AUTOMOBILES

March 2024
For updated information, please visit www.ibef.org
Table of Contents

Executive Summary 3

Advantage India 4

Market Overview 6

Recent Trends and Strategies 13

Growth Drivers and Opportunities 16

Key Industry Contacts 25

Appendix 27

2
Executive summary
1 Segmented market
▪ The automobile sector is split into four
segments, i.e., two-wheelers, three-
wheelers, passenger vehicles, and
commercial vehicles, each having few

1
market leaders.
3 Third-largest
▪ In FY23, two-wheelers and passenger cars
held a market share of 75% and 18%, automobile market
respectively. ▪ In January 2024, the total passenger
▪ India is the largest E2W and E3W vehicle sales reached 3,93,074*.
manufacturer in the world. Passenger Vehicles saw the highest ever
sales in the month of January posting a
▪ 14,95,183 two-wheeler units were sold in
growth of 14% compared to January
January 2024.

2 Growth prospects 2 3 2023.

▪ This sector's share of the national GDP

▪ The Indian automotive industry is expected increased from 2.77% in 1992–1993 to
to reach US$ 300 billion by 2026. around 7.1% presently. It employs about
19 million people directly and indirectly.
▪ Strong policy support from the
Government. ▪ Presence of established domestic and
international original equipment
▪ India has ample growth potential for the
manufacturers (OEMs).
passenger vehicle segment considering
that at 24 per 1,000 India has the third ▪ Strong market in terms of domestic
lowest car penetration ratio among the top demand and exports.
13 markets. The world average stands at
314 per 1,000, implying a significant
potential for growth.
Sources: SIAM
Notes: *BMW, Mercedes, JLR & Volvo Auto data is not available. Tata Motors Domestic Sales data included only in Passenger Vehicles. Without Tata Motors, Passenger Vehicles would
be 3,39,441 for January 2024

3
Advantage India

4
Advantage India
1 Growing demand 4 Opportunities
► Rise in middle-class income and young ► Focus shifting on electric cars to
population may result in strong growth. reduce emissions.
► The Indian automotive industry is ► Government aims to transform India
targeting to increase the export of into an R&D hub.
vehicles by five times during 2016-26.
► India could be a leader in shared
► In January 2024, the total production of
mobility by 2030, providing
passenger vehicles*, three-wheelers,
opportunities for electric and
two-wheelers, and quadricycles was
autonomous vehicles.
23,28,329 units.
► In FY23, total automobile exports from ► The electric vehicles industry is likely
India stood at 47,61,487. 1 4 to create five crore jobs by 2030.
► The global EV market was estimated at ► By 2030, the Indian government has
approximately US$ 250 billion in 2021 committed that 30% of the new vehicle
and by 2028, it is projected to grow by sales in India would be electric.
5 times to US$ 1,318 billion. ADVANTAGE
INDIA 3 Policy support
2 Rising Investments 2 3 ► Automotive Mission Plan 2016-26 is a
► India has significant cost advantages. Auto mutual initiative by the Government of
firms save 10-25% on operations vis-a-vis India and the Indian automotive industry to
Europe and Latin America. lay down the roadmap for the development
► The automobile sector received a of the industry.
cumulative equity FDI inflow of about US$
► The Government aims to develop India as
35.65 billion between April 2000 -
a global manufacturing centre.
December 2023.
► India is on track to become the largest EV ► The FAME Scheme was extended for a
market by 2030, with a total investment further period of 2 years up to 31st March,
opportunity of more than US$ 200 billion 2024.
over the next 8-10 years.

Notes: *Data except for BMW, Mercedes, JLR, Tata Motors & Volvo Auto
Sources: Automotive Mission Plan (2016-2026), Make in India, SIAM, ICRA, Federation of Automobile Dealers Association, News Article, DPIIT

