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AUTO INDUSTRY

On the canvas of the Indian economy, automotive industry occupies a


prominent place. Due to its deep forward and backward linkages with several
key segments of the economy, automotive industry has a strong multiplier
effect and is capable of being the driver of economic growth. A sound
transportation system plays a pivotal role in the country's rapid economic
and industrial development. The well-developed Indian automotive industry
ably fulfils this catalytic role by producing a wide variety of
vehicles:passenger cars, light, medium and heavy commercial vehicles,
multi-utility vehicles such as jeeps, scooters, motorcycles, mopeds, three
wheelers, tractors etc.

Automotive Industry comprises of automobile and auto component sectors


and is one of the key drivers of the national economy as it provides large-
scale employment, having a strong multiplier effect. Being one of the largest
industries in India, this industry has been witnessing impressive growth
during the last two decades. It has been able to restructure itself, absorb
newer technology, align itself to the global developments and realize its
potential. This has significantly increased automotive industry's contribution
to overall industrial growth in the country.

The automotive industry (including components & tyres) has already attained
a turnover of US$ 48.86 billion. The industry provides direct and indirect
employment to 13.1 million people.The contribution of the automotive
industry to GDP has risen from 2.77% in 1992-93 to 4.14% in 2008-09.The
industry is also making a contribution of 17% to the kitty of indirect taxes of
the Government.

Growth Drivers of Indian Automobile Market

Rising industrial and agricultural output

Rising per capita income


Favourable demographic distribution with rising working population and
middle class Urbanisation

Increasing disposable incomes in rural agri-sector

Availability of a variety of vehicle models meeting diverse needs and


preferences

Greater affordability of vehicles

Easy finance schemes

Favourable government policies

Robust production

India's Position in World's Production

Well-developed, globally competitive auto ancillary industry

Established automobile testing and R&D centres

Among one of the lowest cost producers of steel in the world

World’s second largest manufacturer of two wheelers

Fifth largest manufacturer of commercial vehicles


Manufactures largest number of tractors in the world

Ninth largest car manufacturer in world

INDUSTRY & SERVICES

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 licence 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.

According to the data provided by Society of Indian Automobile


Manufacturers (SIAM),the cumulative production data for April-October 2010
shows production growth of 33.07 percent over same period last year. In
October 2010, production grew at 44.80 percent over October 2009.
Domestic Sales recorded a growth of 45.93 percent in October 2010 as
against 21.63 percent growth in September 2010.

Domestic Sales

Passenger vehicles segment during April-October 2010 grew at 33.72 percent


over same period last year. Passenger cars grew by 34.29 percent, utility
vehicles grew by 21.85 percent and multi purpose vehicles grew by 50.45
percent in this period.

The overall commercial vehicles segment registered growth of 37.77 percent


during April-October 2010 as compared to the same period last year. While
medium & heavy commercial vehicles (M&HCVs) registered growth of 53.19
percent, light commercial vehicles grew at 26.25 percent.

Three wheelers sales recorded a growth rate of 20.74 percent in April-


October 2010. While passenger carriers grew by 23.75 percent during April-
October 2010, goods carriers registered growth of 8.52 percent.

Two wheelers registered a growth of 29.38 percent during April-October


2010. Mopeds, scooters and motorcycles grew by 25 percent, 52.11 percent
and 25.60 percent respectively.

Exports

During April-October 2010, overall automobile exports registered a growth


rate of 41.44 percent.Passenger Vehicles segment grew marginally by 1.76
percent in this period. Commercial vehicles, three wheelers and two wheelers
segments recorded growth of 89.20 percent, 95.30 percent and 48.89
percent respectively during April-October 2010.

