Indian Automobile Industry- Overview

With a sparkling 2.3 million units created in 2008 the Indian vehicle industry sacked the situation
of being the ninth biggest on the planet. Following financial advancement, Indian homegrown
vehicle organizations like Tata Motors Maruti Suzuki and Mahindra and Mahindra extended
their creation and fare activities in and the nation over and from that point forward the business
has just given indications of development. The car business involves hefty vehicles (trucks,
transports, rhythms, and farm haulers), traveler vehicles, and bikes. The Indian vehicle industry
appears to make some amazing progress since the primary vehicle that was made in Mumbai in
1898. The car area today is one of the vital areas of the nation contributing significantly to the
economy of India. It legitimately and in a roundabout way gives work to more than 10 million
individuals in the nation. The Indian car industry has a settled name worldwide being the second
biggest bike market on the planet, fourth biggest business vehicle market on the planet, and
eleventh biggest traveler vehicle market on the planet and expected to turn into the third biggest
car market on the planet just behind USA and China.

The development of the Indian middleclass alongside the development of the economy in the
course of the most recent couple of years has brought about a large group of worldwide auto
goliaths setting their foot inside the Indian Territory. In addition India likewise gives prepared
labor at serious costs making the nation an assembling center point for some, unfamiliar vehicle
organizations. India ends up being a likely market when contrasted with the greater part of
different nations which are seeing stagnation all things considered.

India is a truly great market for little vehicles be it creation, deals or fare. Since the Indian
vehicle industry is the biggest producer of little vehicles organizations like Hyundai and Nissan
Motors trade around 2, 40,000 and 2, 50,000 yearly. India arose as Asia's fourth biggest exporter
of cars, behind Japan, South Korea and Thailand. The Indian vehicle sends out enlisted a 22.30
percent development in the year 2009. The development pattern was as per the following: Two
Wheelers-32.31 percent, Commercial Vehicle - 19.10 percent and Passenger Cars developed by -
19.10 percent.

Some Key Automobile makers in India

 Maruti Udyog

1|Page
  General Motors
 Passage India Limited
 Eicher Motors
 Bajaj Auto
 Daewoo Motors India
 Legend Motors
 Hindustan Motors
 Hyundai Motors India Limited
 Imperial Enfield Motors
 Telco
 TVS Motors
 DC Designs
 Swaraj Mazda Limited

The Automobile industry in India is world's fourth biggest, with the nation at present being the
world's fourth biggest producer of vehicles and seventh biggest maker of business vehicles in
2018. Indian Automobile industry (counting segment fabricating) is required to arrive at Rs
16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. Bikes rule the business and made up 81
percent share in the homegrown Automobile industry deals in FY19. Generally, Domestic cars
deals expanded at 6.71 percent CAGR between FY13-18 with 26.27 million vehicles being sold
in FY19. Indian Automobile industry has gotten Foreign Direct Investment (FDI) worth US$
23.51 billion between April 2000 and September 2019. Five percent of all out FDI inflows to
India from April 2000 to June 2019 went into the autos area. Homegrown Automobile industry
creation expanded at 6.96 percent CAGR between FY13-19 with 30.92 million vehicles
produced in the nation in FY19. In FY19, business vehicles recorded the quickest movement of
development in homegrown deals at 17.55 percent year-on-year, trailed by three-wheelers at
10.27 percent year-on-year. The traveler vehicle deals in India crossed the 3.37 million units in
FY19 and is additionally expected to increment to 10 million units by FY20. Traveler vehicle
sends out is assessed to contact around 6, 90,000 units in 2019-20. The public authority expects
to create India as a worldwide assembling just as an innovative work (R&D) center point. It has
set up National Automotive Testing and R&D Infrastructure Project (NATRiP) focuses just as a

2|Page
National Automotive Board to go about as facilitator between the public authority and the
business. Under (NATRIP), five testing and exploration focuses have been set up in the nation
since 2015. NATRIP's proposition for "Award In-Aid for test office framework for Electric
Vehicle (EV) execution Certification from NATRIP Implementation Society" under FAME
Scheme which had been endorsed by Project Implementation and Sanctioning Committee (PISC)
on third January 2019. The Indian government has additionally set up a goal-oriented objective
of having just electric vehicles being sold in the nation. Indian vehicle industry is required to see
8-12 percent expansion in its recruiting during FY19. The Ministry of Heavy Industries,
Government of India has shortlisted 11 urban communities in the nation for presentation of
electric vehicles (EVs) in their public vehicle frameworks under the FAME (Faster Adoption and
Manufacturing of (Hybrid) and Electric Vehicles in India) conspire. The principal period of the
plan has been reached out to March 2019 while in February 2019, the Government of India
affirmed the FAME-II plot with an asset prerequisite of Rs 10,000 crore (US$ 1.39 billion) for
FY20-22. Under Union Budget 2019-20, government declared to turn out extra revenue charge
derivation of Rs 1.5 lakh (US$ 2146) on the interest paid on the credits taken to buy EVs.
Speculation streams into electric vehicles new businesses in 2019 (until the finish of November)
expanded almost 170 percent to arrive at US$ 397 million. Under FAME II, Government has
endorsed 5,595 e-transports in 64 urban communities in 26 states for between city and intra-city
activities. Under the plan 2,636 charging stations in 62 urban areas across 24 States/UTs were
endorsed.

