CHAPTER - III

PROFILE OF THE INDIAN AUTOMOBILE INDUSTRY

3.1 INTRODUCTION

The history of the Indian automobile industry comprises of three qualitatively

distinct periods: a) the first phase, 1928 – 1955 dominated by import and assembly
activity. During the British regime, India had no auto industry to begin with and all the
automobiles were imported from the global auto manufacturers such as General Motors
and Ford Motors. In the 1940s, Hindustan Motors and Premier Motors were established
by Indian entrepreneurs, by importing know-how from General Motors and Fiat
respectively, b) the next phase, 1955-1974 should be characterized as the phase of import
substitution and emergence of indigenous automobile manufacture and industry’s maturity
towards self-reliance. In the 1950s, a few companies such as Mahindra and Mahindra,
Ashok Motors (with technical collaboration with Leyland Motors) and Bajaj Auto
entered the market for commercial vehicles and two wheelers. Most of them either
imported auto – components or produced them in house. Later on as a result of the L.K. Jha
committee’s recommendations in 1960 indigenous ancillaries sector evolved as a separate
auto components sector, c) The third period spans since the mid 70’s and thereafter is
marked by structural adjustments and liberalization. The automobile industry in India, the
tenth largest in the world with an annual production of approximately 2 million units is
expected to become one of the major global automobile industries in the coming years.
A number of domestic companies produce automobiles in India and the growing presence
of multinational investment, too, has led to an increase in overall growth.

The global auto industry is a key sector of the economy for every major country
in the world. Today, the Indian automobile industry presents a galaxy of varieties and
models meeting all possible expectations and globally established industry standards.
Some of the leading names echoing in the Indian automobile industry include Maruti
Suzuki, Tata Motors, Mahindra and Mahindra, Hyundai Motors, Hero Honda and
Hindustan Motors in addition to a number of others. During the early stages of its
development, Indian automobile industry heavily depended on foreign technologies.

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 However, over the years, the manufacturers in India have started using their own
technology evolved in the native soil. The thriving market place in the country has
attracted a number of automobile manufacturers including some of the reputed global
leaders to set their foot in the soil looking forward to enhance their profile and prospects
to new heights.

3.2 EVOLUTION OF INDIAN AUTOMOBILE INDUSTRY

The Investment Information and Credit Rating Agency of India (ICRA, 2003)
studies the competitiveness of the Indian auto industry, by globally comparisons of macro
environment, policies and cost structure. This has a detailed account on the evolution of
the global auto industry. The United States was the first major players from 1900 to 1960,
after which Japan took its place as the cost-efficient leader. Cost efficiency being the only
real means in as mature an industry as automobiles to retain or improve market share,
global auto manufacturers have been sourcing from the first-tier OEMs since late 1980s.
There are only a few dominant Indian OEMs, while the number of OEMs is very large in
China (122 car manufacturers and 120 motor cycle manufacturers).
While the genesis of Indian automotive industry can be traced to the 1940’s
distinct growth decades started in the 1970’s. Between 1970 and 1984 cars were
considered a luxury product; manufacturing was licensed, expansion was restricted; there
were quantitative restriction (QR) on imports and a tariff structure designed to restrict the
market. The market was dominated by six manufactures- Telco (now Tata Motors),
Ashok Leyland, Mahindra & Mahindra, Hindustan Motors, Premier Automobiles and
Bajaj Auto. The decades of 1985 to 1995 show the entry of Maruti Udyog in the passenger
car segment and Japanese manufacturers in the two wheelers and light commercial
vehicle segments. Economic liberalization, stated in 1991, led to the delicensing of the
passenger car segment in 1993. QR on imports continued. This decade witnessed the
emergence of Hero Honda as a major player in the two wheeler segments and Maruti
Udyog as the market leader in the passenger car segment. Between 1995 and 2000
several international players entered the market. Advanced technology was introduced to
meet competitive pressures, and environmental and safety imperative. Automobile
companies started investing in service network to support maintenance of on-road
vehicles. Auto financing started emerging as an important driver for demand.

