India: most OEMs launch compact cars, anticipating continued growth
Suzuki increases its production capacity to 1.7 million in FY2013, Daimler builds new commercial veh
This Report outlines major OEM operations in India centered on their plans to launch new models and production capabilities.
Since the market in India is expected to continue to grow, each OEM is competing to launch new models. The passenger car market in India consists mainly of compact cars priced at 500,000 rupees or below. Each OEM including Maruti Suzuki, which holds a 45% marketshare, launches low-priced compact models. On the other hand, like Maruti Suzuki's Swift Dzire or Toyota Etios, high-quality compact cars priced slightly higher are increasingly introduced.
Concerning their production facilities, Maruti Suzuki, which produced 1.214 million in India in 2010, will build two plants capable of producing 250,000 a year each to boost its production capacity to 1.7 million per year for FY2013. Daimler will construct a new commercial vehicle plant, planning to enter the medium-/heavy-duty commercial vehicle market under a new brand. PSA will build a new passenger car plant, reentering the Indian market. In addition, Toyota, Hyundai, and GM will construct a new engine plant.
From April 2010 to February 2011, India boosted production and sales significantly, producing 3.351 million (up 28.1% year-on-year) and selling 2.873 million (up 29.6%) domestically. India increased exports by 5.6% to 470,000.
(Note) Passenger vehicle sales by manufacturer in India are shown at the end of the Report.