The Car Manufacturing In India Marketing Essay

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Even the car manufacturing in India started in the late 1940's the business dominates at present, and the scope for the future is so bright. The automobile industry in India is so vast that so many companies from different nations are looking forward to migrate to India and introduce their manufactures to India and to get collaborate with the companies that India own. With all suitable factures and demand in the present and for the future, India will be the hub of automotive sector. The year 2008 is a good year to India in some cases and to an extent; Tata has launched the world's cheapest car "TATA NANO" into the Indian market and in the same year Jaguar and Land Rover are acquired into the Indian market in the month of March. These both prove that India is on the global stage. Carnation is entering the Indian market on its own in sales and networks. In the domestic market many offers are been launched in the luxury segment division, many migrated brands are already established their manufacturing units in India, many more are looking forward to set up their units in future. This is good to India, giving additional boost and strength to the automobile industry. During the five slid years, India has been established like that one of the favourite destinations totals for the automobile fabrication. The model changing of dispended of the consumer, a cost advantage that the country offers in terms of R&D, in expert job doing labours, technology and abundant software has reorganized the face of industry, making in India a favourite destination for all the players of the world, even while the demand slows down on the markets of the triad of the U.S.A., Japan and western Europe. The ending of the 2008 year is a big slow down of the market due to the recession it's been like a crisis for the automobile industry. But slowly in the early 6 months of 2009 the market gained some of its speed in the sector of 2-wheelers and 3-wheelers. Hopefully 2009 year was an outstanding and good year for Asia most of the companies are emerging out of Asia and been building their own blocks in India. Indian automobile industry is growing very rapidly and very soon it is going to be a hub for automobile and its components. World players are very much keen of Indian growth and therefore attracted. Audi, BMW, Mercedes, Ford, Fiat, Suzuki, Chrysler and etc, all these are very popular companies interested to invest directly or indirectly in the Indian market. India is still a developing country and stands second for the records of population. Considerably, there is more number of middle class people among the population, these people will expect cars to be in their reach too in terms of cost, comfort and etc. Indian market is going to be 7th largest by 2016 and will be 3rd largest by 2030, will only be after US and China.

List of abbreviations used in the document:

ACMA Automotive Component Manufacturers Association of India

BRIC Brazil, Russia, India and China

CAGR Cumulative Annual Growth Rate

CBUs Completely Built Units

CV Commercial Vehicle

FDI Foreign Direct Investment

GDP Gross Domestic Product

M&HCV Medium and Heavy Commercial Vehicle

INR Indian Rupees

JV Joint Venture

LCV Light Commercial Vehicle

LPG Liquefied Petroleum Gas

M&M Mahindra & Mahindra

MCV Medium Commercial Vehicle

MNC Multinational Company

MPV Multi Purpose Vehicle

MUVs Multi Utility Vehicles

OEM Original Equipment Manufacturer

PPP Purchasing Power Parity

PV Passenger Vehicle

R&D Research and Development

SCV Small Commercial Vehicle

SIAM Society of Indian Automobile Manufacturers

SMEs Small and Medium Enterprises

SUV Sports Utility Vehicle

ULCC Ultra Low Cost Car

UV Utility Vehicle

List of figures and charts used in the document:

Figure-1 Sectors & their contribution to the Indian Economy

Figure-2 Real GDP growth of BRIC nations 2003-2010- fig2

Figure-3 India's Trade, FDI and Foreign Exchange Reserves - fig3

Chart-1 Turnover of Automobile Manufacturers (In USD Million) - chart 1

Figure-4 Indian Export Market Share - fig4

Figure-5 Indian Automotive Industry - fig5

Figure-6 Domestic Market Share for 2008-09 - fig6

Figure-7 2 wheeler segment - fig7

Chart-2 Market share of Motorcycles - chart 2

Chart-3 Market share of Scooters - chart 3

Chart-4 Scooters Production (in No's) - chart4

Chart-5 Motorcycles Production (in No's) - chart 5

Chart-6 Mopeds Production (in No's) - chart6

Figure-8 Passenger vehicle (3wheeler) - fig 8

Figure-9 Commercial vehicle (3wheeler) - fig9

Chart-7 Production of 3 wheelers - chart 7

Chart-8 Market share of 3 wheelers - chart8

Chart-9 Indian market share of passenger cars 2008-09 - chart9

Figure-10 Car density for 1000 people - fig 10

Figure-11 World map showing density of cars per 1000 people - fig 11

Chart-10 LCV's Production (in No's) - chart 10

Chart-11 M&HCV's Production (in No's) - chart 11

Chart-12 (JV's) in India - chart 12

Chart-13 Sale of Auto Components - chart 13

Figure-12 Auto Component Market Share by Production - fig12

Figure-13 Auto Component Production Split in % - fig 13

Figure-14 Auto Component: Sales chart for different sectors - fig 14

Figure-15 Auto component exports - fig15

Position in the global automotive:

In the automobile industry the world has two main markets, like North America, Japan, and Western Europe. The well settled markets of these countries are often called as "TRIAD". This is one section and side of the world market. The other section and the other side of the market is the group of upcoming countries those have good grip in the world automobile market they are: Brazil, Russia, India and China. This combination is also called as "BRIC". This group have the largest market countries tagged in the BRIC.

Fall of world automotive markets due to the downturn of world economy:

The downturn and the economic crisis have mainly affected the world player's chart and statistics. The emerging markets will suffer the lack of investments from the foreign nations, as most of the nations are facing the problems like bankruptcy. The other nations are therefore reduced their 1/3 of global output. China, Japan and United States these countries are will go on producing 10 million cars per year. India, Germany and South Korea are the second group which will be producing the cars from 4million to 7million per year. Compared to Germany and South Korea, India has shown a significant growth.

Economical status of India

It is more important to discuss about the economical conditions of a particular country in pointing towards the growth of that particular country. In the internal, departments that are contributing to the Indian economy are listed in the figure along with their percentage of contribution. Automotive market is therefore contributing 6% share of the Indian economy every year and is expected to grow more in the following years.



India is a developing country. In the basis of purchase power parity (PPP) India stands fourth largest country. Almost India was in the middle of the investing world with the sensex, in between the years 2003 to 2008 the Cumulative Annual Growth Rate (CAGR) has been recorded as 43% before the collapsing year 2009 comes. India will grow higher compared to all economies in the coming years, but cannot overcome China. During the last five years Indian growth rate is above 9% and is the 2nd fastest growth, but will stay behind China.

Real GDP growth of BRIC nations 2003-2010



In 2008 all the economies are facing downturn, where soaring crude and commodity prices have fallen to 0.48% by May 2009. Sensex has dropped 52%in the FY2008 leaving the manufacturing and developing plans to be on hold due to the lack of investments and investors. But we can expect India back on track by the end of 2010.

Source: RBI bulletin & indian economy survey


Turnover of Automobile Manufacturers(In USD Million)









India Innovations:

Greatest achievement was in 2008, Tata has launched world's cheapest car "NANO" for only one lakh rupees in Indian currency it is equal to US $ 2250. This has made India to be on top of creative and innovative side. It has made a record in Ultra low cost cars (ULCC) in world. Then the Hybrid Scorpio from Mahindra & Mahindra, this is the first vehicle type to launch in whole Southeast Asia. It has many upgraded features like; the vehicle is fully diesel electrical, parallel, full hybrid vehicle, regenerative braking, torque augmentation, start-stop and etc.

The used car market is also a profitable business for investment and the players. Maruti Suzuki has made its entry long back and going good and later the own equipment manufacturers have also entered the old car business.


Many outdoor companies have made their platform in India considering that it is all with low cost platform and also they have been moving successfully year-on-year (y-o-y). The manufacturers, what they are producing on the Indian base they are helping the Indian market and exporting the goods from India, making it the export base. In the year FY09, the total number of passenger vehicles sold and in that being particular the exports percentage is recorded as 23.61% to 1.53 million units. The figure is so better and clarifies that the Indian market is growing and is also a good platform for the foreign players for their export business. Compared to the export figures recorded in the year 2003 was (9.3%) the latest is healthier. The number of passenger cars are exported is 335.74 thousands units, going through commercial vehicles and 2 wheelers, the recorded units are 42.67 thousands and it is over 1 million units.

Hyundai motors are the main company listed on the top for its massive exports from India. It is mainly exporting the goods to the countries like: Italy, Sri Lankha, S.A, Mexico and etc. Recently Hyundai has made Australia as well as its new market, it is exporting the new i20 cars to Australia, and many more countries are about to join the list. The total exports of 10 lakh cars were made by the company in the year FY09. Its exports number has been improved by 10.7% this year.

In the 2 wheeler export segment India has crossed the 1 million milestones. Most of the two wheeler export is motorcycle recording 96.2% of the export. From the year 2005 to the year 2009 the CAGR has recorded as 31%.

