A STUDY ON CAR INDUSTRY OF INDIA

TABLE OF CONTENTS

1. Auto industry in India01

1.1 Introduction..01

1.2 Evolution..01

1.3 Current market scenario...............................................................................................05

2. Passenger vehicles.....................................................................................................................08

2.1 Types............................................................................................................................08

2.2 Classifications of market segments..............................................................................09

2.2.1 Based on the price of car...............................................................................09

2.2.2 Based on the length of the car.......................................................................10

2.2.3 Based on the shape of the car........................................................................10

2.3 Top most ever time selling cars in India......................................................................13

3. Passenger vehicle sales analysis................................................................................................16

3.1 PV manufacturer - sales chart.....................................................................................16

3.2 PV export analysis.......................................................................................................19

4. Car sales volume yearly analysis...............................................................................................20

4.1 Car sales volume 2016.................................................................................................20

4.2 Car sales volume 2015.................................................................................................22

4.3 Car sales volume 2014.................................................................................................23

4.4 Car sales volume 2013.................................................................................................23

4.5 Car sales comparison of 2011 & 2012.........................................................................24

 4.6 ICOTY car of the year..............................................................................................25

5. Region wise sales analysis.........................................................................................................26

5.1 Zone wise analysis.......................................................................................................26

5.2 State wise analysis.......................................................................................................26

5.3 City wise analysis........................................................................................................27

5.4 Car sales analysis on Kerala........................................................................................29

5.5 Car ownership analysis................................................................................................30

6. Car per 1000 population.............................................................................................................30

7. Petrol resurgence........................................................................................................................31

8. Decision making criteria............................................................................................................32

8.1 Reason of buying a car.................................................................................................32

8.2 Source of the information...........................................................................................33

8.3 Basis of evaluation of car............................................................................................33

8.4 Buying decisions factors..............................................................................................33

9. Car dealers in Kerala..................................................................................................................34

10. Make in India...........................................................................................................................36

11. Conclusion...............................................................................................................................39

12. Reference.................................................................................................................................41
LIST OF TABLES
Table.1 Trend in passenger vehicle sales since 201106

Table.2 Indian automotive sector compared to that in peer countries...08

Table.3 Classification based on price of car..10

Table.4 Classification based on the length of the car10

Table.5 Classification based on the shape of the car.13

Table.6 Top Most Ever Time Selling Cars in India...15

Table.7 PV Manufacturer sales figures since 2011...16

Table.8 Month-wise Chart 2016 (Number of units sold)17

Table.9 PV Export Analysis during H1 FY2017...19

Table.10 Top 20 cars month-wise sales volume 2016...21

Table.11 Top twenty cities contributing in car sales (FY2015).....................................................28

Table.12 Keralas contribution in car sales (FY2016)...................................................................29

Table.13 Top ten towns in car ownership volume.........................................................................30

Table.14 Car per 1000 population.................................................................................................31

LIST OF CHARTS
Chart.1 Trends in export & domestic sales of passenger vehicles since 2011..06

Chart.2 Passenger Vehicle Production in India.07

Chart.3 Growth percentage of passenger vehicle sales..07

Chart.4 Types of passenger vehicles..08

Chart.5 Share in production of passenger vehicles (FY16)...09

Chart.6 Passenger vehicle market share October 2015..18

Chart.7 top 10 models exported during H1 FY2017..19

Chart.8 Top ten cars by sales volume November 2016..20

Chart.9 Top sold models of Maruti Suzuki during 2016...22

Chart.10 Top ten bestselling car models of 2015..........22

Chart.11 Top ten bestselling cars of 2014.23

Chart.12 Top ten bestselling cars of 2013.....................................................................................24

Chart.13 Zone-wise sales of car FY2016.......................................................................................26

Chart.14 Top ten states contributing to car sales...........................................................................27

Chart.15 Top ten cities contributing to car sales............................................................................28

Chart.16 Top cities in Kerala contributing to car sales (FY 2016)................................................29

Chart.17 Fuel-wise contribution to the PV sales...........................................................................31

LIST OF FIGURES
Figure 1 Maruti 800 Dawn of a new era.02

Figure 2 Evolution of the Indian automotive sector..03

Figure 3 Zone wise List of Automobile companies in India..04

Figure 4 Passenger Vehicle market share October 2016...18

Figure.5 Car of the year since 2006...............................................................................................25

Figure.6 Maruti Suzuki Petrol vs. Diesel Models..........................................................................32

Figure.7 Sales figures of Indus motors since 2003-2004...............................................................35

Figure.8 Make in India.................................................................................................................36

EXECUTIVE SUMMARY
The Indian automobile industry seems to come a long way since the first car that was
manufactured in Mumbai in 1898. The automobile sector today is one of the key sectors of the
country contributing majorly to the economy of India. In 2005-2006, India was in the 13th
position of passenger vehicles sales global ranking, but now in 2016, India possesses 6 th rank in
the passenger vehicle sales. India witnessed a huge growth in passenger vehicle production and
sales from year to year. It directly and indirectly provides employment to over 10 million people
in the country
The Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent
of the country's Gross Domestic Product (GDP). Moreover, the growing interest of the
companies in exploring the rural markets further aided the growth of the sector. The overall
Passenger Vehicle (PV) segment has 13 per cent market share. Several initiatives by the
Government of India and the major automobile players in the Indian market are expected to
make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by
2020.
The growth of the Indian middleclass along with the growth of the economy over the last few
years has resulted in a host of global auto giants setting their foot inside the Indian Territory.
Moreover India also provides trained manpower at competitive costs making the country a
manufacturing hub for many foreign automobile companies. India proves to be a potential
market as compared to most of the other countries which are witnessing stagnation as far as
automobile industry growth is concerned. The Automotive Mission Plan (AMP) was drafted in
2006 to map the aspirations of the auto and auto component industry, to promote India as a
preferred global manufacturing destination and introduced intervention and prescription
mechanisms for promoting the industry.

