Hindustan Motors (HM) was the leader in car manufacturing and sales until the 1980s,
when the industry was opened up from protection. HM, joint venture with Mitsubishi produced
Lancer and Pajero, but is best known for its own model, Ambassador.

Around 1970, Sanjay Gandhi, elder son of the then Prime Minister Indira Gandhi, envisioned the
manufacture of an indigenous, cost-effective, low maintenance compact car for the Indian middle-
class. The cabinet passed a unanimous resolution for the development and production of a "People's
Car." It was christened Maruti Limited. However, the company as Maruti Udyog Ltd. matured only
after the death of Sanjay Gandhi. The Maruti800 car went on sale in 1983. By 1993 it sold up to
1,96,820 cars.

1991, the liberalisation of the Indian economy opened the market for foreign automobile makers to
venture in India. The license raj ended in 1993 and many foreign players entered the Indian market
by way of Joint ventures, collaborations or wholly owned subsidiary.

Global Players in India:

Segments Companies

Cars/ Daimler- M&M

SUVs Chrysler
Mahindra
Daewoo &
Motors Mahindra

Fiat Maruti
Udyog Ltd
Ford
Mitsubishi
GM
Skoda
Honda
Suzuki
Hindustan
Motors Tata

Hyundai Toyota

Two- Bajaj Auto LML

wheeler
s Hero Royal
Honda Enfield
Motors Ltd.
Hero
Motors Suzuki

Honda TVS

Kinetic Yamaha

CVs Ashok Swaraj

Leyland Mazda

Eicher Tata

Mahindra Tatra
&
Mahindra Volvo
 Mitsubishi

Tractor Eicher Mahindra

s &
Escorts Mahindra
Limited
New
ITL- Holland
Renault
Punjab
John-Deere Tractors

L&T Steyr

M&M Tata

Manufacturing Hub in India:

Company Particulars

Hyundai Export Base for Small Cars.

Skoda Hub for exports of cars to neighbouring

countries.

Ford Exporting CKDs of Ikon to South Africa

& other countries.

Mitsubish Hub for 125 cc Motorcycles.

i&
Yamaha

Maruti
Exports cars to EU.
Suzuki
Honda Hub for two-wheelers exports.

Manufacturing Hub for Components:

Company Particulars

Toyota
Global Hub for Transmission
Motor

Daimie
r
Sourcing more than 70 million Euro
Chrysle
r

Ford Full Fledged Component Sourcing Team

Fiat Sourcing Components.

MRF Export Tyres To The US

Ltd.

This section of Surfindia will take you to a virtual tour to all the companies in India who manufacture
automobiles as a whole, or in part. Surf the companies as mentioned below, alphabetically, and
explore their origin, establishments, listings, products & brands, financial statements, awards &
accolades, milestones, and much more.

Skoda
Amtek Hero
Auto
Auto Motors
India

Apollo Hindustan
Suzuki
Tyre Motors
 Bajaj Swaraj
Hyundai
Auto Mazda

Kinetic
Daewoo Tata
Engineerin
Motors Motors
g

Mahindra Toyota
Eicher
& Kirloska
Motors
Mahindra r Motor

Fiat Maruti
TVS
India Udyog Ltd.

Ford
MRF Ltd. Volvo
India

Yamaha
General Punjab
Motors
Motors Tractors
India

Hero Royal
Honda Enfield

Car Models in India

Your search for the best online guide on Car Models in India ends here. In this section of Car Models
we have provided an exhaustive data covering each and every aspect that you need to know before
going to purchase a Car. Cars, that were considered as a luxury good in the past, have now become a
necessity in the fast paced life style. People want a Car that is fuel-efficient, power packed and stylish
as well. We have made your Car selection process so convenient that you need not go anywhere else
to find details. You can find here the key characteristics, color and variants, price, competition from
other models, safety and technical specifications of every Car, packed with latest and innovative
technology with the eye catching features, launched in India.

