AUTOMOBILES

November 2024
For updated information, please visit www.ibef.org
Table of Contents

Executive Summary 3

Advantage India 4

Market Overview 6

Recent Trends and Strategies 13

Growth Drivers and Opportunities 16

Key Industry Contacts 25

Appendix 27

2
 Sources: SIAM
Executive summary
1 Segmented market
 The automobile sector is split into
four segments, i.e., two-wheelers,
three- wheelers, passenger vehicles,
and commercial vehicles, each
having few market leaders.

 In FY23, two-wheelers and passenger

cars held a market share of 75% and
18%, respectively.

 India is the largest E2W and E3W

manufacturer in the world.

 20,25,993 two-wheeler units were

sold in September 2024.

2 Growth prospects
 The Indian automotive industry is
expected to reach US$ 300 billion by
2026.
 Strong policy support from the
Government.
 India has ample growth potential for
the passenger vehicle segment
considering that at 24 per 1,000
India has the third lowest car
penetration ratio among the top 13
markets. The world average stands
at
314 per 1,000, implying a significant
potential for growth.
 passenger vehicle sales reached
3,56,752.

 This sector's share of the national

GDP increased from 2.77% in 1992–
1993 to around 7.1% presently. It
employs about 19 million people
directly and indirectly.

 Presence of established domestic

3 Third-largest and international original equipment

manufacturers (OEMs).
automobile market  Strong market in terms of domestic

2 1 3
 In September 2024, the total demand and exports.
Notes: *BMW, Mercedes, JLR & Volvo Auto data are not available. Tata Motors Domestic Sales data included only in this document. However, without Tata Motors, ‘Total PV’ would
2,87,746 for April 2024

3
Advantage India

4
Advantage India
1 Growing demand 4 Opportunities
► Rise in middle-class income and
young population may result in Notes: *Data except for BMW, Mercedes, JLR, Tata
Motors & Volvo Auto
strong growth.
► The Indian automotive industry is
targeting to increase the export of
vehicles by five times during
2016-26.
► In September 2024, the total
production of passenger vehicles*,
three-wheelers, two-wheelers, and
quadricycles was 27,73,039 units.
► In FY24, total automobile exports
from India stood at 45,00,492. 1 4
► The global EV market was
estimated at approximately US$
250 billion in 2021 and by 2028, it
is projected to grow by 5 times to ADVANTAGE
US$ 1,318 billion. INDIA
3 Policy support 2 3
► Automotive Mission Plan 2016-26 is a
mutual initiative by the Government
of India and the Indian automotive
industry to lay down the roadmap for
the development of the industry.
► The Centre has launched the PM E-
DRIVE scheme with a budget of US$
1.30 billion (Rs. 10,900 crore),
effective from October 1, 2024, to
March 31, 2026. The initiative aims
to accelerate the adoption of electric
vehicles (EVs), establish charging
infrastructure, and develop an EV
manufacturing ecosystem in India.
 ► Focus shifting on electric cars to reduce save 10-25% on operations vis-a-vis
emissions. Europe and Latin America.
► Government aims to transform India into an ► The automobile sector received a
R&D hub. cumulative equity FDI inflow of about
US$
► India could be a leader in shared mobility by 36.268 billion between April 2000 -
2030, providing opportunities for electric and March 2024.
autonomous vehicles. ► India is on track to become the largest
► The electric vehicles industry is likely to EV market by 2030, with a total
create five crore jobs by 2030. investment opportunity of more than
US$ 200 billion over the next 8-10
► By 2030, the Indian government has years.
committed that 30% of the new vehicle sales ► As per Economic Survey 2023-24, the
in India would be electric. production linked incentive scheme
(PLI) for automobile and auto
2 Rising Investments components has so far attracted a
► India has significant cost advantages. Auto firms proposed investment of Rs. 67,690
crore (US$ 8.18 billion).
Sources: Automotive Mission Plan (2016-2026), Make in India, SIAM, ICRA, Federation of Automobile Dealers Association, News Article, DPIIT

