Mini Project Report

On

Emerging Technologies In Automotive Industry

A Report Submitted To

Abdul Kalam Technical University, Lucknow

(In partial fulfilment for the award of Degree of Master of Business Administration)

Under The Guidance of:

Dr. Shreyanshi Verma

By:
Niraj Kumar Singh
University Roll No.: 2000900700012
Semester – II
Session: 2020-21

IEC College of Engineering & Technology (090)

4, Institutional Area Surajpur Kasna Road, K . P – I, Greater Noida (U.P.)

1
 CONTENT

1 TABLE OF CONTENTS
Page No.
Certificate of the head of the Department 3

Certificate of the Faculty 4

Acknowledgement 5

Executive Summary 6

1. INTRODUCTION 8-13

 Brief Introduction to Automotive Industry 9

 Objective & Limitation of Study 10
 Advantages & Opportunities 11

2. MARKET OVERVIEW 14-19

 Evolution of the Industry 15
 Market Sectors 16
 Market Size 18

3. EMERGING TECHNOLOGIES 20-35

 Technological Trends 21
 Investment 27
 Government Initiative 32

4. RESEARCH METHODOLOGY 36-37

5. BIBLIOGRAPHY 38

2
 IEC College of Engineering & Technology
Affiliated to Abdul Kalama Technical University, Luck now
Approved by AICTE, Ministry of HRD Govt. of India.
4, Institutional Area, Surajpur Kasna Road, K.P- I, Greater Noida,(U.P) , Ph: 0120
– 2326665/2326537

Department of Management Study

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the Mini Project entitled ‘Emerging Technologies In Automotive
Industry’ has been prepared by Mr. Niraj Kumar Singh bearing University Roll No:
2000900700012 and enrolled as MBA 2nd Semester student at IEC College of
Engineering & Technology.

This report embodies the original work done by student and partially fulfils
the requirement of the Abdul Kalam Technical University (Formerly UPTU) toward the
degree of “Master of Business Administration”.

Head of the Department

3
 IEC College of Engineering & Technology
Affiliated to Abdul Kalam Technical University, Lucknow
Approved by AICTE, Ministry of HRD Govt. of India.
4, Institutional Area, Surajpur Kasna Road, K.P- I, Greater Noida,(U.P) , Ph: 0120
– 2326665/2326537

Department of Management Study

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the Mini Project entitled ‘Emerging Technologies In Automotive
Industry’ has been prepared by Mr. Niraj Kumar Singh bearing University Roll No:
2000900700012 and enrolled as MBA 2nd Semester student at IEC College of
Engineering & Technology.

This report embodies the original work done by student and partially fulfils
the requirement of the Abdul Kalam Technical University (Formerly UPTU) toward the
degree of “Master of Business Administration”.

Faculty Guide

4
 ACKNOWLEDGEMENT

“It is not possible to prepare a project report without the assistance & encouragement of
other people. This one is certainly no exception.”
 

On the very outset of this report, I would like to extend my sincere & heartfelt obligation
towards all the personages who have helped me in this endeavor. Without their active
guidance, help, cooperation & encouragement, I would not have made headway in
the project.

I am ineffably indebted to Dr. Shreyanshi Verma for conscientious guidance and

encouragement to accomplish this assignment.

I am extremely thankful and pay my gratitude to my all faculty for `their valuable guidance
and support on completion of this project in its presently.

I extend my gratitude to IEC College of Engineering & Technology

for giving me this opportunity.

I also acknowledge with a deep sense of reverence, my gratitude towards my parents

and member of my family, who has always supported me morally as well as economically.

At last but not least gratitude goes to all of my friends who directly or indirectly helped me to
complete this project report.

Any omission in this brief acknowledgement does not mean lack of gratitude.

Thanking You
Niraj Kumar Singh

5
 EXECUTIVE SUMMARY

The automotive industry is a pillar of Indian economy and a key driver of macroeconomic growth and
technological advancement. Currently, the automotive industry contributes more than 7% to the total
GDP and provides employment to about 32 million people, directly and indirectly. Strong domestic
demand coupled with supportive Government policies have led to the Indian automotive industry
climbing up the ranks to be one of the global leaders.

