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Infographics: Complete view of Indian auto industry

Car companies offered steep discounts of 10-20% in December to clear inventory of 15-30 days owing to weak demand caused by Prime Minister Narendra Modi’s currency swap move
French carmaker Renault and homegrown Tata Motors seem set to play spoiler for the market leaders with Kwid and Tiago, respectively, along with a series of products planned in the sub- Rs 10 lakh space.
In the Indian market where price and fuel efficiency often determine the success of passenger vehicles, Hyundai has delivered strong performance consistently with the Santro, Eon, i10 and i20 staying among the preferred choices of buyers for years. It has also found success with more premium models such as the Creta SUV, and refreshed its portfolio of products regularly to keep customer interest alive.
With both petrol and diesel sold at market rates now, and increasing curbs on diesel due to green concerns, the demand is returning to petrol.
Two decades since they entered India, the two US car makers Ford India and General Motors have been skulking in the corners of the automobile market. In one of the fastest-growing automobile markets in the world, their market share combined is just 4-5%.
According to data released by Society of India Automobiles Manufacturers (SIAM), domestic auto sales surged by 16.33 percent during period April-September 2016 at 1,16,52,160 units compared to same period a year ago. Industry experts see it as an antecedent to a strong growth in the full financial year.
Industry players predicted the market to grow at least in high single digit in current fiscal year through March 2017. If the monsoon rains continue to be plentiful, the rate may even break into double digits.
Two wheeler companies have sparked a wave of innovation at their factories to target new segments of customers — the youth as well as women — with fancy designs, sleeker features and differentiated technologies while trying to retain the value proposition.
Three global automobile powerhouses have started operating their India factories round the clock or are in the process of doing so to meet increasing export demand, in a resounding endorsement of the Prime Minister's call to make in India.
A sharp pickup that the market is witnessing of late is boosting the confidence of automakers. After an impressive July, passenger vehicle sales in August are estimated to have grown 11-12% to 2.45-2.50 lakh, led primarily by strong demand for vehicles from Maruti Suzuki and Hyundai Motor India.
Luxury carmakers launched over a dozen petrol-driven models in the last six months and another six or so are set to debut with manufacturers girding themselves up for possible return of a ban imposed earlier this year in the capital and elsewhere on big diesel engines.
Encouraged by the success of Kwid small car, Renault is working out an aggressive product strategy for India. It plans to introduce one new product every year and bring SUVs, MPVs, crossovers and sedans priced under Rs 8 lakh to challenge the market dominance of Maruti Suzuki and Hyundai Motor India. A large part of the planned investment will be in products and R&D resources, as manufacturing capacity is already in place.
Maruti’s performance underlines the increasing importance of India for Suzuki at a time when it is facing a sluggish market in Japan — its production at home shrank for 21 straight months. Investors have noticed the growing divergence in performance and driven up Maruti’s market value beyond that of the parent, which owns 56% of the Indian unit.
Cars drove the sales growth in both western and southern regions, with an 8 percent and 12 percent increase, respectively. Utility vehicle sales rose 6 percent and 9 percent, in the respective regions.
For months, the Indian units of three of the world’s largest carmakers— BMW, Audi and Ford — have been without a leader, which automobile analysts attribute to a binding faith in homegrown talent and a long reluctance to groom a strong leadership pipeline in India. Since May, June and October, the Indian units of BMW, Ford and Audi respectively have been running under the watch of interim heads.

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