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 Starting in 2000, several landmark policy changes like removal of quantitative
restrictions (QR) and 100 percent FDI through automatic route were introduced.
Indigenously developed (Made in India) vehicles were introduced in the domestic market
and exports were given a thrust. Auto companies started collaboration with financial
firms to provide auto financing and insurance services to customers. Manufacturers also
introduced systems to improve capacity utilization and adopted quality and environmental
management systems. In 2003, Core-group on Automotive R&D (C.A.R) was set up to
identify priority areas for automotive R&D in India.

Rising per capita income and changing demographic distribution are conductive
for growth. India has the highest proportion of population below 35 years, 70% (potential
buyers), which means that 130 million people will get added to the working population
between 2003 and 2009. The trends indicate that small and medium cars would remain
dominant and a shift towards high end cars is expected at a faster rate. The SUV market
is expected to develop rapidly in future. Higher disposable incomes coupled with
availability of easy finance options have driven the passenger vehicle segment.

In the commercial vehicle segment, increased investment in road infrastructure

and availability of cheaper finance has led to a growth in multi axle vehicles. This is
expected to be followed by a shift to tractors-trailer combinations on account of operating
economics of higher power-to-weight ratio vehicles. Growth in the demand for pick-up
trucks has coincided with the growth in multi axle vehicles. The nest growth driver for
LCVs is expected to be the introduction of lighter pick-ups.

The two wheeler segment growth is led by rapid urbanization and resultant raised
in demand from semi-urban and rural areas, increasing income levels, and wider product
range available to customers and easy finance options. The growth in tractor industry is
linked with the growth in agricultural output and exports to neighbouring countries.
Auto component industry growth is directly linked to the growth of automobile industry
since more than 65% sales is to the OEMs. However, in recent years, component exports
are becoming an important growth driver and it is expected to assume greater importance
in future.

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 Compared to domestic sales, vehicle exports have grown at the rate of 39%
CAGR over the last five years, led by exports of passenger cars at 57% and two wheeler
exports at 35%. Last year however, overall exports registered a growth of around 28%.
In value terms exports crossed USD 2 billion. The key destinations are the SAARC
countries, European Union (Germany, UK, Belgium, Netherlands and Italy), Middle East
and North America. Maruti Udyog, Tata Motors and Hyundai Motor India are key
exporters for passenger cars; Mahindra & Mahindra and Tata Motors for light
commercial vehicles, medium and heavy commercial vehicles, Mahindra & Mahindra for
MUVs, Bajaj Auto for two and three wheelers and Mahindra & Mahindra and TAFE for
tractors. A 3% growth in global demand is anticipated over the next five years and it will
be led by Asia (mainly by China, India and ASEAN). Also global auto companies are
increasingly sourcing components and vehicles from low cost countries. The outsourcing
pie is slowly extending to service like engineering design and other business processes.
India is well positioned to take advantage of the outsourcing opportunities.

3.3 GLOBAL SCENARIO OF INDIAN AUTOMOBILE INDUSTRY

The industry being highly capital intensive, has entry barriers for smaller players.
Even the existing global auto majors themselves are realigning their production bases
coming closer to the scene of action in Asia – Pacific region, mainly in China, India and
Thailand. Besides the above, the constant pressure for cost reduction on OEMs is
compelling them to outsource more and more components from low cost countries.
The changing scenario has opened up opportunities for Indian automobile industry. India,
with huge domestic market, rapidly growing purchasing power, and market linked
exchange rate and well established financial market and stable corporate governance
framework is emerging as an attractive destination for new investments in this sector.

The rapid improvement in infrastructure including road, port, power and world
class facilities for testing, certification and homologation coupled with availability of
manpower and enabling government policies to promote fair competition and make
Indian automotive industry more competitive in world besides making the country a
favourable destination for investment by global majors in auto industry.

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 After liberalization of Indian economy in general and automobile industry in
particular, considerable number of Multinational Companies are operating in India either
as wholly owned subsidiaries or in collaboration with their Indian partners. This automotive
sector has taken benefit of liberalization of Indian economy to a large extent and made
available various international brands in India for Indian consumers. Firms like Hyundai
are supplying manufactures cars in the international market using its manufacturing
facility in India in a big way. These firms are using locally available efficient and cost
competitive huge pool of human resource in India.

