Indian Auto Industry – Four-wheeler segment

by India-Reports on February 19, 2010

in economy in transition, Future Growth & Global Transitions

Automobile Industry in India – A background of the four-wheeler segment

Indian roads saw very less of the four wheelers until the 1980s. They were seen as the symbol of those who had arrived. Premier Padminis and the Ambassador were favorites on Indian roads.

With liberalization, Government abolished licensing and removed restrictive trade policies. Automobile industry benefited greatly from these measures. Indian manufacturers started to collaborate with international companies, invested in research and development and introduced fuel and cost efficient products.

Mahindra & Mahindra’s Automotive Chief, Pawan Goenka, who is also President of industry body, Society of Indian Automobile Manufacturers (SIAM) says that “The Indian auto industry and the Indian auto market have become internationally very important and therefore, no one can ignore this market,”

A closer look at the four-wheeler segment in India

The four wheeler segment comprises of the passenger vehicles, utility vehicles and multi-purpose vehicles. India is the 11th largest passenger car market in the world and prominently features on the major automobile players’ road map. The passenger cars segment is has the largest share in the domestic passenger vehicles industry. It contributes to a total volume of 78% and the rest of the share is enjoyed by utility and sports vehicles. Some of the key players in the market are Maruti Udyog Ltd. Tata Motors Ltd., Hyundai, Toyota, Honda, Ford and GM. The newer entrants are the marquee brands like Mercedes-Benz, BMW and Volkswagen.

Graph showing the Sales Trajectory of four wheelers

The graph shows the sales trajectory of four wheelers in million units. Car sales in India have risen rapidly since 2006 on the back of strong economic growth and government incentives and this trend will continue in 2010 too. Industrial growth has also lead to an increase in the multi-utility and the utility vehicles.

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