India: Japanese OEMs to boost capacity in anticipation of long-term growth

With a sales slump in India, automakers focus on exports

2013/10/11

Summary

Vehicle production, domestic sales and exports for India
Market share of passenger vhicles in India


 India's auto market has been stagnant due to economic slowdown and high interest rates of loans since the end of 2012. In anticipation of its long-term growth, however, a number of OEMs are planning to launch new models, increase locally produced vehicles, and expand their production capabilities in the country.


 In August 2013, LMC Automotive forecasts India's light vehicle sales for 2013 to fall by 12% to 2.88 million units. In this time of economic gloom, with higher costs of financing and depleting discretionary income, India's vast middle class is holding back on the purchase of vehicles. In spite of the current slowdown, LMC Automotive still thinks that India's light vehicle sales would expand at a double digit CAGR in the longer term. The market is projected to have a size of 4.46 million units by 2016.




Related Reports:
Japanese suppliers urged to invest in India (Sep. 2013)
Suzuki: enhances operations in Southeast Asia, Japan and India (May 2013)




Vehicle production of 4.07 million and sales of 3.48 million for FY 2012-13

 In fiscal year ended March 2013 (FY 2012-13), India's vehicle production reached 4.07 million units, while its sales achieved 3.48 million units. The country was ranked sixth and fifth in the world in terms of production and sales, respectively. However, the sales growth rate has been falling from 28.3% in FY 2010-11 to 7.9% in FY 2011-12, 1.2% in FY 2012-13, and finally dropped to negative growth rate of 7.0% for the period of April-August 2013. The Society of Indian Automobile Manufacturers (SIAM) forecast that vehicle sales for FY 2013-14 will be lower than the previous year (announced in September 2013. Expected sales volume was not released.)

 Since the summer of 2013, most OEMs have raised the prices of their vehicles due to falling rupee and higher production expenses because of the surge in material costs. Some automakers are increasing exports to the Asian and African countries to deal with the sales slump in Indian domestic market.

 According to the sales data by segment, sales of utility vehicles including SUVs and MPVs climbed by 52.2% year-over-year for FY 2012-13. In spite of this move, sales of midsize and large vehicles are decreasing due to higher fuel prices caused by reduced government's subsidies. The sales decrease also results from the hike in excise duty on SUVs. As a result, there will be demand shift toward fuel-efficient compact cars again in FY 2013-14.

Vehicle production, domestic sales and exports for India

(Units)
FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 Apr.-Aug. 2012 Apr.-Aug. 2013
Production
in India
Passenger vehicles 2,357,411 2,982,772 3,146,069 3,233,561 1,289,891 1,265,088
Commercial vehicles 567,556 760,735 929,136 831,744 338,232 311,461
Total 2,924,967 3,743,507 4,075,205 4,065,305 1,628,123 1,576,549
Sales
in India
Passenger vehicles 1,951,333 2,501,542 2,629,839 2,686,429 1,039,898 984,761
Commercial vehicles 532,721 684,905 809,499 793,150 314,992 274,968
Total 2,484,054 3,186,447 3,439,338 3,479,579 1,354,890 1,259,729
Exports Passenger vehicles 446,145 444,326 508,783 554,686 223,754 251,386
Commercial vehicles 45,009 74,043 92,258 79,944 36,298 28,407
Total 491,154 518,369 601,041 634,630 260,052 279,793
Source: Society of Indian Automobile Manufacturers (SIAM)
(Note) 1. FY 2012-13 refers to the fiscal year from April 2012 to March 2013.
2. "Passenger vehicles" include passenger cars, utility vehicles and vans according to SIAM's segmentation (see Table below).