In this work, I tried to describe and analyze the passenger vehicle segment of Indian automobile
industry and its growth from year to year. Sales figure analyzing method is using to describe the
growth of passenger vehicle industry over the decades. When going through the charts, we can
easily understand the strength of passenger car market in India, and India is a very favorable
market for small cars and hatchback cars.
1. AUTO INDUSTRY IN INDIA

1.1 INTRODUCTION

The Indian auto industry is one of the largest in the world. The industry accounts for 7.1
per cent of the country's Gross Domestic Product (GDP). The Two Wheelers segment with 81
per cent market share is the leader of the Indian Automobile market owing to a growing middle
class and a young population. Moreover, the growing interest of the companies in exploring the
rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment
has 13 per cent market share. India is also a prominent auto exporter and has strong export
growth expectations for the near future. In April-January 2016, exports of Commercial Vehicles
registered a growth of 18.36 per cent over April-January 2015. In addition, several initiatives by
the Government of India and the major automobile players in the Indian market are expected to
make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by
2020.

Circa 1895, the first modern automobile rolled onto the streets of Mumbai (then Bombay). It was
one of the initial models of horseless carriages. Much prior to Henry Fords experiment of the
iconic Ford model T. The Indian automobile industry has come a long way since then. Today,
its one of the fastest growing industries in the world. The automobile industry is one of the
major employment and revenue generators for the country. Almost all major auto companies of
the world are vying for a space in the Indian market. The market is segmented on several basis
viz. sizes of the car, heritage, model type, usage and performances, distribution etc. each
enjoying a healthy and increasingly stiffer competition day by day. From the point view from
this survey, it is therefore vital to first study the Indian automobile market, in order to understand
its revolution, the important events, and the current market scenario since 2011.

1.2 EVOLUTION

The passenger car industry in India can be practically divided into two eras: the pre-Maruti era
and post-Maruti era. At the time of independence, India virtually had no home grown company
manufacturing automobiles.

1
 Fig.1 Maruti 800 Dawn of a new era

However, many British and American companies had established their subsidiaries in India for
assembly purposes. At this time, the newly government of India adopted the License Raj as way
forward for the economy. This lead to consolidation of the economy in the hands of the existing
companies, namely

Hindustan Motors
Premier Automobiles and
Standard Motors.

The industry didnt see any competitors for almost three decades since then. Low demand for
automobiles and lack of indigenous R&D, the Indian auto market hardly registered any progress
till 1980. It was in early 1980s that Maruti 800 project was initially launched. Its launch marked
a beginning of a major revolution in the industry. The original car was indented to be an
indigenously designed, economy car for the masses. However, this plan was soon dropped as
political interference and engineering complications delayed the project. Very soon company
was suffering from bankruptcy. As a result, its assets were nationalized and the state owned
Maruti Udyog came into being. This time around the plan for indigenous development was
abandoned and the company adopted the joint venture approach. Many leading foreign
automobile companies were considered, and the Suzuki Motor Co. from Japan was finalized. It
was chosen mainly because of its expertise in the small car industry, the range of available cars
2
in its stable, and also because of attractive terms and conditions. Thus Suzuki came town 26
percentages in the JV, with permission to increase to 50 percent in the future.

Fig.2 Evolution of the Indian automotive sector

Thus the Maruti 800 was launched, and it quickly captured the market. It further led to the
launch of Maruti Omni van and Maruti 1000 models, which further enhanced Marutis share in
the Indian market. The Maruti models were periodically upgraded, keeping in sync with
international changes. In the first half of the 1990s, Maruti enjoyed around 60 percentage of the
market share in passenger cars. The launch of Maruti led to shake up among the competitors as
well. Premier automobiles acquired rights from Fiat to manufacture Fiat 124 and Hindustan
motors did the same with Vauxhall motors for the Contessa. Many other small time automakers
too acquired rights for several foreign cars. Premium automobiles in particular formed a number
or JV with European companies to establish themselves in the upper segments. With the
liberalization of the economy came a demand from new companies, both local and international,

3
to enter the Indian market. Tata motors launched their first passenger car viz. Tata Estate.
Hindustan Motors began manufacturing Opel Astra, a brand owned by General Motors. This
marked a beginning of a flurry of cars emerging on the scene. By the turn of the century, many
international companies had emerged on the Indian scene. Prominent amongst them were
Hyundai, Toyota, Honda, Ford, Fiat, etc. Even luxury marquees like Mercedes-Benz and gained
substantial visibility. Home grown companies such as Tata Motors and Mahindra and Mahindra
too contested for a share in various segments. The later years saw another wave of foreign
companies opening up factories, this time led by General Motors, Skoda, Nissan, Volkswagen,
BMW, Audi, etc. The auto industry in India now is at par with international standards, with
companies increasingly looking towards it as the future growth engine.

Fig.3 Zone wise List of Automobile companies in India

4
1.3 CURRENT MARKET SCENARIO

The passenger car industry in India is growing steadily from year to year, it constitutes around 14
percent share of the Indian automotive market in the Fiscal year of 2016.

Fig.4 Domestic market share for FY2016

Below table is showing the production, domestic and export trends of passenger vehicles from
2010 2011 to 2015 2016. From the table we can understand that the production of passenger
vehicle growing year to year except 2013 2014. The industry produced a total 23,960,940
vehicles including passenger vehicles, commercial vehicles, three wheelers, two wheelers and
quadricycle in April-March 2016 as against 23,358,047 in April-March 2015, registering a
marginal growth of 2.58 percent over the same period last year. The sales of Passenger Vehicles
grew by 7.24 percent in April-March 2016 over the same period last year. In April-March 2016,
overall automobile exports grew by 1.91 percent. Passenger vehicle exports gained a 5.24%
growth over the same period last year.