Just like many other countries, The Indian auto industry is set to witness major changes in the form of
electric vehicles (EVs) and Intelligent Transport system (ITS) with aims to alleviate existing concerns
including traffic congestion, fuel dependency, air & noise pollution etc. In March 2016, the
Government of India (Goo) set the country’s ambitious target to have of 100% electric vehicles (EVs)
fleet on road by 2030. Keeping in mind, the government of India has been taking various initiatives to
promote faster adoption of electric vehicles. These include the National Electric Mobility Mission
Plan (NEMMP), Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME
India) and schemes such as Green urban transport and urban green mobility that promote e-mobility in
public transport. With that, the AMP 2016- 26 has set out clear targets for propelling Indian
Automotive industry amongst the top three nations in the world by 2026 where the focus will be on
developing value-added components and not just conduct plain vanilla manufacturing.

Subsequently, multiple state governments have been providing incentives to attract electric vehicle
(EV) manufacturing in their states, and to fast-track adoption of EVs. Karnataka became the first
Indian state government to introduce an Electric Vehicle Policy. It has launched its Electric Vehicle
and Energy Storage Policy in 2017. The government of Maharashtra, Andhra Pradesh, Telangana,
Uttar Pradesh and Uttarakhand have also either unveiled electric vehicles policy or are framing draft
policies to support GoI’s vision to have 100% Electric Vehicles by 2030.

In May 2017, the National Institution for Transforming India (NITI) outlined a vision for the
transformation of mobility in the country, proposing a set of actionable and specific solutions to
accelerate India’s leadership in advanced mobility. Niti Aayog has also come out with a Model
Concession Agreement (MCA) document for introducing electric-bus fleet in cities for public
transportation on Public-Private Partnership (PPP) mode. In order to boost private investment in
Electric Vehicle (EV) charging infrastructure, Ministry of Power Ministry of Power (MoP) has issued
the "clarification on charging infrastructure for Electric Vehicles with reference to the provisions of
the Electricity Act 2003" on 13 April 2018.

6
In early 2018, the Ministry of Power launched the new National Electric Mobility Programme to
focus on creating the charging infrastructure and a policy framework to set a target of more than 30%
electric vehicles by 2030. Additionally, to address pollution from old vehicles, the government is
working on an initiative that focuses on formulation of end-of-life or scrap page policies that proposes
to take hundreds of thousands of polluting commercial vehicles off the road. It plans to give incentive
for the adoption of these policies with the help of lower taxes, discounts on purchase prices, and
simple compliance processes.

In India, CMVR-Technical Standing Committee (CMVR-TSC), Automotive Industry Standards

Committee (AISC) and the Bureau of Indian Standards (BIS) formulate and recommend standards for
the Automotive Industry. Ministry of Road Transport and Highway (MoRTH) and Ministry of Heavy
Industry along with other ministries such as Ministry of Environment & Forest, Ministry of Petroleum
& Natural Gas, Ministry of Power, Ministry of Non-Conventional Energy Sources are also involved
in formulation of standards related to safety, emissions, noise, fuels, energy consumption and
alternatively-fueled vehicles. BIS is also a founder member of International Organization for
standardization (ISO). It represents India in the International Organization for Standardization (ISO),
the International Electro-technical Commission (IEC) and World Standards Service Network
(WSSN).

World Forum for Harmonization of Vehicle Regulations (WP.29) under the United Nations Economic
Commission for Europe (UNECE) was formed with an aim to harmonize vehicle regulations
worldwide. Three UN Agreements, adopted in 1958, 1997 and 1998, provide a legal and regulatory
framework and provisions related to performance-oriented test requirements and procedures to
contracting parties (member countries). India is not a contracting party to the 1958 agreement but
signed the UN WP 29 1998 Agreement in February 2006. It continues to actively participate in the
Global Technical Regulation (GTR) formulation by contributing data and subject matter expertise.
India has currently more than 70% safety regulations which are either partially or fully technically
aligned with GTRs and UN Regulations while keeping in view the Indian specific driving and
environmental conditions.