5
 Market Overview

MARKET OVERVIEW

6
Evolution of the sector

Before 1982 1983-1992 1992-2020 2020 Onwards

 Closed market  Indian Government &  Sector de-licensed in 1993.  In September 2024, three-
 5 players Suzuki formed Maruti  Major OEMs started wheeler sales stood at
 Long waiting periods Udyog and assembly operations in 79,683 units while two-
& commenced India. wheeler sales stood at
outdated models production in 1983. 20,25,993 units.
 Imports permitted from
 Seller’s market  Component April  In FY24, total commercial
manufacturers 2001. vehicle sales stood at
 Introduction of value-added 9,67,878 units, three-wheeler
entered the market tax in 2005. sales stood at 6,91,749 units
via a joint venture  Automotive Mission Plan and two-wheeler sales stood
(JV). 2016- 26 launched in 2015. at 1,79,74,365 units.
 Buyer’s market.
 Bharat Stage (BS) IV
emission norms used since
April 2017, and BSVI norms
adopted from April 1, 2020.
Sources: Tata Motors, Society of Indian Automobile Manufacturers (SIAM)

7
Market overview

Automobile Sector

Commercial
Two-wheelers Passenger vehicles Three-wheelers
vehicles

Mopeds and electric Light commercial

Passenger cars Passenger carriers
scooters vehicles (LCV)

Medium &
Scooters Utility vehicles Goods carrier
heavy
commercial

Multi-purpose
Motorcycles
vehicles

Source: Society of Indian Automobile Manufacturers (SIAM)

8
Market overview

Number of Automobiles Produced in India (in million) Number of Automobiles Sold in India (in million)

35.0 30.00
0

30.9 25.00 26.2

30.0 29.0 24.97 7
2 28.4 23.8
25.0 7 26.3 3 5
25.3 25.9 20.00 21.86 21.5 21.2
0 6
3 23.0 3 5 0
20.0 22.6 18.6
5 4 17.6
0 15.00 1
1
15.0
15.6 13.0
0 10.00
2 6
10.0
0
5.00

5.0
0 0.00
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25*
FY25*
 The automotive manufacturing industry comprises the production of commercial vehicles, passenger vehicles, three-wheelers, and
two-wheelers.
 In April-September FY25, the total production of passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and
quadricycles was
1,56,22,388 units.
 India accomplished a significant milestone, with the sale 16,77,491 EVs in FY24.
 CY 2023 was satisfactory for Automobile Sector after recovering from the effects of the COVID-19 pandemic, posting single-
digit growth across Passenger Vehicles, Commercial Vehicles, and Two Wheelers, along with a notable recovery in Three
Wheelers, aided by supportive government schemes. The Indian auto industry anticipates continued growth in FY24 as well.
 A report by India Energy Storage Alliance estimated that the EV market in India is likely to increase at a CAGR of 36% until
2026. In addition, a projection for the EV battery market is forecast to expand at a CAGR of 30% during the same period.

Source: Society of Indian Automobile Manufacturers (SIAM), The Economic Times

Note: *Until September 2024
Market overview

Segment-wise Domestic Market Share in FY25* (%)

Number of Automobiles Exported (in millions)

2.86% CAGR
6.
3.41% 0 7.51%
5. 5.6
15.93% 5 2
4.6 4.7 4.7
Two Wheelers 5. 4.5
3 7 7
0 4.0 4.1 0
Passenger 4. 3.6 4 3
3.4
Vehicles 5 4 8
4.
Commercial 0
77.80% 3.
5
3.
0
2. FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
FY24

 Two-wheelers and passenger vehicles dominate the Indian Car Sales Figures - September 2024
domestic Indian auto market. Passenger car sales are
Market Share
dominated by small and midsized cars. Two-wheelers and PV OEM September 2024 September 2023
(%) Sep 24
passenger cars accounted for 77.80% and 15.93% of
Maruti Suzuki 1,13,560 1,41,318 41.19%
market shares, respectively, in FY25*.
Hyundai 37,973 50,633 13.77%
 Indian automobile exports of two-wheelers stood at
34,58,416 in Mahindra 34,607 34,471 12.55%
FY24 Tata Motors
31,947 39,514 11.59%
 As per ACMA Indian automotive aftermarket expected to TOYOTA 19,660 18,845 7.13%
reach US$
~14 billion by 2028.
Source: Society of Indian Automobile Manufacturers (SIAM), Federation Of Automobile Dealers Associations (FADA), News Article, *-Until September 2024

