Chapter 1: Industrial/Sectoral Scenario

• History / Evolution of the Sector

The Indian automobile market is one of the largest in the

world, both in terms of sales volume and production.
Talking about historical roots of the car market in India,
the first time that a vehicle came on road was in 1897.
Till 1930, India did not have any manufacturing facility
and cars were imported directly from other countries.
The landmark decade in the manufacturing process was
that of 1940s, in which Indian companies like Hindustan
Motors and Premier started to manufacture cars of other
firms. During the same decade, Mahindra & Mahindra
also started to produce utility vehicles.
Soon after independence 1947, Government of India tried
to create an automotive component manufacturing
industry in order to supplement the automobile fraternity.
From 1960 to 1980s, the Indian market was dominated by
Hindustan Motors, which gathered a large amount of share
due to its ambassador model. However, during 1950s till
1960s, the overall industry moved at a slow pace due to
trade restrictions set on imports. Soon after this repressive
It was in 1980s that the two firms, Hindustan Motors and
phase, demand surged but to a smaller extent, which was
Premier, were challenged by a new entrant, Maruti Udyog
mainly seen in the tractor and commercial vehicles
Limited. Soon after liberalisation period, car makers that
segment.
were previously not allowed to invest in Indian market
due to stringent policies arrived in the country. Post
liberalisation, the alliance between Maruti and Suzuki
was the first joint venture between an Indian company
and foreign one. Slowly and steadily, the economic
reforms brought in the led to the entry of major foreign
companies like Hyundai and Honda, which expanded
their bases to the country. From 2000 to 2010, almost
every major car company expanded its presence to India
by establishing
WSUMMINDOWSmanufacturing
USER facilities across different 1
parts of the country.
As the manufacturing process during early 2000
decade gained traction, exports of cars was quite
slow in that period. Maruti Suzuki was among the
first car brands that started shipping vehicles to
major European markets. During the same decade,
the Government of India introduced mandatory
emission norms in order to reduce pollution arising
out from vehicles. The updated guidelines were
known as 'Bharat Stage' came into effect in major
cities as these standards were based on stringent
European norms. At present, Bharat Stage IV is
implemented in 13 cities that include Delhi (NCR),
Mumbai, Kolkata, Chennai, Bangalore, Hyderabad,
Ahmedabad, Pune, Surat, Kanpur, Lucknow,
Solapur, and Agra while the rest of the nation is still
under Bharat Stage III.

WSUMMINDOWS USER 2
 Over the years, the car market in India
has evolved by leaps and bounds as
almost all major companies are
present in the country. India has now
become a hub for auto makers to set
up their plants for manufacturing
vehicles intended for domestic and
international markets. The three
prominent regions in which the
majority of Indian car industry is
concentrated lies in south, west and
north. In the southern region, Chennai
is the hub for manufacturing vehicles
while Mumbai and Pune belt comes in
second place. For the north, the NCR
holds a fair share as far as
concentration of production facilities
is concerned.

To list a few commendable feats of the Indian

car industry, it emerged as the fourth largest
exporter of passenger cars behind Japan, South
Korea, and Thailand in 2009. While in 2010,
India emulated its previous year's performance
to become the third largest exporter of cars in
Asia. The biggest reward came for the Indian
car market in 2011 as it became the sixth
largest country in the world in terms of
production

WSUMMINDOWS USER 3
 Overall working of the sector

Introduction

In 2020, India was the fifth-largest auto market, with ~3.49

million units combined sold in the passenger and
commercial vehicles categories. It was the seventh largest
manufacturer of commercial vehicles in 2019.
The two wheelers segment dominate the market in terms of
volume owing to a growing middle class and a young
population. Moreover, the growing interest of the
companies in exploring the rural markets further aided the
growth of the sector. India is also a prominent auto exporter
and has strong export growth expectations for the near
future. In addition, several initiatives by the Government of
India and major automobile players in the Indian market is
expected to make India a leader in the two-wheeler and
four-wheeler market in the world by 2020.

Market Size

Domestic automobiles production increased at 2.36%  

CAGR between FY16-20 with 26.36 million vehicles

being manufactured in the country in FY20. Overall,
domestic automobiles sales increased at 1.29% CAGR
between FY16-FY20 with 21.55 million vehicles being
sold in FY20.
In FY21, the total passenger vehicles production
reached 22,652,108.
Overall, production of passenger vehicles, three
wheelers, two wheelers and quadricycle reached
1,875,698 units in April 2021.
WSUMMINDOWS USER 4
Two wheelers and passenger vehicles dominate the
domestic Indian auto market. Passenger car sales are
dominated by small and mid-sized cars. Two wheelers
 Investment

Overall, automobile export reached 4.77 million vehicles in FY20, growing at a CAGR of 6.94% during FY16-
FY20. Two wheelers made up 73.9% of the vehicles exported, followed by passenger vehicles at 14.2%, three
wheelers at 10.5% and commercial vehicles at 1.3%.
EV sales, excluding E-rickshaws, in India witnessed a growth of 20% and reached 1.56 lakh units in FY20 driven
by two wheelers. According to NITI Aayog and Rocky Mountain Institute (RMI) India's EV finance industry is
likely to reach Rs. 3.7 lakh crore (US$ 50 billion) in 2030. A report by India Energy Storage Alliance estimated
that EV market in India is likely to increase at a CAGR of 36% until 2026. In addition, projection for EV battery
market is forecast to expand at a CAGR of 30% during the same period.