Auto Components Industry


Surge in automobile industry since the nineties has led to robust growth of
the auto component sector in the country. In tandem with the industry
trends, the Indian component sector has shown great advances in recent
years in terms of growth, spread, absorption of new technologies and
flexibility. Indian auto component industry has seen major growth with the
arrival of world vehicle manufacturers from Japan, Korea, US and Europe.
Today, India is emerging as one of the key auto components center in Asia
and is expected to play a significant role in the global automotive supply
chain in the near future. The auto component industry is also expected to
drive the growth of the engineering sector in view of its strong downstream
and upstream linkages with many other segments of the engineering sector
like raw materials, capital goods, intermediate products etc.Auto component
industry supports industries like automobiles, machine tools, steel, aluminum,
rubber, plastics, electrical, electronics, forgings and machining.India has also
emerged as an outsourcing hub for auto parts for international companies
such as Ford, General Motors, Daimler Chrysler, Fiat, Volkswagon, and
Toyota.

Policy Initiatives

Auto Policy

Vision

To establish a globally competitive Automotive Industry in India and to double


its contribution to the economy by 2010.

Objectives

This policy aims to promote integrated, phased, enduring and self-sustained


growth of the Indian automotive industry. The objectives are to:-

(i) Exalt the sector as a lever of industrial growth and employment and to
achieve a high degree of value addition in the country;

(ii) Promote a globally competitive automotive industry and emerge as a


global source for auto components;

(iii) Establish an international hub for manufacturing small, affordable


passenger cars and a key center for manufacturing Tractors and Two-
wheelers in the world;

(iv) Ensure a balanced transition to open trade at a minimal risk to the Indian
economy and local industry;

(v) Conduce incessant modernization of the industry and facilitate indigenous


design, research and development;

(vi) Steer India's software industry into automotive technology;

(vii) Assist development of vehicles propelled by alternate energy sources;

(viii) Development of domestic safety and environmental standards at par


with international standards.

Full text of the policy

Automotive Mission Plan 2016

To accelerate and sustain growth in the automotive sector and to steer,co-


ordinate and synergise the efforts of all stakeholders,Automotive Mission Plan
(AMP) 2006-2016 has been prepared in order to make India a global
automotive hub.
The Automotive Mission Plan (AMP) 2006-2016,aims at doubling the
contribution of automotive sector in GDP by taking the turnover to USD 145
billion and providing additional employment to 25 million people by 2016 with
special emphasis on export of small cars,MUVs,two and three wheelers and
auto components.

Full text of the policy

Foreign Direct Investment

Automatic approval for foreign equity investment upto 100 per cent of
manufacture of automobiles and component is permitted.

The automobile industry is delicensed.

Import of components is freely allowed.

Commercial vehicle manufacturers in India

[edit]Indian brands

Force[99]

Hindustan Motors[100]

Premier[60]

Tata[101]

AMW[102]

[edit]Joint Venture Brands

Ashok Leyland[103] - originally a JV between Ashok Motors and Leyland


Motors, now 51% owned by Hinduja Group

Mahindra Navistar[104] - a 51:49 JV between Mahindra Group and Navistar


International

Swaraj Mazda[105] - originally a JV between Punjab Tractors and Mazda, now


53.5% owned by Sumitomo Group
[edit]Foreign brands

Volvo[106] makes Trucks and Buses in Bangalore, Karnataka

Tatra[107]

MAN[108] - as a JV with Force Motors, makes MAN Trucks in India

Mercedes-Benz[109] sells luxury buses in India

Scania[110]

Iveco[111]

Hino[112]

Isuzu[113]

Piaggio[114]

Ashok Leyland (NSE: ASHOKLEY, BSE: 500477) 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. It is the second largest commercial vehicle company
in India in the medium and heavy commercial vehicle (M&HCV) segment with
a market share of 28% (2007–08). With passenger transportation options
ranging from 19 seaters to 80 seaters, Ashok Leyland is a market leader in
the bus segment.The company claims to carry over 60 million passengers a
day, more people than the entire Indian rail network. In the trucks segment
Ashok Leyland primarily concentrates on the 16 ton to 25 ton range of trucks.
However Ashok Leyland has presence in the entire truck range starting from
7.5 tons to 49 tons. The joint venture announced with Nissan Motors of Japan
would improve its presence in the Light Commercial Vehicle (LCV) segment
(<7.5 tons).