7
INTRODUCTION

8
 Introduction to Automobile Industry

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.

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.

35

30

25

20 No. of AutoMobiles
Produced (in million)
15 No. of AutoMobiles Sold (in
million)
10

0
FY18 FY19 FY20 FY21

9
OBJECTIVES OF STUDY
 To study the different aspects the automotive industry.
 To study the impact of automotive industry on the different sectors.

 To study the effects of automotive industry on the different sectors.

 To study about the outcomes of automotive industry on the different sectors.

 To study the effects of demonetization in long run for an economy.

 To study how concept of automotive industry can help a country.

LIMITATION OF STUDY

 The secondary data collected might consist of manipulations, which

might have given bias in the result.
 The lack of experience in preparing the project report.
 Lack of time for completion of the project.
 The method lacks flexibility. In case of inadequate or incomplete
information the result may deviate.
 It is very difficult to check the accuracy of the information provided
 Documents may lack authenticity parts of the document might be missing,
and we might not even be to verify the document, meaning we cannot check
whether it’s biased or not.
 The way things are measured may change over time, making historical
comparisons difficult.
 As a project report the area of study is vast and may be not enough
for to give any limitation.

10
 ADVANTAGES AND OPPORTUNITIES

ADVANTAGES

Advantages

Growing Rising Policy

Opportunities
Demand Investment Support

Advantages for India Automobile Industry

1. Growing Demand:

 Rise in middle class income and young population may result in strong growth.
 Indian automotive industry is targeting to increase export of vehicles by five times
during 2016-26. In
 FY21, the total passenger vehicles production reached 22,652,108

2. Rising Investment:

 Rise in middle class income and young population may result in strong growth.

 Indian automotive industry is targeting to increase export of vehicles by five times

during 2016-26.

 In FY21, the total passenger vehicles production reached 22,652,108

11
3. Policy Support:

 Automotive Mission Plan 2016-26 is a mutual initiative by the Government of India

and Indian Automotive Industry to lay down the roadmap for development of the
industry.
 The Government aims to develop India as a global manufacturing centre.

 In Union Budget 2021-22, the government announced the voluntary vehicle scrappage
policy to phase out old and unfit vehicles.

4. Opportunities:

 Focus shifting on electric cars to reduce emissions.

 Government aims to build India into a R&D hub.
 India could be a leader in shared mobility by 2030, providing opportunities for
electric and autonomous vehicles.

 The electric vehicles industry is likely to create five core jobs by 2030.

12
OPPORTUNITIES

Opportunities

Opportunities for
India is Fast
Creating Sizeable Small Car
Emerging as a Global
Market Segment Manufacturing Hubs
R&D Hub
Through Innovations

1. India is Fast Emerging as a Global R&D Hub:

 Strong support from the Government; setting up of NATRIP centres.

 Private players such as Hyundai, Suzuki, and GM, keen to set up R&D base in
India.
 In January 2021, Tesla, the electric car maker, set up a R&D centre in Bangalore
and registered its subsidiary as Tesla India Motors and Energy Private Limited .

2. Opportunities for Creating Sizeable Market Segments Through

Innovations:

 Mahindra & Mahindra (M&M) is targeting to implement digital technology in the

business.
 Hyundai is planning to enter the hybrid vehicles segment to explore alternative
fuel technology and to avail the Government incentives.
 In May 2019, Nissan Motor Company received a patent for wireless charging of
EVs in India.

3. Small Car Manufacturing Hubs:

 GM, Nissan and Toyota announced plans to make India their global hub for small cars.
 Strong export potential in ultra low cost cars segment (to developing & emerging
markets).