Premium motorbike sales in India recorded seven-fold jump in domestic sales, reaching 13,982 units during April-
September 2019. The luxury car market is expected to register sales of 28,000-33,000 units in 2021, up from
20,000-21,000 units sold in 2020. The entry of new manufacturers and new launches is likely to propel this market
in 2021.

WSUMMINDOWS USER 5
In order to keep up with the growing demand, several auto makers have started investing heavily in various segments
of the industry during the last few months. The industry has attracted Foreign Direct Investment (FDI) worth US$
25.40 billion between April 2000 and December 2020, according to the data released by Department for Promotion
of Industry and Internal Trade (DPIIT).
Some of the recent/planned investments and developments in the automobile sector in India are as follows:

 In FY21, passenger vehicles sales reached 27.11 lakhs units, two-wheelers reached 151.19 lakhs units,
commercial vehicles sales reached 5.69 lakhs units and for three-wheelers it was 2.16 lakhs units.
 In 2019-20, the total passenger vehicles sales reached ~2.8 million, while ~2.7 million units were sold in
FY21.
 In February 2021, the Delhi government started the process to set up 100 vehicle battery charging points
across the state to push adoption of electric vehicles.
 In January 2021, Fiat Chrysler Automobiles (FCA) announced an investment of US$ 250 million to expand
its local product line-up in India.
 A cumulative investment of ~Rs. 12.5 trillion (US$180 billion) in vehicle production and charging
infrastructure would be required until 2030 to meet India’s electric vehicle (EV) ambitions.
 In January 2021, Lamborghini announced it is aiming to achieve sales in India higher than the 2019-levels,
after recovering from pandemic-induced disruptions.
 In January 2021, Tesla, the electric car maker, set up a R&D centre in Bengaluru and registered its subsidiary
as Tesla India Motors and Energy Private Limited.
 In November 2020, Mercedes Benz partnered with the State Bank of India to provide attractive interest rates,
while expanding customer base by reaching out to potential HNI customers of the bank.

WSUMMINDOWS USER 6
 In March 2020, Lithium Urban Technologies partnered with renewable energy solutions provider,
Fourth Partner Energy, to build charging infrastructure across the country.
 In January 2020, Tata AutoComp Systems, the auto-components arm of Tata Group entered a joint
venture with Beijing-based Prestolite Electric to enter the electric vehicle (EV) components market.
 In October 2020, MG Motors announced its interest in investing Rs. 1,000 crore (US$ 135.3 million) to
launch new models and expand operations in spite of the anti-China sentiments.
 In October 2020, Ultraviolette Automotive, a manufacturer of electric motorcycle in India, raised a
disclosed amount in a series B investment from GoFrugal Technologies, a software company.    
 In September 2020, Toyota Kirloskar Motors announced investments of more than Rs 2,000 crore (US$
272.81 million) in India directed towards electric components and technology for domestic customers
and exports.
 During early September 2020, Mahindra & Mahindra singed a MoU with Israel-based REE Automotive
to collaborate and develop commercial electric vehicles.
 In April 2020, TVS Motor Company bought UK’s iconic sporting motorcycle brand, Norton, for a sum
of about Rs. 153 crore (US$ 21.89 million), making its entry into the top end (above 850cc) segment of
the superbike market.

WSUMMINDOWS USER 7
Government Initiatives
The Government of India encourages foreign investment in the automobile sector and has allowed 100%
foreign direct investment (FDI) under the automatic route.
Some of the recent initiatives taken by the Government of India are -

 In Union Budget 2021-22, the government introduced the voluntary vehicle scrappage policy,
which is likely to boost demand for new vehicles after removing old unfit vehicles currently
plying on the Indian roads.
 In February 2021, the Delhi government started the process to set up 100 vehicle battery
charging points across the state to push adoption of electric vehicles.

WSUMMINDOWS USER 8
  The Union Cabinet outlaid Rs. 57,042 crore (US$ 7.81 billion) for automobiles & auto
components sector in production-linked incentive (PLI) scheme under the Department of Heavy
Industries. 
 The Government aims to develop India as a global manufacturing centre and a Research and
Development (R&D) hub.
 Under NATRiP, the Government of India is planning to set up R&D centres at a total cost of
US$ 388.5 million to enable the industry to be on par with global standards.
 The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country
for introduction of EVs in their public transport systems under the FAME (Faster Adoption and
Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The Government will also set
up incubation centre for start-ups working in the EVs space.
 In February 2019, the Government of India approved FAME-II scheme with a fund requirement
of Rs. 10,000 crore (US$ 1.39 billion) for FY20-22.

