India's Automotive Industry

The automotive industry in India is the fourth-largest by production in the world as per 2021 statistics. In 2022, India became fourth largest country in the world by valuation of the automotive industry. As of 2023, India is the third largest automobile market in the world in terms of sales.

As of April 2022, India's auto industry is worth of more than US$100 billion and contributes 8% of the country's total export and accounts for 7.1% of India's GDP. According to the 2021 National Family Health Survey, barely 8% of Indian households own an automobile. According to government statistics, India has barely 22 automobiles per 1,000 people.

India's major automobile manufacturing companies includes Maruti Suzuki, Hyundai Motor India, Tata Motors, Ashok Leyland, Mahindra & Mahindra, Force Motors, Tractors and Farm Equipment Limited, Eicher Motors, Royal Enfield, Sonalika Tractors, Hindustan Motors, Hradyesh, ICML, Kerala Automobiles Limited, Reva, Pravaig Dynamics, Premier, Tara International and Vehicle Factory Jabalpur.

Export of Indian Cars to other Countries

2007 Mahindra Scorpio in service with Italy's CNSAS

India's automobile exports have grown consistently and reached $4.5 billion in 2009, with the United Kingdom being India's largest export market, followed by Italy, Germany, the Netherlands, and South Africa.

According to The New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies like Hyundai, Nissan, Toyota, Volkswagen, and Maruti Suzuki.

In 2008, South Korean multinational Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors planned to export 250,000 vehicles manufactured in its India plant by 2011. Similarly, US automobile company, General Motors had announced its plans to export about 50,000 cars manufactured in India by 2011.

In September 2009, Ford Motors announced its plans to set up a plant in India with an annual capacity of 250,000 cars, for US$500 million. The cars were manufactured both for the Indian market and for export. The company said that the plant was a part of its plan to make India the hub for its global production business. Fiat Motors had announced that it would source more than US$1 billion worth auto components from India.

In 2009, India (0.23m) surpassed China (0.16m) as Asia's fourth largest exporter of cars after Japan (1.77m), Korea (1.12m) and Thailand (0.26m).

In July 2010, The Economic Times reported that PSA Peugeot Citroën was planning to re-enter the Indian market and open a production plant in Andhra Pradesh that would have an annual capacity of 100,000 vehicles, investing €700M in the operation. PSA's intention to utilise this production facility for export purposes however remains unclear as of December 2010.

In recent years, India has emerged as a leading center for the manufacture of small cars. Hyundai, the biggest exporter from the country, now ships more than 250,000 cars annually from India. Apart from Maruti Exports' shipments to Suzuki's other markets, Maruti Suzuki also manufactures small cars for Nissan, which sells them in Europe. Nissan will also export small cars from its new Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is preparing to sell electric cars in Europe in 2010. The firm is planning to sell an electric version of its affordable car the Tata Nano in Europe and in the U.S. In the 2000s, Mahindra & Mahindra prepared to introduce its pickup trucks and small SUV models in the U.S. market, but canceled its plans. As of 2019, it is assembling and selling an off-road vehicle (Mahindra Roxor; not certified for road use) in limited numbers in the U.S. It is also sold in Canada. Bajaj Auto is designing a low-cost car for Renault Nissan Automotive India, which will market the product worldwide. Renault Nissan may also join domestic commercial vehicle manufacturer Ashok Leyland in another small car project. While the possibilities for the Indian automobile industry are impressive, there are challenges that could thwart future growth. Since the demand for automobiles in recent years is directly linked to overall economic expansion and rising personal incomes, industry growth will slow if the economy weakens.

Growth initiatives

Automotive Research Association of India and standards

The Government of India felt the need for a permanent agency to expedite the publication of standards and development of test facilities in parallel with the work of the preparation of the standards - as the development of improved safety critical parts could be undertaken only after the publication of the standard and commissioning of test facilities. The Ministry of Surface Transport (MoST) constituted a permanent Automotive Industry Standards Committee (AISC) . The Standards prepared by AISC will be approved by the permanent CMVR Technical Standing Committee (CTSC). After approval, the Automotive Research Association of India (ARAI) will publish this standard.