 

Vehicle sales by segment in India

(Units)
FY 2011-12 FY 2012-13 YoY (%) Apr.-Aug. 2012 Apr.-Aug. 2013 YoY (%)
Passenger Cars
Utility Vehicles(UVs)
Vans
2,031,306
363,772
234,761
1,895,471
553,660
237,298
(6.69)
52.20
1.08
742,377
207,651
89,870
699,300
201,198
84,263
(5.80)
(3.11)
(6.24)
Total Passenger Vehicles 2,629,839 2,686,429 2.15 1,039,898 984,761 (5.30)
Total Commercial Vehicles 809,499 793,150 (2.02) 314,992 274,968 (12.71)
Source: SIAM
(Note) 1. The government of India has raised the excise duty on SUVs and the import duty on luxury cars since April 2013. The excise duty on SUVs was increased from 27% to 30% while the import duty on luxury cars priced USD 40,000 or higher was raised from 75% to 100%.
2. Since January 17, 2013, Indian government has deregulated diesel fuel prices and admitted their gradual hikes in order to reduce government's fuel subsidies. Regulation of petrol prices had been already removed in June 2010.
3. Figures in brackets (  ) indicate a negative value.

 

 



Launch of new passenger vehicles: more compact cars and SUVs introduced

 In India, sub-4 meter compact cars constitute a major part of the market. For this segment, Maruti Suzuki and Honda launched the Wagon R Stingray and the Amaze, respectively. Both models have been favorably accepted. Nissan, which does not have a sufficient lineup of low-priced models, plans to release the GO under the Datsun brand in 2014 and a smaller and lower-priced new model in 2015.

 In response to rising demand for SUVs since around 2012, Ford launched the EcoSport which the automaker produces in five countries including India and sells all over the world. Nissan introduced the Terrano SUV based on the Dacia Duster while VW released the Cross Polo developed based on the Polo.

India: launch of sub-4 meter compact cars (2013- )

OEM Model Launch Outline
Maruti Suzuki Wagon R Stingray Aug. 2013 The sport model of the Wagon R features a stylish and aggressive design to attract young consumers. A 998 cc three-cylinder engine is equipped. The model is priced at INR (Indian rupee) 409,999-466,999.
Honda Amaze Apr. 2013 The Amaze is a compact sedan based on the Brio, Honda's strategic car for emerging countries. The company entered the diesel model market in India with this car. The model is produced at the Greater Noida plant with a localization rate of 90%. The 1.2-liter diesel engine version is priced at INR 599,000-760,000, while the 1.5-liter petrol version costs INR 499,000-750,000.
Nissan Datsun GO Early 2014 This new compact hatchback is the first model under Datsun, Nissan's third brand. The model comes with a 1.2-liter engine and a five-speed manual transmission. It will be produced at Renault-Nissan's Oragadam plant. Its price tag is projected to be lower than INR 400,000. In the latter half of 2014, the GO will go on sale in Indonesia, Russia, and South Africa.
New compact car 2015 Nissan will apply the Common Module Family (CMF) system to develop this new compact car. The CMF is a new modular system of vehicle architecture to share components across the vehicle segments and platforms. The new model is projected to be smaller and more affordable than existing lineup. It will be produced at the Oragadam plant.
Tata Vista D90 Jan. 2013 The new hatchback is equipped with a 1.3-liter turbocharged diesel engine. The model competes with the Maruti Suzuki Swift and the Hyundai i20. Two grades are available and are priced at INR 599,000 and 683,000.
Mahindra & Mahindra Verito Vibe Jun. 2013 The Verito Vibe is Mahindra & Mahindra's first sub-4 meter compact car. The model comes with Renault's 1.5-liter diesel engine. Its price in Mumbai is INR 563,000-649,000, lower than that of the Maruti Suzuki Swift and the Honda Amaze.
In April 2011, Mahindra & Mahindra changed the name of the Renault Logan and launched it as the Verito. Based on this model, the Indian automaker has independently developed a sub-4 meter model which attracts lowest 12% excise duties and released it as the Verito Vibe.
Hyundai Motors Grand i10 Sep. 2013 The new hatchback is developed on a new platform offering a longer wheelbase and features premium interiors. The model is positioned above the existing i10. The 1.2-liter diesel version costs INR 523,700-641,600, while the 1.1-liter petrol version is priced at INR 429,900-547,800.
(Note) 1. The above models are compact cars which constitute a major part of the Indian market. These compact cars which are under 4 meters in length and have engine capacity of less than 1.2-liter for petrol and 1.5-liter for diesel qualify for the lowest 12% excise duties. Other compact cars with engine capacity of less than 1.5-liter and larger cars are subject to 24% and 27% excise duties, respectively.
2. The prices of the models refer to the prices at the moment of launch in Delhi unless stated otherwise (The same applies to the following tables). In early October 2013, INR 1 is equivalent to about JPY 1.58.