Popular Car Segments in India

Hatchback

Hatchback car models consist of small cars that sell like hot cakes for
their value for money advantage. Hatchback car is a small passenger
car consisting of a full-height door at the rear that also includes a
window and used from behind to access the cargo and luggage space.
These kind of cars have two rows of seats. These cars are also defined
as five doors car having four access doors and a hatch or tail gate. In
India the hatchback is the most competitive car segment and its
manufacturers like Maruti, Hyundai, Tata, Chevrolet and Fiat launch
their cars on regular basis to outshine each other and capture the
market.

Hatchback Cars in India

Chevrolet
Chevrolet Chevrolet
Aveo U-
Beat Spark
VA

Fiat
Fiat Palio Ford-
Grande
Stile Fusion
Punto

Hyundai Hyundai Hyundai

i10 i20 i30 New

Hyundai
Hyundai Honda
Santro
Getz Jazz New
Xing

Maruti A- Maruti Maruti

Star Alto Ritz
 Maruti Maruti Maruti
Swift WagonR Zen

Maruti Maruti
Maruti
Zen Suzuki
800
Estilo Ritz New

Skoda Tata Tata Nano

Fabia Indica New

Sedan

Sedan or Saloon is a car model with passenger carrying capacity of four

or more persons having two rows of seats and two or four doors with a
separate trunk or boot at the rear side. Sedan cars, carrying high price
tag with them, are featured with host of luxury features like high-end
entertainment system, integrated steering wheel, plush and high class
wood and leather work, classy looks, contemporary and fully efficient
security features. In India, recent years have witnessed big players, like
Volvo, Volkswagen and Skoda, entering into this segment featuring
their sedans of pleasurable and comfy luxuries.

Sedan Cars in India

Ambassad Chevrolet Chevrole

or Aveo t Cruzes
New

Chevrolet
Ford Fiat
Optra
Fiesta Linea
Magnum

Ford Honda Honda

Focus Civic
 Hybrid Accord

Hyundai
Honda Hyundai
Sonata
Civic Verna
Embera

Hyundai Honda Hyundai

Elantra City ZX Accent

Maruti
Maruti Mitsubis
Swift
Esteem hi Cedia
Dzire

Maruti
Mahindra Maruti
Suzuki
Logan Baleno
SX4

New
Mitsubishi Skoda Skoda
Lancer Laura Superb
New

Toyota
Skoda Tata
Corolla
Octavia Indigo CS
Altis

Toyota
Toyota Toyota
Corolla
Corolla Camry
Altis

Tata Volkswage
Indigo XL n Jetta
Sports Utility Vehicle (SUV)

In technical terms, a Sports Utility Vehicle is a vehicle that combines

loading capability of a pickup truck and has passenger carrying space
that is of a mini van. These type of vehicles are famous for their sturdy
looks, strong on road presence and carries much powerful engine with
high torque. SUVs are designed to run in any kind of terrain without
affecting its performance, comfort and safety. Therefore SUVs have
become ideal for families and friends for their long and adventure trips.
In India there are so many big players in the field of Sports Utility
Vehicle segment like Tata, Maruti, Mahinda Scorpio, Ford, Volvo and
Honda.

Sports Utility Vehicles (SUV) in India

Ford
Ford
Chevrolet Endeavou
Endeavou
Captiva r Thunder
r
Plus

Honda Honda Hyundai

CRV CRV 2008 Santa Fe
New

Maruti
Maruti
Mahindra Grand
Gypsy
Scorpio Vitara
King
XL-7

Mitsubish Mitsubish Mahindra

i Montero i Pajero Bolero

Toyota
Tata Land Toyota
Safari Cruiser Fortuner
New
Prado
Luxury Cars

A Luxury Car is an expensive vehicle, designed and packed with high-

end, super comfortable and convenient features for both the driver and
the passengers. Luxury Cars provide ultra modern facilities for plush
enjoyment of the high class drive with greater level of comfort in
comparison to other Cars. Unlike the mass-production the Luxury Cars
are made in small quantities with a very heavy price tag sometimes in
Crores also. Owning a Luxury Car becomes a symbol of social prestige.
In India Luxury Cars market is growing at sound pace from last five
years and big shots of this segment like Audi, Bentley, Daimler-Benz,
Volvo and Volkswagen are venturing in India to enchash the market
growth.