An Ashok Leyland bus run by the Chennai Metropolitan Transport Corporation


Iraq Army Ashok Leyland truck

A fire truck in India manufactured by Ashok LeylandAshok Leyland is the


second technology leader in the commercial vehicles sector of India behind
Tata Motors. The history of the company has been punctuated by a number
of technological innovations, which have since become industry norms. It was
the first to introduce multi-axled trucks, full air brakes and a host of
innovations like the rear engine and articulated buses in India. In 1997, the
company launched the country’s first CNG bus and in 2002, developed the
first Hybrid Electric Vehicle.

The company has also maintained its profitable track record for 60 years. The
annual turnover of the company was USD 1.4 billion in 2008-09. Selling
54,431 medium and heavy vehicles in 2008-09, Ashok Leyland is India's
largest exporter of medium and heavy duty trucks. It is also one of the
largest private sector employers in India - with about 12,000 employees
working in 6 factories and offices spread over the length and breadth of India.

The company has increased its rated capacity to 105,000 vehicles per
annum. Also further investment plans including putting up two new plants -
one in Uttarakhand in North India and a bus body building unit in middle-east
Asia are fast afoot. It already has a sizable presence in African countries like
Nigeria, Ghana, Egypt and South Africa.

Ashok Leyland has also entered into some significant partnerships, seizing
growth opportunities offered by diversification and globalization – with
Continental Corporation for automotive infotronics; with Alteams in Finland
for high pressure die casting and recently, with John Deere for construction
equipment.[3]

As part of this global strategy, the company acquired Czech Republic-based


Avia's truck business. The newly acquired company has been named Avia
Ashok Leyland Motors s.r.o. This gives Ashok Leyland a foothold in the highly
competitive European truck market.
The Hinduja Group also bought out IVECO's indirect stake in Ashok Leyland in
2007. The promoter shareholding now stands at 51%.

Luxura

Viking BS-I - city bus

Viking BS-II - city bus

Viking BS-III -city bus

Cheetah BS-I

Cheetah BS-II

Panther

12M bus

Stag Mini

Stag CNG

222 CNG

Lynx

Double Decker

Vestibule bus

Airport Tarmac Coach

Gensets

[edit]Goods segment

Comet 1611

1612 H

1613 H

1613 H/2 (12m Goods)

4/51 GS

1613
Taurus 2516/2 (6x4) Tipper

CT 1613 H/1 & H/2

Bison Tipper

1613 ST (4x2)

Taurus HD 2516MT/1 (6x4)

Taurus 2516 - 6X4

2516 H (6X2)

Taurus 2516 - 6 X 2

4018 Tractor

Artik 30.14 Tractor

Tusker Turbo Tractor 3516

ecomet 912

ecomet 111i

Tata Motors Ltd (NSE: TATAMOTORS, BSE: 500570, NYSE: TTM) is a


multinational corporation headquartered in Mumbai, India. Part of the Tata
Group, it was formerly known as TELCO (TATA Engineering and Locomotive
Company).

Tata Motors is India’s largest automobile company, with consolidated


revenues of USD 20 billion in 2009-10. It is the leader in commercial vehicles
and among the top three in passenger vehicles. Tata Motors has products in
the compact, midsize car and utility vehicle segments. The company is the
world's fourth largest truck manufacturer, the world's second largest bus
manufacturer, and employs 24,000 workers. Since first rolled out in 1954,
Tata Motors has produced and sold over 4 billion vehicles in India.[3]