5
 Market Overview

MARKET OVERVIEW

6
Evolution of the sector

Before 1982 1983-1992 1992-2020 2020 Onwards

▪ Closed market ▪ Indian Government & ▪ Sector de-licensed in 1993. ▪ In January 2024, three-wheeler
▪ 5 players Suzuki formed Maruti ▪ Major OEMs started assembly sales stood at 53,537 units while
▪ Long waiting periods & Udyog and commenced operations in India. two-wheeler sales stood at
outdated models production in 1983. ▪ Imports permitted from April 14,95,183 units..
▪ Seller’s market ▪ Component 2001. ▪ In FY23, total commercial vehicle
manufacturers entered ▪ Introduction of value-added tax sales stood at 9,62,468 units,
the market via a joint in 2005. three-wheeler sales stood at
venture (JV). 4,88,768 units and two-wheeler
▪ Automotive Mission Plan 2016-
▪ Buyer’s market. sales stood at 1,58,62,087 units.
26 launched in 2015.
▪ Bharat Stage (BS) IV emission
norms used since April 2017,
and BSVI norms adopted from
April 1, 2020.

Sources: Tata Motors, Society of Indian Automobile Manufacturers (SIAM)

7
Market overview

Automobile Sector

Commercial
Two-wheelers Passenger vehicles Three-wheelers
vehicles

Mopeds and electric Light commercial

Passenger cars Passenger carriers
scooters vehicles (LCV)

Medium & heavy

Scooters Utility vehicles Goods carrier
commercial vehicles

Multi-purpose
Motorcycles
vehicles

Source: Society of Indian Automobile Manufacturers (SIAM)

8
Market overview

Number of Automobiles Produced in India (in million) Number of Automobiles Sold in India (in million)

35.00 30.00

30.00 25.00 26.27

30.92
29.07 24.97
25.00 26.36 21.86
25.33 25.93 20.00 21.55 21.20
23.04 23.36 19.72
20.00 22.65 18.61
17.61
15.00
15.00
10.00
10.00
5.00
5.00

0.00
0.00
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24*
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24*

▪ The automotive manufacturing industry comprises the production of commercial vehicles, passenger vehicles, three-wheelers, and two-wheelers.
▪ In April-January FY24, the total production of passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and quadricycles was
23.36 million units.
▪ India accomplished a significant milestone, with the sale of 13,25,112 EVs in FY24 (till January 2024).
▪ CY 2023 was satisfactory for Automobile Sector after recovering from the effects of the COVID-19 pandemic, posting single-digit growth across
Passenger Vehicles, Commercial Vehicles, and Two Wheelers, along with a notable recovery in Three Wheelers, aided by supportive government
schemes. The Indian auto industry anticipates continued growth in FY24 as well.
▪ A report by India Energy Storage Alliance estimated that the EV market in India is likely to increase at a CAGR of 36% until 2026. In addition, a
projection for the EV battery market is forecast to expand at a CAGR of 30% during the same period.

Notes: * - Till January 2024

Source: Society of Indian Automobile Manufacturers (SIAM), The Economic Times

9
Market overview

Segment-wise Domestic Market Share in FY23 (%) Number of Automobiles Exported (in millions)

2.31% 6.0 CAGR 7.51%

4.54% 5.5
5.62
5.0
18.35% 4.5 4.77 4.77
4.63
Two Wheelers 4.0
4.04 4.13
3.5
Passenger Vehicles 3.64 3.48
3.0
Commercial Vehicles 2.5
Three Wheelers 2.0
1.5
74.81%
1.0
0.5
0.0
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23

▪ Two-wheelers and passenger vehicles dominate the domestic Indian Indian Car Sales Figures - January 2024
auto market. Passenger car sales are dominated by small and Market Share
PV OEM January 2024 January 2023
midsized cars. Two-wheelers and passenger cars accounted for (%) Jan 24
74.81% and 18.35% of market shares, respectively, in FY23. Maruti Suzuki 1,72,813 1,51,736 43.94%
▪ Indian automobile exports of two-wheelers stood at 36,52,122 in
Tata Motors 53,094 45,617 13.50%
FY23.
Hyundai 51,652 46,769 13.13%

Mahindra 41,243 35,198 10.49%

Toyota 20,237 11, 387 5.15%

Source: Society of Indian Automobile Manufacturers (SIAM), Federation Of Automobile Dealers Associations (FADA), News Article