3.4 FDI IN INDIAN AUTOMOBILE INDUSTRY

Foreign Direct Investment capital flows into India have increased dramatically
since 1991, when India’s opened it economy in FDI, and inflows have accelerated since
2000. FDI inflows into India reached $ 11.1 billion in calendar year 2006 almost double
in the year 2005 and are expected to continue increasing after 2010.(Global FDI has
experienced a corresponding resurgence since 2004, after declining for several years. FDI
inflows into India declined between 2001 and 2003, before experiencing a resurgence
that surpassed average global growth, with a year on-year increased.( UNTAD, world
report 2006, data based on official Indian government.) During the nineties, foreign direct
investment (FDI) accounted for an increasing share of private capital flows to developing
countries. According to the World Investment Report 2002 (WIR02) published by United
Nations Conference on Trade and Development (UNCTAD), developing countries
received 28 per cent of the world FDI inflows in 2001. Global FDI inflows have,
however, declined by 51 per cent in 2001, which also affected the flow to developing
countries. Developing countries witnessed a 14 per cent decline in FDI inflows in 2001 to
US $ 205 billion from US $ 238 billion in 2000. A few developing countries like China
and India, however, registered increased FDI inflows in 2001, which is indicative of their
attractiveness for international investment. The basic advantages provided by FDI to
India in the automobile sector include, advanced technology, cost-effectiveness, and efficient
manpower. Besides, India has a well-developed and competent auto ancillary industry
along with automobile testing and R&D centers. The automobile sector in India ranks
third in manufacturing three wheelers and second in manufacturing of two wheelers.

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 FDI Inflows to Automobile Industry have been at an increasing rate as India has
witnessed a major economic liberalization over the years in terms of various industries.
The automobile sector in India is growing by 18 percent per year. The major investing
countries are Mauritius (mainly routed from developed countries), USA, Japan, UK,
Germany, the Netherlands and South Korea. India needs to worry on the foreign direct
investment (FDI) front. According to the statistics released by India’s Ministry of
Commerce and Industry, the country has received only $18.35 billion in FDI in the first
11 months (April-February) of the financial year 2010-2011, compared to $ 6.3 billion
that came in the 11 months of the previous financial year. Future prospect of Indian
Automotive Sector is looking bright. Indigenous automobile companies are replacing
foreign multinational companies in terms of consumer satisfaction.

A cumulative FDI inflow during January 2000-2009 (up to December 2009) is

Rs. 472,231.23 crores (US$ 105.99 billion). Out of this, the amount of FDI inflows in the
automobile Industry during this period is Rs. 20,554.56 crores (US$ 4.55 billion) which
4.29% of the total FDI inflows.

Further, the FDI inflows data on country specific in respect of automobile

industry is available only for the period January 2000 to December 2009. The amount of
FDI inflows project specific in respect of all countries & sector are not centrally
maintained prior to January 2000. The table shows the sector wise classification of FDI
inflow in automobile industry.

Table 3.1
SECTOR- WISE CLASSIFICATION OF FDI INFLOWS IN AUTOMOBILE
INDUSTRY (from January 2000 to December 2009)

Amount of FDI inflows Percentage with

total FDI inflows
S.No Sub Sector Rupees in US$ in
in Automobile
Crores million
Industry
1. Automobile industry 6,651.65 1,441.17 1.36
2. Auto ancillaries/Parts 8,823.97 1,965.54 1.85
3. Passenger Cars 2,891.56 647.11 0.61
4. Others (Transport) 2,187.38 492.69 0.46
Total of above 20,554.56 4,546.51 4.28
Source: dipp.nic.in
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 The table 3.1 narrates the sector-wise classification of FDI inflows in automobile
industry during 2000 to 2009. Out of 4.28percent the FDI inflows in automobile industry
(including passenger car and others) is 2.43 percent (US$ 2580.97 million)

India is considered to be one of the fastest growing auto markets in the world
owing to its huge market size, expanding middle class, availability of finance options and
a high percentage of young aspirational population. Apart from these from the viewpoint
of a manufacturer India provides auto companies with low cost production facility, a
growing talent pool of technical personnel, and a growing and competent auto
components market. A look at some of the key parameters of the industry shows that the
sector has been growing continuously thereby benefitting both the manufacturers as well
as the consumers. A look at the production, sales and exports figures suggest that all the
three indicators have shown an upward trend along with the rise in FDI flows into the
sector. The table below shows the top five countries attracting FDI inflow for automobile
industry.