In the future India is to export passenger cars at around 20% CAGR in between the years 2009 to 2013 at an approximate unit of 610 thousands overcoming the figure 335.74 thousands units in the year 2008-09. In the CV's segment India exports its products to countries like South Africa, Sri Lanka, Nepal, Bangladesh, Mauritius and Gulf countries. India exports its goods carrying trucks to Bangladesh, Nepal and South Africa, and the passenger carriers are mainly exported to Sri Lanka and Gulf countries. 60% and 40% of Large Commercial Vehicles and Medium & Light Commercial vehicles respectively hold the record of export in the year 2009.

Source: SIAM



Domestic Sales



Global Position

Current Global Position






























Indian Automotive Industry:



2 & 3 wheelers in India:

India stands 2nd in the world market for 2 wheelers after China. In the local Hero Honda, Bajaj Auto and TVS motors dominates the market followed by LML, Mahindra and Yamaha. Two wheelers are more considered in India and they occupy more share of Indian market than any other. They occupy 76% of the Indian market share. India also exports the 2 wheelers, in the FY09 India have export figure was 1million. People in India are more flexible towards easy, fast and commercial type transport, this lead the 2 wheelers to occupy the more share of the market, the 2 wheeler market will continuously grow in India.

Source: SIAM


Initially the scooters use to dominate the 2 wheel market pushing the motorcycles sales below 35%. The motorcycles have bounced back with better fuel efficiency, with good stylish designs targeting the youth have captured the market of around 80%. The mopeds are also in the market they are automatic gear vehicles, they are mainly preferred by youth girls, women's and senior citizens because of the comfort the vehicle has. Hero Honda is the top selling brand in India compared to other in the motorcycle sector as the vehicles are more fuel efficiency. In the scooter sector the market is also dominated by the brand Hero Honda. In the year 2009 the sales were vey week of 2 wheelers compared to other type of vehicles, CAGR of the particular year 2009 was the lowest in the last 6 years. According to the conditions of the means of transport and the income levels of the customer is comparatively high and thus the sales may grow in the following months and the manufacturing units will increase their numbers and also concentrate on exporting.

Source: SIAM


Source: SIAM





3-Wheelers in India:

Three wheelers are mostly considered in India because of its cost efficiency is low, they are used in both types of transport: passenger transport and goods transport. Passenger transport is constantly used in the cities and towns. They are in a large number on the roads now. The three wheeler passenger carrier sales have gone up by 12.5% and the three wheeler goods carrier sales have gone down by37.8%, an over all of 2.8% sales have gone down in the year 2009. The companies that are manufacturing three wheelers in India are: Piaggio, M & M, Atul Auto, Force Motors, Bajaj Auto and Scooters India. Here the three wheeler market is dominated by Bajaj Auto and approximately equally shared by the brand Piaggio. These are very useful to the small scale industries for their commercial purpose usage, these type vehicles are facing competition with the small commercial vehicles (SCV's) in the present situation, so the manufacturers are very conscious about the market demand of three wheelers.

Passenger vehicle (3wheeler)


Commercial vehicle (3wheeler)




Passenger Vehicles (PV's) in India:

Cars and SUV's in India:

Renault, VolksWagen, Daimler Chrysler, General Motors (GM), BMW, Mitsubishi, Skoda, Fiat, Ford, Toyota, Honda, Nissan, Maruti Suzuki, Honda, Mahindra& Mahindra, Suzuki, Reva, Hyundai, Tata, Hindustan Motors Audi, Chevrolet and Sonalika.

And the respective logos of the brands are: full size image

See full size image full size imageSee full size image full size image

India manufactures a good number of passenger vehicles in a year, 75% is occupied by the small cars in the market. India has registered 3 times more the number over the last 10 years. We can expect India to be the 6th largest passenger vehicle market by 2014. The sales of passenger cars in 2005-06 were about 8% CAGR, but in FY2008 the sales are recorded as 12% CAGR over the last 10 years. Exports has grown to 21% in the FY 2008-09, the demand in purchase of automobile has gone down in the year 2008 due to the lack of income to the people because of the recession in the year. But, the FY09 has recorded some interesting figures. Sales have recorded a margin growth of 0.13% in the year comparing the process by year on year (y-o-y) the sales have come to 1.6 million units. The financing has become a major problem to the people who are suffering with a week credit history; they have tightened the rules and very particular with credit history so, the customers are facing some problem as they cannot get some support from the financing groups. This in fact had made some difference by pushing the sales down in the year. Now in order to cover the loss and to get some liquid money to cover up the original equipment manufacturers are tagging up suitable financing groups and spreading their arms for the customers to support, this will make some difference in the coming period of sales. Even there are many home made cars in India and many more foreign cars migrated and been introduced, many people go for 2-wheelers. Because considering the Indian traffic on the roads and also the cost efficiency. Middle class people are more in numbers in the Indian population and that people will expect more in cars, where Maruti have reached their expectations. The main things that people expect is cost which they can afford and they expect basic comforts in that cost it-self. For many years India is been a small market in car industry compared to the present market, because the people are more concerned to the cost efficient vehicles and have adjusted to small compatible cars and not going for any upgrade model due to cost bearing. But as it is coming to pass years now people have enough income to go for any upgrade.