10
Clusters and leading companies

List of Companies

▪ Ashok Mazda ▪ Tata Motors ▪ JCB

Leyland ▪ Amtek Auto ▪ Bajaj Auto ▪ Yamaha
▪ Force ▪ Eicher ▪ Hero Group ▪ Mahindra
North Motors ▪ Honda SIEL ▪ Escorts ▪ Suzuki
▪ Piaggio Motorcycles
▪ Maruti ▪ ICML
Delhi-Gurgaon- ▪ Swaraj Suzuki
Faridabad
▪ Ashok ▪ Eicher ▪ Volkswagen Benz
Leyland ▪ Skoda ▪ Renault- ▪ Tata Hitachi
▪ Bajaj Auto ▪ Bharat Nissan ▪ Volvo Eicher
West
▪ FIAT Forge ▪ John Deere
▪ M&M ▪ Tata Motors ▪ Mercedes

▪ TataMotors ▪ International
Kolkata- Auto
▪ Hindustan
Jamshedpur Motors Forgings
Mumbai-Pune- East
▪ Simpson & ▪ JMT
Nashik- Co ▪ Exide
Aurangabad

▪ Ashok ▪ Sundaram ▪ TVS Motor ▪ Caterpillar

Chennai- Bengaluru- Leyland Fasteners Company ▪ Hindustan
Hosur ▪ M&M ▪ Enfield ▪ Renault- Motors
South Nissan
▪ Toyota ▪ Hyundai
Kirloskar ▪ BMW ▪ TAFE
▪ Volvo ▪ Bosch ▪ Daimler

Over the past few years, four specific regions in the country have become large auto manufacturing clusters, each having a different set of
players.

Sources: ACMA

11
Key players

Each segment in the Indian automobiles sector have few established key players, who hold a major portion of the market.

2 COMMERCIAL VEHICLES 3 TWO-WHEELERS

▪ In January 2024, commercial vehicles domestic ▪ In January 2024, Hero MotoCorp sold 4,10,395 two-
sales stood at 89,208 units. wheelers, the highest in the segment, which gave it a
▪ In January 2024, Tata Motors sold 31,188 market share of 28.13%.
commercial vehicles, the highest in the segment,
which gave it a market share of 34.96%

1 PASSENGER VEHICLES 4 THREE-WHEELERS

▪ In January 2024, total passenger vehicle
▪ In January 2024, Bajaj Auto was the
sales reached 3,93,250.
leader in the three-wheeler category
▪ In January 2024, Maruti Suzuki was the top
with a 36.45% market share, having
passenger vehicle seller with 1,72,813
sold 35,606 units in the month.
passenger vehicle units sold.

2 3

1 4

Source: SIAM, FADA

12
 Recent Trends and Strategies

RECENT TRENDS AND STRATEGIES

13
Recent trends
1 Luxury vehicles 3 New financing
▪ The luxury car market registered sales of 42,731 units in 2023.
▪ In January 2024, BMW sold 1,340 luxury cars, the highest in the
options
segment, which gave it a market share of 0.34%. Mercedes-Benz sold ▪ According to NITI Aayog and Rocky
1,333 cars in January 2024. Mountain Institute (RMI), India's EV finance
industry is likely to reach Rs. 3.7 lakh crore
▪ The BMW X1 was the highest-selling luxury car in the Indian market in (US$ 50 billion) in 2030.
2023.
▪ In August 2023, Maruti Suzuki India Limited
▪ In February 2023, German luxury car maker Audi India began local (MSIL) introduced an instant loan feature,
production of the Audi Q3 and Audi Q3 Sportback at the Skoda Auto HDFC ‘Xpress Car Loans’, on its Smart
Volkswagen India Private Limited (SAVWIPL) plant in Aurangabad. Finance platform to meet the evolving need
of the digital savvy customers.
2 Catering to Indian needs ▪ Tata Motors partnered with Bank of
▪ Most firms including Kia Motors and Volkswagen
have adapted themselves to cater to the large
Indian middle-class population by dropping their
1 Maharashtra to introduce the 'Maha Super
Car Loan scheme', offering up to 90%
financing for salaried and self-employed
individuals, professionals, businessmen,
traditional structure and designs. This has allowed
them to compete directly with domestic firms, and agriculturists, and up to 80% for
making the sector highly competitive. corporate clients.