Luxury Car Models in India

Audi Q7 Audi TT
Audi R8
SUV Coupe

Bentley
Bentley Mercede
Continenta
Azure s Benz
l GTC

Porsche Volkswage Volvo

Panamera n Passat S80
New

Volvo
   
XC90

Multi Utility Vehicle (MUV)

The Multi Utility Vehicle, abbreviated as MUV, is also know as Minivan
or Multi-Purpose Vehicle (MPV). In technical terms, a MUVs are kind of
automobile which are taller than a sedan and hatchback and provides
larger interior space through their removable seats. Due to their
characteristics of ample seating for 07-10 passengers, big boot space,
the MUVs are preferred most by large families and corporate houses.
Multi Utility Vehicles are classified into three different variants of large,
compact and mini. In the Indian automobile market the mini version of
MUVs are more popular & leading auto makers like Tata Motors,
Chevrolet, Maruti Udyog and Toyota are the key players of this field.

More Multi Utility Vehicles (MUV) in India

Chevrolet Maruti Tata

Tavera Versa Indicruz
New

Tata Tata
Toyota
Sumo Sumo
Innova
Grande Victa

Toyota
Qualis

We have lined up for you the Car models like Small-Sized Chevrolet Spark, Maruti Swift, Tata Indica;
Mid-Sized Fiat Palio Stile, Ford Fusion and large and luxurious Volvo S 80, Volkswagen Passat and
Ford Endeavour.

More Car Models in India

Fiat Tata
Maruti
Adventur Indigo
Omni
e Marina
Indian Car Market Keeps Foreign Car Manufacturers
Guessing

Following the success of BMW, Audi and Mercedes-Benz, many other foreign car
manufacturers are dropping into India to tap the robust car market here. The one
thing that is common to all new entrants is that none of them are willing to set up
shop here completely. They are shying away from making huge investments initially
and are treading their paths carefully through well thought out tie-ups with Indian
companies.

It’s a very curious development on the Indian automotive scene. The Indian car
market is getting ‘juicier’ by the dozen. Every car manufacturer is eyeing a sizeable
share of the pie that is the Indian car market. India is the new Promised Land.
However tempting the pie, rising inflation and input costs have thrown foreign car
companies on the defensive. The car scene is reporting a slower growth level every
month. Maintaining profits has become challenging and have forced the foreigners to
adopt new strategies.

Interesting

Italian car manufacturer Fiat pulled out of the country recently after a tie-up with
Tata Motors for retailing and aftermarket services for its car models.

American automotive giant Chrysler is considering a tie-up with Mahindra and

Mahindra for a foray into India.

Renault has already released a sedan model ‘Logan’ in a joint venture with Mahindra
and Mahindra.

Japanese car manufacturer Suzuki has been a partner of Maruti for long and has
introduced several car models to the Indian market.

Hindustan Motors, who make the iconic Ambassador cars, are currently marketing
Mitsubishi’s Lancer, Cedia, Pajero, and Montero car models. The partnership is now
looking to launch a new SUV ‘Outlander’ soon.
Nissan has hired certain companies to evaluate the Indian market and study the
sustainability of their premium priced cars in India. Renault and Nissan have entered
into an agreement with Mahindra and Mahindra for marketing support in future
projects.

Toyota has its manufacturing agreement with Kirloskar. Marketing of its cars is
handled by another company.