Table 3.2

Share of top five countries attracting FDI Inflows for Automobile Industry (From
January 2000 To December 2009)

Amount of FDI inflows Percentage with

total FDI inflows in
S.No Sub Sector
Rupees in Automobile
US$ in million
Crores Industry

1. Japan 5,129.46 1,114.97 24.52

2. U.S.A 3,811.89 832.44 18.31

3. Italy 2,544.51 595.93 13.11

4. Mauritius 1,566.01 348.18 7.66

5. Sweden 1,598.78 343.61 7.56

Total of above 14,650.65 3,235.13 71.16

Source: dipp.nic.in

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 The table 3.2 shows that share of top five countries attracting FDI inflows for
automobile industry during 2000 to 2009. Japan is attracting highest FDI inflows when
compared to other countries which are 34.46 percent of total FDI inflows during the period.

3.5 RECENT TRENDS IN INDIAN AUTOMOBILE INDUSTRY

One of the major industrial sectors in India is the automobile sector. Subsequent
to the liberalization, the automobile sector has been aptly described as the sunrise sector
of the Indian economy as this sector has witnessed tremendous growth.

Automobile Industry was delicensed in July 1991 with the announcement of the
New Industrial Policy. The passenger car industry was, however, delicensed in 1993. No
industrial license is required for setting up of any unit for manufacture of automobiles
except in some special cases. The norms for Foreign Investment and import of technology
have also been progressively liberalized over the years for manufacture of vehicles
including passenger cars in order to make this sector globally competitive.

At present 100% Foreign Direct Investment (FDI) is permissible under automatic

route in this sector including passenger car segment. The import of technology/technological
upgradation on the royalty payment of 5% without any duration limit and lump sum
payment of US$ 2 million is also allowed under automatic route in this sector. With the
gradual liberalization of the automobile sector since 1991, the number of manufacturing
facilities in India has grown progressively.

3.5.1 Domestic Market Share for 2010-11

The table below shows that, the domestic automobile industry market is divided
in to four divisions. They are passenger car, commercial vehicle, three wheelers and two
wheelers. In these divisions, two wheelers segment occupies the highest portion of
market share (76%) in the total market.

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 Table 3.3

S.No Classification Total Market share (%)

1. Passenger Vehicles 16.25

2. Commercial Vehicles 4.36

3 Three Wheelers 3.39

4. Two Wheelers 76.00

Total 100.00

Production during 2012

According to Society of Indian Automobile Manufacturers (SIAM), the
cumulative production data for April-February 2012 shows overall production growth of
14.56 percent as compared to last year. Production in February 2012 registered growth of
14.62 percent as compared to February 2011.

The overall sales growth rate recorded for April-February 2012 was
12.46 percent. In February 2012, domestic sales registered growth at 12.07 percent as
compared to February 2011. Passenger vehicles segment recovered marginally at
2.95 percent during April-February 2012 over same period last year. Passenger cars
recorded marginal growth of 0.31 percent, utility vehicles grew by 14.66 percent and
vans grew by 10.01 percent in this period. In February 2012, passenger cars, vans and
utility vehicles recorded growth at 13.12 percent, 25.34 percent and 30.04 percent
respectively. And growth in overall passenger vehicles was at 16.07 percent in the month
of February 2012.

The overall Commercial Vehicles (CV) segment registered growth of 18.63 percent
during April-February 2012 as compared to the same period last year. While Medium &
Heavy Commercial Vehicles (M&HCVs) registered growth of 9.23 percent, light
commercial vehicles grew at 26.85 percent. However, in the month of February 2012
over February 2011, the growth in sales of the overall CV segment was 18.70 percent.

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 Three Wheelers sales recorded further de-growth of (-) 1.78 percent in April-
February 2012. While passenger carriers registered decline by (-) 4.12 percent during
April-February 2012, goods carriers registered growth of 8.32 percent. Two wheelers
registered a growth of 14.77 percent during April-February 2012. Mopeds, motorcycles
and scooters grew by 10.86 percent, 13.12 percent and 23.28 percent respectively.