▪ Tata Motors introduced the Ace Gold Petrol CX in ▪ In October 2021, Maruti Suzuki India

2 3
July 2021, which is India's cheapest, most Limited (MSIL) announced that with its
compact commercial four-wheeler vehicle, starting launch of Smart Finance, Maruti Suzuki
at Rs. 3.99 lakh (US$ 5,362). For this, it has customers can avail of finance options
partnered with the State Bank of India to provide online in an integrated platform for a one-
up to 90% financing of on-road pricing, with stop solution. MSIL has integrated its online
monthly EMIs starting at Rs. 7,500 (US$ 101). ‘Smart Finance’ platform with 14 financiers
to offer competitive interest rates.
▪ In August 2023, Toyota unveiled the world's first
BS-VI stage II compliant, electrified flex-fuel ▪ In November 2021, Mahindra & Mahindra
vehicle, Toyota Innova, running entirely on Financial Services (Mahindra Finance)
ethanol, a renewable fuel sourced from plant launched 'Quiklyz’, a lease-based vehicle
materials commonly derived from crops such as subscription business for urban centres.
sugarcane, corn, and maize. Quiklyz will offer multi-brand vehicle leasing
and subscriptions. The company plans to
expand Quiklyz to 30 cities within a year.
Sources: News Articles

14
Strategies adopted

1 Capacity addition 3 Launch of new models

▪ Indian carmakers committed US$ 10 billion to add a new
capacity of 2.2 to 3 million units. ▪ In February 2024, Tata Motors launched
Tiago and Tigor iCNG AMT – India’s 1st
▪ In November 2023, Tata Motors inaugurated its state-of-the-
AMT CNG Cars.
art Registered Vehicle Scrapping Facility in Chandigarh.
▪ In January 2024, Tata Passenger Electric
▪ In October 2023, Hero MotoCorp inaugurated its first state-
Mobility Ltd (TPEM), a subsidiary of Tata
of-the-art premium dealership in India.
Motors launched its first pure EV – the
▪ In October 2023, Tata Motors signed a definitive agreement Punch.ev.
to acquire a 27% stake in Freight Tiger, a software-as-a-
▪ In September 2023, Honda Cars India
service (SaaS) company, for Rs. 150 crore (US$ 17.99
million).
▪ Two-wheeler EV maker HOP Electric Mobility, a diversified
business venture of Rays Power Infra, is looking at investing
1 introduced its inaugural compact SUV -
Elevate, marking a notable entry into a
segment highly favored by Indian
consumers.
Rs. 100 crore (US$ 13.24 million) over the next two years to
▪ In July 2023, Maruti Suzuki launched
expand manufacturing capacity for its EVs committed.
INVICTO, a premium three-row UV with
SUV-inspired design.
2 Electric vehicles
▪ The electric vehicle (EV) market is estimated to
reach Rs. 50,000 crore (US$ 7.09 billion) in India
by 2025.
2 3
▪ In January 2023, Tata Motors showcased
Tata Altroz CNG at the Auto Expo 2023.
▪ In September 2022, Maruti Suzuki launched
the Grand Vitara at a starting price of Rs.
▪ India accomplished a significant milestone, with
10.45 lakh (US$ 12,915).
the sale of 8,47,439 EVs in FY24 (till August
2023). A y-o-y growth of 209.17% was witnessed ▪ Honda unveiled the new all-new City hybrid
with 1.02 million registered EVs in FY23, as mid-size sedan on May 4, 2022, launching
compared to FY22. at Rs. 19.5 lakh (US$ 25,073.55).
▪ In January 2024, VinFast and Tamil Nadu Govt.
signed a MoU to invest US$ 2 billion for an EV
project in Thoothukudi, with US$ 500 million
committed for the first phase, targeting 150,000
units annually.

Sources: News Articles

15
 Growth Drivers and Opportunities

GROWTH DRIVERS

16
Policies and initiatives…(1/2)

NATRIP

1 •
•
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.

Production-linked Incentive (PLI) Scheme

• In January 2024, the Ministry of Heavy Industries extended the tenure of the Production Linked Incentive (PLI) Scheme for
Automobile and Auto Components by one year. The incentive will now be applicable for a total of five consecutive financial years,
until March 31, 2028.
• In September 2021, the Indian government issued a notification regarding a PLI scheme for automobile and auto components
worth Rs. 25,938 crore (US$ 3.49 billion). This scheme is expected to bring investments of over Rs. 42,500 (US$ 5.74 billion) by
2026.