Established in 1945, when the company began manufacturing locomotives,


the company manufactured its first commercial vehicle in 1954 in a
collaboration with Daimler-Benz AG, which ended in 1969.[4] Tata Motors is a
dual-listed company traded on both the Bombay Stock Exchange, as well as
on the New York Stock Exchange. Tata Motors in 2005, was ranked among
the top 10 corporations in India with an annual revenue exceeding INR 320
billion. In 2010, Tata Motors surpassed Reliance to win the coveted title of
'India's most valuable brand' in a annual survey conducted by Brand Finance
and The Economic Times. [5]
Tata Motors has auto manufacturing and assembly plants in Jamshedpur,
Pantnagar, Lucknow, Ahmedabad, Sanand, Dharwad and Pune in India

Commercial vehicles

Tata Ace

Tata TL/Telcoline/207 DI Pickup Truck

Tata 407 Ex and Ex2

Tata 709 Ex

Tata 809 Ex and Ex2

Tata 909 Ex and Ex2

Tata 1109 (Intermediate truck)

Tata 1510/1512 (Medium bus chassis)

Tata 1612/1616 (Heavy bus chassis)

Tata 1618 (Semi Low Floor bus chassis)

Tata 1610/1623 (Rear Engined Low Floor bus chassis)

Tata 1613/1615 (Medium truck)

Tata 2515/2516 (Medium truck)

Tata Starbus (Branded Buses for city,inter city,school bus and standard
passenger transportation)

Tata Globus (Range of fully built luxury coaches)

Tata Hispano Globus (Rear Engined Inter city coach)

Tata Marcopolo Bus (Low Floor, Semi Low Floor buses for Mass Rapid Transit
and also standard passenger transportation Buses)

Tata 3015 (Heavy truck)

Tata 3118 (Heavy truck) (8X2)

Tata 3516 (Heavy truck)

Tata 4018 (Heavy truck)

Tata 4923 (Ultra-Heavy truck) (6X4)


Tata Novus (Heavy truck designed by Tata Daewoo)

Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)

Military vehicles

Tata LSV (Light Specialist Vehicle)

Tata Mine Protected Vehicle (4x4)

Tata 2 Stretcher Ambulance

Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions

Tata LPTA 713 TC (4x4)

Tata LPT 709 E

Tata SD 1015 TC (4x4)

Tata LPTA 1615 TC (4x4)

Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 TC (4x2)

Tata Winger Passenger Mini Bus

Volvo is a Swedish builder of commercial vehicles, including trucks, buses


and construction equipment. Volvo also supplies marine and industrial drive
systems, aerospace components and financial services. Although Volvo was
incorporated in 1915 as a subsidiary of AB SKF, a Swedish ball bearing
manufacturer, the auto manufacturer considers itself officially founded on 14
April 1927, when the first car, the Volvo ÖV 4 series, affectionately known as
"Jakob", rolled out of the factory in Hisingen, Gothenburg.[2]

Volvo means "I roll" in Latin, conjugated from "volvere", in relation to ball
bearing. The name Volvo was originally registered in May 1911 as a separate
company within SKF AB and as a registered trademark with the intention to
be used for a special series of ball bearing, but this idea was only used for a
short period of time and SKF decided to use "SKF" as the trademark for all its
bearing products.

In 1924, Assar Gabrielsson, a SKF Sales Manager, and Engineer Gustav


Larson, the two founders, decided to start construction of a Swedish car.
Their vision was to build cars that could withstand the rigors of Sweden's
rough roads and cold temperatures. This has become a feature of Volvo
products ever since.[3]
The company AB Volvo had no activities until 10 August 1926, after one year
of preparations involving the production of ten prototypes, was set up to
carry out the car-manufacturing business within the SKF group. AB Volvo was
introduced at the Stockholm stock exchange in 1935 and SKF then decided to
sell its shares in the company. Volvo was delisted from NASDAQ in June 2007,
but remains listed on the Stockholm exchange.[4]

