The automobile industry which is one of the world’s largest economic growth sectors in terms of revenue is supported by various factors such as the availability of low-cost skilled labor, robust R&D centers, and low-cost steel production.
The automobile industry involves a wide range of businesses that include the design, development, manufacturing, and marketing and selling of motor vehicles.
Automobile V/s Automotive
We have often seen and heard about the terms “Automobile” and “Automotive” which get used interchangeably. Though the two terms appear to be interrelate and similar one needs to understand and know the exact difference between them.
While “Automobile” refers to something that actually moves, “Automotive” refers to anything related to “Automobile”.
For example, a brake disc or a battery is consider as to be an automotive part, whereas a car or a truck or bus is an “Automobile”.
Classification of Automobiles
Automobiles can be broadly classified based on the purpose, fuel type, or capacity of the vehicles. The same can be seen below:
Automobiles can be broadly classified based into passenger vehicles and goods vehicles.
Vehicles like buses or jeeps or auto-rickshaws that ferry people are called as passenger vehicles, while vehicles like trucks or tempos that transport goods or materials are called as goods vehicles.
We can classify automobiles based on the fuel they use. This can be divided into petrol vehicles, diesel vehicles, electric vehicles, steam carriages, or gas vehicles.
For Instance petrol vehicles include cars, motorcycles, scooters, etc. Like for example of diesel vehicles include trucks, tractors, etc.
For Instance : Electric vehicles include forklift, battery truck, etc. Examples of steam carriages include a steam road roller, etc. And examples of gas vehicles include all the CNG vehicles.
Based on the capacity, automobiles are classified as light motor vehicles and heavy motor vehicles. The light motor vehicles that are less in size and weight, ferry lighter things.
Light motor vehicles include motorcycles, cars, scooters, etc. On the other hand, the heavy motor vehicles that have a large mass and are bigger in size, carry very heavy materials.
Heavy motor vehicles include buses, tractors, trucks, etc.
Automobile Industry Overview
The automobile industry primarily deals with the production and selling of self-powered vehicles. It has facilitated consumers in commuting long distances for work, shopping,
and entertainment. Further, the automobile industry has indirectly encouraged improvement in the infrastructure around us.
The development of proper road systems or the mushrooming of shopping centers in major cities, or the growth of ancillary industries are some fine examples that immediately come to mind.
The automobile industry which is one of the largest purchasers of steel also employs a large number of people. This has made it as the key determinant of economic growth.
World’s Dominant Automobile Players
For more than a century now, the automobile industry has been growing stronger, and it’s one of the hardest areas for newcomers to break into!
The auto industry worldwide is highly competitive. It is dominated by companies that are based in Europe, Japan, South Korea, and the US. China, the United States, and Japan are the world’s largest producers of automobiles.
However, in the year gone by, the US-China trade war has disproportionately hurt the global auto industry. Currently, the three leading passenger car manufacturers are Volkswagen, Toyota, and Hyundai.
Top-10 Indian Automobile Companies
The Indian automobile industry has come up a long way. Today, it has a diverse array of cars. Today, India has a number of the world’s top automobile companies running their operations here.
Hence, the figure below tells you about the up-and-down in Indian automobile sales. Let’s now take a bird’s-eye view of the Top-10 automobile companies in India.
You may get a complete update of the latest sales figures in the Indian automobile industry by visiting the link ahead: https://www.autopunditz.com/news/indian-car-sales-figures-june-2020/
The largest automobile company in Asia, Tata Motors is headquarters at Mumbai, India. Enjoying the number one position in the commercial car segment controls a 31.2% market share in the multi-utility vehicles and has a 6.4% market share in the luxury car segment.
Maruti Suzuki India Limited (MSIL)
The undisputed leader in the Indian automobile industry, Maruti Suzuki India started its journey in February 1981 as Maruti Udyog Limited.
Being the first Indian automobile company to manufacture one million vehicles in 1994, it created history in the Indian automobile market with its hugely popular four-wheeler model Maruti 800.
The company later became Maruti Suzuki India Limited on September 17, 2007.
Hyundai Motor India Limited (HMIL)
Founded in 1998, Hyundai Motor India Limited, a subsidiary of Korean auto giant Hyundai Motor Company, is the second-largest car manufacturer in India and is also the country’s largest passenger car exporter.
Its flagship model Santro became very popular in the hearts of the Indian auto lovers.
Mahindra & Mahindra Limited (M&M)
Another Indian auto-giant, Mahindra & Mahindra Limited is a part of the Mahindra Group. It is the largest SUV maker in the country.
General Motors India Private Limited (GM India)
A top player in the Indian automobile industry, General Motors India Private Limited, is a wholly own subsidiary of the auto giant General Motors.
Hero MotoCorp Limited
After Honda decided to move out of the highly popular two-wheeler joint venture between Hero Honda Motors Limited and Hero Group, Hero Group bought the shares held by Honda.
This led the company to be rename as Hero MotoCorp.
The second-largest two-wheeler manufacturer in India, Bajaj Auto is also the fourth largest two and three-wheeler maker in the world.
Honda Cars, India Limited
Honda Siel Cars India Limited is a joint venture between the Japanese auto giant Honda Motor Company Limited and the Indian company Siel Limited. It started its operation in December 1995.
Toyota Kirloskar Motor Private Limited (TKM)
This is another top Indian automobile company. Toyota Kirloskar Motor Private Limited is a joint venture between the Japanese auto giant Toyota Motor Corporation and Kirloskar Group.
TKM has a number of car models that include Innova, Corolla, Fortuner, Camry, and the Land Cruiser Prado.
Hindustan Motors is one more top automobile manufacturing company in India. It was once the country’s largest car manufacturer before Maruti Udyog sped past it.
Over the years in India, its popular model ‘Ambassador’ was extensively use as a government limousine and a taxicab.
The Future of the Automobile Industry–What lies ahead?
As we conclude, let us visualize what lies ahead for the automobile industry. With each passing year, consumer demands keep changing.
However, the deadly onset of the global Covid-19 pandemic compounded by the Indian economy facing a slowdown, many Indian heavyweights like Maruti, Tata Motors,
and Mahindra & Mahindra have gone in for production cuts.
The advent of digital technology and Artificial Intelligence has led to a big transformation in the industry.
Today the industry is in a position to offer solutions for greener cars, autonomous driving, and many other innovative ways to satisfy customer demands.
Once the Covid-19 pandemic subsides and takes a back seat, one can always expect to see a sea of innovative changes in the automobile industry. It is likely to take off. One should remain optimistic about the industry!.
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