Automobile

Summary:

  • The Indian automobile industry is the world's 5th largest auto market.

  • It contributes 7% to GDP and 49% to manufacturing output.

  • The industry manufactured over 22 million vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers and Quadricycles in financial year 2021.

  • Automobile exports from April 21 to June 21 stood at 1.4 million units in comparison to 0.4 million units in April 20 to June 20

  • Tesla’s entry into the Indian automobile market in January 2021 expected to boost the EV market in India.

  • The EV industry will create five crore direct and indirect jobs by 2030.

  • 100% FDI allowed under automatic route in this industry.

  • Additive manufacturing, AI-based automated inspections, use of big data to inform design and production are major potential areas.

Step 1

Raw material suppliers

Step 2

Tier 2 supplier (Sub-component manufacturer)

Step 3

Tier 1 supplier (Component manufacturer)

Step 4

Original Equipment Manufacturer (OEM)

Step 5

Distribution and sales (Dealers)

Step 6

After-market services

Cost Drivers

Raw materials

Research and Development

Labour

Advertising

Infrastructure set-up and development for EV segment

Revenue Drivers

Income level

Technological innovations

Infrastructure

Economic conditions

After sales service

Growth Drivers

Scrappage policy in Union Budget 2021 to boost demand

Production Linked Incentive (PLI) scheme for automobiles and auto-parts worth USD 3.49 billion announced by govt. in September 2021

Easy availability of credit

Key Customers

Households

Corporates

Key Players

Mahindra & Mahindra

Maruti Suzuki

Hero MotoCorp

Hero Electric

Tata Motors

Toyota Motor Corporation

Honda Motor Co. Ltd.

Ford Motor Co.

Channels

Dealers

Company Showrooms

Retailers