Indian Car Market

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In 2009, India became the fourth largest exporter of automobiles in Asia after Japan, South Korea and Thailand. The Indian car market was the world's ninth largest in 2008 with an annual production of over 2.3 million units. The amount of passenger cars sales per month exceeded 100,000 units in February 2009.

After the liberalization of the Indian economy in 1991, the car market in India has witnessed a tremendous growth due to competition and lesser restrictions. Tata Motors, Maruti Suzuki and Mahindra and Mahindra are some of the India car companies which have expanded their domestic and international business.

The strong economic growth led to expansion in the domestic automobile market. It has attracted huge amounts of investment from multinational automobile companies.

History of the Indian Car Market

In the 1940s, the India car industry was in an embryonic stage. After independence, the Government of India and the private sector started a manufacturing industry in 1953 for automotive components for supplying the automobile industry.

Because of the license raj which hampered the Indian private sector and nationalization, the growth of the car industry was slow in the 1950s and 1960s. The industry started to grow after 1970, but it was due to production of commercial vehicles, scooters and tractors. Owning a car was still a luxury then. Later Japanese manufacturers entered the Indian market and Maruti Udyog was established. There were also joint ventures between foreign firms and Indian companies.

A number of Japanese manufacturers entered into joint-ventures in the 1980s for manufacturing light commercial-vehicles and motorcycles. It was during this time that Suzuki was chosen by the Indian government for entering into a joint venture for manufacturing of small cars.

In 1991, the economy was liberalized and the License Raj was gradually removed. This allowed various Indian and foreign car companies to start operations here. The growth in car manufacturing and automotive component has increased steadily to meet domestic and international demands. Exports of the Indian Car Market

India is now one of the world's largest manufacturers of small cars. New York Times has stated that due to the India's strong engineering base and skills in manufacturing of fuel-efficient, low-cost cars, numerous automobile companies like Nissan, Hyundai Motors, Volkswagen, Toyota, and Suzuki have expanded their manufacturing facilities. Around 240,000 cars were exported from India by Hyundai Motors in 2008. By 2011, Nissan Motors will export 250,000 vehicles produced in its Indian plant. By 2011, General Motors also will export around 50,000 cars produced in its Indian plant.

Ford Motors has made an announcement in September 2009 to establish a plant in India with a capacity of 250,000 cars annually for US$500 million. The plant will produce cars for both the domestic and international market. It said that it's their plan to make the country a center for its global production business. Fiat Motors has also announced that it will obtain auto components worth US$1 billion from India.

Major Indian car manufacturers

  • Ashok Leyland
  • Maruti Suzuki
  • Tata Motors
  • Hindustan Motors
  • Mahindra
  • Premier
  • Chinkara Motors
  • Force Motors
  • San Motors

Indian electric car manufacturers

  • Tata Motors
  • Mahindra
  • Hero Electric
  • REVA
  • Ajanta Group
  • Tara International

Cars manufactured by multinational companies in India

  • BMW - 3 Series, 5 Series
  • Mercedes-Benz - C-Class, E-Class
  • Audi - A4, A6
  • Škoda - Fabia, Octavia, Laura
  • Volkswagen - Jetta, Passat
  • Mitsubishi - Lancer, Lancer Cedia
  • Ford - Ikon, Fiesta, Fusion, Endeavour
  • Hyundai - Santro, i10, i20, Getz, Verna, Accent, Sonata
  • Chevrolet - Spark, Aveo U-VA, Aveo, Optra, Cruze, Tavera
  • Fiat - Palio, Grande Punto, Linea
  • Honda - Jazz, City, Civic, Accord
  • Renault - Logan
  • Toyota - Corolla, Innova, Fortuner

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