2 •

•
The Union Cabinet outlaid Rs. 57,042 crore (US$ 7.81 billion) for the automobiles & auto components sector under the
Department of Heavy Industries.
In November 2021, under the production-linked incentive (PLI) scheme for automobiles, the Union Government added >100
advanced technologies, including alternate fuel systems such as compressed natural gas (CNG), Bharat Stage VI compliant flex-
fuel engines, electronic control units (ECU) for safety, advanced driver assist systems and e-quadricycles.
• In May 2021, the Central Government approved a PLI scheme for manufacturing Advanced Chemistry Cells (ACC) with a budget
of Rs. 18,100 crore (US$ 2.33 billion). In March 2022, four firms, namely Reliance New Energy Solar Limited, Ola Electric
Mobility Private Limited, Hyundai Global Motors Company Limited, and Rajesh Exports Limited, were elected to receive the
incentives.

The Automotive Mission Plan 2016-26 (AMP 2026)

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

Sources: News Articles

17
Policies and initiatives…(2/2)
FAME
• Ministry of Heavy Industries (MHI) officials revealed that India plans to launch a new scheme to incentivise electric vehicle
purchases and improve charging infrastructure, aligning with the interim budget's focus on eco-friendly transportation. Also, the
allocation of US$ 321.5 million (Rs. 2671.33 crore) for 2024-25 is expected to be utilized by March 31, 2024.

4 •

•
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$ 1.2
billion) for FY20-22. The Centre approves US$ 97.77 million (Rs. 800 crore) for 7,432 public fast charging stations under the
FAME Scheme Phase II. The FAME Scheme was extended for a further period of 2 years up to March 31st, 2024.

Clean Tech Scheme

5 • The Indian government has planned ~US$ 3.5 billion in incentives over a five-year period until 2026 under a revamped
scheme to encourage production and export of clean technology vehicles.

Flex-fuel Engines

6 • In September 2021, Minister of Road Transport and Highways, Mr. Nitin Gadkari, announced that government is planning to
make it mandatory for car manufacturers to produce flex-fuel engines after getting the required permissions from the Supreme
Court of India.

Ethanol Blending
7 • In July 2022, the Government amended the National Policy on Biofuels – 2018. The target of 20% blending of ethanol in petrol
and 5% blending of biodiesel in diesel by 2030 was brought forward to 2025-26.

Battery Waste Management Rules, 2022

• Ministry of Environment, Forest and Climate Change, Government of India published the Battery Waste Management Rules,

8 •
2022 on August 24th, 2022 for environmentally sound management of waste batteries, including EV batteries.
On October 25, 2023, the Ministry of Environment, Forest, and Climate Change issued a notable notification introducing the
Battery Waste Management (Amendment) Rules, 2023, which impose fresh obligations and duties on battery producers,
recyclers, and refurbishers.
Sources: News Articles

18
Growth drivers

1 Policy support 3 Support

▪ Initiatives like Make in India, the infrastructure and
Automotive Mission Plan 2026, and
NEMMP 2020 will give a huge boost to high investment
the sector.
▪ The government introduced a battery- • Under phase-II of FAME India Scheme,
swapping policy, which will allow subsidy amounting to US$ 696.8 million
(Rs. 5790 crores) has been awarded to EV

1
drained batteries to be swapped with
charged ones at designated charging manufacturers on sale of 13,41,459 number
stations, thus making EVs more viable of electric vehicles till January 31, 2024.
for potential customers. • Ola Electric IPO to be the first auto
▪ To install electric vehicle supply company in India to launch an IPO in over
equipment (EVSE) infrastructure for two decades (20 years). It has an expected
EVs, various public sector firms, size of Rs. 8,500 crore (US$ 1.01 billion).
ministries, and railways have come ▪ In April 2023, Power Finance Corporation
together to create infrastructure, and Ltd (PFC) approved a US$ 76.39 million

2
manufacture components.