5
 Category 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Production
2982772 3146069 3231058 3087973 3221419 3413859
Trends

Domestic sale 2501542 2629839 2665015 2503509 2601236 2789678

Export trends 444326 508783 559414 596142 621341 653889

Table.1 Trend in passenger vehicle sales since 2011

4000000

3500000
653889
3000000 508783 559414 621341
596142
444326
2500000

2000000 Export
Domestic Sale
1500000
2629839 2665015 2601236 2789678
2501542 2503509
1000000

500000

0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Chart.1 Trends in export & domestic sales of passenger vehicles since 2011

6
 Passenger Vehicle Production in India
(Million Unit)
4
3.5
3 3.4
3.1 3.2 3.1 3.2
3
2.5
2 2.4
Passenger Vehicle
1.5 1.8 Production in India
1.6 (Million Unit)
1 1.3 1.3
0.5
0
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Chart.2 Passenger Vehicle Production in India

Production of automobiles increased at CAGR of 9.4 percent over FY2006-FY2016. During

FY06-FY16 passenger vehicle segment witnessed the fastest growth.

Growth percentage of passenger vehicle

sales
FY16 7.00%

FY15 4%

FY14 -6%

FY13 1%
Growth percentage of
FY12 5%
passenger vehicle sales(FY16)
FY11 25%

FY10 33%

FY09 13%
-10% 0% 10% 20% 30% 40%

Chart.3 Growth percentage of passenger vehicle sales

7
 Indian automotive sector compared to that in peer countries
Global car production ranking Motorization rate per 1000
Country
2015 inhabitants
China 1 79
Japan 2 599
Germany 3 562
USA 4 791
South Korea 5 386
India 6 18
Spain 7 529
Mexico 8 276
France 9 578
UK 10 519
Table.2 Indian automotive sector compared to that in peer countries

When comparing to the peer countries, India is in the 6th position of global car production
ranking. The nation now has 18 cars per 1,000 citizens. (Lat update on 2011).

2. PASSENGER VEHICLES

2.1 TYPES

Passenger
vehicles

Passenger
cars

Utility
vehicles

Multi-purpose
vehicles

Chart.4 Types of passenger vehicles

8
Passenger vehicles are a compartment to carrying passengers. Passenger vehicles classified into
Passenger cars, utility vehicles and multipurpose vehicles.

Share in production of passenger vehicles

(FY16)

6.36%

21.03% Passenger Cars

Utility Vehicles
Vans

72.61%

Chart.5 Share in production of passenger vehicles (FY16)

2.2 CLASSIFICATIONS OF MARKET SEGMENTS

In the context of the automobile industry, classifying market segments would be done on the
following basis: (Segmentation by SIAM)

1. Based on the price of car

2. Based on the length of the cars
3. Based on the shape of the car

2.2.1 BASED ON THE PRICE OF CAR

Car segment Price (Lakhs) Body type Models

A Up to 3.5 lakhs Mini Hatchback Nano, Alto, Eon

A1 4-8 lakhs Hatchback Wagon R, i20, Figo
B1 Varies Vans Omni, Versa, Enjoy
B2 Varies MUV/MPV Innova, Tavera

9
 C1 7-10 lakhs Sedan City, Sunny, Etios
D1 10-25 lakhs Luxury Sedan Corolla, Optra,
Fluence, Accord,
Camry
D2 Above 25 lakhs Premium Sedan BMW, Audi,
Mercedes, Volvo
SUVs Varies SUVs Safari, Scorpio,
Pajero, Fortuner
Table.3 Classification based on price of car

2.2.2BASED ON THE LENGTH OF THE CAR

Car Segment Length (mm) Car Models

A1 Upto 3400mm Nano

A2 3401 4000mm Alto, i10, Wagon R

A3 4000 4500mm City, Dzire, Manza

A4 4500 4700mm Corolla, Optra
A5 4700 5000mm Accord, Camry, Sonata
A6 More than 5000mm BMW 7, Mercedes S
B1 Vans Omni , Versa, Enjoy

B2 MUV/MPV Innova, Xylo, Tavera

SUVs SUVs Safari, Scorpio, Pajero

Table.4 Classification based on the length of the car

2.2.3 BASED ON THE SHAPE OF THE CAR

Based on the shape of the car, passenger cars classifies as follows

Mini-Hatchback
Hatchback
Sedan
Muv/Mpv

10
 Vans
SUVs
Convertible
Roadsters
Crossovers

Mini Hatchback

Hatchback

Sedans

MUV/MPV

11
 Vans

SUVs

Convertibles

Roadsters

12
 Crossovers

Table.5 Classification based on the shape of the car

2.3 TOP MOST EVER TIME SELLING CARS IN INDIA

Hindustan
1.
Ambassador

2. Maruti Suzuki 800

3. Maruti Suzuki Alto

13
4. Hyundai Santro

5. Tata Indica

Maruti Suzuki Wagon

6.
R

7. Mahindra Bolero

14
 8. Mahindra Scorpio

Maruti Suzuki Swift

9.
Dzire

10. Hyundai i10

Table.6 Top Most Ever Time Selling Cars in India

3. PASSENGER VEHICLE SALES ANALYSIS

3.1 PV MANUFACTURER - SALES CHART

Below showing the major passenger vehicles manufacturers and their sales figures since 2011.
Maruti Suzuki showing a constant growth over years and having a major market share of 47.25%
during 2016 Fiscal year. Korean maker Hyundai following Maruti with a market share of

15
17.45%. Top four leading manufactures grabbing a 79.64% of the total market Share during
2016 fiscal year.