10
Clusters and leading companies

List of Companies

 Ashok Mazda  Tata Motors  JCB

Leyland  Amtek Auto  Bajaj Auto 
Yamaha
North  Force  Eicher  Hero Group 
Motors
Mahindra  Honda SIEL  Escorts
Delhi-Gurgaon-  Suzuki
Piaggio Motorcycles
Faridabad   Maruti  ICML
 Swaraj Suzuki

 Ashok  Eicher  Volkswagen Benz

Leyland  Skoda  Renault-  Tata
West Hitachi
 Bajaj Auto  Bharat Nissan  Volvo Eicher
 FIAT Forge  John Deere
 M&M  Tata Motors  Mercedes
Kolkata-
 TataMotors  International
Jamshedpur
Mumbai-Pune-  Hindustan Auto
Motors
Nashik- East
Aurangabad Forgings
 Simpson &  JMT
Co 
Exide
Chennai- Bengaluru-
Hosur   Sundaram  TVS Motor 
Ashok
Caterpillar Leyland Fasteners
Company  Hindustan
South
 M&M  Enfield  Renault- Motors

Over the past few years, four specific regions in the country have become large auto manufacturing clusters, each having a
different set of players.

Sources: ACMA

11
Key players

Each segment in the Indian automobiles sector have few established key players, who hold a major portion of the market.

2 COMMERCIAL VEHICLES 3 TWO-WHEELERS

 In September 2024, commercial vehicles  In September 2024, HONDA Motorcycle and
domestic sales stood at 74,324 units. Scooter India (P) LTD sold 3,33,927 two-
 In September 2024, Tata Motors sold wheelers, the highest in the segment, which
24,872 commercial vehicles, the highest gave it a market share of 27.73%.
in the segment, which gave it a market
share of 33.46%.

1 PASSENGER VEHICLES 4 THREE-WHEELERS

 In September 2024, total passenger  In September 2024, Bajaj Auto was
vehicle sales reached 2,75,681. the leader in the three-wheeler
 In September 2024, Maruti Suzuki was category with a 35.13% market
the top passenger vehicle seller with share, having sold 37,425 units in
1,13,560 passenger vehicle units sold. the month.

2 3

1 4

Source: SIAM, FADA

 Recent Trends and Strategies

RECENT TRENDS AND STRATEGIES

13
 Sources: News Articles
Recent trends
14
1 Luxury vehicles
 The luxury car market registered sales of 42,731 units in 2023.
 In September 2024, Mercedes-Benz sold 1,308 luxury cars, the
highest in the segment, which gave it a market share of 0.47%.
BMW sold 1,011 cars in September 2024.
 The BMW X1 was the highest-selling luxury car in the Indian
market in 2023.
 In February 2023, German luxury car maker Audi India began
local production of the Audi Q3 and Audi Q3 Sportback at the
Skoda Auto Volkswagen India Private Limited (SAVWIPL) plant in
Aurangabad.

2 Catering to Indian needs

 Most firms including Kia Motors and
Volkswagen have adapted themselves to
cater to the large Indian middle-class
1
population by dropping their traditional
structure and designs. This has allowed
them to compete directly with domestic
firms, making the sector highly competitive.
 Tata Motors introduced the Ace Gold Petrol
CX in July 2021, which is India's cheapest,
most compact commercial four-wheeler
vehicle, starting at Rs. 3.99 lakh (US$
5,362). For this, it has partnered with the
2
State Bank of India to provide up to 90%
financing of on-road pricing, with monthly
EMIs starting at Rs. 7,500 (US$ 101).
 In August 2023, Toyota unveiled the world's
first BS-VI stage II compliant, electrified flex-
fuel vehicle, Toyota Innova, running entirely
on ethanol, a renewable fuel sourced from
plant materials commonly derived from
crops such as sugarcane, corn, and maize.
 of Understanding (MoU) with South
Indian Bank to offer convenient

3 New financing financing solutions to its commercial

vehicle customers and dealerships.