3
(Rs. 633 crore) loan for 5,000 passenger
EVs and 1,000 cargo EVs.
2 Growing demand ▪ In March 2023, the Central Government
sanctions US$ 72.41 million (Rs. 800 crore)
▪ Rising income and a growing young under FAME India Scheme Phase II to
population. Indian Oil (IOCL), Bharat Petroleum
(BPCL), and Hindustan Petroleum (HPCL),
▪ Greater availability of credit and for setting up 7,432 public fast charging
financing options. stations across the country.
▪ Demand for commercial vehicles ▪ In November 2022, Mahindra & Mahindra
increasing due to the high level of announced that they had tied up with three
activity in the infrastructure sector. electric vehicle infrastructure partners - Jio-
bp, Statiq, and Charge+Zone - to offer
charging solutions for their range of
passenger electric vehicles.
Note: NEMMP - National Electric Mobility Mission Plan
Source: Society of Indian Automobile Manufacturers (SIAM), Union Budget 2022-23, News Articles

19
Investment scenario (1/4)
The Indian automobile sector witnessed an inflow of huge investments from domestic and foreign manufacturers.

Tata Motors
• In December 2023, Tata Passenger Electric Mobility Ltd. (TPEM) and Bharat Petroleum Corporation Limited (BPCL) signed an
MoU to jointly establish 7,000 public charging stations nationwide to enhance customer satisfaction.

1 •
•
In June 2023, Tata Motors will invest US$ 2 billion towards developing new products and platforms over the next four years.
Tata Group Chairman, Mr. N Chandrasekaran said that "EV contribution in our portfolio is likely to increase to 25% in five years
and reach 50% by 2030, thus significantly increasing investments in this sector“ in January 2023.
• In April 2022, Tata Motors announced plans to invest Rs. 24,000 crore (US$ 3.08 billion) in its passenger vehicle business over
the next five years.

Maruti Suzuki India (MSI)

• In January 2024, at the Vibrant Gujarat Global Summit, Maruti Suzuki announced the investment plans in Gujarat with a New
Greenfield plant and a fourth line in SMG.
• In December 2023, Maruti Suzuki India Limited entered into an agreement with the Government of Haryana to establish the

2 •
second Japan-India Institute for Manufacturing (JIM) as part of its corporate social responsibility (CSR) initiative. The company
will invest US$ 698 thousand (Rs. 5.8 crore) to upgrade the existing ITI Kansala into a JIM.
In May 2023, Maruti Suzuki India plans to invest over US$ 5.5 billion to double capacity by 2030.
• In November 2022, Maruti Suzuki India announced plans to spend nearly Rs. 7,000 crore (US$ 865.12 million) on a number of
projects this year, including the building of its new facility in Haryana and the introduction of new models.

NISSAN
• In July 2023, Renault Nissan to invest US$ 1,68,762.86 (Rs. 1.4 crore) to upgrade infrastructure at eight schools near Chennai.
• In February 2023, Nissan and Renault plan to invest US$ 600 million in India over the next 3-5 years to expand their market

3 •
share in passenger cars and electric vehicles.
In July 2021, Nissan initiated a feasibility study to manufacture electric vehicles in India. If the study is positive when it is
concluded in a year, Nissan may end up producing EVs in India for local sales and exports.

Source: Media Sources, Company Website

20
Investment scenario (2/4)
Hyundai Motor India
• In January 2024, Hyundai Motor India Limited announced US$ 743.8 million (Rs. 6,180 crore) investment plans in the state of
Tamil Nadu including US$ 21.7 million (Rs. 180 crore) towards a dedicated ‘Hydrogen Valley Innovation Hub,’ in association with
IIT- Madras.
• In January 2024, Hyundai Motor India Ltd. finalized the acquisition and transfer of specified assets at General Motors India's
Talegaon Plant in Maharashtra and inked an MoU with the Government of Maharashtra committing to an investment of US$ 722
4 •
million (Rs. 6,000 crore) in the state.
In May 2023, Hyundai Motor announced that it will invest over US$ 2.41 billion (Rs. 20,000 crore) in Tamil Nadu over the next 10
years to bolster its EV production.
• Hyundai Motor India is ramping up capacity at its Sriperumbudur plant on the outskirts of Chennai and has invested Rs. 1,474
crore in FY22 to increase output to 8.5 lakh units and prepare itself for future growth.
• In March 2022, Hyundai plans US$ 79.2 billion investment through 2030, to focus majorly on EVs.