13
 MARKET
OVERVIEW

14
 EVOLUTION OF THE INDUSTRY

Before 1982 1983-1992

Indian Government & Suzuki formed Maruti Udyog and commenced production in 198
Closed Market Component manufacturers entered the market via joint venture (JV).
5 Players in the Market Buyer’s market.
Long Waiting Period & Outdated Models
Seller’s Market

1992-2007 2015 onwards

Sector de-licensed
Automotive in 1993.
Mission Plan 2016-26 launched in 2015.
Major OEMsBharat
started
Stage
assembly
(BS) IV emission
operations
norms
in India.
since April 2017 and to adopt BSVI norms from 2020.
Imports permitted fromvehicles
26.36 million April 2001.
produced in FY20.
Introduction
In the
of valueadded
Union Budgettax2021-22,
in 2005. the government announced the voluntary vehicle scrappage policy to phase o

15
 Automobile Sector

Automobile Sector

Two-wheelers Passenger Commercial

Vehicles Vehicles Three-wheelers

Mopeds and Light

Passenger car Commercial Passanger
Electric Scooters
vehicles Carriers

Medium & heavy

Scooters Utility vehicles Commercial Goods Carriers
Vehicles

Motorcycles Multi-purpose
vehicles

1 PASSENGER VEHICLES:
 In FY21, passenger vehicles domestic sales stood at 2,711,000 units.
 As per Federation of Automobile Dealers Associations (FADA), PV sales in
December 2020 stood at 271,249 units, compared with 218,775 units in December
2019, registering a 23.99% growth.

2 COMMERCIAL VEHICLES:

 In FY20, commercial vehicles production, domestic sales, and export stood at

7,52,022; 7,17,688; and 60,713 units, respectively.

 Ashok Leyland’s total (domestic and export) sales in April 2021 stood at 8,340 units.

16
3 TWO-WHEELERS:

 Hero MotoCorp and Honda Motorcycle and Scooter India (HMSI) were the top two
players in the twowheelers segment with market share of 35.77% and 27.02%,
respectively, in FY20.

 Bajaj Auto’s two-wheeler sales in April 2021 stood at 3,48,173 units.

4 THREE-WHEELERS:

 Bajaj Auto was the leader in the three-wheeler’s passenger category with 63.8%
market share in FY20, followed by Piaggio Vehicles with 20.1% market share.

 Piaggio Vehicles dominated the three-wheelers load category with 42% market share
in FY20, followed by Bajaj Auto with 27% market share.

 TVS Motors’ three-wheeler sales in April 2021 stood at 2,26,193 units.

17
 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.

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 995,097 units, while
passenger vehicle sales stood at 261,633 units in April 2021.

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.
 Two-wheelers and passenger vehicles dominate the domestic Indian auto market.
Passenger car sales are dominated by small and midsized cars. Two-wheelers and
passenger cars accounted for 81.2% and 14.6% market share, respectively, accounting
for a combined sale of over 17.8 million vehicles in FY21.
18
 Overall, automobile export reached 4.77 million vehicles in FY20, implying a CAGR
of 6.94% between FY16-FY20. Two-wheelers made up 73.9% of the total vehicles
exported, followed by passenger vehicles at 14.2%, three-wheelers at 10.5% and
commercial vehicles at 1.3%

12.9

3.3
3
Passenger Vehicles
Commercial Vehicles
Three Wheelers
Two Wheelers

80.8

Segment-wise Domestic Market Share in FY21 (%)

19
 EMERGING
TECHNOLOGIES

20
 TECHNOLOGICAL TRENDS
Technology has twisted the very fabric of our society, giving birth to a brave new world
where solutions to problems are a mere click away. In 2020, the adoption of technology – in
the automotive industry and its ancillaries – became more vigorous owing to Covid-19. After
all, those were the technological interventions that prevented the world from coming to a
complete standstill.

So, it becomes critical to know how the influx of technology is going to transform the
industry this year. Here are a few trends that have the highest likelihood of dominating the
segment in 2021:

1. In-Car Sterilization:

First things first, the COVID-19 outbreak has presented a unique situation in front of us.
While vaccines have high efficacy and certain countries now permitting only vaccinated
people to step outdoors without a mask, the true nature of the pandemic is largely, still
unknown. The virus is rapidly mutating as healthcare experts are still trying to gauge that
whether or not COVID-19 will be completely eradicated. In fact, the UN believes it might
become seasonal.