 

India: launch of SUVs (2013- )

OEM Model Launch Outline
Honda New CR-V Feb. 2013 The new CR-V is the fourth-generation model of a midsize crossover SUV. Starting with this model, the CR-V is assembled in India at Honda's Greater Noida plant. The model comes in two variants: the front-wheel drive (FWD)version equipped with a 2.0-liter engine and a six-speed manual transmission or a five-speed automatic transmission and the all-wheel drive (AWD) version with a 2.4-liter engine and a five-speed automatic transmission. The new CR-V is priced at INR 1,995,000-2,240,000,which are lower than the previous model's prices.
Nissan Terrano Oct. 2013 The Terrano is a compact SUV based on the Duster of Dacia, Renault's subsidiary. The model comes with a 1.6-liter petrol engine or a 1.5-liter turbocharged diesel engine. FWD and AWD layouts are available. It will be produced at Renault-Nissan's Oragadam plant. Its base model is projected to be priced under INR 1 million.
Ford EcoSport Jun. 2013 The new compact SUV comes with a 1.5-liter diesel engine, a 1.5-liter petrol engine or a 1.0-liter EcoBoost petrol engine. The model is priced at INR 559,000-844,990. Besides India, the SUV will be manufactured in Brazil, Thailand, China and Russia and go on sale in around 100 countries and regions worldwide.
Daimler New GL-Class May 2013 The New GL-Class is a second-generation model of a full-size premium SUV. The model is equipped with a 3-liter V6 diesel engine and a seven-speed automatic transmission. It competes with the BMW X6 and the Audi Q7 in India. The new GL-Class is priced at INR 7,258,000 (for a locally-produced vehicle).
BMW X6 Nov. 2012 The X6 is a premium SUV. The 4.4-liter petrol version is priced at INR 9.34 million, while the 3.0-liter diesel version costs INR 7.89 million.
X1 Feb. 2013 The premium compact SUV features a 2.0-liter diesel engine. The model is priced at INR 2.79-3.25 million. Its CKD production will start at the Chengalpattu plant near Chennai.
VW Cross Polo Aug. 2013 The new SUV is based on the compact hatchback Polo. The model comes with a 1.2-liter three-cylinder diesel engine and a five-speed manual transmission, and is priced at INR 775,000.

 

India: launch of other passenger vehicles (2013- )