MAHINDRA & MAHINDRA

• In January 2024, Mahindra & Mahindra Ltd. and the India-Japan Fund ("IJF"), managed by the National Investment and
Infrastructure Fund Limited ("NIIF"), entered into a binding agreement, with IJF committing to invest US$ 48.1 million (Rs. 400

5 •
crore) in Mahindra Last Mile Mobility Limited (MLMML).
In July 2023, Mahindra & Mahindra is in advanced talks with British International Investment (BII) and some other global investors
to raise up to US$ 602.72 million (Rs. 5,000 crore) for its electric vehicles (EV) unit.
• In December 2022, Mahindra & Mahindra to invest Rs. 10,000 crore (US$ 1.2 billion) for an EV manufacturing plant in Pune.

SAIC
• In November 2023, SAIC Motor and JSW Group announced a strategic joint venture to accelerate growth with focus on green
mobility.
•
6 •
In January 2023, MG Motor India to invest US$ 100 million to expand capacity, eyes 70% growth in 2023.
In March 2022, MG Motors, owned by China's SAIC Motor Corp, announced plans to raise US$ 350-500 million in private equity in
India to fund its future needs, including EV expansion.
• As of February 2021, Chinese state-owned auto major SAIC Motor has invested almost US$ 400 million out of the US$ 650
million that it had committed to India. SAIC Motor sells its cars in India under its British subsidiary MG Motors.

Source: Media Sources, Company Website

21
Investment scenario (3/4)

Mercedes-Benz
• In January 2023, Global chief executive officer (CEO) Mr. Ola Kallenius said that India was Mercedes-Benz’s fastest-growing

7 •
market worldwide in 2022 and plans on investing more.
In January 2021, Mercedes received a cash infusion of Rs. 1,750 crore (US$ 232.36 million) from its parent company Daimler
AG to expand sales operations and product range.

Skoda Auto
• In August 2022, Volkswagen Group's Indian subsidiary, Skoda Auto Volkswagen India, has begun a feasibility study for its

8 •
next phase of investment in India after rolling out its India 2.0 strategic plan
In November 2021, Skoda Auto announced plans to locally manufacture electric cars in India. However, the firm may bring its
first EV, the Enyaq, through the CBU route, before committing to local manufacturing.

Hero MotoCorp
• In December 2023, Hero MotoCorp announced a partnership with Ather Energy for an interoperable fast-charging network in
India which will cover 100 cities with over 1900 fast-charging points.

9 •

•
In June 2023, Hero MotoCorp to invest up to US$ 180.81 million (Rs. 1,500 crore) for developing premium bikes and EVs in
India.
In September 2022, Hero MotoCorp announced an investment of US$ 60 million in California-based Zero Motorcycles to
collaborate on the development of electric motorcycles.

Kinetic Green
• In June 2023, Kinetic Green Energy and Power Solutions are planning to raise up to US$ 100 million by selling a 10-15% stake

10 •
in the company to investors.
In September 2022, Kinetic Engineering Limited (KEL) invested in Ahmednagar to set up a dedicated production line with an
initial capacity of 5,000 sets per month.

Source: Media Sources, Company Website

22
Investment scenario (4/4)

TVS Motor
• In November 2023, TVS Motor announced its entry into the European market through a distribution agreement with Emil Frey,
a renowned automotive distribution company with a century-long legacy.
• In July 2022, TVS Motor lines up fresh investments of Rs. 1,000 crore (US$ 121 million) in EV push.

11 •

•
In November 2021, TVS Motor collaborated with Bahwan International Group to strengthen its presence in Iraq. As part of the
deal, ARATA International FZC, a subsidiary of Bahwan International Group (BIG), will be the new distributor of TVS in Iraq.
In November 2021, TVS Motor signed an MoU with the Tamil Nadu Government to invest Rs. 1,200 crore (US$ 159.33
million) to develop new EV technologies and expand their manufacturing capacity.

BYD

12 • In March 2024, BYD India, a subsidiary of the world's leading New Energy Vehicles (NEV) manufacturer, announced its entry
into the luxury electric sedan segment with the launch of the BYD SEAL. BYD India currently has two products in its portfolio -
the BYD ATTO 3 and the All-New e6, both of which have been very well received by Indian consumers.