After comparing data from February 2012 to February 2011, the growth figure for
two wheelers was at 11.96 percent. Three wheelers registered de-growth at (-) 13.58 percent
in the month of February 2012.

During April-February 2012, overall automobile exports registered a growth rate

of 26.12 percent. Passenger vehicles registered growth at 16.17 percent during this
period. Two wheelers, commercial vehicles and three wheelers segments recorded growth
of 26.86 percent, 28.17 percent and 37.05 percent respectively during April-February
2012. In February 2012 compared to February 2011, overall automobile exports
registered a growth of only 5.70 percent.

3.6 Key Challenges faced by the Indian automobile industry

Indian auto industry is one of the most promising and growing auto industries
across the world. But at this juncture the Indian auto industry is facing various challenges
catering to the growing domestic market. Some of the key challenges faced by auto
industry are fuel technology and nurturing talented manpower. These challenges are
explained below in detail:

Fuel Technology

Technology is significant and needed to ignite the growth of auto industry.

Whether it’s a two-wheeler or a car, technology drives the growth. The challenge of
alternative fuel technology ensures a brighter vision of the auto industry in the country.
The increasing environmental pollution has become a concern for manufacturers and all
associated with the industry. All of them are struggling hard to come up with a holistic
and integrated approach to reduce carbon dioxide emission. Some of the initiatives to
reduce the level of automotive emission include introduction of fuel-efficient cars,
obligatory periodic maintenance, and inspection of automotives, designing automotives

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 with recyclable materials, use of alternative fuels like CNG, LPG, biodiesel, and
introduction of electric and hybrid cars. Car manufacturer like Maruti Suzuki has already
introduced the new concept of using recyclable substance for car production in its
dazzling car Maruti Suzuki A-Star. After the production of Maruti Suzuki A-Star, the
company thrives to apply the same concept in all its future car models.

In addition, it is believed that the Bharat IV Emission Norms are stringent and are
to become mandatory in the next couple of years. The growing industry is hunting for
more advanced ways and measures to meet the stringent norms. Some of the cars and
other automotives may even be phased out during that period.

Nurturing Talented Manpower

Manpower and human resources has always been a key growth driver in any
industry including the automobile industry. Though India has a vast pool of talented and
skilled professionals, the country needs initiatives and support to treasure these resources
to excel in all areas of the industries.

Automobile industry is no exception and highly skilled manpower will further

become the most reliable source of competitive advantage across the global as well as
Indian automobile industry. More than even before creativity, innovative ideas, and
expertise in different areas have become an asset these days. Talking about cars, car
designers infuse their creativity in their designed car models and that’s something which
attracts car customers.

Further to that, the industry has to foster the talent for servicing and maintenance
as well. India has personnel to create better and reliable automotives but still lack the
expertise in servicing and maintenance of the automotives through their life span. Some
professionals, who feel they are over-talented move across the boundaries. According to
SIAM, India is expected to have shortage of well qualified manpower. Therefore, SIAM
introduces new strategies to optimize the skills and support proposals to train youth
across the country including the rural areas. Today, SIAM, Ministry of Rural Development,
National Skills Development Corporation, Indian Government, and the Indian Automotive
Industry, are working in synergy to generate a vast pool of skilled manpower for the
Indian auto industry.

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 3.7 Potential of Indian Automobile Industry

There is a very stiff competition in the automobile industry segment in India.

This has helped many to realize their dreams of driving the most luxurious cars. During
the recent past, a number of overseas companies have started grabbing a big chunk of the
market share in both domestic and export sales. Every new day dawns in India with some
new launches by active players in the Indian automobile arena. By introducing some low
cost cars, the industry had made it possible for common men to buy cars for their
personal use. With some innovative strategies and by adopting some alternative remedial
measures, the Indian automobile industry has successfully come unaffected out of the
global financial crisis.

While the automobile industry in India is the ninth largest in the world, the
country emerged as the fourth largest automobiles exporter on the globe following Japan,
South Korea and Thailand, in the year 2009. Over and above, a number of automobile
manufacturers based in India have expanded their operations around the globe also giving
way for a number of reputed MNCs to enthusiastically invest in the Indian automobile
sector.