Achievements
Following are the achievements of the Indian automotive sector:

 In H12019, automobile manufacturers invested US$ 501 million in India’s auto-tech start-ups
according to Venture intelligence.
 Investment flow into EV start-ups in 2019 (till end of November) increased nearly 170% to
reach US$ 397 million.
 On 29th July 2019, Inter-ministerial panel sanctioned 5,645 electric buses for 65 cities.
 NATRiP’s proposal for “Grant-In-Aid for test facility infrastructure for EV performance
Certification from NATRIP Implementation Society” under the FAME Scheme was approved by
Project Implementation and Sanctioning Committee (PISC) on 3rd January 2019.
 Under NATRiP, following testing and research centres have been established in the country
since 2015.
o International Centre for Automotive Technology (ICAT), Manesar
o National Institute for Automotive Inspection, Maintenance & Training (NIAIMT),
Silchar
o National Automotive Testing Tracks (NATRAX), Indore
o Automotive Research Association of India (ARAI), Pune
o Global Automotive Research Centre (GARC), Chennai

WSUMMINDOWS USER 9
  SAMARTH Udyog - Industry 4.0 centres: ‘Demo cum experience’ centres are being set up in the
country for promoting smart and advanced manufacturing helping SMEs to implement Industry
4.0 (automation and data exchange in manufacturing technology).

Electric vehicle and Hybrid vehicle (xEV) industry

During April 2012, the Indian government planned to unveil the road map for the development of
domestic electric and hybrid vehicles (xEV) in the country.[166] A discussion between the various
stakeholders, including Government, industry, and academia, was expected to take place during 23–24
February.[166] The final contours of the policy would have been formed after this set of discussions.

WSUMMINDOWS USER 10
Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad
framework for the sector. Along with these ministries, auto industry executives, such as Anand
Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-
Chairman, Toyota Kirloskar), were involved in this task.[166] The Government has also proposed to set
up a Rs 740 crore research and development fund for the sector in the 12th five-year plan during 2012–
17. The idea is to reduce the high cost of key imported components such as the battery and electric
motor, and to develop such capabilities locally. In the year 2017, An Amaravati, Andhra Pradesh based
Electric Vehicles manufacturing company called AVERA.New & Renewable Energy started electric
scooters manufacturing[168] and are ready to launch their two models of scooters by the end of December
2018..

Electric cars are seen as economical long-term investments, as one doesn't need to purchase gas, but
needs only to recharge the battery, using renewable energy sources. According to the United States
Department of Energy, electric cars produce half as much CO2 emissions as compared to a gas-powered
car.According to The Economic Times, 60% of Indian customers expect fuel prices to go up in the next
12 months and 58% expect to buy a new car in the same time frame. Most consumers are looking to buy
a car which gives good mileage. According to the same source, 68% of Asian drivers expect higher
mileage from their cars due to the higher fuel prices. This has encouraged 38% of Indian automobile
consumers to switch to electric or hybrid cars. Due to this change in the market, many companies, such
as Toyota, have planned to introduce electric vehicles in India; and Suzuki has tested almost 50 electric
prototypes in India already, according to Mashable.In 2019 Hyundai Launched India's First Electric Car
Kona Electric .

WSUMMINDOWS USER 11
Electric vehicle manufacturers in India

 Ather Energy
 Ajanta Group.
 Bajaj Auto
 Oculus Auto
 Hero Electric[
 Hyundai
 Mahindra

 Reva, now Mahindra Reva Electric Vehicles.

 MG Motor
 Tara International
 Tata Motors
 TVS Motor Company

Road Ahead
The automobile industry is supported by various factors such as availability of skilled labour at low cost,
robust R&D centres, and low-cost steel production. The industry also provides great opportunities for
investment and direct and indirect employment to skilled and unskilled labour.
Indian automotive industry (including component manufacturing) is expected to reach Rs. 16.16-18.18
trillion (US$ 251.4-282.8 billion) by 2026.
The Indian auto industry is expected to record strong growth in 2021-22, post recovering from effects of
COVID-19 pandemic. Electric vehicles, especially two-wheelers, are likely to witness positive sales in
2021-22.
A study by CEEW Centre for Energy Finance recognised US$ 206 billion opportunity for electric
vehicles in India by 2030.
References: International Organization of Motor Vehicle Manufacturers, Media Reports, Press
Releases, Department for Promotion of Industry and Internal Trade (DPIIT), Automotive Component

WSUMMINDOWS USER 12
Manufacturers Association of India (ACMA), Society of Indian Automobile Manufacturers (SIAM),
Union Budget 2021-22

