The automobile industry is critical to both macroeconomic expansion and technological advancement, and it has historically been a reliable indicator of the health of the Indian economy. Regarding volume, the two-wheeler segment dominates the market due to India’s large proportion of young people and expanding middle class. In this article, we have listed the top automobile companies in India.
The Indian automotive industry is one of the country’s most potent business sectors. As of FY 2021, the annual contribution of this sector to manufacturing GDP was 49%. According to reports, India’s automobile sector is expected to be worth USD 251.4-282.8 billion by 2026.
Automobile Companies in India
1. Tata Motors
Tata Motors is India’s largest automobile Industries in India. It is one of the top four automakers in India. Commercial vehicles, cars, buses, trucks, and coaches are among the products offered by the company.
Tata Motors’ passenger car division produces many vehicles, including hatchbacks, sedans, SUVs, and MUVs.
2. Mahindra & Mahindra
Mahindra & Mahindra is the market leader in India and globally. Besides, M&M, a Mahindra Group division, is the nation’s biggest SUV producer. Mahindra’s top flagship models in India include the Mahindra Bolero and Scorpio.
Maruti Suzuki India Limited
Maruti Suzuki India Limited is the unrivaled winner of automobile manufacturers. It controls approximately 48% of the Indian passenger car market. Maruti Suzuki produced 1,563,297 units of various vehicles for both export and domestic markets in 2020.
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3. Hyundai Motors India Limited
Hyundai Motor is the country’s second-largest automobile Industry. It is even India’s leading exporter of passenger cars to Africa and Middle Eastern countries. The Santro, Hyundai’s flagship model, was a success, propelling the company into the hearts of Indian auto enthusiasts.
4. Honda Cars India Limited
Honda Cars Ltd is a joint venture between Siel Limited, an Indian company, and Honda Motor Co Ltd, a Japanese company. Honda first entered the Indian automobile market in 1995. Honda Cars Ltd.’s top flagship models include the Honda City, Honda Jazz, Honda Accord, Honda CR-V, and Honda Brio.
5. Toyota Kirloskar Motor Private Limited
Toyota Motor Corporation established a joint venture with the Kirloskar Group in India in 1997. Toyota Motor Corporation (TMC) owns 89% of the company, with Kirloskar Group owning 11%. Its headquarters are in Bidadi, Karnataka, near Bengaluru.
6. Ashok Leyland
Ashok Leyland Ltd. currently manufactures and sells commercial vehicles. The company produces engines for industrial and marine applications, forgings, and casting. Additionally, the company manufactures buses, trucks, engines, defense, and special vehicles.
7. Bajaj Auto Limited
Bajaj Auto Ltd (BAL) is India’s leading two and three-wheeler manufacturer. The company is the country’s largest exporter of two and three-wheelers. It is currently involved in developing, manufacturing, and distributing automobiles and parts such as motorcycles, commercial vehicles, electric two-wheelers, etc.
8. TVS Motor Company
TVS Motor Company, headquartered in Chennai, is an Indian multinational motorcycle manufacturer. In terms of revenue, it is India’s third-largest motorcycle company. The company sells three million units annually and has a production capacity of more than four million vehicles.
9. Hero MotoCorp Limited
Hero MotoCorp Limited, headquartered in New Delhi, is an Indian multinational motorcycle and scooter manufacturer.
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Overview of the Indian automobile market
With a CAGR of more than 9% between 2022 and 2027, the Indian passenger car market, valued at US$ 32.70 billion in 2021, is anticipated to grow to US$ 54.84 billion by 2027. The Indian electric vehicle (EV) market is anticipated to grow to 50,000 crore rupees ($7.09 billion) by 2025.
Regarding domestic demand and exports, India has a robust market: 3.07 million passenger vehicles were sold overall in FY22, and 31,207 cars were exported in September 2022. To reduce emissions, India is currently focusing on electric vehicles.
Sales of electric vehicles (EVs) hit a record 5,592 units in FY22’s third quarter. 329,190 EVs were sold in India in 2021, a 168% increase over the 122,607 units sold the previous year.
Challenges Faced by Indian Automobile Companies
Several factors, including new environmental safety regulations, fuel price increases, and a liquidity crunch, challenge the Indian automotive sector’s growth rate. Some of the most pressing issues confronting all automobile manufacturers today are as follows:
Lack of Supply of Semiconductors
The global shortage of semiconductors has had a significant impact on automobile sales in India. The semiconductor chips are an important vehicle component that controls various functions such as navigation, infotainment, and traction control.
Rising Commodity Prices
Rising prices for basic goods and raw materials impact the expansion of the automobile industry in India. Copper costs are still about 66% higher today than last year. In addition, most automakers are having trouble because of the expensive steel prices, which are still rising in FY21.
BSVI Phase 2 Regulations
The BSVI Phase 2 regulations require petrol vehicles to emit 25% less nitrogen oxide. Furthermore, diesel-powered vehicles must reduce hydrocarbon + nitrogen oxide emissions by 43%.
Future of the Indian Automobile Industry
By 2023, the Indian government projects that the automotive industry will bring in $8 to $10 billion in domestic and foreign investment. India might pioneer shared mobility by 2030, creating market opportunities for electric and autonomous vehicles.
The COVID-19 pandemic’s aftereffects have been addressed, and in 2022–2023, the Indian auto industry is anticipated to expand quickly. In 2022–2023, electric vehicles, especially two-wheelers, are expected to sell well.
The Central Government approved a PLI scheme in May 2021 with a budget of Rs. 18,100 crore (US$ 2.33 billion) for manufacturing Advanced Chemistry Cells (ACC). Reliance New Energy Solar Limited, Ola Electric Mobility Private Limited, Hyundai Global Motors Company Limited, and Rajesh Exports Limited were chosen to receive the incentives in March 2022.
Indian Automobiles Industries is one of the biggest job-providing sectors in India, and the industry has seen a huge rise after covid 19 Pandemic. The reports of various global agencies also state that India’s automobile industries have a bright future.
Although there are various issues currently in these industries, the government is taking initiatives and launching Various PLI schemes to overcome the challenges Faced by the Indian Automobiles industries.