options
3
 In January 2024, Renault India joined
hands with Bajaj Finance to offer
 Tata Motors, has signed a Memorandum of financing solutions to its customers
Understanding (MoU) with Bajaj Finance Ltd. In which it with the introduction of Flexi Pay
will offer financing solutions across the entire Scheme, digital- first experience,
commercial vehicle portfolio, and customers will including up to 100% on- road
benefit competitive interest rates, flexi loan and funding, with turnaround time of 30
digitally-enabled loan processing. minutes.
 In May 2024, Maruti Suzuki India Limited (MSIL)  According to NITI Aayog and Rocky
announced the signing of a Memorandum of Mountain Institute (RMI), India's EV
Understanding (MoU) with DBS Bank India Limited for finance industry is likely to reach Rs.
dealer inventory funding. 3.7 lakh crore (US$ 50 billion) in
 In April 2024, Tata Motors, has signed a Memorandum 2030..
 Sources: News Articles
Strategies adopted
15

1 Capacity addition
 Indian carmakers committed US$ 10 billion to add a
new capacity of 2.2 to 3 million units.
 In November 2023, Tata Motors inaugurated its
state-of-the- art Registered Vehicle Scrapping Facility
in Chandigarh.
 In October 2023, Hero MotoCorp inaugurated its first
state-
of-the-art premium dealership in India.
 In October 2023, Tata Motors signed a definitive
agreement to acquire a 27% stake in Freight Tiger, a
software-as-a- service (SaaS) company, for Rs. 150
crore (US$ 17.99 million).
 Two-wheeler EV maker HOP Electric Mobility, a
diversified business venture of Rays Power Infra, is
looking at investing Rs. 100 crore (US$ 13.24 million)
over the next two years to expand manufacturing
capacity for its EVs committed.

2 Electric vehicles
 The electric vehicle (EV) market is
estimated to reach Rs. 50,000 crore (US$
7.09 billion) in India by 2025.
2
 India accomplished a significant milestone,
with the sale of 8,47,439 EVs in FY24 (till
August 2023). A y-o-y growth of 209.17%
was witnessed with 1.02 million registered
EVs in FY23, as compared to FY22.
 In January 2024, VinFast and Tamil Nadu
Govt. signed a MoU to invest US$ 2 billion
for an EV project in Thoothukudi, with US$
500 million committed for the first phase,
targeting 150,000 units annually.
 attíactive píice point.
 In May 2024, ľata Motoís
launched all-new Ace EV 1000 to
stíengthened its e-caígo mobility
solutions.
3 Launch of new  In May 2024, Maíuti Suzuki
models launches Epic New Swift with all-
new Z-Seíies engine

3
 In July 2024, ľata Motoís,  In April 2024, Mahindra launches the
unveiled the ľata Cuívv ICE XUV 3XO – the ‘New Disruptor’ in
and EV, the Cuívv is compact SUVs.
India’s fiíst SUV Coupé.
Exhibiting the new-age  In February 2024,Mahindra launches
SUV typology, an SUV Thar Earth Edition: Iconic style
with the elegance and inspired by the inimitable landscapes
spoíty silhouette of a of the mighty Thar Desert
coupé.
 In February 2024, Tata Motors
 In May 2024, Mahindía & launched Tiago and Tigor iCNG AMT –
Mahindía Ltd., announced India’s 1st AMT CNG Cars.
the launch of the new AX5
 In January 2024, Tata Passenger

1
Select (AX5 S) vaíiant foí
the XUV700 offeíing Electric Mobility Ltd (TPEM), a
píemium featuíes at an subsidiary of Tata Motors launched its
first pure EV – the Punch.ev.
 Growth Drivers and Opportunities

GROWTH DRIVERS

16
Policies and initiatives…(1/2)

NATRIP

1 • Setting up of R&D centres at a total cost of US$ 388.5 million to enable the industry to be on par with global
standards.
• Under National Automotive Testing and R&D Infrastructure Project (NATRIP), five testing and research centres
have been established in the country since 2015.

Production-linked Incentive (PLI) Scheme

• In January 2024, the Ministry of Heavy Industries extended the tenure of the Production Linked Incentive (PLI)
Scheme for Automobile and Auto Components by one year. The incentive will now be applicable for a total of
five consecutive financial years, until March 31, 2028.
• In September 2021, the Indian government issued a notification regarding a PLI scheme for automobile and auto
components worth Rs. 25,938 crore (US$ 3.49 billion). This scheme is expected to bring investments of over Rs.
42,500 (US$ 5.74 billion) by 2026.