VinFast

13 • In January 2024, VinFast and Tamil Nadu Govt. signed a MoU to invest US$ 2 billion for an EV project in Thoothukudi, with
US$ 500 million committed for the first phase, targeting 150,000 units annually.

Source: Media Sources, Company Website

23
Opportunities

1 Opportunities for 3 India is fast emerging as

creating sizeable a global R&D hub
▪ Strong support from the Government;
market segments setting up of NATRIP centres.
through innovations ▪ Private players such as Hyundai and
Maruti Suzuki are keen to set up an R&D

1
▪ Mahindra & Mahindra (M&M) is
base in India.
planning to implement innovative
▪ In January 2021, EV manufacturer Tesla
digital technology in the automobile
set up an R&D centre in Bengaluru and
business.
registered its subsidiary as Tesla India
▪ Hyundai is planning to enter the hybrid
Motors and Energy Private Limited.
vehicles segment to explore alternative
▪ India accounts for 40% of global
fuel technology and to avail
engineering and R&D spending of US$
government incentives.

2
31 billion. The automobile sector
▪ In 2022, Tata Motors filed for 125
patents in India, the highest in its
history.
3 accounts for 8% of the country's R&D
spending.

▪ Tata Motors, filed for 158 patents and

79 designs in FY23, marking the
highest number by an Indian OEM. It
also received 71 patent grants during
the fiscal year. 2 Small car manufacturing hub
▪ Nissan and Toyota announced plans to make India their global hub for small cars.
▪ With Maruti Suzuki and Hyundai leading, the Indian passenger vehicle market is
dominated by small cars.
▪ Strong export potential in ultra-low-cost cars segment (to developing & emerging
markets).
Source: Media Sources, Company Website

24
Key Industry Contacts

25
Key Industry Contacts

Agency Contact Information

Core 4-B, 5th Floor, India Habitat Centre

Lodhi Road, New Delhi – 110003
Society of Indian Automobile Phone: 91 – 11 – 24647810 -12, 91-11-47103010
Manufacturers (SIAM) Fax: 91-11-24648222
E-mail: [email protected]
Website: www.siam.in
Survey No. 102, Vetal Hill, off Paud Road,
Kothrud, Pune - 411 038
P. B. No. 832, Pune - 411 004
Automotive Research Association of India
Tel No. : +91 20-67621111
(ARAI)
Fax No. : +91 20-67621104
E-mail: [email protected]
Website: www.araiindia.com
Ind. Merchant's Chamber Bldg. 76 Veer Nariman Road Churchgate,
Mumbai
Federation of Indian Automobile
Tel: +91 22 2204 1085
Associations
Fax: +91 22 2204 1382
Website: www.fiaa.in

26
Appendix

27
Glossary

▪ CAGR: Compound Annual Growth Rate

▪ Capex: Capital Expenditure

▪ CENVAT: Central Value Added Tax

▪ EHTP: Electronic Hardware Technology Park

▪ EPCG: Export Promotion Capital Goods Scheme

▪ FDI: Foreign Direct Investment

▪ FY: Indian Financial Year (April to March); So, FY10 implies April 2009 to March 2010

▪ LCD: Liquid Crystal Display

▪ R&D: Research and Development

▪ US$ : US Dollar

▪ Wherever applicable, numbers have been rounded off to the nearest whole number

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Exchange rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$

2004-05 44.95 2005 44.11

2005-06 44.28 2006 45.33

2006-07 45.29 2007 41.29

2007-08 40.24 2008 43.42

2008-09 45.91 2009 48.35

2009-10 47.42 2010 45.74
2010-11 45.58 2011 46.67

2011-12 47.95 2012 53.49

2012-13 54.45 2013 58.63
2013-14 60.50 2014 61.03

2014-15 61.15 2015 64.15

2015-16 65.46 2016 67.21
2016-17 67.09 2017 65.12
2017-18 64.45 2018 68.36
2018-19 69.89 2019 69.89
2020 74.18
2019-20 70.49
2021 73.93
2020-21 73.20 2022 79.82
2021-22 74.42 2023 82.61
2022-23 78.60 2024* 83.09

Note: *- Until February 2024

Source: Foreign Exchange Dealers’ Association of India

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