• SWOT Analysis

Strengths in the SWOT analysis of Automobile industry

1. Evolving industry : Automobiles represent freedom and economic growth. Automobiles

allow people to live, work and travel in ways that were unimaginable a century ago.
Automobiles provides access to markets, to doctors, to jobs. Nearly every automobile trip
ends with either an economic transaction or some other benefit to the quality of life.
2. Continuous product innovation & technological advancement : With the advent of E-
vehicles & alternative fuel such as Shell gas, CNG and others, Automobile Companies are
increasing R & D expenditure to drive the next phase of growth through use of renewable
sources of energy which may be solar, wind etc.
3. Growth shifting to Asian markets : Although American & European market is the pulse of
this Industry, but the focus is shifting to developing markets like China, India & other
Asian nations because of the rise in disposable income, changing lifestyle & stable
economic conditions.
4. Increasing demand of VFM vehicles : Intense competition in the matured/developed
markets has forced automobile manufacturers to target developing economies. But these
developing economies have high demand for VFM products (value for money). In the
automobile industry, VFM products would be fuel efficient, high mileage vehicles because
majority of customers in these nations prefer vehicles for commuting. On the other hand,
developed nations need is of vehicles for interstate travelling, and high speed vehicles
suitable for long route with high engine power.
5. Increase in demand of luxury commercial vehicles : Companies like VOLVO,
Daimler/Chrysler, Bharat Benz are betting high & are targeting the developing nations due
to increase in demand of Luxury public transportation system.
6. Manufacturing facilities in Asian nations to control cost : In order to control cost & to
manage shrinking margins automobile companies like Harley, Volvo, Bharat benz etc. are

WSUMMINDOWS USER 13
 building their manufacturing facilities in developing nations like India, China because
these nations have cheap workforce, are high in resources & are nearer to developed
economies. These are classic conditions of an emerging market.

Weaknesses in the SWOT analysis of Automobile industry

1. Cars recalled : Controversies relating to recalling vehicles on account of some technical

dis-functionality or non-abidance to govt. led rules is becoming very common.
2. Bargaining power of consumers : Over the last 3-4 decades the automobile market has
shifted from demand to supply market. Availability of large number of variants, Stiff
competition between them, and long list of alternatives to choose from has given power to
customers to choose whatever they like.
3. Growth rate of Automobile industry is the in the hands of the government due to
regulations like excise duty, no entry of outside vehicles in the state, decreasing number of
validity of registration period & volatility in the fuel prices. These factors always affect
the growth of the industry.

Opportunities in the SWOT analysis of Automobile industry

1. Introducing fuel-efficient vehicles : Optimization of fuel-driven combustion engines and

cost efficiency programs are good opportunities for the automobile market. Emerging
markets will be the main growth drivers for a long time to come, and hence fuel efficient
cars are the need of the hour.
2. Strategic Alliances : Making strategic alliances can be a smart strategy for Automobile
companies. By using specialized capabilities & partnering with other companies, they
can differentiate their offerings.
3. Changing lifestyle & customer groups : Three powerful forces are rolling the auto
industry. Shift in consumer demand, expanded regulatory requirements for safety and fuel
economy, and the increased availability of data and information. Also with the increase in
nuclear families there has been increase in demand of two-wheelers & compact cars and
this will grow further.
4. Market expansion : Entering new markets like Asian & BRIC nations will result in
upsurge in demand of vehicles. After these markets, other markets are likely to emerge
soon.

WSUMMINDOWS USER 14
 5. OEM priorities : Given the increase in electronic content, OEMs need to collaborate with
suppliers and experts outside the traditional auto industry. Accomplishing this will require
changes in the way OEMs function. OEMs will be looking to their top suppliers to co-
invest in new global platforms & this will be the driving force in the future.

Threats in the SWOT analysis of Automobile industry 

1. Intense Competition : Presence of such a large number of players in the Automobile

industry results into extensive competition, every company eating into others share leaving
little scope for new players.
2. Volatility in the fuel Prices : At least for the passenger segment fluctuations in the fuel
prices remains the determining factor for its growth. Also government regulations relating
the use of alternative fuels like CNG. Shell gas is also affecting the inventories.
3. Sluggish Economy : Macroeconomic uncertainty, Recession, un-employment etc. are the
economic factors which will daunt the automobile industry for a long period of time.
4. High fixed cost and investment in R & D : Due to the fact that mature markets are already
overcrowded, industry is shifting towards emerging markets by building facilities, R & D
centers in these markets. But the ROI out of these decisions is yet to be capitalized.