2 • The Union Cabinet outlaid Rs. 57,042 crore (US$ 7.81 billion) for the automobiles & auto components sector
under the Department of Heavy Industries.
• In November 2021, under the production-linked incentive (PLI) scheme for automobiles, the Union Government
added >100 advanced technologies, including alternate fuel systems such as compressed natural gas (CNG),
Bharat Stage VI compliant flex- fuel engines, electronic control units (ECU) for safety, advanced driver assist
systems and e-quadricycles.
• In May 2021, the Central Government approved a PLI scheme for manufacturing Advanced Chemistry Cells
(ACC) with a budget of Rs. 18,100 crore (US$ 2.33 billion). In March 2022, four firms, namely Reliance New
Energy Solar Limited, Ola Electric Mobility Private Limited, Hyundai Global Motors Company Limited, and Rajesh
Exports Limited, were elected to receive the incentives.

The Automotive Mission Plan 2016-26 (AMP 2026)

3 • AMP 2026 targets a four-fold growth in the automobile sector in India which include manufacturers of
automobiles, auto components and tractors over the next 10 years.

Sources: News Articles

Policies and initiatives…(2/2)
FAME
• Ministry of Heavy Industries (MHI) officials revealed that India plans to launch a new scheme to incentivise
electric vehicle purchases and improve charging infrastructure, aligning with the interim budget's focus on eco-

4
friendly transportation. Also, the allocation of Rs. 2671.33 crore (US$ 321.5 million) for 2024-25 is expected to
• be utilized by March 31, 2024.
The Government approved FAME and plans to cover all vehicle segments and all forms of hybrid & pure EVs.
FAME-I was extended until March 31, 2019.
• In February 2019, the Government of India approved FAME-II scheme with a fund requirement of Rs. 10,000
crore (US$ 1.2 billion) for FY20-22. The Centre approves US$ 97.77 million (Rs. 800 crore) for 7,432 public fast

5
Clean Tech Scheme
• The Indian government has planned ~US$ 3.5 billion in incentives over a five-year period until 2026
under a revamped scheme to encourage production and export of clean technology vehicles.

Flex-fuel Engines

6 • In September 2021, Minister of Road Transport and Highways, Mr. Nitin Gadkari, announced that government
is planning to make it mandatory for car manufacturers to produce flex-fuel engines after getting the required
permissions from the Supreme Court of India.

7
Ethanol Blending
• In July 2022, the Government amended the National Policy on Biofuels – 2018. The target of 20% blending of
ethanol in petrol and 5% blending of biodiesel in diesel by 2030 was brought forward to 2025-26.

8 Battery Waste Management Rules, 2022

• Ministry of Environment, Forest and Climate Change, Government of India published the Battery Waste
Management Rules, 2022 on August 24th, 2022 for environmentally sound management of waste batteries,
including EV batteries.
• On October 25, 2023, the Ministry of Environment, Forest, and Climate Change issued a notable notification
introducing the Battery Waste Management (Amendment) Rules, 2023, which impose fresh obligations and
duties on battery producers, recyclers, and refurbishers.
Sources: News Articles
Policies and initiatives…(3/3)

Electric Mobility Promotion Scheme

• Ministry of Heavy Industries, Government of India with the approval of Department of Expenditure has launched
Electric Mobility Promotion Scheme 2024 to further accelerate the adoption of EVs in the country which is a fund

9 limited scheme with a total outlay of Rs. 500 crore (US$ 59.91 million) for the period of 4 months, from 1st April
2024 to 31st July 2024.

Sources: News Articles

Growth drivers

1 Policy support 3 Support

 Initiatives like Make in India, the
Automotive Mission Plan 2026, and
infrastructure
NEMMP 2020 will give a huge
boost to the sector.
and high
 The government introduced a
battery- swapping policy, which
investment
will allow drained batteries to be • Under Electric Mobility Promotion
swapped with charged ones at Scheme 2024 government aims to

1
designated charging stations, thus support 3,72,215 EVs including e-2W
making EVs more viable for (3,33,387) and e-3W (38,828
potential customers. including 13,590 rickshaws & e- carts
 To install electric vehicle supply and 25,238 e-3W in L5 category).
equipment (EVSE) infrastructure • Under phase-II of FAME India Scheme,
for EVs, various public sector subsidy amounting to US$ 696.8
firms, ministries, and railways million (Rs. 5790 crores) has been
have come together to create awarded to EV manufacturers on sale
infrastructure, and manufacture of 13,41,459 number of electric

2
components.