Owing to these factors, we might see permanent changes in people’s behaviors and
preferences, especially when it comes to car purchases. The automobile players will have to
embrace the change by making in-car sterilization an integral part of the overall package.
Some automakers and sterilization companies have already made progress on this front. In
2021, we might see more automakers joining the flock.

21
 2. E-Commerce:

More Indians now prefer e-commerce purchases and it’s easy to understand why. Not only
can they avail a better bargain online but can also get the desired product delivered at their
preferred time and date, at their desired destination. Overall, it makes the erstwhile
cumbersome process more effective and flexible.

However, there has been a new entrant in the Indian e-commerce catalog. Now, one can even
purchase cars online and get them delivered to your doorstep. This e-tail model marks the
change in the paradigm from where dealerships were at the epicenter of all automobile
transactions. They still have a role to play as the last-mile delivery operator and physical
experience center. But this new e-commerce-based framework might transform everything
from the customer experience to the purchase journey, forever. More emphasis will be given
to the use of technology such as AI for lead generation, conversion, and sales optimization, in
times to come. Also, given the current situation, online orders might be the primary mode of
car purchase in 2021.

22
 3. Electric Vehicles:

In India, certain EVs can already outperform their fossil-fuel-based counterparts. The year
2021 could bring more delight to the lives of Indian EV enthusiasts. The space has heated up
considerably ever since international players have announced their foray into the Indian
market. It might prompt EV automakers to hasten their product timelines while amplifying
the R&D initiatives. We might see sizable advances in battery capacity, charging time,
conducive infrastructure and vehicle range owing to the development.

What needs to be noted here is also the fact that one of the biggest limitations of an EV is its
battery. The EV battery constitutes nearly one-fifth of the weight of the car. At the same time,
it occupies a lot of space and leads to design-related limitations, wherein there are challenges
such as less legroom. Here, Hydrogen-powered vehicles can make a world of difference. For
the uninitiated, Hydrogen-powered vehicles are basically Electric Vehicles minus the
gargantuan battery. They use Hydrogen as a fuel which combines with Oxygen to produce
electricity for the motor and water as a byproduct.

In 2020, the MoRTH issued a notification to amend Central Motor Vehicles Rules, 1989, and
include safety evaluation of vehicles driven by hydrogen fuel cell technology. Nearly a year
down the line, India is anticipating its first hydrogen-powered vehicle with import approval in
place. The vehicle comes equipped with three hydrogen fuel tanks that extend the range of a
whopping 1,000 KMs to its customers.

Hydrogen-powered vehicles might start a new chapter in India’s clean mobility drive and the
automotive industry, at large.

The automotive industry bets its future on batteries. Government agencies, Investors and
carmakers are pouring money into research of batteries in a worldwide race to profit from
emission free electric vehicles. According to Indian Brand Equity Foundation, EV sales,
excluding E-rickshaws, in India witnessed a growth of 20% and reached 1.56 lakh units in
FY20 driven by two wheelers. The increasing rate of reliance on fossil fuels and the harm to
the environment caused by using them has changed the outlook of automotive sector.
Moreover, it has given emphasis to electric vehicles (EVs).

A fact says that cars contribute to 15% of carbon emission which causes potentially
irreversible damage to environment and deplete the fossil fuel reserves. To address these
challenges, Electric cars are leveraging a higher level of energy efficiency and reduced fuel
consumption. Though there are limitations of EVs, which is still making it debatable with
23
regards to its acceptance and adoption in the sector. Electric vehicle makers should come up
with solutions on poor battery, high price, inadequate charging infrastructure, renewable
energy-based charging, and fleet electrification.