Cars (millions)

Car density

per 1000 people





United Kingdom




United States












South Korea
























Source: Global Insight, Rosstat

Figure-10 map showing density of cars per 1000 people {figure-11}

The foreign companies like Ford, Skoda, Fiat, Toyota, Suzuki, Hyundai and Honda are now in India with a good reputation and spreading their base in the country with tying them with the Indian manufacturers. The popular foreign car manufacturers in India are:

Fiat India Private Ltd:

This company is owned by the Fiat auto Spa group of Italy. This company is been manufacturing world's most class vehicles from the past 2 decades. The brands like Palio, Petra and Adventure have become famous. Fiat in India has a successive record through all these years. Fiat is been merged with the leading company in India TATA. Fiat is combined with Tata to manufacture the new upcoming cars in India. The upcoming cars like Punto Grande, linea at the manufacturing unit at Ranjangaon in Maharashtra, this manufacturing unit now is producing engines and transmissions for fiat. From now the unit is going to produce the engines and transmissions for the new upcoming cars and to reach the production goal of 100,000 cars and 200,000 of transmissions and engines.

Fiat 500 (Cinquecento). 

Fiat 500, a neo-retro car, recently won the title 'Car of the Year 2008' in Europe. It is a classic example of Italian design and, in Europe, has already become a best-seller.

Fiat Bravo

A sporty and stylish 5-door hatchback, Bravo, is powered with a 1.9 Multijet engine developing 150hp. Both the Bravo and 500 are planned to be made available in India as CBUs. 

Grande Punto

Planned for manufacture in India, the car won the title "Carro Do Anno 2008" (car of the year) in Brazil in November 2007 and is amongst the European bestsellers in its class. 

1.3 Multijet Engine Palio

1.3 Multijet version of the Fiat Palio, manufactured at the Ranjangaon plant, will be launched in the first quarter.

Both the companies have shared the investment of Rs 4000 crores is 650 million Euros. Fiat is more desperate to join the flawless growing market and share the success of Indian automotive market.

Audi AG:

This is one of the most popular companies in the world and is from Germany the leader of automobile network and industry, now the Audi has ventured in to the Indian car market and started injecting its exciting car models into the market. The company is strongly concentrating on the luxury car models to be introduced into the market, because looking back for the last 5 years the luxury cars have tripled their figures in the market. Audi have recently launched their models like A6 and A8. Mercedes C-class is holding strong for the luxury cars in the Indian market, so the company Audi is specially focused and is likely to compete with the leading car brand Mercedes.

The company is about to manufacture 2 types of cars and they are:

Premium: Audi A4, Audi A6, Audi A8, and Audi TT

SUV: Audi Q7

The above models are already released into the market. Audi is also about to launch their new premium car known as RF 4. Audi has its production unit in Aurangabad in the state of Maharashtra, this is the second production unit in the Asia, and the first plant is in Chan gun, China. The unit in Aurangabad is to build the cars like Audi A6 mid size sedan, Audi A4. The company aims to get 2000 cars are manufactured from the plant, and for it the company has invested about 30 million Euros.

Ford India Private Ltd:

The origin of Ford is from United States of America, the company is well settled in India as they have been manufacturing some best passenger cars like Ikon, Fiesta, Fusion, and Mondeo. It also has an SUV like Endeavour. All these vehicles have gained enough popularity in India.

BMW (Bavarian Motor Works):

The company is used to manufacture the engines for aeroplanes. Then they have stepped into the car world and now they are leading the market. The company is also from Germany. The company was set up in the year 1920s. It is mostly famous for its class, efficiency and power in the vehicles. BMW has introduced in India in the year 2007. . This is the most important step for the company stepping into India and also the Asian market. The company doesn't have any manufacturing units in India before. It only imports all its vehicle models to India, now the company is about to built a manufacturing unit in Chennai and as well as in Delhi. The company is also planning to open a sales subsidiary in both the cities along with the manufacturing units.

