What is the market share of LMV/ Cars in India?

1)

http://www.india-reports.com/press/LCVs.aspx

According to our new research report, “Indian Automobile Sector - A Booming Market”, LCV
production in India is expected to take off in a big way in coming years. In fiscal 2007, high
demand for LCVs in both domestic and international markets raised the total production of
commercial vehicles despite a fall in medium and heavy segments during the same
timeframe.

Indian LCV manufacturers are mainly targeting South Asia, the Middle East and Africa to sell
their finished products as these regions are demographically similar to India. Thus, LCVs,
which are made keeping Indian roads in mind, will face lesser difficulties in acceptance by
people and perform in these regions. Moreover, LCVs could be utilized in the regions for
other mode of goods transportation as well due to their body size. Besides, these regions
are undergoing massive infrastructure development, creating large potential opportunities for
commercial vehicles, especially the lighter ones as lower import rates are charged on LCVs,
says the RNCOS research.

Sensing the growing demand of LCVs in export markets, Indian manufacturers have raised
the share of LCVs to 47% in total production of commercial goods carrier (as of 2007-08).

2)

Some important points:-

 Average rate of growth 17%

 Industry contributes 5 % of GDP

http://www.scribd.com/doc/4019225/India-Automobile-Sector-LMV-CV

3) Introduction

Light Commercial Vehicles (LCVs) are usually referred to goods and carriage
vehicles with a light capacity that varies from one region to another. In Europe
the popular definition for a light commercial vehicle is one good vehicle with a
maximum permissible capacity of 3.5 tones of mass. The importance of a light
commercial vehicle is obvious especially in a newly industrialized economy with
large regions to cater where such vehicles play a niche role in transporting
goods from one place to another throughout the country.

In the Indian automobile context, light commercial vehicles have assumed a

great degree of significance with the national economy poised for a greater leap
forward. No wonder, all the leading automobile manufacturers are having their
operations in the field of LCVs.

Tata Motors for one, has made its position unique in the commercial segment of
Indian automobile by having a presence in all spheres, light commercial
vehicles, heavy commercial vehicles and the like. However, the other leading
automobile players like the Ashok Leyland and Swaraj Mazda too, are not
lagging behind and they have their own aggressive expansion plans on show.
The Indian commercial vehicles (CV) industry has a long history, possibly
dating back to the passenger vehicles industry. Telco, the first entrant in the
segment, continues to be the largest till date, with a market reach unrivalled by
its competitors. Telco pioneered production of commercial vehicles in the
country with technical collaboration with Daimler-Benz of Germany in 1954.

The industry has made a significant contribution to the country’s

industrialization and progress. In fact, India achieved self-sufficiency in
commercial vehicles, except in the high-tonnage classes, where the demand
has nonetheless been limited. The entry of Ashok Leyland, with technology
from British Leyland, marked the beginning of competition in the truck and bus
segment. The substantial rise in petrol prices in 1976
lead to conversion of almost all CV to diesel engines. The continuous increase in
petrol prices since then and the subsidy provided to diesel increased flavor for
diesel commercial vehicles continued till date.

The next major change in the industry came about in late eighties, when the
superior Japanese Light Commercial Vehicles (LCV) made their debut in India.
The Japanese invasion, however, fizzled out very soon as the new entrants ran
into losses as a result of the rising yen. This brought to the fore the critical role
of indigenisation as a means of ensuring steady growth and survival during
difficult times. However, Telco was the biggest beneficiary of the fiasco. Telco
soon upgraded its products to match the Japanese in style and finish,
nonetheless with much the same aggregates, with the result that it emerged as
the main contender by cornering more than 50% of the LCV market.

The marginal players in the commercial vehicle industry like Hindustan Motors,
Premier Automobiles Ltd and Standard Motors Pvt Ltd withdrew from LCV
market in late eighties due to stiff competition in passenger car market and
their inability to compete in the CV market. In fiscal 2007, high demand for
LCVs in both domestic and international markets raised the total production of
commercial vehicles despite a fall in medium and
heavy segments during the same time frame.

Indian LCV manufacturers are mainly targeting South Asia, the Middle East and
Africa to sell their finished products as these regions are demographically
similar to India. Thus, LCVs, which are made keeping Indian roads in mind, will
face lesser difficulties in acceptance by people and perform in these regions.
Moreover, LCVs could be utilized in the regions for other mode of goods
transportation as well due to their body size. Besides,
these regions are undergoing massive infrastructure development, creating
large potential opportunities for commercial vehicles, especially the lighter ones
as lower import rates are charged on LCVs, Sensing the growing demand of
LCVs in export markets, Indian manufacturers have raised the share of LCVs to
47% in total production of commercial goods carrier (as of 2007-08).

Other Key Highlights:

- Passenger car production in India is projected to cross three million units in

2014-15.
- Sales of passenger cars during 2008-09 to 2015-16 are expected to grow at a
CAGR of around 10%.
- Export of passenger cars is anticipated to rise more than the domestic sales
during 2008-09 to 2015-16.
- Motorcycle sales will perform positively in future, exceeding 10 Million units by
2012-13.
- Value of auto component exports is likely to attain a double digit figure in
2012-13.
- Turnover of the Indian auto component industry is forecasted to surpass US$
50 Billion in 2014-15.

http://www.surfindia.com/automobile/auto-companies.html (Segmentation given well in this link)

http://www.automobileindia.com/automobile-industry/automobile-statistics.html

http://business.mapsofindia.com/automobile/car-manufacturers/

http://www.iloveindia.com/cars/

http://www.desitoob.com/competition-landscape-in-indias-automotive-and-auto-parts-sector/
(Overview about the competitive environment)

http://www.indiainbusiness.nic.in/industry-infrastructure/industrial-sectors/automobile.htm

http://www.indiacatalog.com/web_directory/automobiles/106.html

http://www.scribd.com/doc/14259049/Automobile-Industry-of-India