Manufacturer Charts since 2011

Market
Manufacturers 2011 2012 2013 2014 2015
share %

Maruti 997281 1063599 1063964 1152123 1289128 47.25

Hyundai 373709 391276 380002 411456 476001 17.45
Mahindra 196354 259493 234755 205717 205081 7.52
Honda 47548 73130 107659 179783 202390 7.42
Toyota 136136 172241 145132 132748 139816 5.12
Tata 296698 290428 141685 127118 138244 5.07
Ford 92513 85422 79473 77157 77809 2.85
Renault 1406 35157 64368 44849 53419 1.96
Volkswagen 78178 66560 60405 44210 43156 1.58
Chevrolet 111056 92063 86825 57565 36518 1.34
Nissan 22891 42257 32069 36575 21547 0.79
Datsun 0 0 0 13328 19378 0.71
Skoda 30741 34678 21834 15332 15457 0.57
Fiat 16727 11131 8799 12397 8620 0.32
HM-Mitsubishi 0 1340 1951 983 1746 0.06

Table.7 PV Manufacturer sales figures since 2011

2016 is a stunning year for almost PV manufacturers. Maruti Suzuki never gives up their
dominancy over the market in this year also. 2016 year started with a moderate selling and the
September - October festival season sales reached its maximum. Hyundai, Honda and Renault
improved their growth in production and sales in both domestic and exports. So many new
launches arrived in this year and Hyundai Creta selected as the car of the year by ICOTY.
Month-wise sales status is showing below.

16
 Manufacturer Chart 2016 (Number of units sold)
Manufacturers Jan Feb Mar Apr May Jun July Aug Sep Oct Nov

Maruti 106383 108115 118895 117045 113162 92133 125764 119906 137277 123684 126220

Hyundai 38016 40716 41201 42351 41351 39806 41201 43201 42605 49816 40016

Mahindra 20691 22152 23376 21108 18349 15688 15929 17115 19158 23181 12707

Honda 17135 13020 17430 10486 9954 11407 14033 13941 15034 15567 8029

Tata 10709 10962 8454 10495 8617 12509 13578 13024 14620 16412 12736

Renault 8031 8834 12424 12426 8343 11837 11968 12972 12143 12409 9604

Toyota 8511 10312 7638 8529 12614 13567 12404 12801 12067 11651 11309

Ford 7045 5483 7565 6560 5780 9465 7076 8548 9018 7508 6876

Datsun 1413 2082 1654 1796 2360 4267 5481 4767 3970 4702 na

Volkswagen 4018 2510 3570 3039 3591 4022 4301 4447 3929 5534 4014

Chevrolet 2788 2229 3044 2063 2615 1951 1528 1801 2101 3001 2808

Skoda 1202 1173 1405 914 904 1002 965 1211 1218 1473 860

Nissan 1255 1768 1729 1232 1146 945 937 1151 988 1406 na

Fiat 630 609 632 486 509 603 560 651 602 646 266
HM-Mitsubishi 125 71 126 60 72 70 44 70 68 64 34

Total 227952 230036 249143 238590 229367 219272 255769 255606 274798 277054 na

Table.8 Month-wise Chart 2016 (Number of units sold)

During October 2016, Maruti Suzuki is having 44.6% of market share. Hyundai is still following
Maruti with a share of 17.9%. Indian Automaker Mahindra leading in third position with 8.4% of
market share. Tata and Honda are competing themselves to achieve fourth place in the market of
passenger vehicle sales. Renault improved their market share during 2016 upto 4.5%. Out of 10
cars sold by Renault in India, 9 are dusters.

17
44.6
17.9% 8.4% 5.9% 5.6% 4.5%
%

Fig.4 Passenger Vehicle market share October 2016

Passenger vehicle Market share

October-2016

23.20%
Maruti Suzuki

44.60% Hyundai
5.90%
Mahindra

8.40%
Tata Motors

17.90% Others

Chart.6 Passenger vehicle market share October 2016

18
3.2 PV EXPORT ANALYSIS

During the first half of fiscal year 2017, Renault and Chevrolet gained a mind-blowing growth%
over other competitors. Hyundai export maximum unit of vehicles during April 2016
September 2016. Ford Ecosport is the most exported model during this time.

Manufacturer Apr16 Sep16 Growth %

Hyundai 87499 2%
Ford 73821 32%
Maruti Suzuki 60526 -8%
Nissan 49611 -8%
Volkswagen 43114 19%
Chevrolet 30647 864%
Toyota 7008 -22%
Mahindra 5913 134%
Renault 3938 6252%
Honda 2539 -33%
Tata 2352 8%
Fiat 135 47%

Table.9 PV Export Analysis during H1 FY2017

19
 Most exported models (Apr16 - Sep16)
42354 39017
34598 30647
24485 24162 22997 21403
14735 13313

Chart.7 top 10 models exported during H1 FY2017

4. CAR SALES VOLUME -YEARLY ANALYSIS

4.1 CAR SALES VOLUME 2016

When we are considering 2016 November sales, Maruti Suzuki alto is the most sold car of the
year. From the below chart we can easily understand that 6 car models of Maruti Suzuki taking
place in top 10 best selling cars. Hyundais Grand i10 and Elite i20 included in this list.
Renaults new model Kwid and Tata Tiago are also consumers favorite.