Very few companies are willing to invest large sums of money yet and are opting for
joint ventures or similar partnerships with Indian vendors thereby relying on the well
set up countrywide networks of large Indian companies. Setting up own shops is too
cumbersome and expensive. A recent survey has revealed that the Indian car industry
is already spending Rs 10,000 Crore and upwards for distribution, sales and servicing,
and customer satisfaction in aftermarket goods.

It is common belief that India is essentially a small car market. Most of this market for
hatchbacks and sedans is found in urban and semi-urban areas and is currently held
firmly by the likes of Maruti Suzuki, Hyundai, Honda, Skoda, and Tata Motors. Main
players in the MUV segment are Tata and Mahindra. BMW and Mercedes-Benz are
seeing excellent sales in the luxury car segment. All others car manufacturers are
required to fight it out for the remaining portion of the competitive car market.

It’s not feasible to create a huge infrastructure for a small percentage of market. Over
that, the Indian car market can still be considered unchartered waters. Foreign car
manufacturers are uncertain about the about the response to their products. Via
Indian alliances, they hope to carve out a small portion of the market for themselves
leaving further expansions plans for later. It’s about getting the toe in the door for the
moment. Foreign companies trust the Indian car companies to handle their marketing
portfolio and help them find their initial foothold here.

A well set up infrastructure is an important requisite at the moment as the car market
has drifted away from the metros and toward tier-II cities in the country. Currently,
most of the demand comes from the small cities and large towns. All metros are
reporting low sales. It would be impossible to reach these markets without an
infrastructure in place that has already penetrated so deep.
For foreign car manufacturers, the Indian car market is currently a bundle of
contraptions and requires deft and thoughtful handling. The input costs are hard to
predict and understanding customer requirements is a true challenge. Despite all the
hurdles, the infinite prospects of the budding Indian car market cannot be overlooked
and will continue to tempt several foreign companies to indulge.

ROLLS ROYCE GLOBAL SALES ARE ROCKING

Rolls-Royce has picked up its global car sales by 25% as compared to their
figures in 2006. Apparently, this is the first time ever that Rolls-Royce has
reached four digit sales figures after going global in 2003. They returned to
India after a gap of 50 years, launching the Phantom super luxury sedan in
2005. The Phantom has been very popular in India.

Apart from India, Rolls-Royce saw outstanding sales in the U.A.E. and China
where the car manufacturer has grown by more than 50%. However, North
America still remains the biggest single market for Rolls-Royce.

CAR SECTOR FEELS THAT GOVERNMENT IS NOT ACTING.

Think of ‘car’ and the immediate reaction is ‘pollution’. The January Auto Expo
will help introduce many cars and SUVs which are getting close to being
environment-friendly. Some of these are the Toyota Innova D-4-D, new
Mahindra Scorpio, new Tata Safari DiCOR, and models from Skoda. For a
cleaner drive, Maruti has already adopted Fiat’s 1.3-litre Multijet common rail
diesel engine on some of its models.

While car manufacturers have acted, the government is sitting pretty on the
quality of fuel supplied to car owners. India is one of the countries in the
world which serves fuel with a high sulphur content. This sulphur is a major
contributor to dense pollution levels in cities. Lowering the sulphur content in
diesel and petrol should be the immediate concern of the government.

The government has failed to take steps to check and maintain the quality of
fuel being supplied to consumers. Many experts have suggested that if India
does not act fast, the atmosphere will soon be filled with heavy toxic fumes.
Interestingly, diesel cars emit seven times more toxic gases into the air than
petrol based engines and the popularity of diesel cars is at an all time high.

Maintaining a high quality of dispensed fuel will refresh the air we breathe. It
will also help leave a greener tomorrow for the next generation. An inefficient
system leaves a lot for the asking. Sadly, car manufacturers have little say in
this matter.

MARUTI SWIFT SEDAN TO RUN ON INDIAN ROADS SOON.

India’s auto major, Maruti, is very keen to launch the sedan built on
the Swift platform. This sedan is expected to hit Indian roads in the
month of January next year and would compete with its own sibling,
the SX4. Not only this, Maruti Suzuki is also planning to pose a tough
tiff to manufacturers like Skoda and Honda with models like Splash,
Kizashi, and Jimny.

