Current Status and Size of the Market
- The Indian Auto Industry is a $24 billion industry; About 4% of GDP
- Exports constitute 5% of Indian revenues
- 8.6 million vehicles produced in India in 2004-05
- 1.2 million Passenger Cars. This sector registered 13.5% CAGR over the last 4 years
- 6.6 million Two-wheelers (motor cycles and scooters); 15% CAGR over the last 4 years
- 0.38 million Commercial Vehicles; 24% CAGR over the last 4 years
- 0.37 million Three-wheelers; 17% CAGR over the last 4 years
- India still has low vehicle penetration
- Only 3 cars, 50 two-wheelers per 1000 individuals
- Global Auto OEMs are setting up new manufacturing facilities in India
- Organized sector with a mix of large domestic private players (Tata, Mahindra, Ashok Leyland, Bajaj, Hero Honda) and major international players including GM, Ford, Daimler Chrysler, Toyota, Suzuki, Honda, Hyundai and Volvo
- All big global players have set up manufacturing facilities in India
GOI Policy
100% FDI allowed through the automatic route
Major Domestic Players
Major International Players
Potential & Opportunities
- India to be world’s 3rd largest car market by 2030: Keystone
- Indian auto market projected to double in the next 7 years
- Vehicle production expected to increase from 8.6 million vehicles in 2004-05 to 15 million by 2010-11
- Overall, the market will grow at 12% p.a.:
- Passenger Cars and Two-wheelers expected to be the fastest growing segments
- Heavy Trucks to drive growth in commercial vehicles
- Potential need for investment of over $13 billion in the next 5 years
- Global majors including Suzuki, Hyundai and Honda have committed resources of over $2 billion for capacity expansion
- India has the opportunity to become a major player in the global CV and two-wheeler market, a global hub for manufacture of small cars and for Engineering and Design Services
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