• Major Players in the sector

During its early days, most of the Indian automobile manufacturers banked upon foreign technologies.
But the scene has changed over the years and presently, the Indian auto manufacturers are using their
own technology to manufacture brilliant masterpieces. The Indian automobile industry has grown by
leaps and bounds. The automobile industry is one of the fastest growing industries in India. There was a
time when there was no variety of cars available in the Indian market. However, the statistics have
changed completely. Today, the Indian market is blessed with a diverse array of cars, ranging from
hatchbacks, SUVs, sedan to MPVs. There are several top car manufacturing companies running their
operations in India. A few big names are Maruti Suzuki, Tata Motors, Mahindra and Mahindra, Hyundai
Motors, etc. Let's learn briefly about some of the largest car manufacturing companies in India-
Maruti Suzuki
The unparalleled winner of automobile manufacturers in India is Maruti Suzuki. It holds about 53% of
the market share in the Indian passenger car market. During the year 2017-18, Maruti Suzuki

WSUMMINDOWS USER 15
manufactured a little more than 1.6 million assorted vehicles for both export and domestic markets. The
company has 3 manufacturing plants in India. The top selling models offered by Maruti Suzuki are
Swift Dzire, Suzuki Vitara, Suzuki Grand Vitara, and Suzuki Alto, among others.
Hyundai India
Hyundai Motor is the second largest automobile manufacturer in India. It is even India's number one
passenger car exporter to countries across Africa and the Middle East. Hyundai's flagship model Santro
was a hit and helped the company come close to the hearts of the Indian auto lovers. During the year
2017-2018, Hyundai Motors manufactured around 527,320 cars and other vehicles for the domestic and
export markets. Hyundai has two manufacturing plants in Chennai with the most advanced production,
quality, and testing capabilities. The top selling models offered by Hyundai Motor India are Eon, Santro,
i10 and i10 Grand, Elantra,  Xcent, Verna, Creta, and Tucson.
Tata Motors
Tata Motors is another auto-giant in India. It is among the top four vehicle brands in India. The
company's products include buses, trucks, coaches, commercial vehicles and cars. Tata Motors
passenger cars division produces different types of cars including hatchback, sedan, SUV and MUV.
The top selling models offered by Tata Motors are Sumo, Indica, Tiago, Safari, Zest, Nexon, Hexa,
Storme, and Bolt.
Mahindra & Mahindra
When it comes to being the largest tractor manufacturers, Mahindra & Mahindra lead the chart both in
India and the world across. Apart from this, a part of the Mahindra Group - M&M is the largest SUV
maker in the country. The top flagship model of Mahindra in India includes Mahindra Bolero, Mahindra
Scorpio, Mahindra XUV500 and Mahindra Thar.
Honda Cars
Honda Cars Ltd is a joint venture between Siel limited- an Indian company and a Japanese company -
Honda Motor Co Ltd. Honda entered the Indian automobile market in the year 1995. The top flagship
model of Honda Cars Ltd. includes Honda City,  Honda Jazz, Honda Accord, Honda CR-V and Honda
Brio, among others. During the year 2017-2018, this automobile company manufactured around 178,755
vehicles. The company's automobiles are also exported to nearby countries.

• GDP contribution by that sector

The Automotive sector in India is valued at $93 billion currently and is growing at a steady pace. The
automotive industry contributes a whopping 49% of India’s manufacturing GDP. In 2018, the
Automotive Sector contributed to 7.5% of India’s total Gross Domestic Product (GDP). While this
percentage dropped to 7% in the current year, owing to COVID-19, new emission norms and the
economic downturn, experts believe that it may show an increase towards the end of this year. From

WSUMMINDOWS USER 16
March 2020 to April 2020, all automotive manufacturers and dealers were shut down for a period of 40
days, further contributing to the decline in GDP.

As a result, the GDP, which saw an increasing trend began to feel the pinch of an unexpected and
unforeseeable downfall.

• Some facts/figures regarding that sector

The automobile industry in India is the world’s fifth largest. India was the world's fifth largest
manufacturer of cars and seventh largest manufacturer of commercial vehicles in 2019. Indian
automotive industry (including component manufacturing) is expected to reach Rs. 16.16-18.18 trillion
(US$ 251.4-282.8 billion) by 2026. The industry attracted Foreign Direct Investment (FDI) worth US$
25.40 billion between April 2000 and December 2020 accounting for ~5% of the total FDI during the
period according to the data released by Department for Promotion of Industry and Internal Trade
(DPIIT).
The Indian automotive industry is expected to reach US$ 300 billion by 2026.
Domestic automobile production increased at 2.36% CAGR between FY16-FY20 with 26.36 million
vehicles being manufactured in the country in FY20. Overall, domestic automobiles sales increased at
1.29% CAGR between FY16-FY20 with 21.55 million vehicles being sold in FY20.
Two wheelers and passenger vehicles dominate the domestic Indian auto market. Passenger car sales are
dominated by small and mid-sized cars. Two wheelers and passenger cars accounted for 80.8% and
12.9% market share, respectively, accounting for a combined sale of over 20.1 million vehicles in FY20.
Two-wheeler sales stood at 1,195,445 units in March 2021, compared with 1,846,613 units in March
2020, recording a decline of 35.26 %.
Passenger vehicle (PV) sales stood at 279,745 units in March 2021, compared with 2,17,879 units in
March 2020, registering a growth of 28.39%.
Overall, automobile export reached 4.77 million vehicles in FY20, growing at a CAGR of 6.94% during
FY16-FY20. Two wheelers made up 73.9% of the vehicles exported, followed by passenger vehicles at
14.2%, three wheelers at 10.5% and commercial vehicles at 1.3%.
The electric vehicle (EV) market is estimated to be a Rs. 50,000 crore (US$ 7.09 billion) opportunity in
India by 2025. Several technology and automotive companies have expressed interest and/or made
investments into the India EV space. Auto companies such as Hyundai, MG Motors, Mercedes, and Tata
Motors, have launched EVs in the market. A recent study conducted by Castrol found out, most of
Indian consumers would consider buying an electric vehicle by the year 2022. The study also