20
 25000

23320

20000 Alto

17218 Dzire

15566 Wagon R
14954
15000 Swift

11093 Baleno
11059
Grand i10
9543
10000 Celerio
7847 7601
Kwid
6008
Elite i20
5000
Tiago
Linear (Alto)

0
Top Ten cars by sales volume (November 2016)

Chart.8 Top ten cars by sales volume November 2016

Lets consider top 20 car models by its sales volume in 2016 January to October. Out of 20,11
car models are belongs to Maruti Suzuki, on the other hand Renault Kwid found a place in the
top 10 car models. Hyundai has their 4 car models in the list. Mahindra bolero and Toyota
Innova are taking a place in this list with Honda city and Tatas tiago. Maruti Omni is leading in
van category. Following table is showing top 20 models with its month-wise sales volume.

TOP 20 CARS BY SALES VOLUME 2016

Car
Manufacturer Jan Feb Mar Apr May Jun July Aug Sep Oct
Model
Maruti Alto 21462 21286 22101 16583 19874 15750 19844 20919 27750 18854

Maruti Dzire 17587 17410 17796 13256 6968 15560 19229 15776 18961 17682

Maruti Wagon 12744 14209 14577 15323 13231 11962 15207 14571 16645 15075

21
 R
Maruti Swift 14057 15475 14524 15661 12355 9033 13934 13027 16746 14611

Hyundai i10 9934 8898 9544 9840 12055 12678 11961 12957 12212 14530

Grand
Hyundai i20 9604 10202 10647 11147 10472 8990 9910 11011 10254 11532

Elite
Maruti Baleno 7698 6888 6236 9562 10004 6967 9120 8671 10623 10718

Maruti Vitara 0 0 5563 7832 7193 6673 10232 9554 9375 10056

breeza
Renault Kwid 5985 7544 9743 9795 5600 9459 9897 10719 10558 9801

Maruti Celerio 7141 5137 8859 8548 7379 5797 7792 8063 5452 9581

Hyundai Creta 6589 8196 8163 7900 7057 7700 7981 8450 8835 8670

Mahindra Bolero 6160 7446 6211 5785 4419 3699 3929 4841 5744 8323

Maruti Omni 5901 7151 7245 8356 6923 5530 8564 7072 7143 6987

Honda City 8037 4880 5662 5793 3305 3581 4317 4255 5855 6378

Maruti Ciaz 5431 5162 5480 5702 5188 2800 5162 6214 6544 6360

Toyota Innova 3352 4945 2805 4269 7259 8171 7765 8229 7300 6294

Tata Tiago 0 1096 0 3022 3287 4205 5114 4527 4557 6108

Hyundai Eon 5431 5539 5460 5417 3634 3600 3792 3990 4504 5810

Maruti Eeco 4611 5331 5651 6164 5241 4344 6184 5759 6475 5803

Maruti Ertiga 5799 5620 5544 5484 4133 2726 6625 5024 6438 5660

Table.10 Top 20 cars month-wise sales volume 2016

The following chart shows the top sold models of Maruti Suzuki during 2016. Alto is still
leading with a very good record sale of 204423 units. Wagon R and Swift have an internal
completion to grab third place in this list. Omni is the Marutis model leading in van type
category.

22
 Top sold models of Maruti Suzuki during
2016
250000
204423
200000
160225
143544 139423
150000

100000 86487
73749 70872 66478
55563 54043 53053
50000

0
Alto Dzire Wagon Swift Baleno Celerio Omni Vitara Eeco Ciaz Ertiga
R breeza

Performance of Maruti Suzuki During 2016 (Upto Oct-2016)

Chart.9 Top sold models of Maruti Suzuki during 2016

4.2 CAR SALES VOLUME 2015

Top ten bestselling cars of 2015

In terms of sales(Jan 2015 - Nov 2015)

249507
219248
192376
155754
119705 111276
81914 76546 74942 72778

Maruti Maruti Maruti Maruti Hyundai Hyundai Mahindra Honda Maruti Maruti
Alto Dzire Swift Wagon R Elite i20 Grand i10 Bolero City Celerio Omni

Chart.10 Top ten bestselling car models of 2015

In 2015 sales also Maruti alto is leading with an achievement of 249507 units. If considering top
five sold car models over 2015, Maruti Suzuki has four of their models which include Alto,
Dzire, Swift and Wagon R. Except Hyundai Grand i10 , Elite i20, Honda city and Mahindra
Bolero remaining top 6 cars are belongs to Maruti Suzuki.

23
4.3 CAR SALES VOLUME OF 2014

Just like 2015 and 2016, in this year also Maruti Suzuki models are leading. Six out of ten
models are belongs to Maruti Suzuki, in which alto is leading as usual with 242248 unit sales
volume. Apart from 2015, Hyundai Eon has a place in this list of top ten cars.

Top ten bestselling cars of 2014

300000
242248
250000
193680 185421
200000
146931
150000
95539 92297
100000 74349 71308 68246 62765
50000
0

Car Model

Chart.11 Top ten bestselling cars of 2014

4.4 CAR SALES VOLUME OF 2013

Maruti Suzuki grabbed the maximum market share during 2013. In this year also Maruti Suzuki
alto was the majority customers choice. Maruti Dzire wins the race against Maruti swift for the
second most sold car title. On the other hand Hyundai has three major models in this list; those
are Hyundai i10, i20 and Hyundai Eon. Bolero represents Mahindra in this list by 102005 unit
achievement. Marutis five models are included in this toppers list.