In general Automobile industry trades expanded by 14.50 percent year-on-year in FY19 and
during April-December 2019, by and large fare expanded by 3.9 percent. It is relied upon to
develop at a CAGR of 3.05 percent during 2016-2026. Homegrown bike industry is relied upon
to develop at 8-10 percent during FY19. Additionally, extravagance vehicle market in India is
relied upon to develop at a 25 percent CAGR till 2020. The Government of India expects vehicle
area to pull in US$ 8-10 billion in neighborhood and unfamiliar ventures by 2023. India will be
essential for Global Automotive Triumvirate - the worldwide Big 3 in coming 20 years and will
likewise surpass the Indian Automobile industry deals from US market by mid 2030s.

3|Page
 Maruti Suzuki Company –Overview
Maruti Suzuki India Limited (MSIL), an auxiliary of Suzuki Motor Corporation, Japan, is India's
biggest traveler vehicle producer. Maruti Suzuki is credited with having introduced the car
upheaval in the nation. The Company is occupied with the matter of assembling and offer of
traveler vehicles in India. Making a little start with the notorious Maruti 800 vehicle, Maruti
Suzuki today has an immense arrangement of 16 vehicle models with more than 150 variations.
Maruti Suzuki's item range reaches out from passage level little vehicles like Alto 800, Alto K10
to the extravagance car Ciaz. Different exercises incorporate assistance of used vehicle deals
armada the executives, vehicle financing. The Company has producing offices in Gurgaon and
Manesar in Haryana and a cutting edge R&D focus in Rohtak, Haryana. The Company, some
time ago known as Maruti Udyog Limited, was fused as a joint endeavor between the
Government of India and Suzuki Motor Corporation, Japan in February, 1981. As of now,
Suzuki Motor Corporation claims value of 56.2%. The Company's offers are exchanged on the
National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).Maruti Udyog Limited
which is currently known as Maruti Suzuki India Limited is a 37-year-old aggregate that has
satisfied the lives and needs of the Indian residents as far as their cars. It is a 56.21% possessed
auxiliary of the Japanese car organization Suzuki Motor Corporation. It is the biggest vehicle

4|Page
maker organization in India. The Company recorded the most elevated actually piece of the
overall industry of 58% starting at July 2018 in the Indian vehicle market making it the most
mainstream and worshipped brand in the nation and around the globe. A portion of its well-
known vehicles are Ciaz, Ertiga, Wagon R, Alto, Swift, Celerio, Swift Dzire, Baleno, Alto 800,
and so forth.

THE INCEPTION OF MARUTI AND SUZUKI AND THE GROWTH: Maruti Udyog at first
began as Surya Ram Maruti Technical Services Private Limited on 16 November 1970. MSTPL
was at first into getting the specialized ability of the ideal vehicle since the interest in India was
excessively scant.

In 1971, India's first woman Prime Minister Indira Priyadarshini Gandhi's Cabinet proposed an
arrangement for the assembling of an "average people's vehicle": a vehicle that most Indian
families could bear. In the exact year, the Company MSTPL enrolled them as Maruti Limited
under the Indian Companies Act. His child Sanjay Gandhi turned into its First MD, and that was
the beginning of a looming insurgency.

While Maruti had no past experience, of configuration, assembling or connections with a set up
vehicle organization, yet he has gotten an agreement to produce a moderate vehicle. Till 1975
organization didn't deliver any vehicle, and From 1975 to 1977 when Prime Minister Indira
Gandhi announced crisis the nation over, Sanjay Gandhi began effectively taking parts in
governmental issues and the "individuals' vehicle" venture went on a heating surface.

