Car Market in India

The car market in India is experiencing substantial growth and this has become possible due to a number of reasons. The first car hit the Indian roads in 1898 and since then there was no looking back. In the initial stages, there was not so much growth. However, with the promulgation of liberal policies by the Indian Government, there has been significant development in the car market in India.

The reason behind the growth of car market in India

The liberal economic policies of the Government of India have contributed significantly towards the car market in India. Many foreign investors have become interested to come and invest openhandedly in the car market of India. Reduction in the rate of customs for small vehicles has also supported a substantial boom in the Indian automotive industry. It is expected that the car market in India is going to be one of the biggest car markets in the world. Over the last few years, Indian car market has become a perfect market for different global brands to set up their market. India achieved the position of the fourth biggest automotive exporter in Asia in 2009.

The automobile industry in India is currently functioning on the basis of the dynamics of an open market. A number of joint ventures have been established in the country with foreign assistance, both financial and technical, with the help of international vehicle manufacturers. With brands like Mercedes Benz and Nissan making their entry into the Indian auto market, consumers have a wide variety of options.

Some of the important domestic players of the car market in India are the following:

• Tata Motors
• Maruti Udyog
• Ashok Leyland
• Mahindra and Mahindra

On the other hand, GM Honda, Toyota, Ford, Daimler Chrysler, Hyundai Motors, and Volvo are the major international players in the Indian automotive market.

Improved road and transportation network system is another reason behind the growth of car market in India. Increase in the GDP, growing per capita income of the individuals, improved standard of living, rapid urbanization, and perfect competition among the car manufacturers have also led to growth in the Indian car market. This has been noticed from the economic standpoint.
Today, Indian automotive industry is wholly competent of manufacturing different types of cars and can be categorized into three broad categories: two wheelers, cars, and heavy vehicles.

Some highlights of the car market in India

• India is being labeled as a strong and promising automobile market
• The first automobile in India hit the road in Mumbai in 1898.
• Within two-wheelers, motorcycles make a contribution of 80% of the sector volume.
• Global players are making investments in Indian automotive industry.
• Tata Motors controls more than 60% of the commercial vehicle market in India.
• Different from the USA, the passenger vehicle market in India is reigned by vehicles (79%).
• India is the biggest three-wheeler market in the world.
• 2/3rd of auto parts manufactured is used directly by Original Equipment Manufacturers (OEMs).
• India is the second biggest tractor manufacturing country in the world.
• India is the biggest two-wheeler manufacturing country in the world.
• The top two wheeler manufacturer is based in India.
• India is the fifth biggest commercial vehicle manufacturing country in the world.
• India is the fourth biggest vehicle market in Asia - recently surpassed the 1 million spot.

Current scenario of the car market in India

• Hyundai Motors India is the second biggest player in the passenger car market.
• Hero Honda is the biggest manufacturer of two wheelers.
• Tata Motors is the fifth biggest medium and heavy commercial vehicle manufacturer in the world.
• Sundaram Clayton, Sundram Fasteners, Rico Auto, and Bharat Forge supply automobile parts to international majors such as General Motors, Ford, and Land Rover.