4. Robotic Process Automation (RPA):

Robotic Process Automation is nothing new for the automobile segment. It is heavily used in
certain manufacturing processes including spray painting, brazing, and so forth. But the use
of RPA in India is still limited as the majority of processes are led manually. The COVID-19
outbreak will prompt more automakers to change the status quo and automate processes as
much as possible. It will enable them to ensure optimal operations even in dynamic
situations, such as now. The development will further lead to the upskilling of the automotive
workforce with the introduction of specialized job roles.

24
 5. 3D printing, a new generation manufacturing:

With the increasing demands witnessed by auto sector for new vehicles and spare products,
the industrialists and end users always aspire for newer, better performing vehicles and need
to optimize production and streamline supply chains and logistics. 3D technology is helping
to meet all these requirements and challenges. It has been explored across all the areas of
automotive production. Apart from its usage for rapid prototyping, it is also being used to
produce tooling and end parts

The automotive sector is moving towards the surge in the demand for newer technologies
every year. To meet those demands, industrialists and researchers are coming up with latest
manufacturing technologies. To cater the end users with the best and most innovative
technology, car makers across the world are implementing various techniques. Coming years
are welcoming the auto sector with various upcoming innovations in the technology, which
will reshape the landscape of the automotive sector across the globe!

25
 6. Blockchain, most likened technology in the internet
generation:

Blockchain has enabled the information more secure and safe to change, hack or cheat
the system. It transforms the organization’s processes. It enables to share the vehicle
data over a secure network for connectivity and shared mobility solutions such as
urban transportation, ride-hailing and deliveries. It is also used in the verification
process to improve efficiency across back-office works and supply chain. The
disruption of block chain in auto sector is anticipated to increase in the future.

Conclusion
In conclusion, it goes without saying that the technological influx across industries –

including the automotive industry – is only going to intensify hereafter. What remains to be

seen is which trends will be the fleeting ones and which will become the apple of the eyes of

automobile enthusiasts. Perhaps, time is the best judge.

26
 INVESTMENTS

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.

27
 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.

 Hyundai Motor India invested ~Rs. 3,500 crore (US$ 500 million) in FY20, with an
eye to gain the market share. This investment is a part of Rs. 7,000 crore (US$ 993
million) commitment made by the company to the Tamil Nadu government in 2019.

 In October 2020, Kinetic Green, an electric vehicles manufacturer, announced plan to

set up a manufacturing facility for electric golf carts besides a battery swapping unit
in Andhra Pradesh. The two projects involving setting up a manufacturing facility for
electric golf carts and a battery swapping unit will entail an investment of Rs. 1,750
crore (US$ 236.27 million).

 In October 2020, Japan Bank for International Cooperation (JBIC) agreed to provide
US$ 1 billion (Rs. 7,400 crore) to SBI (State Bank of India) for funding the
manufacturing and sales business of suppliers and dealers of Japanese automobile
manufacturers and providing auto loans for the purchase of Japanese automobiles in
India.

 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.

28
  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.

 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 Auto Comp 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.

The Indian automobile sector witnessed an inflow of huge investments from domestic
and foreign manufacturers. FDI inflows in the sector stood at ~US$ 24.62 billion
between April 2000 and September 2020.

1. Nissan

 To prepare for production of the latest version of Navara pickup, the company
plans to launch eight new car models in India by the end of 2021.
 In January 2020, the company revised its strategy and now plans to launch
one new product every year.

2. Toyota:

 In September 2020, Toyota Kirloskar Motors announced investment of over

Rs. 2,000 crore (US$ 272.6 million) in India directed towards developing
electric components and technologies.

3. Hyundai:
 Hyundai Motor India invested close to Rs. 3,500 crore (US$ 500 million) in
FY 2020 with an eye on gaining market share. The investment is part of Rs.
7,000 crore (US$ 993 million) commitment by the company to the Tamil
Nadu government in 2019.

29
4. SAIC:
 Chinese state-owned auto major, SAIC Motor, has announced investment of over
US$ 310 million in India. In March 2018, SAIC announced that its subsidiary, MG
Motor India, would invest Rs. 5,000 crore (US$ 775.8 million) in India over the next
six years.

