8/11/2019 The Automotive Industry in India is One of the Largest Automotive Markets in the World

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The automotive industry in Indiais one of the largest automotive markets in the world. It hadpreviously been one of the fastest growing markets globally, but is currently experiencing flat ornegative growth rates.[1][2]India's passenger car and commercial vehicle manufacturing industryis thesixth largest in the world,with an annual production of more than 3.9 million units in2011.[3]According to recent reports, India overtook Brazil to become the sixthlargest passenger

vehicle producer in the world(beating such old and new auto makers as Belgium, UnitedKingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil).[4]Throughout the course of2011 and 2012, the industry grew 16-18%, selling around three million units.[4]In 2009, Indiaemerged as Asia's fourth largest exporter ofpassenger cars,behind Japan, South Korea, andThailand.[5]In 2010, India beat Thailand to become Asia's third largest exporter of passengercars.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotivevehicles were produced in India in 2010 (an increase of 33.9%), making the country the second(after China) fastest growing automobile market in the world in that year.[6][7]According to theSociety of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 4

million by 2015, no longer 5 million as previously projected.

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The majority of India's car manufacturing industry is based around three clusters in the south,west and north. The southern cluster consisting ofChennaiis the biggest with 35% of therevenue share. The western hub nearMumbaiandPunecontributes to 33% of the market and thenorthern cluster around theNational Capital Regioncontributes 32%.[8]Chennai,houses theIndia operations ofFord,Hyundai,Renault,Mitsubishi,Nissan,BMW,Hindustan Motors,Daimler,Caparo,Mini,andDatsun.Chennai accounts for 60% of the country's automotiveexports.[9]GurgaonandManesarinHaryanaform the northern cluster where the country's largestcar manufacturer,Maruti Suzuki,is based.[10]TheChakancorridor nearPune,Maharashtrais thewestern cluster with companies likeGeneral Motors,Volkswagen,Skoda,Mahindra and

Mahindra,Tata Motors,Mercedes Benz,Land Rover,Jaguar Cars,FiatandForce Motors

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having assembly plants in the area.Nashikhas a major base of Mahindra and Mahindra with aSUV assembly unit and an Engine assembly unit.AurangabadwithAudi,SkodaandVolkswagenalso forms part of the western cluster. Another emerging cluster is in the state ofGujaratwith manufacturing facility ofGeneral MotorsinHaloland further planned forTataNanoattheir plant inSanand.Ford, Maruti Suzuki andPeugeot-Citroenplants are also set tocome up in Gujarat.[13]KolkatawithHindustan Motors,NoidawithHondaandBangalorewithToyotaare some of the other automotive manufacturing regions around the country.[14][15][16][17]

In 2011, there were 3,695 factories producing automotive parts in all of India. The average firmmade US$6 million in annual revenue with profits close to US$400 thousand.

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