According to the source closely associated with the company, the

making of Esteem is almost taken a back-seat. The new Swift sedan
will be priced less than the SX4 and is expected in two variants – a
1.3L multi-jet diesel engine and a 1.3L petrol engine.

The diesel variant is built keeping in mind Tata’s Indica and Indigo
and Hyundai’s diesel cars. Maruti has also asked its suppliers to be
ready to supply machinery needed for this mega project. Recently,
Maruti unveiled a concept car Kizashi at the Frankfurt motor show,
which is said to make its second appearance at the Tokyo Motor Show
very soon. It is designed to compete with the A4 segment cars from
other manufacturers like Honda, Toyota, and Skoda. Kizashi is
expected to come with a price tag of 10-12 lakh.

HYUNDAI INDIA STOPPED THE PRODUCTION OF ELANTRA IN INDIA.

HMIL has recently said that the production of their Elantra sedan in
India has been stopped completely. The car was not a success story in
the Indian market. Elantra never made it to the top sales since its
launch in India. Indian public chose Honda and Maruti instead of
Hyundai.

HMIL is planning to introduce another model in Elantra’s place.

Hyundai Motors India Limited is now considering giving Sonata
Embera a touch-up, so that it can give a nose-to-nose competition to
the other models from different manufacturers.

For now, HMIL has great plans for the launch of Hyundai Pa, which is
scheduled for sometime next month.

PEUGEOT IN INDIA AGAIN!

After a long pause, Peugeot, the French automaker, is once again
gazing at the Indian market with a low cost model that is under
development. Who can blame them for a second glance – at the rate
the Indian automobile industry is growing; manufactures have to be
blind not to notice us! The company seems still worried about the
failure faced by Peugeot and Premier Automobiles Ltd. (PAL), their
joint venture partners, in their formative years in India.

The cause for the closure of Peugeot in India had termed differently,
as poor performance and joint venture failure. Its struggles to survive
in the Indian market have resulted in the eventual exit of the
company from the Indian auto-scenario in November 1997 – just a
year before the auto boom started. Even if the company didn’t play
any important roles in the Indian Passenger car market, we cannot
forget Peugeot as it was one of the first automobile MNCs to enter
India.

As the Indian auto market has been a matter of interest for foreign
automakers, like Volvo, Volkswagen, BMW, Audi, and many others
from around the world, Peugeot is again getting ready to seek its luck
in India. Our automobile industry has come a long way from the time
they were here – we now not only have a splatter of automobile
MNCs, but also a wider consumer interest. So, a definite green signal
to Peugeot from my side!

MITSUBISHI WANTS TO MAKE AN “INDIA CAR” TOO

Since Mitsubishi’s collaboration with Hindustan Motors (HM) about a

decade ago, it has released an array of popular Sedans and SUVs, but
not a single vehicle in the most popular Hatchback segment. With the
announcement of an official launch date for the ‘1-lakh car’ by Tata
Motors, other auto manufacturers are keen to compete.

Mitsubishi is considering introducing its new model ‘i’ to India. The ‘i

concept’ car debuted at the 2003 Frankfurt Motor Show. The egg-
shaped vehicle carried a 999 cc engine that boasted of a very
impressive mileage of 33 kms per litre. It also carried a Mitsubishi
Smart Idling (MSI) system which turns off the engine automatically
when the vehicle is stationary and can restart it within 0.2 seconds.

The ‘i’ that launched in January 2006, comes with an ultra-efficient

lightweight turbocharged 660 cc petrol engine and a 4-speed
automatic transmission. It sports a wide door, sufficient room for 4
passengers, split-folding rear seats, and alloy wheels. The engine
emissions are environment friendly.

