Automobile Industry
  • Automobile Industry performance trends,2012-13
    04 Aug, 2014

    According to SIAM, the auto industry produced 1,684,011 vehicles in April 2013 as against 1,721,455 in April 2012, decline of (-) 2.81 percent over same month last year. The overall domestic sales in the month of April 2013 declined by (-) 0.34 percent over same month last year.

    SIAM estimates shows that the overall sales in Passenger Vehicles declined by (-) 8.21 percent in April 2013 over same month last year. Within the Passenger Vehicles, passenger cars and vans dropped by (-) 10.43 percent and (-) 13.42 percent respectively, while utility vehicles grew marginally by 3.99 percent in April 2013 compared to the same month last year.

    The overall Commercial Vehicles segment registered marginal growth of 0.75 percent in April 2013 as compared to the same month last year. Medium & Heavy Commercial Vehicles (M&HCVs) registered negative growth at (-) 6.66 percent and Light Commercial Vehicles grew at 4.81 percent.

    Three Wheelers sales recorded growth of 7.19 percent in April 2013 over same month last year. Passenger Carriers and Goods Carriers grew by 7.24 percent and 7 percent respectively in April 2013 over April 2012. Two Wheelers registered marginal growth of 0.95 percent in April 2013. Within the Two Wheelers mopeds and motorcycles declined by (-) 7.20 percent and (-) 2.06 percent respectively, while scooters grew by 14.72 percent in April 2013 over April 2012. In the month of April 2013 overall automobile exports registered de-growth of (-) 9.14 percent. Passenger Vehicles, Commercial Vehicles and Three Wheelers grew by 10.81 percent 11.13 percent and 18.45 percent respectively while Two Wheelers dropped significantly by (-) 17.84 percent in April 2013 over April 2012.

    Automobile Production April-October2012

    Production

    The cumulative production data for April-October 2012 shows production growth of only 4.12 percent over same period last year. The industry produced 1,829,490 vehicles in October 2012 as against 1,596,500 in October 2011, which grew by around 15 percent.

    Domestic Sales

    The overall growth in domestic sales during April-October 2012 was 5.26 percent over the same period last year. However, in October 2012 overall sales grew by 14.81 percent over October 2011.Passenger Vehicles segment grew at 10.53 percent during April-October 2012 over same period last year. Passenger Cars grew by 2.84 percent, Utility Vehicles grew by 60.54 percent and Vans grew by (-0.85) percent during April-October 2012 as compared to same period last year. However, in October 2012 passenger car sales grew by 23.09 percent over October 2011. Total passenger vehicles sales grew by 33.65 percent in October 2012 over same month last year.The overall Commercial Vehicles segment registered growth of 4.26 percent in April-October 2012 as compared to the same period last year. While Medium & Heavy Commercial Vehicles (M&HCVs) registered negative growth at (-13.99) percent, Light Commercial Vehicles grew at 18.19 percent. Three Wheelers sales recorded growth at 2.57 percent in April-October 2012. Passenger Carriers grew by 6.48 percent during April-October 2012 and Goods Carriers registered de-growth at (-12.19) percent during this period. Two Wheelers registered a growth of only 4.47 percent during April-October 2012. Scooters, mopeds and motorcycles grew by 22.27 percent, 3.67 percent and 0.32 percent respectively over same period last year. However, in October 2012 Scooters, Mopeds and Motorcycles grew by 32.39 percent, 23.21 percent and 6.71 percent respectively over same period last year.

    Exports

    During April-October 2012 overall automobile exports registered negative growth at (-4.94) percent compare to same period last year. While Passenger Vehicles grew by 5.74 percent and Commercial Vehicles grew only by 1.63 percent. Two & Three wheelers declined by (-3.77) and (-26.35) percent respectively in April–October 2012 compared to the same period last year. In October 2012 car exports grew by 29.16 percent compared to last year October and two wheelers exports declined by almost 4 percent during the same period.(Source: SIAM)

    Production of Commercial Vehicles

    As per the information received from the Society Indian Automobile Manufacturers Association (SIAM), the growth of production of medium & heavy commercial vehicles in the country during the last three years including current year, is as under:-

    Medium & Heavy Commercial Vehicles 2009-10 2010-11 2011-12
    Passenger Carriers 12.24 18.21 -1.93
    Goods Carriers 32.92 42.77 13.21
    Total 30.09 38.25 10.83

    As informed by SIAM, the production of medium & heavy commercial vehicles during the last three years, including current year, is as under:

    Medium & Heavy Commercial Vehicles 2009-10 2010-11 2011-12
    Passenger Carriers 46,011 54,390 53,340
    Goods Carriers 204,122 291,428 329,937
    Total 250,133 345,818

    383,277

    The Indian automobiles sector is one of the fast growing sunrise sectors with an annual CAGR of 16 percent 

    The Indian automobile sector, ever since it was liberalised since the year 1991,and later allowing 100% FDI through automatic route has shown remarkable pace in its annual growth with all the global major auto companies made significant investment in India. The production of vehicles in India has grown up from 2 million in the year 1991 to 13 million in the year of 2011. The growing of the economy with an annual GDP growth rate of more than 8 percent, the increasing per capita income of households and the increase in salaries of the income group section of the economy, had effectively contributed to the significant growth of this sector.