3
vehicles till January 31, 2024.
• Ola Electric IPO to be the first auto
2 Growing demand company in India to launch an IPO in
over two decades (20 years). It has an
 Rising income and a growing expected size of Rs. 8,500 crore (US$
young population. 1.01 billion).

 Greater availability of credit  In April 2023, Power Finance

Corporation Ltd (PFC) approved a Rs.
and financing options.
633 crore (US$ 76.39 million) loan for
 Demand for commercial 5,000 passenger EVs and 1,000 cargo
vehicles increasing due to the EVs.
high level of activity in the  In March 2023, the Central
infrastructure sector. Government sanctions Rs. 800 crore
(US$ 72.41 million) under FAME India
Scheme Phase II to Indian Oil (IOCL),
Bharat Petroleum (BPCL), and
Hindustan Petroleum (HPCL), for
setting up 7,432 public fast charging stations across the country.

Note: NEMMP - National Electric Mobility Mission Plan

Source: Society of Indian Automobile Manufacturers (SIAM), Union Budget 2022-23, News Articles

20
Investment scenario (1/4)
The Indian automobile sector witnessed an inflow of huge investments from domestic and foreign manufacturers.

Tata Motors
• Tata Passenger Electric Mobility, a subsidiary of Tata Motors Limited and pioneer of India’s EV revolution (TPEM),
along with the Rajasthan Solar Association (RSA), has entered a Memorandum of Understanding (MoU) to

1 promote electric vehicles (EVs) and the use of solar energy for EV charging in Rajasthan.
• In March 2024,Tata Motors Group has signed a facilitation Memorandum of Understanding (MoU) with the
Government of Tamil Nadu to explore setting-up of a vehicle manufacturing facility in the state. The MoU
envisages an investment of Rs. 9,000 crores (US$ 1,081.6 million) over 5-years .
• Tata Motors, in April 2024, announced the inauguration of a new commercial vehicle spare parts warehouse in
Guwahati.

Maruti Suzuki India (MSI)

• In April 2024, Maruti Suzuki India Limited, commissioned another vehicle assembly line at its Manesar facility.
• In January 2024, at the Vibrant Gujarat Global Summit, Maruti Suzuki announced the investment plans in

2
Gujarat with a New Greenfield plant and a fourth line in SMG.
• In December 2023, Maruti Suzuki India Limited entered into an agreement with the Government of Haryana to
establish the second Japan-India Institute for Manufacturing (JIM) as part of its corporate social responsibility
(CSR) initiative. The company will invest Rs. 5.8 crore (US$ 698 thousand) to upgrade the existing ITI Kansala
into a JIM.

NISSAN
• The Renault-Nissan alliance is stepping up its investments in India plans to invest US$ 600-700 million at its
Chennai-based facility to step up platform localisation and improve sophistication levels in manufacturing.

3
• In July 2023, Renault Nissan to invest Rs. 1.4 crore (US$ 1,68,762.86 ) to upgrade infrastructure at eight schools
• near Chennai.
In February 2023, Nissan and Renault plan to invest US$ 600 million in India over the next 3-5 years to
expand their market share in passenger cars and electric vehicles.
• In July 2021, Nissan initiated a feasibility study to manufacture electric vehicles in India. If the study is
positive when it is concluded in a year, Nissan may end up producing EVs in India for local sales and exports.
Source: Media Sources, Company Website

21
Investment scenario (2/4)
Hyundai Motor India
• In February 2024, company has announced it will invest over Rs. 32,000 crore (US$ 3.85 billion) from 2023 to
2033 in expanding its EV range and enhancing its current car and SUV platforms.
• In January 2024, Hyundai Motor India Limited announced Rs. 6,180 crore (US$ 743.8 million) investment plans in
the state of Tamil Nadu including Rs. 180 crore (US$ 21.7 million) towards a dedicated ‘Hydrogen Valley

4 Innovation Hub,’ in association with IIT- Madras.

• In January 2024, Hyundai Motor India Ltd. finalized the acquisition and transfer of specified assets at General
Motors India's Talegaon Plant in Maharashtra and inked an MoU with the Government of Maharashtra committing
to an investment of Rs. 6,000 crore (US$ 722 million) in the state.
• In May 2023, Hyundai Motor announced that it will invest over Rs. 20,000 crore (US$ 2.41 billion) in Tamil Nadu
over the next 10 years to bolster its EV production.