WSUMMINDOWS USER 17
highlighted for an average Indian consumer, price point of Rs. 23 lakh (or US$ 31,000), a charge time of
35 minutes and a range of 401 kilometers from a single charge will be the 'tipping points' to get
mainstream EV adoption. A cumulative investment of ~Rs. 12.5 trillion (US$180 billion) in vehicle
production and charging infrastructure would be required until 2030 to meet India’s electric vehicle
(EV) ambitions.
A report by India Energy Storage Alliance estimated that EV market in India is likely to increase at a
CAGR of 36% until 2026. In addition, projection for EV battery market is forecast to expand at a CAGR
of 30% during the same period.
The Government aims to develop India as a global manufacturing and research and development (R&D)
hub. It has set up National Automotive Testing and R&D Infrastructure Project (NATRiP) centres as
well as National Automotive Board to act as facilitator between the Government and the industry. Under
(NATRiP), five testing and research centres have been established in the country since 2015. NATRiP’s
proposal for “Grant-In-Aid for test facility infrastructure for Electric Vehicle (EV) performance
Certification from NATRIP Implementation Society” under FAME (Faster Adoption and Manufacturing
of (Hybrid) and Electric Vehicles in India) scheme was approved by Project Implementation and
Sanctioning Committee (PISC) on January 03, 2019. In Union Budget 2021-22, the government
introduced the voluntary vehicle scrappage policy, which is likely to boost demand for new vehicles
after removing old unfit vehicles currently plying on the Indian roads.
The Indian Government has also set up an ambitious target of having only EVs being sold in the
country. The Ministry of Heavy Industries, Government of India, has shortlisted 11 cities in the country
for introduction of EVs in their public transport system under the FAME scheme. The first phase of the
scheme was extended to March 2019 while in February 2019, the Government approved FAME-II
scheme with a fund requirement of Rs. 10,000 crore (US$ 1.39 billion) for FY20-22. Under Union
Budget 2019-20, Government announced to provide additional income tax deduction of Rs. 1.5 lakh
(US$ 2,146) on the interest paid on the loans taken to purchase EVs.  
EV sales, excluding e-rickshaws, in India witnessed a growth of 20% and reached 1.56 lakh units in
FY20 driven by two wheelers. According to NITI Aayog and Rocky Mountain Institute (RMI) India's
EV finance industry is likely to reach Rs. 3.7 lakh crore (US$ 50 billion) in 2030.
The Government of India expects automobile sector to attract US$ 8-10 billion in local and foreign
investment by 2023.

• Summary
The Indian automobile industry seems to come a long way since the first car that was manufactured in
Mumbai in 1898. The automobile sector today is one of the key sectors of the country contributing

WSUMMINDOWS USER 18
majorly to the economy of India. It directly and indirectly provides employment to over 10 million
people in the country. The Indian automobile industry has a well established name globally being the
second largest two wheeler market in the world, fourth largest commercial vehicle market in the world,
and eleventh largest passenger car market in the world and expected to become the third largest
automobile market in the world only behind USA and China.

Chapter 2: Company Profiles

 Name & Location of Company

Mahindra & Mahindra Limited is an Indian multinational automotive manufacturing corporation

headquartered in Mumbai, Maharashtra, India

• Year of Establishment
It was established in 1945 as Muhammad & Mahindra and later renamed as Mahindra and Mahindra.

• Brief History
Mahindra & Mahindra was founded as a steel trading company on 2 October 1945 in Ludhiana as
Mahindra & Muhammed by brothers Kailash Chandra Mahindra and Jagdish Chandra Mahindra along
with Malik Ghulam Muhammad.[6] Anand Mahindra, the present Chairman of Mahindra Group, is the
grandson of Jagdish Chandra Mahindra. After India gained independence and Pakistan was formed,
Muhammad emigrated to Pakistan. Muhammad acquired Pakistani citizenship and settled in Lahore, and
in 1948 became Pakistan's first finance minister.