    Evolution of Indian Automobile Industry

    Although the genesis of the auto industry in India can be found in the year 1940’s, Indian became an automobile producing country in the year of 1970’s. Between 1970’s and 1984, there were number of restrictions imposed on the manufacture of the automobiles in the country. In fact these restrictions in the form of licensing, restrictions on quantity, restrictions on imports and high tariff structure affected the growth of the industry considerably. Cars were considered as a Luxury and even the higher middle class households could not afford using cars during that period. The auto sector was dominated by only six players, Telco (Now Tata motors), Ashok Leyland, Hindustan Motors, Mahindra & Mahindra, Premier Automobiles and Bajaj Auto. But the year 1985, new car company Maruti Udyog Ltd started operations in the passenger car segment. Since the year 1991, the auto sector witnessed a limited growth with limited players and limited buyers. The situation changed dramatically since 1991. But it took some more years to take India to become the lead player in the automobile League of Nations. Between the years 1995 to 2000, large number of global auto manufacturing companies started investment in India and since then the growth of the sector had been witnessing a robust trend in terms of investment, sales and profitability.

    Policy Impetus

    It was the appropriate policy which gave the momentum to the auto sector in India since the year 2000. Several landmark policy changes like removal of quantitative restrictions, and 100% FDI through automatic route created a conducive investment climate in the auto sector. The liberal credit regime and allowing auto companies to tie up with fi nance fi rms for auto loans had given a big boost to the domestic consumption.

    Size of the Indian Automobile Industry

    The Indian automobile segment produced 7 million vehicles in the year 2004 which was worth of US$ 20 billion. During the year 2008-09, it had gone up to US$ 38 Billion. According to SIAM, the cumulative production data for April-December, 2011 shows overall production growth of 14.94 percent over same period last year. Production in December 2011 registered growth of 10.91 percent as compared to December 2010.

    Domestic Sales

    The overall sales growth rate recorded for April-December 2011 was 12.55 percent. In the month of December 2011 registered growth at 8.45 percent as compared to December 2010. Passenger Vehicles segment grew marginally at 0.49 percent during April-December 2011 over same period last year. Passenger Cars recorded de-growth of (-) 2.28 percent, Utility Vehicles grew by 12.67 percent and Vans grew by 7.72 percent in this period. In December 2011, Passenger Cars and Utility Vehicles recorded growth at 8.49 percent and 25.54 percent. Vans recorded de-growth at (-) 11.62 percent respectively. And growth in overall Passenger Vehicles growth at 8.85 percent in the month of December 2011.The overall Commercial Vehicles segment registered growth of 19.28 percent during April-December 2011 as compared to the same period last year. While Medium & Heavy Commercial Vehicles (M&HCVs) registered growth of 9.34 percent, Light Commercial Vehicles grew at 27.97 percent. However, in the month of December 2011over December 2010, the growth in sales of the overall CV segment was 14.50 percent.Three Wheelers sales recorded de-growth of (-) 0.07 percent in April-December 2011. While Passenger Carriers registered decline by (-) 2.91 percent during April-December 2011, Goods Carriers registered growth of 12.52 percent.Two Wheelers registered a growth of 15.23 percent during April-December 2011. Mopeds,Motorcycles and Scooters grew by 9.69 percent,14.01 percent and 22.50 percent respectively.Between December 2011 to December 2010, the growth fi gures for two wheelers was at 8.52 percent. Three Wheelers registered de-growth at (-) 3.42 percent in the month of December 2011

    Exports

    During April-December 2011, overall automobile exports registered a growth rate of 28.97 percent. Passenger Vehicles registered growth at 18.14 percent in this period. Two Wheelers, Commercial Vehicles and Three Wheelers segments recorded growth of 29.75 percent, 24.66 percent and 42.63 percent respectively during April-December 2011. Performance of Auto sector during the calendar year 2010 The data for calendar year 2010 shows production growth of 32.69 percent over same period last year with production of 17,076,659 vehicles (includes Passenger vehicles, Commercial vehicles, Three wheelers and Two wheelers). Domestic sales registered a growth of 30.92 percent with 14,824,072 vehicles being sold in India. Domestic Sales of Passenger vehicles grew by 31.34 percent, Commercial vehicles grew by 45.24 percent, Three wheelers grew by 22.03 percent andTwo wheelers grew by 30.51 percent. In April-December 2010, production grew by 30.0 percent as compared to same period over last year. In December 2010, production grew at 27.78 percent over December 2009. Domestic Sales recorded a growth of 30.51 percent in December 2010 as against December 2009.

    Domestic Sales

    Passenger Vehicles segment during April- December 2010 grew at 31.83 percent over same period last year. Passenger Cars grew by 32.00 percent, Utility Vehicles grew by 20.82 percent and Multi Purpose Vehicles grew by 50.58 percent in this period. The overall Commercial Vehicles segment registered growth of 34.08 percent during April-December 2010 as compared to the same period last year. While Medium & Heavy Commercial Vehicles (M&HCVs) registered growth of 42.85 percent, Light Commercial Vehicles grew at 27.12 percent. Three Wheelers sales recorded a growth rate of 19.13 percent in April-December 2010. While Passenger Carriers grew by 21.67 percent during April-December 2010, Goods Carriers registered growth of 8.86 percent. Two Wheelers registered a growth of 28.21 percent during April-December 2010. Mopeds, Motorcycles and Scooters grew by 24.47 percent, 24.62 percent and 48.90 percent respectively.