It is priced a little too high in the European market. With the co-
operation of Hindustan Motors (HM), Mitsubishi could introduce a
small car, based on the i-car platform, in India. Vehicle cost could be
reduced by sourcing parts locally and by stripping out some of the
expensive on-board equipment.

MAHINDRA INGENIO LIKELY TO LAUNCH BY 2008

Mahindra

Mahindra & Mahindra is looking to launch its semi-hybrid and full-

hybrid versions of its Sports Utility Vehicle (SUV) - Scorpio by next
year. The primary focus of Ingenio would be on diesel engines. The
first prototype of Ingenio will be running on Indian roads by January
next year.

Mahindra & Mahindra is believed to be working on a combination of

diesel and battery-operated hybrid engine for Ingenio. It will combine
both the common rail diesel technology and the fuel-saving
technology of an electric motor. This will provide the vehicle a better
fuel economy and a lower transmission, while giving the benefit of a
full hybrid performance.

Ingenio will build on a new platform and M&M has discarded the idea
of utilizing the ageing platform of the Bolero. The Ingenio is likely to
have a monocoque platform rather than a conbody-on-frame chassis.

HYUNDAI PA TO HIT INDIAN ROADS FIRST.

Hyundai PA to hit Indian roads

The great sales target achieved by Hyundai motors in India has made
a strong impact on the company. In order to show their interest in the
Indian car market, the company has decided to launch its compact car
“PA” first here in India. Indian roads will witness Hyundai’s “PA”
first, a couple of months before it hits other countries.

The growth of the Indian market for compact cars and Hyundai’s
massive growth in India for the past nine years has definitely made
the manufacturer consider India as a first priority. India is also said
to be one of the healthy markets for premium cars to compete, which
is also a reason for the firm to choose India as the first place to see
its code-named car.
Hyundai PA, after its launch, is expected to replace the Hyundai
Santro and pose a sturdy competition to other compacts such as the
Chevrolet Aveo and the Maruti Alto that are currently ruling the roost.

MERCEDES FLAGS OFF “INDIAN TRAIL”

Mercedes flags off 'India Trail'

A unique plan to delve deep into the hearts of Indians, the Mercedes
Benz pioneers of the luxury segment started on the India Trail today.
A series of 7 cars will be participating in this Journey that starts from
Pune. This drive will go through almost all parts of southern, western,
and northern India.

Covering over 40,000 kms between today and Oct 10, Mercedes is
trying to strengthen its solid bond between India and the Mercedes-
Benz brand.

Showcasing the rich and diverse culture, heritage and natural beauty
of India, the India Trail mainly focuses on the process of driving
available Mercedes-Benz cars in the country. India Trial features the
entire portfolio of diesel cars from Mercedes-Benz in India — S-Class,
C-Class, E-Class, M-Class, the Bio-Diesel C-Class, and the Viano.

ISUZU MOTORS TO START A COMMERCIAL BUSINESS IN INDIA.

Isuzu Motors to start a commercial business in India

Japanese auto major Isuzu Motors Ltd. is planning to tie-up with

Swaraj Mazda Limited and Sumitomo Corporation to build midsize
buses in India, by the end of this month. The manufacturing plant
might raise its head next to the existing plant of Sumitomo and
Swaraj Mazda in Northern Delhi.

The buses will be priced at 20% more than the buses made by the
local manufacturers. The buses are estimated to cost around
$132,000. Though, initially the business will start with the midsize
buses, the company is planning to manufacture trucks that cater to
the Indian market by 2010. Isuzu Motors is well versed in
manufacturing diesel engines.

The company’s new plant in northern Delhi is said to be capable of

producing 40 to 50 thousand units per year, which might also rise
with the company’s expansion. Apart from India, the company is also
eyeing China and Russia. The buses produced by Isuzu motors,
though slightly high on price compared to local manufacturers, are
economically efficient when compared to other overseas
manufacturers in India.