•Name of Founders and Promoters

WSUMMINDOWS USER 19
 Ghulam Muhammad Jagdish Chandra Mahindra Kailash Chandra Mahindra

• Vision Statements
 We will listen to our Customers and team members. We will ask questions (not assume) seeking
to understand specific needs, desires, and expectations. We will seek to understand before we
will seek to be understood.

 We will work in an environment of mutual trust and respect. We will be caring and responsive to
requests while being honest and timely, avoiding false expectations.

 We will think in terms of exceeding Customer expectations while doing what is fair; i.e. striving
to go the extra step that transforms Customer Satisfaction into Customer Enthusiasm.

 We will make it happen. Speed is essential in creating a win-win culture for the Customer and
Capital.

 We will follow-up with the Customer to ensure that the Customer’s expectations were met or
exceeded.

 We will seek to continually improve our skills and the quality of our products and services in the
eyes of our Customer.

 We will be proactive by anticipating the needs of our Customers and team members.

• Mission Statement and Values statement

Our mission is to earn our Customer’s loyalty by delivering sales and service experiences with high
quality, excellent value, integrity and enthusiasm. We will function as a team, work ethically, and focus
on meeting and striving to exceed the expectations of our Customers.

 Trust and Respect: Our greatest asset is our team members. Open and honest communication
will build trust and allow the contribution of individual strengths to the improvement of the
team.

WSUMMINDOWS USER 20
  Commitment: We are committed to being the best. There is no place for half-hearted efforts.
We will choose measurable goals and work diligently to achieve them and celebrate our
successes.
 Supportive Environment: In our environment everyone, team members and Customers, are
cared for, supported, and treated in a fair and reasonable manner.
 Safety: Every effort will be made to ensure the safety of our Customers and team members. If an
unsafe condition is noticed it is each and every team member’s responsibility to see it is
resolved.
 Personal Responsibility: Team members take ownership of their actions. We accept the
responsibility, accountability, and authority to overcome obstacles and reach beyond the best.
We will work objectively to resolve issues quickly and completely. We will contribute to the
solution

• SWOT analysis of the companies (individually)

Strength in the SWOT Analysis of Mahindra & Mahindra Ltd.:

 Market leader in multiple automotive segments: Mahindra & Mahindra has leading market share in
a tractor as well as in the utility vehicles segment. Also, the company has strong market share in the
commercial vehicle as well as passenger vehicle segment. Strong market share provides
a competitive advantage to the company and allows the company to focus on innovation.

 Strong Research & Development (R&D): M&M has a highly focused R&D department constantly

focusing on developing new products and technologies. M&M majorly focuses on Value addition
and Value engineering (VAVE) approach, designing modularity, use of alternate materials etc.
 Excellent products according to Indian road conditions: Mahindra & Mahindra’s SUVs are suited
perfectly to Indian road conditions especially, Mahindra Scorpio which has been an outstanding
performer for many years.
 Low after sale cost: M&M has a competitive advantage on after sale cost since it is lower than the
industry average and also have high availability of spare parts to different parts of the country.

Weaknesses in the SWOT Analysis of Mahindra & Mahindra Ltd. :

WSUMMINDOWS USER 21
  Geographic dependence: M&M is depended for the majority of its revenue (over 60%) from India,
which would affect its business in case of any economic slowdown or high inflation.
 Overdependence on Automotive industry: M&M’s major part of revenues come from its
automotive business which makes it vulnerable to any breakthrough in the industry or slowdown in
the market.
 Product Recalls affects brand image: M&M has had to recall many of its products in the recent
past. For instance, In February 2015, M&M recalled XUV500 manufactured before July 2014. Such
incidents affect the brand image of the company and consequently affect sales.

Opportunities in the SWOT Analysis of Mahindra & Mahindra Ltd. :

 Growth in Indian automotive industry: The Indian automotive industry is growing year on year
with over 12% growth from the previous 3 years. The industry is expected to grow at a CAGR of
13% in the next 4 years. This growth can be beneficial for M&M.
 Increasing Demand for Hybrid Electric Vehicles: There is an increasing demand for Hybrid
Electric Vehicles (HEVs) around the world. The demand for HEVs is expected to grow at a CAGR
of 19% in the next 3 years. M&M has a strong portfolio of HCVs and is set to be benefited by the
growing demand.
 Emerging nations: M&M should look forward to tapping the emerging nations around the world
which have high potential. M&M should build over its global footprint to tap the emerging markets.

Threats in the SWOT Analysis of Mahindra & Mahindra Ltd.:

 Competition in the automotive industry: M&M faces intense competition from various automotive
companies such as Tata Motors, Ford, Volvo and General Motors etc. This can affect M&M’s market
share and put pressure to constantly innovate on M&M.
 Competition in other businesses put pressure on M&M: Mahindra group faces strong competition
in other businesses as well. For example, its IT business faces competition from IT giants such
as Infosys. This reduces market share and increases competitive pressure.
 Stringent Regulations: M&M is subject to strict regulations by the government and environmental
agencies in terms of emission levels, noise levels etc. Such regulations keep changing and thus
increase compliance costs for the companies.