MAHINDRA & MAHINDRA

• In January 2024, Mahindra & Mahindra Ltd. and the India-Japan Fund ("IJF"), managed by the National Investment
and Infrastructure Fund Limited ("NIIF"), entered into a binding agreement, with IJF committing to invest Rs. 400

5 crore (US$ 48.1 million) in Mahindra Last Mile Mobility Limited (MLMML).
• In July 2023, Mahindra & Mahindra is in advanced talks with British International Investment (BII) and some other
global investors to raise up to Rs. 5,000 crore (US$ 602.72 million) for its electric vehicles (EV) unit.
• In December 2022, Mahindra & Mahindra to invest Rs. 10,000 crore (US$ 1.2 billion) for an EV manufacturing plant in
Pune.

SAIC
• In November 2023, SAIC Motor and JSW Group announced a strategic joint venture to accelerate growth with
focus on green mobility.

6 • In January 2023, MG Motor India to invest US$ 100 million to expand capacity, eyes 70% growth in 2023.
• In March 2022, MG Motors, owned by China's SAIC Motor Corp, announced plans to raise US$ 350-500 million in
private equity in India to fund its future needs, including EV expansion.
• As of February 2021, Chinese state-owned auto major SAIC Motor has invested almost US$ 400 million out of
the US$ 650 million that it had committed to India. SAIC Motor sells its cars in India under its British subsidiary
MG Motors.
Source: Media Sources, Company Website

22
Investment scenario (3/4)

Mercedes-Benz
• Mercedes Benz will make an investment of Rs 3,000 crore (US$ 360.14 million) in Maharashtra.

7 • In January 2024, Mercedes-Benz is set to invest Rs 200 crore (US$24.04 million) in India in 2024 and is gearing
up to introduce more than a dozen new cars, including EVs this year.
• In January 2023, Global chief executive officer (CEO) Mr. Ola Kallenius said that India was Mercedes-Benz’s
fastest-growing market worldwide in 2022 and plans on investing more.

Skoda Auto
• In February 2024, Klaus Zellmer CEO of Skoda Auto said India is the most promising growth market for

8 Skoda Auto and

Skoda Auto India is looking to increase its share in the Indian market to 5% by 2030.
• In August 2022, Volkswagen Group's Indian subsidiary, Skoda Auto Volkswagen India, has begun a feasibility
study for its next phase of investment in India after rolling out its India 2.0 strategic plan

Hero MotoCorp
• In April 2024, Hero Motocorp said it has opened an assembly facility in Nepal in partnership with its distributor
CG Motors with capacity of 75,000 units per annum.

9 • In December 2023, Hero MotoCorp announced a partnership with Ather Energy for an interoperable fast-
charging network in India which will cover 100 cities with over 1900 fast-charging points.
• In June 2023, Hero MotoCorp to invest up to Rs. 1,500 crore (US$ 180.81 million) for developing premium
bikes and EVs in India.

Kinetic Green
• In June 2023, Kinetic Green Energy and Power Solutions are planning to raise up to US$ 100 million by selling a

10 10-15% stake in the company to investors.

• In September 2022, Kinetic Engineering Limited (KEL) invested in Ahmednagar to set up a dedicated production
line with an initial capacity of 5,000 sets per month.

23
Source: Media Sources, Company Website
Investment scenario (4/4)

TVS Motor
• In November 2023, TVS Motor announced its entry into the European market through a distribution
agreement with Emil Frey, a renowned automotive distribution company with a century-long legacy.

1
• In July 2022, TVS Motor lines up fresh investments of Rs. 1,000 crore (US$ 121 million) in EV push.
• In November 2021, TVS Motor collaborated with Bahwan International Group to strengthen its presence in
Iraq. As part of the deal, ARATA International FZC, a subsidiary of Bahwan International Group (BIG), will be
the new distributor of TVS in Iraq.

1 • In November 2021, TVS Motor signed an MoU with the Tamil Nadu Government to invest Rs. 1,200 crore
(US$ 159.33 million) to develop new EV technologies and expand their manufacturing capacity.