During the fiscal year 2011, the Indian automobile industry rode high on the
resurgence of consumer demand in the country as a result of the Government’s fiscal
stimulus and attractively low interest rates. As a result the total turnover of the domestic
automobile industry increased by about 27 per cent. This is a remarkable achievement
compared with the total revenue of Rs 1, 28,384.53 crore reported during the same period
of last fiscal year. Specifically, the segment of commercial vehicles witnessed the biggest
jump in revenues by 31 per cent by reporting Rs 38,845.09 crore. During the same
period, the passenger vehicle segment in the country witnessed a growth of 27 per cent
over the last fiscal year by reporting total revenue of Rs 76,545.96 crores. These figures
imply a highly prospective road lying immediately ahead of the Indian automobile industry.

3.8 PROFILE OF SELECTED AUTOMOBILE COMPANIES

The companies under automobile industry are classified into three sectors namely:
commercial vehicles, passenger car and multi-utility vehicle and two & three wheelers
for the purpose of the study.
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 a. Commercial Vehicles by Make
Commercial vehicles influence the trade, commerce and industry of a country in a
major way. Vehicles falling under this category are buses, trucks, ambulance, jeeps and
many others. It comes in various uses such as transportation of goods, shipping, and
handling of various commodities and so on.
b. Passenger Car and Multi utility Vehicles
It is the fast growing automobile segment in India and has become the most
popular mode of transportation in rural areas. Multi Utility Vehicles gained momentum in
India due to its higher utility however with lower cost of operation.
c. Two Wheelers by Make:
India is the second largest producer of two-wheelers in the world. In the last few
years, the Indian two-wheeler industry has seen spectacular growth. The country stands
next to China and Japan in terms of production and sales respectively.
Brief descriptions about the selected automobile companies are given under:

1. Ashok Leyland Limited (ALL)

It is a commercial vehicle manufacturing company based in Chennai, India.
Founded in 1948, the company is one of India's leading manufacturers of commercial
vehicles, such as trucks and buses, as well as emergency and military vehicles. Operating
six plants, Ashok Leyland also makes spare parts and engines for industrial and marine
applications. It sells about 60,000 vehicles and about 7,000 engines annually.

2. Atul Auto Limited (AAL)

For more than two decades, Atul Group is renowned as leading manufacturer of
three-wheeled commercial vehicles in the state of Gujarat. From common people's
favourite vehicle CHHAKADA to today's SHAKTI Atul Group had come a long way.
Back in the 1970’s, when transportation was a crucial problem especially in rural areas,
decided to blaze a new trail. The Atul Group was thinking of an affordable mode of
transportation which can benefit rural folks of Saurashtra. The road conditions were not
good but the need for transportation was increasing day in and day out. The improvements in
technologies were done from time to time to make it a sturdy and comfortable vehicle.

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 3. Eicher Motors Limited (EML)

Eicher Motors is a commercial vehicle manufacturer in India. The company's

origins date back to 1948, when Good Earth Company was established for the distribution
and service of imported tractors. The Eicher Company has around 2500 employees
located in four manufacturing facilities and 49 marketing and area offices around India.
The group has around 600 suppliers of components and sub-assemblies. The group’s
products are supplied by a network of around 381 dealers distributed across India. Eicher
is present in over 40 other countries.

4. Force Motors Limited (FML)

Force Motors, is the Pune based pioneer of the Light Commercial Vehicle (LCV)
industry that gave India iconic brands like the Tempo, Matador, Minidor and Traveller.
Force Motors is completely vertically integrated, making its own engines, chassis, gear
boxes, axles, bodies, etc. for their entire product range. In 1958, the company started
production of the HANSEAT 3-Wheelers in collaboration with Vidal & Sohn Tempo
Werke Germany. Today, they manufacture a wide range of vehicles including Small
Commercial Vehicles (SCV), Light Commercial Vehicles (LCV), Multi Utility Vehicles
(MUV), Sports Utility Vehicles (SUV), Heavy Commercial Vehicles (HCV) and
Agricultural Tractors. In a move away from its long-established business, of being a
commercial vehicle maker, Force Motors has chosen to enter the personal vehicles arena
with a Sports Utility Vehicle the FORCE ONE.

