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The Automobile Industry in India Is The Ninth Largest in The World With An Annual Production of Over 2
The Automobile Industry in India Is The Ninth Largest in The World With An Annual Production of Over 2
over 2.3 million units in 2008.[2] In 2009, India emerged as Asia's fourth largest exporter of
automobiles, behind Japan, South Korea and Thailand.[3]
Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions.
Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and
Mahindra, expanded their domestic and international operations. India's robust economic growth
led to the further expansion of its domestic automobile market which attracted significant India-
specific investment by multinational automobile manufacturers.[4] In February 2009, monthly
sales of passenger cars in India exceeded 100,000 units.[5]
Contents
1 History
2 Exports
3 Post-liberalization industry
4 Indian automobile companies
o 4.1 Multi-national companies in India
5 Production facilities in India
6 Further reading
7 Footnotes
8 External links
History
REVA, known as G-Wiz in Europe, is the world's largest selling electric car.[6]
Tata Nano is the least expensive car in production in the world. The price is about Rs. 100,000
(US$2,500).[7]
Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan, Delhi. A-Star, Suzuki's
fifth global car model, was designed and is made only in India.[8]
An embryonic automotive industry emerged in India in the 1940s. Following the independence,
in 1953, the Government of India and the private sector launched efforts to create an automotive
component manufacturing industry to supply to the automobile industry. However, the growth
was relatively slow in the 1950s and 1960s due to nationalization and the license raj which
hampered the Indian private sector. After 1970, the automotive industry started to grow, but the
growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major
luxury Japanese manufacturers entered the Indian market ultimately leading to the establishment
of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies.[9]
1897 First Person to own a car in India - Mr Foster of M/s Crompton Greaves Company,
Mumbai
1901 First Indian to own a car in India - Jamsetji 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 police
1928 Chevrolet Motors
1942 Hindustan Motors
1944 Premier Automobiles Limited
1945 Tata Motors
1945 Bajaj Auto
1947 Mahindra & Mahindra Limited
1948 Ashok Motors
1948 Standard Motors
1974 Sipani Motors
1981 Maruti Suzuki
1994 Rover Company
1994 Mercedes-Benz
1994 General Motors India - Opel brand launch
1995 Ford Motor Company
1995 Honda Siel Cars India
1995 REVA Electric Car Company
1995 Daewoo Motors
1996 Hyundai Motor Company
1997 Toyota Kirloskar Motors
1997 Fiat Motors (Re-Entry)
1998 San Motors
1998 Mitsubishi Motors
2001 Ĺ koda Auto
2003 General Motors India - Chevrolet brand launch
2005 BMW
2007 Audi Nissan-Renault
2009 Land Rover and Jaguar VW
Exports
Hyundai i20, one of the most widely exported Indian cars. In 2009, India was Asia's fourth
largest exporter of automobiles.[10]
India has emerged as one of the world's largest manufacturers of small cars. According to New
York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-
efficient cars has resulted in the expansion of manufacturing facilities of several automobile
companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki.[11]
In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to
export 250,000 vehicles manufactured in its India plant by 2011.[12] Similarly, General Motors
announced its plans to export about 50,000 cars manufactured in India by 2011.[13]
In September 2009, Ford Motors announced its plans to setup a plant in India with an annual
capacity of 250,000 cars for US$500 million. The cars will be manufactured both for the Indian
market and for export.[14] The company said that the plant was a part of its plan to make India the
hub for its global production business.[15] Fiat Motors also announced that it would source more
than US$1 billion worth auto components from India.[16]
According to Bloomberg L.P., in 2009 India surpassed China as Asia's fourth largest exporter of
cars.[17] India was the only major Asian automobile manufacturing nation which posted a growth
in automobile exports in January - July 2009 â
Post-liberalization industry
Following India's economic liberalization in 1991, the automobile industry was opened for 100
percent foreign direct investment. A surge in the country's economic growth rate and purchasing
power has fueled a 17% annual growth rate in the Indian automobile industry since 1991. The
automotive industry generates direct and indirect employment to about 13.1 million people as of
2006-07.[4]
The automotive parts and cars exports has grown at an annual rate of 30% per year in the 21st
century. However, the India's share of the overall global automotive industry remains low as of
2007. Increased competitin amongst automobile manufacturers provides for a variety of
competitive options for the consumer.[4]
India was one of the largest manufacturers of tractors in the world in 2005-06, when it produced
293,000 units. India produced 65 Million tyres during FY 2005-06. India's tyre production meets
domestic demand, as well as are exported to over 60 countries.[4]
The list of foreign cars sold in India as CBU (Completely Built Unit) is given below:
Audi: Audi A4, Audi R8, Audi A6, Audi A8, Audi TT, and Audi Q7.
BMW: BMW 7 Series, BMW X5, BMW X3, BMW M3, BMW M5, and BMW M6.
Land Rover: Range Rover and Range Rover Sport.
Nissan: Teana and X-Trail.
Porsche: Porsche 911, Porsche Boxster, Porsche Cayenne, and Porsche Cayman.
Rolls Royce: Rolls Royce Phantom.
Toyota: Land Cruiser Prado VX.
Volkswagen: Volkswagen Jetta, Volkswagen Passat, and Volkswagen Touareg.
Volvo: Volvo XC90 and Volvo S80.
LamborghiniLamborghini Gallardo and Lamborghini MurciĂŠlago