24
 Top ten best sellingcars of 2013
In terms of sales (Jan 2013 - Nov 2013)

241954
182890 182469
149079
102005
84536 73934 68297 58266 57295

Maruti Maruti Maruti Maruti Mahindra Hyundai Hyundai Hyundai Toyota Maruti
Alto Dzire Swift Wagon R Bolero Eon i10 i20 Innova Ertiga

Chart.12 Top ten bestselling cars of 2013

4.5 CAR SALES COMPARISON OF 2011 & 2012

TOP 10 BEST SELLING CARS LIST OF 2011 AND 2012

Rank % change in sales (2012 vs. 2011)
Models
2012 2011
Maruti Alto 1 1 -9.28
Maruti Swift 2 4 51.83
Maruti Dzire 3 6 56.31
Maruti Wagon R 4 2 -3.49
Hyundai i10 5 3 -29.85
Tata Indica 6 5 -1.65
Hyundai Eon 7 Na Na
Hyundai i20 8 7 7
Tata Nano 9 Na 17.73
Ford Figo 10 10 -8.65
Tata Indigo Na 8 -17.68
Hyundai Santro Na 9 -34.54
Table.11 Top ten bestselling cars of 2011&2012

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Tata Motors Nano and Hyundais new launch Eon replaced the Indigo and the Santro from
2012ths top 10 lists. Maruti alto is continuing its No. 1 position both in 2011 & 2012. Maruti
swift and Dzire improved their sales in 2012 and are having more than 50% sales growth in this
duration. Another noticeable strike is from Tata nano the budget car which increased its sales
by 17.7% during 2012. Hyundai santro faced a deep retardation in its sale from 2011-2012 by

-34.54%.

4.6 ICOTY-CAR OF THE YEAR

The ICOTY is the most credible and coveted award, and almost like the Oscar of Indian car
awards. It is started on 2006, senior and eminent journalists from all the leading automobile
magazines in India got together and decided to create and confer the Indian Car of the Year. The
following figure shows the CAR OF THE YEAR since 2006.

Fig.5 Car of the year since 2006

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5. REGION SWISE SALES ANALYSIS

5.1 ZONE-WISE ANALYSIS

From the following chart of FY2016, it is clear that the most car customers are from the north
zone of India 35.04%. Southern region and Western side are sharing 27.84% and 25.85%
respectively. Eastern side customers are low in number and having 10.86% only.

Zone - Wise Sales FY2016

10.86%

North
35.04%
South
25.85%
West
East

27.84%

Chart.13 Zone-wise sales of car FY2016

5.2 STATE-WISE ANALYSIS

Based on fiscal year 2016 sales, we can understand that Maharashtra is the most cars buying
state in India with a yearly unit of 333394. Uttarpradesh possess second place by 211066 units.
Gujarat and kartanataka are having a narrow difference and Gujarat leading in the list with
199023 units. The capital city Delhi have only fifth place when analyzing state-wise. The sixth
place goes to Kerala. Kerala is contributing to the automobile market by consuming 181815 units
of cars. The following chart shows the details of car sales in the state-wise manner.

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 Top ten states contributing to car sales
(Based on FY2016 sales)

333394

211066 199023 197956 183541 181815 170048 164806 154493

130061

Chart.14 Top ten states contributing to car sales

5.3 CITY-WISE ANALYSIS

The below showing are the top cities which are contributing in car sales during fiscal year 2015.
Bangalore pips Mumbai to become the second largest car market in FY-16. In 2015 fiscal year
Cochin was at 10th position but in 2016 fiscal year sales analysis, Cochin loses its spot to
Lucknow in Top 10 Cities. The capital city Delhi contributed to the auto market by buying
295717 units over fiscal year 2016. Now Delhi has more than 12% market share in the sales of
cars.

Rank City Sales Market Share (%)

1 Delhi 295717 11.44
2 Bangalore 134289 5.197
3 Mumbai 125900 4.872
4 Hyderabad 89438 3.461
5 Pune 80598 3.119
6 Chennai 78205 3.026
7 Ahmadabad 63708 2.026

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 8 Jaipur 48089 2.465
9 Kolkata 47745 1.861
10 Lucknow 39402 1.848
11 Cochin 36493 1.525
12 Chandigarh 32322 1.412
13 Surat 29206 1.251
14 Calicut 28342 1.130
15 Guwahati 27046 1.097
16 Trivandrum 24852 1.047
17 Nagpur 24569 0.962
18 Coimbatore 23982 0.951
19 Indore 22407 0.928
20 Ludhiana 22151 0.867

Table.11 Top twenty cities contributing in car sales (FY2016)

Top ten cities contributing to car sales

Based on the sales volume of FY2016

295717

134289 125900
89438 80598 78205
63708
48089 47745 39402

Chart.15 Top ten cities contributing to car sales

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5.4 CAR SALES ANALYSIS ON KERALA

In the fiscal year of 2015 car sales, Cochin was in the top ten cities; while in 2016 fiscal
year, Lucknow overtake Cochin. As per 2016 fiscal year sales report, Kerala is the top
sixth state in car sales. Apart from Cochin, some more cities like Calicut, Trivandrum,
Thrissur, Kottayam and Malappuram found a place in the top 50 cities in India for car
sales.

Rank City Sales Market Share (%)

11 Cochin 36493 1.412
14 Calicut 28342 1.097
16 Trivandrum 24852 0.962
35 Thrissur 15609 0.604
39 Kottayam 13730 0.531
41 Malappuram 12931 0.500

Table.12 Keralas contribution in car sales (FY2016)

Top cities in Kerala contributing to car sales

(FY 2016)
Cochin Calicut Trivandrum Thrissur Kottayam Malappuram
36493

28342
24852

15609
13730 12931

Sales

Chart.16 Top cities in Kerala contributing to car sales (FY 2016)

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5.5 CAR OWNERSHIP ANALYSIS

The below showing are top 10 town with highest numbers of car ownership till March 2016.The motor
registration department of India says that Delhi has the maximum number of car ownership till March
2016, they are having 2172069 cars.