In 1981, after the demise of Sanjay Gandhi during the Aircraft mishap on 23 June 1980, the
Central government began looking for dynamic cooperation. Maruti Udyog Ltd. was appeared in
the exact year by the endeavors of industrialist V. Krishnamurthy. In 1982, a Joint Venture
Agreement was endorsed with the Japanese car producer named Suzuki Motor Corporation. Dr.
Venkataraman Krishnamurthy led this arrangement and was thusly roped in as the main
Chairman and CEO of the recently shaped Maruti Suzuki.

At last, following 1 year, the Maruti 800 was delivered which was a 796cc hatchback and was
India's first moderate vehicle, which broke various records. In December 1983 a notable vehicle
Maruti 800 key was conveyed to its first Customer Mr. Harpal Singh by Prime Minister Mrs.
Indira Gandhi. Nearby creation began in December 1983 in the Gurgaon plant. Maruti just

5|Page
imported vehicles from the outset. This vehicle was underway from 1983 till it inhaled its
rearward in 2013 and it was viewed as the most compelling vehicle ever. In 1987, Maruti Suzuki
began sending out to European nation Hungary. In 1989, the Company presented Maruti 1000
which was India's absolute first vehicle and it ran underway for around 2 years after the Indian
economy was changed in 1991. 1993 and 1994 were the time of Zen and Esteem which became
easily recognized names in the nation. Maruti delivered its millionth vehicle in a similar time, in
this way, finishing a significant achievement in their fruitful run as an organization. They
delivered their absolute first Customer Care office for the purchasers following which they
delivered their freshest model called Maruti Alto. The Company at that point delivered three
models which are, Maruti Versa – 2001, Regard Diesel – 2002, Suzuki Grand Vitara – XL 7 –
2003

Thus some more, Maruti and Suzuki then went into an association with the State Bank of India
after the creation of their four millionth vehicles in the nation. They were additionally recorded
in the National and the Bombay Stock Exchange after the public issue which had expanded by
multiple times. After almost 20 years, Alto surpassed Maruti 800 as the top of the line vehicle in
the Indian market and by 2003-04; the Company had sold its 5 millionth vehicle and turned into
the most beneficial Indian car brand. As of May 2007, the Government of India sold its all
portion of Maruti Suzuki to the Indian money related establishments.

Assembling FACILITIES: 2006 denoted the start of a different cars division called "Maruti
Suzuki Automobiles India". This endeavor established the framework for starting two new
assembling plants. One plant was exclusively committed to the assembling of cars and the other
one was for motors. The Company has three undeniable car fabricating offices in India. Maruti
Suzuki has guaranteed that there would be no trade off regarding innovation and furthermore as
far as quality. Gurugram has an assembling office spread over a kilometer and a half and they
produce the Alto 800, Vitara Brezza, Ignis, Ertiga, and Eeco. The office at Manesar is around
over two kilometers and has a general creation limit of more than 100,000. This plant produces
Alto K10, Swift, Ciaz, Baleno and Celerio.

The Gujarat office is a later one and the plant has a creation limit of around 250,000 units
consistently yet there are plans to twofold the creation rate in the coming years.

6|Page
Administration PROVIDED:

Deals organization: Maruti Suzuki has around 2000 sources over the city that obliges each need
of the clients in their critical crossroads.

NEXA: The Company dispatched NEXA for the exceptional Maruti clients. Maruti Suzuki S-
Cross was the principal vehicle to be delivered through NEXA and the organization intends to
present a lot more models later on. Presently, Maruti Suzuki sells Baleno, Baleno RS, S-Cross,
Ciaz, Vitara brezza, and Ignis through it.

Maruti Insurance and Finance: Maruti Suzuki gives vehicular protection and budgetary
administrations through different organizations that it has tied up with. A portion of the
customers incorporate the ABN AMRO Bank, HDFC, ICICI, Kotak Mahindra, Bajaj Allianz,
New India Insurance and Royal Sundaram, and so on.

Maruti TrueValue: An all in one resource for all Maruti and Suzuki vehicles. Clients would have
the option to ask, purchase, sell and furthermore trade the organization vehicles or different
brands too. Starting at now, TrueValue has more than 1200 sources all through numerous urban
areas in the nation.

7|Page
8|Page
Maruti suzuki products. (2020, January 3). Retrieved from https://www.google.com/search?q=maruti
suzuki product and
services&hl=en&source=lnms&tbm=isch&sa=X&ved=2ahUKEwi2wsyZ_4ntAhUVT30KHQWbD_UQ_AUoA
XoECAoQAw&biw=1821&bih=800&dpr=0.75#imgrc=ukjI4SQvJ65wKM&imgdii=z3_aYmuVcEMPyM

9|Page