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