WSUMMINDOWS USER 22
Chapter 3: Finance department

Company Comparison table - Finance Department

Sr. No. Particulars Company X Company Y Company Z

1. Trading and P&L account (how

they maintain, what is the present
status etc.)

2. Balance sheet

3. Ratios and their interpretation

(here, if the data is available, then
students can find the ratio and put
the analysis here.)

4. Financial statement analysis (the

students can analyze the financial
statements of the company and then
put the final outcome here).

5. Accounting procedure

6. CSR and the expense

7. A listed company. If yes, then

where and since how long?

WSUMMINDOWS USER 23
Chapter 4: Marketing Department

Company Comparison table - Marketing Department:

Particulars Company X Company Y Company Z

List of Products & Services

Number of customers / overseas customers

Specific distribution channel

PLC – associate the product with respect

to the PLC Stage

Market segmentation

Positioning strategies

Promotion tools used

Pricing Methods

Chapter 5: Human Resource Department (HRM) / Personal department

Particulars Company X Company Y Company Z

Recruitment & Selection process

Number of employees (if available)

Training methodology/ approach

Employee safety mechanisms

Specific HR policies

WSUMMINDOWS USER 24
 Performance Appraisal process

Wages & Salary administration

Grievance handling procedure

Strategic HRM (if adopted)

Employee feedback mechanism (if adopted)

Any other

Chapter 6: Production / Operations Department

If Manufacturing Firm is there

Particulars Company X Company Y Company Z

Raw materials used

Turnover

Plant Location

Inventory Policies (if available)

Layouts used

Products Produced

Machines / Equipment used

Process used (Process in brief)

Quality Maintenance

WSUMMINDOWS USER 25
 Specific Operations policies

Services provided

Any other

Chapter 7: Any other Department

Chapter 8: Conclusion from the study

India’s automotive industry is one of the most competitive in the world. It is not surprising that the market for
passenger, commercial vehicles, three wheelers and two wheelers in India has witnessed remarkable growth
over the last decade. As the Indian automobile industry aims to be among the world’s top three in automobile
manufacturing by 2026, e-mobility and ITS by far is the greatest opportunity for the Indian industry to do so.
India has a lot to gain by converting its internal combustion engine (ICE) vehicles to EVs at the earliest, the
report titled ‘Zero Emission Vehicles (ZEVs): Towards A Policy Framework’ suggested. By transitioning to EVs,
India can save up to Rs. 20 Lakh CR. (~235 euro billion) in oil imports and nearly 1 Gigatonne of carbon dioxide
(CO2) emissions by 2030, according to a report by FICCI and Rocky Mountain Institute. A mentioned above
government of India has set its ambitious target of having 100% electric vehicle fleet by 2030 and to achieve the
same various initiatives such as NEMMP, FAME, GUTS are being taken by government to promote and to
encourage the adoption of EVs. Government is also taking steps towards building a sustainable EV ecosystem.
India is also a member of the Electric Vehicles Initiative (EVI) multi-governmental policy forum. The EVI forum
was established in 2009 to accelerate the deployment of electric vehicles worldwide and facilitate exchanges
between policymakers and various stakeholders. Countries currently active in the EVI include Canada, China,
Finland, France, Germany, India, Japan, Mexico, the Netherlands, Norway, Sweden, the UK and the US. The
initiative is jointly led by Canada and China. The International Energy Agency serves as the EVI coordinator.
Despite various proactive steps, serious concerns still remain: lack of adequate charging infrastructure, range
anxiety (mileage between each charge) and the higher initial cost compared to fossil fuel variants. Consumer
mind sets can’t address those problems since they require governmental support and solutions. Automotive
players must explore ways to reduce battery cost, charging time and to increase driving range. India should
consider signing a memorandum of understanding with appropriate countries for a continuous supply of raw
materials. Argentina recently showed interest in helping India in providing lithium but we have not made any
progress towards collaborating with any country so far. Organizations like the International Solar Alliance (ISA),
initiated by India and France, can play a significant role in facilitating such trade. For example, ISA member
countries like Australia, Chile, Brazil, Ghana and Tanzania are rich in lithium reserves. Similarly, nations such as

WSUMMINDOWS USER 26
Congo, Madagascar, and Cuba can partner for supply of cobalt; Burundi, Brazil, and Australia are rich in nickel
reserves. Key standardization bodies of India (BIS & ARAI) and their partners work towards developing standards
that take into account the uniqueness and complexity of the transport system in India. These local requirements
should be tabled at global standardisation platforms for their harmonisation. This will help India in creating
common standards while accounting for the Indian uniqueness and complexity, which in turn will ensure its
interoperability, bring economies of scale and hence the affordability.

WSUMMINDOWS USER 27
WSUMMINDOWS USER 28