Top Ten Towns with Highest Nos. of Car Ownership (March 2016)
Rank Major Cities of India In numbers

1 Delhi 2172069

2 Bangalore 800866

3 Chennai 653270

4 Greater Mumbai 617556

5 Hyderabad 558081

6 Pune 332293

7 Chandigarh 286584

8 Ahmadabad 239558

9 Jaipur 235310

10 Kolkata 222069

Table.13 Top ten towns in car ownership volume

6. CAR PER 1000 POPULATION

As per road transport year book, cars per 1000 population is increasing in India. Some of the
cities have a remarkable ratio. Chandigarh is having maximum ratio of 279 cars per 1000
population. Capital City Delhi possess second place in this list with 137 cars per 1000
population. The following table shows the list of top ten cities in this category.

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 Rank City Cars per 1000 population
1 Chandigarh 279
2 Delhi 137
3 Ludhiana 120
4 Bangalore 95
5 Jaipur 94
6 Chennai 77
7 Coimbatore 76
8 Pune 74
9 Hyderabad 73
10 Indore 70

Table.14 Car per 1000 population

7. PETROL RESURGENCE

Fuel-wise contribution to the total PV

sales
Petrol Diesel

37% 44%
48% 58% 53% 48%

63% 56%
52% 42% 47% 52%

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016*

Chart.17 Fuel-wise contribution to the PV sales

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Diesel is losing the ground and the Petrol and Hybrid models are the future and are going to
dominate a much larger pie in overall sales. In FY 2015 and FY 2016 petrol passenger vehicles
dominate over diesel Passenger vehicles. The Market Leader 69% of Maruti Suzuki sales is
currently contributed by Petrol models. Model-wise numbers is as shown

Fig.6 Maruti Suzuki Petrol vs. Diesel Models

8. DECISION MAKING CRITERIA

8.1 REASON OF BUYING A CAR

Need of car
New product in market
Family
Pressure/peer group pressure
For status in the society

33
 Craze for the product
Surplus finances
Availability of car
Sales person influence
Follow up by the company

8.2 SOURCE OF THE INFORMATION

Through market Survey

Search on the websites
Visiting company showrooms
Test Drives
Feedback of the existing customers
Information brochures of the company
Advertising in the Electronic/print media
Trade fairs

8.3 BASIS OF EVALUATION OF CAR

Product Features
Financial issues
Brand image in market
Pre-sales and post sales services promised
Environmental friendly concerns
Guarantee/warrantee or other schemes
Financing facilities
Purchasing power

8.4 BUYING DECISIONS FACTORS

Brand Name/image of company

Price of the car
Product differentiate from competitors

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 products(looks/shape)
Interior and exterior style/design
Safety
Mileage of the vehicle
Net work of the company in the area
Availability of product
Sales team influence
Services differentiation
Brand loyalty (repeat purchase)
Brand ambassador and Advertising Basis
Discounts and other schemes.

9. CAR DEALERS IN KERALA

Kerala is increasingly housing some of Asias largest car showrooms. Kerala is now a strong
market for passenger vehicles and luxury cars. Major Car dealers in Kerala are:

1. Indus Motors:
Indus Motor Company Private Limited, having its Registered Office at Indus House,
Chakorathukulam, Kozhikode and the Corporate Office at IInd Floor, Opp. South Gate
of Cochin Shipyard, Thevara, Kochi- 682015, was incorporated on 11th July, 1984.
o For the 10th consecutive year, Indus Motors is being awarded with the sales no.1 award
with highest number of Maruti Suzuki car.
o According to Maruti Suzuki Indus Motors deliver 1 Maruti car every 15 minutes.
o As on today, Indus has
6 Dealerships
52 Workshops
11 True Value Outlets
2 Maruti Driving Schools
41 E-Outlets & 165 sales outlets

35
 Fig.7 Sales figures of Indus motors since 2003-2004

2. Koyenco Autos Pvt. Ltd : Koyenco Autos Pvt. Ltd has the biggest automobile dealership
facility in Kerala, with a state-of-the-art showroom and service center, in Calicut city.
3. KTC Hyundai : KTC Hyundai boasts of a modern Showroom and a well equipped
workshop to cater to the needs of all esteemed Hyundai customers.
4. P V S Ford, Calicut : P V S Ford is from P V S automotive company dealing with the sales
and services of Ford vehicles
5. MGF Hyundai : MGF Hyundai has as many as 10 sales outlets and 6 service centers across
central Kerala.
6. Amana Toyota : Amana Toyota - Integrating sales with service and service parts in a single
convenient location for Toyota cars
7. Popular Vehicles & Services Ltd : Popular vehicles & Services provide True and Quality
Sales of Maruti Vehicles and it also provides well equipped quality service & user-friendly
solution for Customer Care.
8. German Motors : German Motors, a franchise of General Motors in Kerala have been
rewriting the conventional automobile industry that was prevalent in Kerala. This
innovativeness has given them an extra inch in the arena of sales and service.

36
9. Kairali Ford : Kairali Ford is India's largest sales & services and spares distribution
network in the state of Kerala spanning from Thrissur, Kochi, Kottayam and
Thiruvananthapuram...
10. Nippon Toyota, Kerala : Nippon Toyota is a leading Toyota dealer in Kochi, Trichur,
Kottayam and Trivandrum.
11. Maruti Sai Service Station, Kochi : Sai Service Station is an authorized Maruti Service
centre in Cochin.
12. Peninsular Honda, Kerala : Peninsular Honda is a leading Honda dealer in Kerala cities.
13. Krishna Cars, Pala : Krishna Cars at Pala in Kottayam district is a leading used cars
dealer in the area.

