Top Players in the Indian Automobile Sector

India is rapidly emerging as a global powerhouse in the automobile industry. As one of the world’s largest car producers, the country boasts a thriving market fueled by a growing middle class and rising disposable incomes. This translates to a surging demand for passenger cars, with India projected to become the third-largest car market by 2030. The industry’s significance extends far beyond car dealerships as it contributes a substantial 7.1% to India’s GDP, highlighting its crucial role in the nation’s economic growth.

As shown in the infographic above, the top five players in the automobile industry in India are Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Bajaj Auto and Eicher Motors. These companies account for a significant portion of the total market share in India, and each has been briefly discussed below.

Maruti Suzuki

Maruti Suzuki holds a firm position as the unrivaled leader in India’s passenger automobile sector, with a market cap of ~3.92 lakh crores. Established in 1982 through a joint venture between the Government of India and Suzuki Motor Corporation (SMC), the company has consistently captured over 40% of the Indian market in the passenger vehicle segment. With manufacturing facilities located in Haryana and Gujarat, Maruti Suzuki boasts an impressive annual production capacity of 22.5 lakh units. The company’s highest-selling model in 2023 was the Swift hatchback, which has been an uber-popular offering ever since its launch almost 20 years ago.

Tata Motors

Tata Motors stands as one of the top automobile companies in India. Initially recognized as Tata Engineering and Locomotive Company Ltd. (TELCO), the company underwent a significant transformation under the visionary leadership of Mr. Ratan Tata. Tata Motors marked its foray into the passenger vehicle segment with the introduction of the Tata Indica hatchback in 1998. Despite facing initial challenges, the company displayed resilience and even acquired renowned international brands such as Jaguar and Land Rover in 2008, further enhancing its presence in the global automobile arena.

Mahindra & Mahindra

Mahindra & Mahindra (M&M), another noteworthy Indian automaker, has left a significant mark in the industry. As a homegrown company, M&M has diversified its product range over time to encompass a wide variety of vehicles, including scooters, motorcycles, three-wheelers, passenger cars, commercial vehicles, and agricultural tractors. The Group employs over 34,000 people and has eight state-of-the-art manufacturing facilities in India. The company has also made strategic acquisitions of plants in China and the United Kingdom and has three assembly plants in the USA. The Scorpio, one of Mahindra’s most popular SUVs, was the first vehicle the brand ever developed for the international market, and it was conceptualized and created by the company’s in-house integrated design and production team.

Bajaj Auto

With a rich history dating back to 1945, Bajaj Auto Ltd. is a leading Indian manufacturer of two and three-wheeled vehicles. They rank among the top four producers globally in this category. Renowned for their quality and reliability, Bajaj vehicles are popular choices for riders across India and throughout the world, including Latin America, Africa, and the Middle East. The company operates manufacturing plants in Pune, Aurangabad, and Pantnagar. Launched in 2001, the Pulsar line of motorbikes is credited with revitalizing Bajaj Auto’s business and remains the company’s best-selling motorbike.

Eicher Motors

Eicher Motors Limited is a well-known company that has a special place in the hearts of motorcycle enthusiasts. It is the parent company of Royal Enfield, a leading name in middleweight motorcycles around the world. Royal Enfield has been making motorcycles since 1901, making it the world’s oldest motorcycle brand still in production. The focus of Royal Enfield is to bring back simple, engaging, and accessible motorcycling. It operates not only in India but across 60 countries worldwide. It has modern development facilities in Leicestershire, UK, and Chennai, India. The brand is committed to combining modern elements with its rich heritage, creating a unique sense of pride for its customers in owning one of its products.

Recent Trends

Over the last few years, electric vehicles (EVs) have rapidly positioned themselves as a cleaner, more efficient alternative to traditional gasoline-powered cars. This transformation is driven by remarkable advancements in battery technology, an expanding network of charging infrastructure, and a surge in consumer demand. EVs not only offer an eco-friendly solution but also lead to a positive Total Cost of Ownership (TCO) in certain cases, making them a financially viable option.

Recognizing the potential of EVs, the Indian government is actively supporting their adoption, while the private sector is developing innovative models tailored to India’s unique roads and traffic conditions. At the 2021 United Nations Climate Change Conference, India announced an ambitious decarbonization target for 2030, aiming to cut carbon emissions in the energy sector by 50 percent and achieve 500 gigawatts of renewable energy generation capacity. As part of the global EV30@30 campaign, India is also committed to ensuring that EVs make up at least 30 percent of new vehicle sales by the year 2030.

To reach these goals, India plans to triple its current renewable energy capacity, marking a significant stride toward a greener future. Ola Electric leads the E2W segment in India with a 21% market share, while Tata Motors leads the E4W market, commanding more than 70% share. This collective effort signifies a pivotal moment in India’s journey towards sustainability, positioning the country as a leader in the global shift towards electric mobility.

Contributor: Team Leveraged Growth