5. Mercedes-Benz:
 Increased its plant capacity at Chakan to 20,000 units per year, the largest for
any luxury car manufacturer in India. In March 2019, the company
inaugurated two new service stations in New Delhi.

6. Motorcycle Kinetic:
 Superbike seller Motoroyale Kinetic is planning to establish a plant in Supa,
Maharashtra with an outlay of Rs. 12 crore (US$ 1.71 million) by 2021.
Source: Media Sources, Company Website.

7. Fiat Chrysler Automobiles:

 In January 2021, Fiat Chrysler Automobiles (FCA) announced an investment
of US$ 250 million to expand its local product line-up in India.  FCA plans
to launch four new SUVs by the end of 2022. 21 Investment scenarios (3/3).

8. MG Motor :
 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
despite the anti-China sentiments.

9. Olestra Genentech Limited:

 In December 2020, Olectra Greentech Limited and Evey Trans Private
Limited bagged an order for 150 electric buses under FAMEII Scheme from
Pune Mahanagar Parivahan Mahamandal Ltd.

30
10. Kinetic Green:
 In October 2020, Kinetic Green, an electric vehicles manufacturer, announced
plan to set up a manufacturing facility for electric golf carts besides a battery
swapping unit in Andhra Pradesh. The two projects involving setting up a
manufacturing facility for electric golf carts and a battery swapping unit will
entail an investment of Rs. 1,750 crore (US$ 236.27 million).

31
 GOVERNMENT INITIATIVE’S & POLICIES

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.

 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.

32
 Policies

PLI
NATRIP AMP FAME
Schemes
1. NATRIP:

 Setting up of R&D centres at a total cost of US$ 388.5 million to enable the industry
to be on par with global standards.
 Under National Automotive Testing and R&D Infrastructure Project (NATRIP), five
testing and research centres have been established in the country since 2015.

2. PRODUCTION-LINKED INCENTIVE (PLI) SCHEME:

33
  On November 11, 2020, the Union Cabinet approved production-linked incentive
(PLI) scheme in 10 key sectors (including automobiles & auto components) to boost
India’s manufacturing capabilities, exports and promote the ‘Atmanirbhar Bharat’
initiative.
 The Union Cabinet outlaid Rs. 57,042 crore (US$ 7.81 billion) for automobiles &
auto components sector under the Department of Heavy Industries.

3. THE AUTOMOTIVE MISSION PLAN 2016-26 (AMP 2026) :

 AMP 2026 targets a four-fold growth in the automobile sector in India which include
manufacturers’ of automobiles, auto components & tractors over the next 10 years.

4 FAME:

34
 The Government approved FAME and plans to cover all vehicle segments and all
forms of hybrid & pure EVs. FAME-I was extended until March 31, 2019.
 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.

35
 RESEARCH
METHODOLOGY

36
RESEARCH METHOD
The research methods will be descriptive followed by partially exploratory because the entire
project will be based on the data collected from internet, reports, journals and analysis so that
the detailed and clear description will be there in the project, so there is a mix of explanation
and description design. It will cover all the major information about automotive industry and
will give a clearer view to the reader how it works.

SOURCE OF DATA
The main source of information in my project will be based on secondary data . The
secondary data consists of information that already existing somewhere having been collected
for another purpose. Any researcher begins the research work by first going through
secondary data. Secondary data includes the information available with company. It may be
the findings of research previously done in the field. Secondary data can also be collected
from the magazines, news papers, internet other service conducted by researchers.

SCOPE OF RESEARCH
The topic of this project basically falls in the category of Automotive Industry of India. The
objective of the research having the main aim to make people aware of how big this industry
is and how it can impact the future of India in terms of GDP growth, employment generation,
Foreign direct investment and Reduction of carbon emission.

37
 BIBLIOGRAPHY

https://www.google.co.in
https://en.wikipedia.org
https://www.ibef.org
https://www.financialexpress.com
https://www.startus-insights.com
https://www.automotive-technology.com
https://www.strategyand.pwc.com

38