5. Hero Moto Corp. (HMC)

Formerly Hero Honda Motors Ltd. is the world's largest manufacturer of two -
wheelers, based in India. In 2001, the company achieved the coveted position of being
the largest two-wheeler manufacturing company in India and also, the 'World No.1' two-
wheeler company in terms of unit volume sales in a calendar year. Hero Moto Corp Ltd.
continues to maintain this position till date.

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 6. Hindustan Motors Limited (HML),

India's pioneering automobile manufacturing company and flagship company of

the C.K. Birla Group was established just before Indian independence, in 1942 by Mr.
B.M. Birla of the industrious Birla family. Commencing operations in a small assembly
plant in Port Okha near Gujarat, the manufacturing facilities later moved to Uttarpara,
West Bengal in 1948, where it began the production of - the Ambassador.

7. Honda Siel Cars India Ltd (HSCI)

It was incorporated in December 1995 as a joint venture between Honda Motor
Co. Ltd., Japan and Siel Limited, a Siddharth Shriram Group company, with a commitment
to providing Honda’s latest passenger car models and technologies, to the Indian
customers. The total investment made by the company in India till date is Rs 1620 crores
in greater Noida plant and Rs 784 crores in Tapukara plant. HSCI’s first state-of-the-art
manufacturing unit was set up at greater Noida, U.P in 1997. The green-field project is
spread across 150 acres of land. The annual capacity of this facility is 100,000 units.
The company’s second manufacturing facility is in Tapukara, Rajasthan. This facility is
spread over 600 acres and will have an initial production capacity of 60,000 units per
annum, with an investment of about Rs 1,000 crore. Honda’s models are strongly
associated with advanced design and technology, apart from its established qualities of
durability, reliability and fuel-efficiency.

8. Hyundai Motor India Limited (HMIL)

Hyundai Motor India Limited is a wholly owned subsidiary of world’s fifth

largest automobile company, Hyundai Motor Company, South Korea, and is the largest
passenger car exporter. It presently markets 49 variants of passenger cars across
segments. Hyundai Motor currently exports cars to more than 110 countries across
European Union, Africa, Middle East, Latin America and Asia. It has been the number
one exporter of passenger car of the country for the sixth year in a row. In a little over a
decade since Hyundai has been present in India, it has become the leading exporter of
passenger cars with a market share of 66% of the total exports of passenger cars from
India, making it a significant contributor to the Indian automobile industry.

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 9. Maharashtra Scooters Limited (MSL)

It is a joint sector Public Limited Company, listed on the Bombay Stock Exchange
and National Stock Exchange, jointly promoted by Western Maharashtra Development
Corporation Limited, a wholly-owned Govt. of Maharashtra undertaking and Bajaj
Holdings & Investment Ltd. (BHIL) while the joint promoter was initially erstwhile
BAL, after its demerger in 2008, the current joint promoter is BHIL.

10. Mahindra & Mahindra (M&M)

Mahindra & Mahindra is mainly engaged in the Multi Utility Vehicle and Three
Wheeler segments directly. The company competes in the Light Commercial Vehicle
segment through its joint venture subsidiary Mahindra Navistar Automotives Limited and
in the passenger car segment through another joint venture subsidiary Mahindra Renault.
Mahindra & Mahindra is expanding its footprint in the overseas market. The company
formed a new joint venture Mahindra Automotive Australia Pty. Limited, to focus on the
Australian Market.

11. Majestic Auto Limited (MAL)

The Company was originally incorporated as a Private Limited Company on

23.4.1973 under the name "Majestic Gears (P) Limited". It was manufacturing various
bicycle components for M/S Hero Cycles Pvt. Ltd. It was promoted by Sh. Satyanand
Munjal, Sh.Brijmohan Lall Munjal and Sh. Om Parkash Munjal of Hero Cycles Limited.
The Company, having understood the requirement of Indian markets of two wheeler
industry, decided to go in for producing of a suitable moped in the year1975. This company
converted to a public limited company on 2nd April, 1977. The name of the company had
been changed to M/s Majestic Auto limited and a fresh certificate of incorporation was
obtained. Majestic auto ltd (Hero Majestic) launched its first moped in the year 1978.
Hero Majestic Mopeds have found acceptance in the overseas markets, including
countries in Africa, North & South America, Europe and the far & Middle East and are
homologated in Europe & USA