Commercial Vehicles (CV's)

These are the companies in India manufacturing commercial vehicles:

India is the 4th largest country in the production of commercial vehicles in the world. Comparing the size of the market with other countries in the BRIC indian market size is small. Even though taking the important factors like low cost and skilled labour, good usage of technology and quality maintainence leeds India to a better contributor to the global automotive industry. The market is completely dominated by the local manufacturing brands, these companies are: Tata Motors, Eicher Motors, Mahindra & Mahindra and Ashok Leyland. These companies almost cover 90% of the market share into their pocket; the rest is with the companies like Hindustan Motors, Force Motors and Swaraj Motors. Volvo and Cummins are looking forward to merge into the indian commercial vehicles market to serve India and create a base for export aswell with a suitable partners for Joint Ventures(JV). In the years FY08 and FY09, the sale of commercial vehicles was on a bad and week records due to the economical downturn in the industry. Especially in the FY09 the sale has dropped by 23.3%, financing companies dint show interest in financing due to the downturn of the Indian economy as well as the global. In 2010 till April the commercial vehicles have recorded a growth of 30.39% in comparison with the same four months in the last year 2009. Medium Commercial Vehicles (MCV's) and Heavy Commercial Vehicles (HCV's) have recorded 20.58% growth than the period in the last fiscal, but even the figure is still low than the growth in the year 2006-07. Light Commercial Vehicles have recorded a growth of 39.66%. Mainly the Heavy Commercial Vehicles are used to carry the load and travel a long distance where as the MCV's and LCV's are used for a shorter utility. Tippers are generally sold in a large scale and they are mostly used in the construction and mining purpose.

Production of LCV's in India: 1994-2009

Source:, India.


Production of M&HCV's in India: 1994-2009

Source:, India.


(JV's) in India:









Power train


Ashok Leyland







Eicher Motors







M & M


Through ITEC






Force Motors








Auto Components (India):

The manufacturing of auto components is most important to the automotive industry; a country cannot depend to import the components from other country when it has the base to produce the vehicle in one country. Thus the auto component sector is also a market shared with equal importance in the market. In India there are about 2400 brand manufacturers, India has its own parts manufacturing bases and also exports the goods to other countries, over the past 10 years Indian market of component manufacturing and their sales have gone up to 5 times and taking a glance on the component export sector it has gone up 10 times over the last 10 years. Taking the figures into the comparison a decade ago the industry sales were about US $ 3.6bln and now in the financial year 2009 the figure has crossed it and have reached to US $ 19.2bln. In this growth the domestic OEM's contribute at an average of 57.9% in the total sales of auto components and export contribute of 15.1% to the sector and the rest contribute 27%. In the total number of 2400 players only 1/4th players are consistent and they alone contribute 75% to the production market. Many Multi National Companies (MNC's) are there in India they are: Magna, Visteon, Valeo and Denso. Only Bosch and Federal-Mogul are the first two countries which are in India more than 40 years.

Source: & CRIS INFAC


Source: & CRIS INFAC





Number of Companies

Share of Organized Industry

Less than US $11 million



More than US $ 11 million

up to US $ 22 million



More than US $ 22 million

up to US $ 110 million



More than US $ 110 million




The above calculation is done by taking the exchange rate of 1US $ = 48.45 INR

By the early 2000 some companies have set their base strong in India and are well developed in the market. Bharat Forge and Sundram Fasteners have already joined with foreign companies. Players and their companies want to set up their units in the foreign countries where they want to supply is for the poor transportation and delays of transportation from India, as the customers are very particular about the time the companies have made their base even out side India and also want to gear up towards the world automotive industry and know about the new technology coming out. Bharat Forge is now the 2nd largest forging company in the world, it is in the position because it joined with the German company Carl Dan Peddinghaus (CDP) in 2003 and had a chance to go closer to the German based companies like Volvo, BMW, Audi, VW etc.



Bharat Forge Ltd

Carl Dan Peddinghaus, Germany, CDP Aluminiumtechnik, Germany

Federal Forge, USA Imatra Kilsta AB,

Sweden Scottish Stampings Ltd., Scotland.