14. AVG Motors, Kottayam : AVG Motors is an authorized Maruti Dealer for the sale of
Maruti Udyog Vehicles.

10. MAKE IN INDIA

Fig.8 Make in India

37
 Make in India initiative was launched by Prime Minister in September 2014 as part of
a wider set of nation-building initiatives. A workshop titled Make in India Sectorial
perspective & initiatives was conducted on 29th December, 2014 under which an action
plan for 1 year and 3 years has been prepared to boost investments in 25 sectors.
Automobile is one of the major sectors of Make in India program. Key points are
following:
India - sixth largest producer in the world with an average annual production of 24
million vehicles in 2016.
India has the fifth largest passenger vehicle and commercial vehicle market
Presence of four large auto manufacturing hubs across the country: Delhi-Gurgaon-
Faridabad in the north, Mumbai-Pune-Nashik-Aurangabad in the west, Chennai-
Bengaluru-Hosur in the south and Jamshedpur-Kolkata in the east.
Contributes to 7.1 % of India's Gross Domestic Product (GDP) by volume.
Six million-plus hybrid and electric vehicles to be sold annually, by 2020.
Two-wheeler production has grown from 8.5 million units annually to 15.9 million units
in the last seven years.
By 2026, India is expected to be the third largest automotive market by volume in the
world.
Tractor sales in the country are expected to grow at Compound Annual Growth Rate
(CAGR) of 8-9% in the next five years, enhancing India's market potential for
international brands. Two-wheeler production has grown from 8.5 million units annually
to 15.9 million units in the last seven years. Significant opportunities exist in rural
markets.
The emergence of large automotive clusters in the country: Delhi-Gurgaon-Faridabad in
the north, Mumbai-Pune-Nashik-Aurangabad in the west, Chennai- Bengaluru-Hosur in
the south and Jamshedpur-Kolkata in the east.
Global car majors have been ramping up investments in India to cater to growing
domestic demand. These manufacturers plan to leverage India's competitive advantage to
set up export-oriented production hubs.
A Research & Development (R&D) hub: strong support from the government in the
setting up of National Automotive Testing and R&D Infrastructure Project (NATRiP)

38
 centers. Private players such as Hyundai, Suzuki, and GM are keen to set up an R&D
base in India.
Electric cars are likely to be a sizeable market segment in the coming decade.
The automotive industry accounts for 45% of the countrys manufacturing gross domestic
product (GDP), 7.1 % of the countrys GDP and employs about 19 million people both
directly and indirectly.
India is the second largest two-wheeler manufacturer, the largest motorcycle
manufacturer and the fifth largest commercial vehicle manufacturer in the world.
Passenger vehicle production is expected to grow to 9.4 million units annually by 2026
Commercial vehicles production is expected to grow to 2.0 million units annually by
2026
Two wheelers production is expected to grow to 50.6 million units annually by 2026
Three wheelers production is expected to increase to 0.95 million units by 2026.

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11. CONCLUSION

The Indian auto industry is one of the largest in the world. The industry accounts for 7.1
per cent of the country's Gross Domestic Product (GDP).
Passenger vehicle segment is growing day by day in India. Now the overall Passenger
Vehicle (PV) segment has 13 per cent market share.
Maruti Suzuki has the stronghold on Indian market but is closely followed by Hyundai,
Honda, Tata motors etc
India is also a prominent auto exporter and has strong export growth expectations for the
near future. In April-January 2016, exports of Commercial Vehicles registered a growth
of 18.36 per cent over April-January 2015. In addition, several initiatives by the
Government of India and the major automobile players in the Indian market are expected
to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the
world by 2020.
Sales of passenger vehicles increased by 16.7 per cent to 258,000 units in August 2016
driven by better-than-expected monsoon and strong buying sentiment.
In order to keep up with the growing demand, several auto makers have started investing
heavily in various segments of the industry during the last few months. The industry has
attracted Foreign Direct Investment (FDI) worth US$ 15.06 billion during the period
April 2000 to March 2016, according to data released by Department of Industrial Policy
and Promotion (DIPP).
Government of India aims to make automobiles manufacturing the main driver of Make
in India initiative, as it expects passenger vehicles market to triple to 9.4 million units by
2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.
The Indian automotive sector has the potential to generate up to US$ 300 billion in
annual revenue by 2026, create 65 million additional jobs and contribute over 12 per cent
to Indias Gross Domestic Product.
The affinity of Indians to the luxury cars are growing year to year. Kerala is one of the
major platforms of luxury car sales.
Car showrooms and dealerships increasing all over India, especially in Kerala nowadays

40
 More than 4 cities of Kerala are contributing good sales record and taking place in top 50
cities list having maximum number of cars.
Car Registrations in India is expected to be 247459.85 Cars by the end of this quarter,
according to Trading Economics global macro models and analysts expectations.
Looking forward, we estimate Car Registrations in India to stand at 250528.15 in 12
month time. In the long-term, the India Car Sales is projected to trend around 250606.97
Cars in 2020, according to our econometric models.
India is focusing to achieve 72 cars per 1000 inhabitants by 2025.

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12. REFERENCES
Media Reports,
Press Releases,
Department of Industrial Policy and Promotion (DIPP),
Automotive Component Manufacturers Association of India (ACMA),
Society of Indian Automobile Manufacturers (SIAM),
Union Budget 2015-16, Union Budget 2016-17

Websites:
http://www.siamindia.com/statistics.aspx?mpgid=8&pgidtrail=9
http://www.ibef.org/industry/india-automobiles.aspx
http://www.autopunditz.com/
https://www.team-bhp.com/
http://auto.economictimes.indiatimes.com/
http://indiaautoreport.com/
http://www.autocarpro.in/sales-analysis
http://www.autocarindia.com/
http://economictimes.indiatimes.com/

Magazines:
Autocar
Fast Track
Overtake
Autobeat

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