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 12.Maruti Suzuki India Limited (MSIL)
MSIL, (formerly known as Maruti Udyog Limited) Maruti Suzuki India Limited,
a subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car
company, accounting for over 45% of the domestic car market. The company offers a
complete range of cars. Since inception in 1983, Maruti Suzuki India has produced and
sold over 7.5 million vehicles in India and exported over 500,000 units to Europe and
other countries. . MSIL has been the leader of the Indian car market for over two and a
half decades. The company has two manufacturing facilities located at Gurgaon and
Manesar, south of New Delhi, India. Both the facilities have a combined capability to
produce over 1.2 million (1,200,000) vehicles annually.

13.Scooters India Limited (SIL)

Incorporated in 1972, Scooters India Limited is an ISO 9001:2000 and ISO 14001
Company. It is a totally integrated automobile plant, engaged in designing, developing,
manufacturing and marketing a broad spectrum of conventional and non-conventional
fuel driven 3-wheelers. In 1975, company started its commercial production of Scooters
under the brand name of Vijai Super for domestic market and Lambretta for overseas
market. It added one more wheel to its product range and introduced three wheelers under
the brand name of VIKRAM/LAMBRO. However, in 1997, strategically, the company
discontinued its two-wheeler production and concentrated only on manufacturing and
marketing of 3 wheelers. These three wheelers have become more relevant in the present
socio-economic environment as it transports goods and passengers at least cost. The company
has its own marketing network of Regional Sales Offices all over India, catering to
customer’s requirements in the areas of sales and services.

14.SML Isuzu Ltd (SML)

The Company was incorporated on 26th July, 1983 under the name Swaraj
Vehicles Ltd. and changed to the present name on 27th November, 1984. The Company
has been promoted by Punjab Tractors Ltd., in technical collaboration with Mazda Motor
Corporation, Japan and Sumitomo Corporation, Japan. The main object of the company is
to manufacture light commercial vehicles. The factory is located at village Asron, Dist.
Hosiarpur, Punjab.

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 15.Tata Motors Limited (TML)
It is India's largest automobile company. Established in 1945, Tata Motors'
presence indeed cuts across the length and breadth of India. Over 6.5 million Tata
vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing
base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow
(Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka).
It is the leader in commercial vehicles in each segment, and in passenger vehicles with
winning products in the compact, midsize car and utility vehicle segments. The
company's over 25,000 employees are guided by the vision to be ''best in the manner in
which we operate, best in the products we deliver, and best in our value system and
ethics.'' Tata Motors has operations in the UK, South Korea, Thailand, Spain and South
Africa. Among them is Jaguar Land Rover, a business comprising the two iconic British
brands that was acquired in 2008.

16.TVS Motor Company Limited (TVS)

It is the flagship company of the parent TVS Group employing over 40,000
people with an estimated 15 million customers. It manufactures motorcycles, scooters,
mopeds and auto rickshaws. It is India's only two-wheeler company to have won the
Deming Prize awarded for commitment to quality control, received in 2002.
TVS Motor traces its origins back to the entrepreneurial spirit of Trichur
Vengatram Sundaram Iyengar who gave up lucrative careers in the Indian Railways and
in banking to set up his own business. He began with Madurai's first bus service in 1911
and founded T.V.Sundaram Iyengar and Sons Limited, a company that consolidated its
presence in the transportation business with a large fleet of trucks and buses under the
name of Southern Roadways Limited.[3] When he died in 1955 his sons took the company
ahead with several forays in the automobile sector, including finance, insurance,
manufacture of two-wheelers, tyres and components.

17. V.S.T Tillers Tractors Ltd (VST)

It was incorporated in the year 1967 in Bangalore, India. It was promoted by the
V.S.T Group, a well known business house in South India, in technical collaboration and
joint venture with Mitsubishi Heavy Industries and Mitsubishi Corporation, Japan for the

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