Intelligent Transport Systems (ITS) are globally proven systems to optimize the utilization of existing transport infrastructure and improve transportation systems in terms of efficiency, quality, comfort and safety. Having realized the potential of ITS, Government bodies and other organizations in India are presently working towards implementing various components of ITS across the country.

The first step taken for creation and implementation of ITS was holding a National Workshop titled "User Requirements for Interactive ITS Architecture", which was conducted as a collaboration between SIAM and ASRTU on 26 & 27 February 2015. This was primarily focused on ITS in Public Bus Transportation. Nonetheless, the workshop helped to create the outline for "National Intelligent Transport System Architecture and Policy for Public Transport (Bus)", which was submitted by ASRTU and SIAM to the government.

In the 44th & 45th CMVR-TSC, Chairman had directed - standardization activities to be initiated on Intelligent Transportation Systems (ITS) - Vehicle Location Tracking, Camera Surveillance System and Emergency Request Button. The committee intended to extend the above user requirements to all public transportation namely –buses, taxis, etc. The current document covers the requirements for Vehicle Location Tracking and Emergency Button. The other ITS components like PIS, CCTV system, Fare collection etc. are deliberated and would be addressed in later phase and could be added as separate parts to the current document.

Based on these directions, the AISC Panel on ITS has prepared this AIS-140 titled,"Intelligent Transportation Systems (ITS) - Requirements for Public Transport Vehicle Operation". The panel also deliberated and identified the necessary elements for an effective implementation of vehicle level ITS system.

For AIS-140 Devices, in India, connectivity to report location, and Emergency Panic Button signal is though wireless cellular connectivity. There are device focused Cellular Connectivity Offerings like 'eSIM4Things available in India, which cater to connectivity requirements of AIS-140 devices. eSIM4Things is fully compatible with all AIS-140 devices and with a connectivity manager and a range of tariff plans.

Driverless Technology in India

While there is controversy on possibility of driverless cars in India, many startups are working on this technology:

Flux Auto

FishEyeBox

Hi Tech Robotic Systemz

EC Mobility Pvt. Ltd.

ATImotors

Netradyne

Swaayat Robots

Auro Robotics

OmniPresent Robotics

Mahindra & Mahindra

SeDrica 1.0

In Auto Expo 2018, Hi Tech Robotic Systemz launched an artificial intelligence-based driver behaviour sensor technology called Novus Aware in partnership with Daimler India Commercial Vehicles (DICV).

Performance-linked incentives scheme for future tech

Automotive sector is part of 13 sectors that GoI has introduced Rs 1.97 lakh cr (US$28 b) performance-linked incentives (PLI) schemes for five years in 2021-22 budget. In Sept 2021, to boost the automotive industry with the newer and green technology the Government of India (GoI) launched 3 PLI schemes, a Rs. 26,000 cr (US$3.61 b) scheme for production of electric vehicles and hydrogen fuel vehicles (PEVHV), the Rs 18,000 crore (US$2.5 b) "Advanced Chemistry Cell" (ACC) scheme for new generation advance storage technologies which are useful for the electric vehicles, and Rs 10,000 crore (US$1.4 b) "Faster Adaption of Manufacturing of Electric Vehicles" (FAME) scheme to go green by expediting production of more electronic vehicles and replacement of other types of existing vehicles with the greener vehicles. The Rs. 26,000 cr (US$3.61 b) PLI scheme to boost automotive sector to boost the production of electric vehicles and hydrogen fuel vehicles will also generate 750,000 direct jobs in auto sector. These schemes will reduce pollution, climate change, carbon footprint, reduce oil and fuel import bill through domestic alternative substitution, boost job creation and economy. Society of Indian Automobile Manufacturers welcomed this as it will enhance the competitiveness and boost growth.