Isuzu also produces cars in the U.S and manufacturing buses or

trucks may just be the entry point they are looking for to enter the
Indian market. They can then later expand their industry in India by
joining the Indian car manufacturing sector.

DAIMLERCHRYSLER’S FIRST STEP OF EXPANSION IN INDIAN MARKET .

DaimlerChrysler is associated with the production of the very popular

luxury car – the Mercedes-Benz. With its growing business and
popularity, DaimlerChrysler is prepared to open a new plant in Pune.
The money invested is 50 million euros. The company has acquired
100 acres of land in Pune that will resume the work by 2009.

This new plant, which is built to manufacture 5,000 cars annually, will
manufacture 1,000 units more compared to the leased plant in Pune.
According to company sources, the process from the rented plant will
be shifted to the new plant. The new plant is constructed keeping in
mind the demand for the cars manufactured by DaimlerChrysler in the
Indian market.

The new plant is deemed to take-up multiple roles as a manufacturing

plant and an assembling plant. Assembling of heavy trucks will start
by the end of the year and manufacturing of luxury buses will start
from next year at the same plant.

Toyota to enter India’s small car market battle

TOYOTA TO ENTER INDIA’S SMALL CAR MARKET BATTLE.

Most auto majors are getting ready for a close fight in the small car
segment in India. Toyota is also planning to target the Indian small
car market for its imported small car. Toyota’s largest small-car
market competitor in India will be Maruti Suzuki, which markets cars
like the Zen Estilo, WagonR, and Alto.

Toyota is the last to announce its entry into the small car market in
India. The years 2008 and 2009 will reveal more of Toyota’s plans.
For the time being, it is apparent that since Toyota is currently the
last entrant, it may use the latest technologies and a plethora of
features to lure car lovers across India.

DaimlerChrysler to set-up a plant in Maharashtra

DAIMLERCHRYSLER TO SET-UP A PLANT IN MAHARASHTRA.

DaimlerChrysler India has recently signed an agreement with the

Maharashtra government to open a new facility in Chakan, Pune. Out
of the 100 acres of land that the company is going to acquire, one-
third of the area will be dedicated to the first-phase production plant.
This plant, which will start functioning from January 2009, will have
the capability to produce over 4,500 units annually.

The Mercedes-Benz E-Class, C-Class, and S-Class models will be

assembled at this unit helping to drastically cut down
manufacturing/production costs and also decreasing vehicle market
prices. Although, the company remains tight-lipped regarding the
amount involved in the deal, it is estimated that the company has
invested approximately 250 Crores, to set the deal right.

There are also strong chances of DaimlerChrysler India introducing

hordes of other models to the Indian market in 2008 and 2009.

India: A car ma hub for Global Players

INDIA:A CAR MANUFACTURING HUB FOR GLOBAL PLAYERS.

Realising India’s potential in the automotive industry, international

carmakers are now focusing on India and giving more preference to
India than China to establish their manufacturing plants and units.

Factors such as “ready market facility” and “low cost manufacturing

base” are strong reasons that prompted international carmakers to
choose India. Sriperumbudur, near the Chennai port, is the small car
export base for South Korea's Hyundai Motors.

Similarly, Suzuki, a major partner of the largest carmaker in India

Maruti Udyog, is making nearly a one billion pound investment in
India with an eye on 200,000 vehicle exports by 2010. Entering the
market now are newcomers like France's Renault. Nissan plans to
make cars in India to export them to Europe.

Global players, in recent years, are making their entry into the Indian
Market by either joint ventures, collaboration, or wholly owned
subsidiaries. Relaxation of trade rules by the Indian government to
promote expansion of the auto industry has encouraged global
players to expand their automotive industry in India.

Carmakers are expecting the annual output to exceed three million

cars by 2010. Foreign automakers can now set up their own fully
owned subsidiaries giving India a potential edge over China, which
has a local partner mandate. Global car manufacturers are scrambling
to set up their auto plant for small car variations in India indicating
that India, in the near future, is on its way to become a small car
export hub.