OEM Model Launch Outline
Maruti Suzuki New SX4
(Face-lifted)
Mar. 2013 The midsize sedan comes with a 1.3-liter turbocharged diesel engine or a 1.6-liter petrol engine and a five-speed manual transmission. CNG version is also available. This is Maruti Suzuki's first model that features a touch-screen audio system with navigation as optional equipment. The petrol version is priced at INR 738.000-884,000, while the diesel version costs INR 827,000-979,000.
Toyota Camry Hybrid Aug. 2013 The Camry Hybrid is India's first locally manufactured hybrid model. The vehicle is produced at the Bidadi plant near Bangalore in Southern India. Its hybrid system consists of a 2,500 cc petrol engine combined with an electric motor and an electronically controlled CVT (E-CVT). The model has a fuel economy of 19.16 km/liter and is priced at INR 2,975,000.
Tata Jaguar F-TYPE Jul. 2013 Jaguar's F-TYPE is a two-seater convertible sport car. The model employs a 3.0-liter V6 or 5.0-liter V8 supercharged petrol engine. It will reach 100 km/h in 4.3 seconds and has a top speed of 300 km/h. The F-TYPE is priced at INR 13.7-16.1 million in Mumbai.
Ashok Leyland Stile Oct. 2013 The new MPV based on the Nissan NV200 is produced at Renault-Nissan's Oragadam plant. Diesel and CNG versions are available. This is the second model jointly developed by Nissan and Ashok Leyland following the DOST LCV which was launched in September 2011.
Mahindra Reva e2o Mar. 2013 The Mahindra e2o is a four-seat two-door hatchback. This electric vehicle is powered by a three-phase induction electric motor and a lithium-ion phosphate battery. It takes 5 hours for a full charge from a 15A power socket available at home. The model offers a range of 100 km and is priced at INR 596,000.
GM Chevrolet Enjoy May 2013 The Chevrolet Enjoy is a seven/eight-seat MPV based on the Wuling Hongguang developed by SAIC-GM-Wuling. The model is assembled at GM's Halol plant in Gujarat with kits imported from China. The 1.4-liter petrol version costs INR 549,000-699,000, while the1.3-liter diesel version is priced at INR 669,000-799,000. Its prices are INR 40,000-70,000 lower than Maruti Suzuki's Ertiga, its major competitor. The monthly sales target for the Enjoy is set at 3,500 units.
Daimler A-Class May 2013 This is a premium compact car designed for young consumers. The model comes with a 1.6-liter petrol or 2.2-liter diesel engine and a seven-speed dual-clutch automatic transmission. It is priced at INR 2,193,500/2,273,500 in Mumbai. Starting in 2014, this model will be assembled at the Chakan plant.
New E-Class Jun. 2013 This luxury sedan is Mercedes-Benz's core model as well as the best-selling luxury sedan in India. The 2.0-liter petrol version is priced at INR 4.15 million, while the 2.2-liter diesel version costs INR 4.45 million.
BMW 1 Series Sep. 2013 The compact hatchback is equipped with a 1.6-liter petrol engine or a 2.0-liter TwinPower Turbo diesel engine and an eight-speed automatic transmission. In Mumbai, the petrol version costs INR 2.09 million, while the diesel version is priced at INR 2.29-2.99 million.
Rolls-Royce Wraith Aug. 2013 The four-seater two-door coupe comes with a 6.6-liter V12 engine and an eight-speed automatic transmission. The model accelerates from a standstill to 100 km/h in 4.6 seconds and has a top speed of 250 km/h. Its price ranges from INR 46 million.
VW Skoda
New Octavia
Oct. 2013 The C-segment hatchback is assembled at the Aurangabad plant. Initially the Octavia went on sale in India in November 2001, but its sales were discontinued in October 2010. This third-generation Octavia was relaunched in the country. The 1.4-/1.8-liter petrol version is priced at INR 1,395,000-1,825,000, while the 2.0-liter diesel version costs INR 1,555,000-1,945,000.

 

 



Japanese OEMs: Suzuki, Toyota, Honda, Nissan and Isuzu

Maruti Suzuki to delay operations of new plant, to launch LCV, and to increase exports to Africa and Middle East

Delay of operations at new plant  In August 2013, Maruti Suzuki acknowledged that it would review the schedule to start operations of a new plant in Gujarat State due to the ongoing slowdown in the Indian auto market. At the company's 32nd annual general meeting held on August 27, Chairman Bhargava told that the plant would not be operational by the end of March 2016. The company has not started any construction work at the site yet.
 Maruti Suzuki had a plan to invest INR 40 billion to build a new automobile plant in Mehsana, Gujarat State with an annual capacity of 250,000 units. The new plant was scheduled to start operations in 2015-16. The automaker had already acquired another tract of land for a second plant near Mehsana.
Launch of LCV  In July 2013, Maruti Suzuki revealed a plan to launch a light commercial vehicle (LCV) in India to complement reduced sales of passenger vehicles. The company will develop this LCV based on the platform of Suzuki's Carry LCV. Diesel and CNG versions will be available. The LCV will compete with the Tata Ace. It is anticipated to take about two years to develop the model.
Forecast for FY ended March 2014  Maruti Suzuki has a concern that competition will be intensified in India as OEMs are trying to discount prices. It also projected that demand for diesel models would decline due to higher fuel prices. To deal with falling demands in India, the automaker intends to increase exports to Africa and Middle East countries. Maruti Suzuki forecasts that its sales (including exports) for fiscal year ending March 2014 would rise by 0-5% from the previous year (announced in July 2013).