BYD

12 • In March 2024, BYD India, a subsidiary of the world's leading New Energy Vehicles (NEV) manufacturer,
announced its entry into the luxury electric sedan segment with the launch of the BYD SEAL. BYD India currently
has two products in its portfolio - the BYD ATTO 3 and the All-New e6, both of which have been very well

VinFast

13 • In January 2024, VinFast and Tamil Nadu Govt. signed a MoU to invest US$ 2 billion for an EV project in
Thoothukudi, with US$ 500 million committed for the first phase, targeting 150,000 units annually.

Source: Media Sources, Company Website

24
Opportunities

1 Opportunities for 3 India is fast emerging

creating sizeable as a global R&D hub
market segments  Strong support from the

through innovations Government; setting up of NATRIP

centres.
 Mahindra & Mahindra (M&M) is  Private players such as Hyundai and
Maruti Suzuki are keen to set up an

1
planning to implement innovative
digital technology in the R&D base in India.
automobile business.  In January 2021, EV manufacturer
 Hyundai is planning to enter the Tesla set up an R&D centre in
hybrid vehicles segment to Bengaluru and registered its
explore alternative fuel subsidiary as Tesla India Motors and
technology and to avail Energy Private Limited.
government incentives.  India accounts for 40% of global
 In 2022, Tata Motors filed for 125 engineering and R&D spending of
patents in India, the highest in its US$

2 3
history. 31 billion. The automobile sector
 Tata Motors, filed for 158 patents accounts for 8% of the country's
and R&D
79 designs in FY23, marking the
highest number by an Indian
OEM. It also received 71 patent
grants during
the fiscal year. 2 Small car manufacturing hub
 Nissan and Toyota announced plans to make India their global hub for small cars.
 With Maruti Suzuki and Hyundai leading, the Indian passenger vehicle market is
dominated by small cars.
 Strong export potential in ultra-low-cost cars segment (to developing
 & emerging markets).
Source: Media Sources, Company Website

25
Key Industry Contacts

26
Key Industry Contacts

Agency Contact Information

Core 4-B, 5th Floor, India Habitat Centre
Lodhi Road, New Delhi – 110003
Society of Indian Automobile Phone: 91 – 11 – 24647810 -12, 91-11-47103010
Manufacturers (SIAM) Fax: 91-11-24648222
E-mail: [email protected]
Website: www.siam.in
Survey No. 102, Vetal Hill, off Paud Road,
Kothrud, Pune - 411 038
P. B. No. 832, Pune - 411 004
Automotive Research Association of
Tel No. : +91 20-67621111
India (ARAI)
Fax No. : +91 20-67621104
E-mail: [email protected]
Website: www.araiindia.com
Ind. Merchant's Chamber Bldg. 76 Veer Nariman Road
Churchgate,
Mumbai
Federation of Indian Automobile
Tel: +91 22 2204 1085
Associations
Fax: +91 22 2204 1382
Website: www.fiaa.in

27
Appendix

28
Glossary

 CAGR: Compound Annual Growth Rate

 Capex: Capital Expenditure

 CENVAT: Central Value Added Tax

 EHTP: Electronic Hardware Technology Park

 EPCG: Export Promotion Capital Goods Scheme

 FDI: Foreign Direct Investment

 FY: Indian Financial Year (April to March); So, FY10 implies April 2009 to March 2010

 LCD: Liquid Crystal Display

 R&D: Research and Development

 US$ : US Dollar

 Wherever applicable, numbers have been rounded off to the nearest whole number

29
Exchange rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$
2004-05 44.95 2005 44.11
2005-06 44.28 2006 45.33
2006-07 45.29 2007 41.29
2007-08 40.24
2008 43.42
2008-09 45.91
2009 48.35
2009-10 47.42
2010 45.74
2010-11 45.58
2011 46.67
2011-12 47.95
2012-13 54.45 2012 53.49
2013-14 60.50 2013 58.63
2014-15 61.15 2014 61.03
2015-16 65.46
2015 64.15
2016-17 67.09
2016 67.21
2017-18 64.45
2017 65.12
2018-19 69.89
2018 68.36
2019-20 70.49
2019 69.89
2020-21 73.20
2020 74.18
2021-22 74.42
2021 73.93
2022-23 78.60
2022 79.82
2023-24 82.80 2023 82.61
2024-25** 83.89 2024* 83.70

Note: *- Until October 2024, **- April- October 2024

Source: Foreign Exchange Dealers’ Association of India

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31