Mahindra & Mahindra

Sar Auto Products Ltd., Jiangling Motor Company, China

Sundram Fasteners Ltd

Bleisthal Prodiltopms Gmbh, Precision Forging Unit of Dana Spicer, UK, Cramlington Forge, UK, Greenfield Plant in Zhejiang, China, CDP Gmbh

TVS Logistics Services

CJ Components Ltd. UK

Sona Koyo

Fuji Autotech, France

Amtek Auto

GWK, UK, New Smith Jones Inc, USA, Zelter, Germany

Motherson Sumi

WOCO Group, Germany, G&SKunststofftechnik, Germany






The auto component export from the year 2005 to 09 has grown up to CAGR of 25% and has been reached to US $ 3.9 bln. This is all due to the labour cost which is at the least compared to the world and the improvement in the quality using the new technology. But, due to the nose dive of the world economy the financial investors and the clients are not ordering for any exports, this is affecting the OEM's. The companies who ever own a plant outside India are now suffering and trying to hold their ground because of the global recession.

Manufacturing hub (India):

The time, as the Indian government allowed the traders from outside India, most have come into and established their units here in India combining with some domestic companies and are trying to cater the world here from India. During the last 2 years there are many projects released in India approximately equal to US $ 1.95bln. Many have got their own equipment to export and some are exporting others and some have got their own business and even exporting others on a parallel way. The two main destinations are North America and Europe. Companies which are sourcing their own components and even other local companies and they are listed in the table:


Sourcing Plans


Has an office in New Delhi, exploring ways to make India a sourcing hub


Increasing domestic sourcing to 70%

Target to reach US $1.3bln by the end of this year


Increasing the number to 250,000 in production of engines at Chennai

Making India has hub for manufacturing engines used in Asia, Pacific and Africa


With a budget of US $ 120million, establishing a powertrain facility, in Rajasthan


Making India as hub to source engines to its domestic and world wide


The companies which are about to manufacture the CBU's in India and about to source them to the globe from India are listed below with their additional predictions and plans:




Exporting buses to Bangladesh and Sri Lanka from its Bangalore branch (Hoskote). Africa and Middle East have joined the list of destinations at the start of the year.

Ashok Leyland & Nissan (JV)

Plans to manufacture LCV's in India and even planning to export them from India.

Ford & GM

About to manufacture small cars for Indian market and export to the world market from India.

Maruti Suzuki

By the end of 2010, want to export100000 of the new released A-STAR


Establishing a plant in Chennai and about to manufacture Micra and even export it from India.


Target to produce 50000 units in the local plant and wants to make India as its hub.


Has a plant in India and want to raise the manufacturing number as 10 time of now and also want to make India a hub for its small car industry and production.

India reaching the R&D destination:

For many years India has no self technology, they were always depended on the foreign software and technology. Slowly India started to develop, as the local auto investors aligned with the foreign investors and made some best results come out. Tata is the first group to manufacture a car on its own without any collaboration and the car is Tata Indica in the year 1998.

India has developed world's cheapest car "TATA NANO" and the worth of the car about US $ 2250. India has also developed some good cars like REVA the first electrical car on the Indian roads. In the future many more electrical cars are about to hit the road from the companies like hero group and M&M group. Tata group is the most famous and got many subsidiaries, like Tata Daewoo, this group has developed a MCV at about 4.5 ton to run on LPG. Novus is the MCV developed to run on LPG and it will also go pass the Euro V emission rules. A six cylinder multi point fuel injector CNG engine is developed by the Ashok Leyland group to be used for buses and this invention, the engine will also pass the Euro IV emission rules. Many companies are looking forward to manufacture the 2 wheelers which will run by natural gases instead of petrol. All these achievements will keep India on a bright side of innovations capabilities and the country emerging to the R&D destinations. The companies which go R&D activities in the country itself the government has taken away the tax by 140% and also helps in developing R&D by investing. Suzuki is the company now planning to establish a R&D centre in India on its own. In the past it used to have it in Japan. The CAGR of the R&D has gone up by 48% from INR 4.3bln to INR 20bln in the span of 5 years from 2004.


Plans for R&D in India


Making India as its R&D hub for the cars like i10 and i20 and to cater them to the world with an investment of about US $ 55mln.

General Motors

Establishing a R&D centre in Bangalore (Karnataka) to serve the Asian and Pacific.


Establishing a R&D centre in India and to serve the world by producing cars directly from India


Already has a R&D centre in Bangalore (Karnataka) even looking to set up another and make India as its technology hub.