The favourable Indian market conditions are acting as a catalyst for luxury and premium carmakers, which are receiving impetus from new launches. The top-end carmakers have posted double-digit growth for the quarter ended June 30, 2013, with firms like Honda at 45 per cent and Audi recording 28.8 per cent, besides others. India is emerging as an export hub for sports utility vehicles (SUVs). Global automobile majors are looking to leverage India's cost-competitive manufacturing practices and are assessing opportunities to export SUVs to Europe, South Africa and Southeast Asia too. India is also one of the key markets for hybrid and electric medium-heavy-duty trucks and buses. Ford Motor Company is staking big on Asia-Pacific (APAC) markets, especially India and China. "Ford will export Figo and EcoSport models out of India. The Indian plants would support the market here, as well as other global markets," said Mr Alan Mulally, Chief Executive Officer, Ford. Key Statistics
The production of passenger vehicles in India was recorded at 3.23 million in 2012-13 and is expected to grow at a compound annual growth rate (CAGR) of 13 per cent during 2012-2021, as per data published by Automotive Component Manufacturers Association of India (ACMA). Passenger car sales stood at 1.89 million units in 2012-13. Additionally, share of luxury cars to the total passenger car market of India is expected to increase to four per cent by 2020. The total number of passenger cars in India is likely to touch around 8 million units by 2020, as per Mr Boris Fitz, Director, Sales and Network Development, Mercedes-Benz India. The industry produced 1.74 million vehicles in May 2013. The export of passenger vehicles and three- wheelers grew by 7.34 percent and 26.53 percent respectively during the April-May 2013, as per data released by Society of Indian Automobile Manufacturers’ (SIAM). Furthermore, the amount of cumulative FDI inflow into the Indian automobile industry during April 2000 to April 2013 was worth US$ 8.32 million, amounting to 4 per cent of the total FDI inflows (in terms of US$), as per data published by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce. Major Developments & Investments
* Nissan Motor India Pvt Ltd is expecting to sell over 60 per cent more units this year on the back of the launch of its upgraded small car - Nissan Micra * Daimler India Commercial Vehicles (DICV) exported its first lot of 64 Fuso trucks manufactured at its Oragadam plant in Chennai * Mahindra USA, a subsidiary of Mahindra and Mahindra (M&M), will set up an assembly and distribution centre, expanding one of the four tractor facilities in North America, by January 2014 * The Japan-based automobile manufacturer Isuzu Motors' local subsidiary Isuzu Motors India has entered into an agreement with Hindustan Motors (HM) for contract manufacturing of Isuzu SUVs and pickup trucks * A year after introducing the popular 'MINI' range of cars in India, luxury car maker BMW has started local production of 'MINI Countryman' at its facility in Chennai * New Holland Fiat India plans to invest Rs 1,100 crore (US$ 184.56 million) to set up a new greenfield plant in Maharashtra and also to increase its tractor manufacturing capacity by 50 per cent in the next three years * Hero MotoCorp has bought a 49.2 per cent stake in its US-based technology partner Erik Buell Racing (EBR) for US$ 25 million. This is Hero MotoCorp's first-ever equity purchase in an overseas company. Also, Hero MotoCorp has entered into the African continent with launch of its brand and products in Kenya, where it has also set up an assembly unit. The company has also partnered with Ryce East Africa to sell its two-wheelers in the country * Daimler is developing its Indian commercial vehicle operations as an export hub. Daimler India Commercial Vehicles (DICV) will export locally assembled trucks from the conglomerate's Mitsubishi...
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