In 1999, Volvo sold its car division Volvo Cars to Ford Motor Company for
$6.45 billion. The Volvo trademark was shared between Volvo AB, where it is
used on heavy vehicles, and the unit of Ford, where it was used on cars. In
2008, Ford decided to sell its interest in Volvo Cars; in 2010, Ford sold the
brand to the parent of Chinese motor manufacturer Geely Automobile for
$1.8 billion.[5]

Volvo Trucks (midsize-duty trucks for regional transportation and heavy-duty


trucks for long distance transportation, as well as heavy-duty trucks for the
construction work segment)

Mack Trucks (light-duty trucks for close distribution and heavy-duty trucks for
long distance transportation)

Renault Trucks (heavy-duty trucks for regional transportations and heavy-


duty trucks for the construction work segment)

UD Trucks (midsize-duty trucks)

Volvo Construction Equipment (construction machines) (previously Volvo BM,


see also AB Bolinder-Munktell)

Volvo Buses (complete buses and bus chassis for city traffic, line traffic and
tourist traffic)

Swaraj Mazda Limited, an India based automobile company, is owned by the


Sumitomo Corporation of Japan and Punjab Tractors Limited of India, with a
technical collaboration with Isuzu and Mazda of Japan. Sumitomo upped its
stake in the company in 2009 by purchasing all of Punjab Tractors remaining
shares, raising their stake to 53.5%[1] Production began in 1985.

The company manufactures light commercial vehicles like trucks, buses,


ambulances, police personnel carriers, water tankers and special vehicles.

It exports its products to countries like Nepal, Zambia, Bangladesh, Kenya,


Tanzania, Ghana, Ivory Coast, Rwanda, Seychelles, Syria and Jordan.

The company's annual turnover for the year 1997 - 1998 exceeded Rs. 151
crores. It has a dealer network of about 128 dealers spread throughout India.
Swaraj Engines and Punjab Scooters are its associate companies.
In June 2006, Swaraj Mazda entered a new Technical agreement with Isuzu
Motors, Japan.

In 2009, Swaraj Mazda started to roll out Luxury buses and medium-duty
trucks powered by Isuzu Engines from a new plant in Punjab. Plans are to
build multi-axle trucks, tractor units and refrigerated trucks within the next
three years. They are currently marketed under the Swaraj Mazda Isuzu
brand.[2]

In addition, Swaraj Mazda is moving to offer the Isuzu D-Max pickup.[3]

Former associate company Punjab Tractors manufactured agricultural


tractors and combine harvesters under the Swaraj brand name before selling
64.6% to Mahindra Tractors. In 2009, Mahindra and Swaraj Mazda settled a
dispute over the use of the Swaraj name, allowing Swaraj Mazda to continue
using the name for only two more years.[4]

Swaraj Mazda Limited has informed the Exchange that at the Board Meeting
of the Company held on October 01, 2010, the Board of Directors have
decided to change the name of the Company from Swaraj Mazda Limited to
SML ISUZU Limited

Mercedes-Benz (German pronunciation: [mɛʁˈtseːdəs ˈbɛnts]) is a German


manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a
division of its parent company, Daimler AG. Mercedes-Benz traces its origins
to Karl Benz's creation of the first petrol-powered car, the Benz Patent
Motorwagen, patented in January 1886[1] and Gottlieb Daimler and engineer
Wilhelm Maybach's conversion of a stagecoach by the addition of a petrol
engine later that year. The Mercedes automobile was first marketed in 1901
by Daimler Motoren Gesellschaft. The first Mercedes-Benz brand name
vehicles were produced in 1926, following the merger of Karl Benz's and
Gottlieb Daimler's companies into the Daimler-Benz company.[1] Mercedes-
Benz has introduced many technological and safety innovations that later
became common in other vehicles.[2] Mercedes-Benz is one of the most well-
known and established automotive brands in the world, and is also the
world's oldest automotive brand still in existence today.

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