 

Toyota to produce engines at its subsidiary and affiliated company

Production of petrol engines and transmissions at subsidiary  Toyota Kirloskar Auto Parts (TKAP), Toyota's parts manufacturing subsidiary in India, invested INR 5 billion in its Bidadi plant on the outskirts of Bangalore to produce powertrains for Toyota. TKAP began producing 1.5-/1.2-liter petrol engines in August 2012 and transmissions in January 2013 for the Etios/Etios Liva. The local production of the engine and transmission for the Etios raises the localization ratio to over 90%. TKAP has an annual capacity of 108,000 engines and 240,000 transmissions.
 Toyota reportedly had a plan to also produce diesel engines for the Etios at TKAP. As of July 2013, however, the company is reviewing the plan due to the increase in diesel fuel prices.
Commissioned production of diesel engines  Toyota plans to commission Toyota Industries to produce 2.5-3.0-liter diesel engines for the IMV Series in India in 2015-16. Toyota Industries will build a new building and a production line with an annual capacity of 110,000 engines at its existing plant in the country.

 

Honda resumes building a second plant to start operations in 2014

 In April 2013, Honda announced that it would resume the construction of a second automobile plant at the site of its existing Tapukara plant in Rajasthan State. The automaker will invest INR 25 billion to set up a new forging plant and a new vehicle assembly line. They are scheduled to start operations in 2014 with an annual capacity of 120,000 units. Addition of a new assembly line will raise Honda's annual production capacity in India to 240,000 units. 2,200 people will be employed when the new line is operational.
 Honda had planned to construct this plant in 2007 with a goal to start operations by the end of 2009. However, construction of the plant had been suspended due to the economic crisis in 2008. The automaker has started manufacturing body panels and engine components in 2008.

 

Nissan aims to have a market share of 10% by FY 2016-17

Target of market share  Nissan has a plan to launch 10 new models in India under the brand names of Nissan and Datsun by fiscal year ending March 2017 (FY 2016-17). The company will also triple a number of dealers to more than 300 stores. Nissan intends to expand its market share in India from 1.2% (including commercial vehicles) for FY 2012-13 to 10% for FY 2016-17.
Joint LCV plant with Ashok Leyland  Nissan and Ashok Leyland, India's leading commercial vehicle manufacturer, plan to start operations of their new joint venture plant in fiscal year ending March 2014. They are constructing the plant near Renault-Nissan's Chennai plant. Their new plant is expected to have an annual capacity of 150,000 units and will produce the LCVs including the NV200 to be supplied to Ashok.

 

Isuzu commissions production to Hindustan; its own plant to start operations at the end of 2015

Commissioned production to Hindustan  In June 2013, Hindustan Motors Limited (HML) announced that it has signed an agreement to build the MU-7 SUV and the D-MAX pickup truck for Isuzu. HML will assemble two models at its Thirubalur plant near Chennai, Tamil Nadu, using components supplied from Isuzu's Thai production base. Since March 2013 in India, Isuzu has been marketing these models imported from Thailand. By commissioning production to HML, Isuzu is able to locally manufacture these models before its own plant is completed (see below).
Construction of new LCV plant  In March 2013, Isuzu signed a memorandum of understanding on construction of a new plant with the Andhra Pradesh State government in Southern India. The automaker acquired a 430,000-square meter land for its new LCV plant in Sri City Industrial Park. In the future, Isuzu aims to sell 100,000 units per year in the country. According to local media, the new plant is scheduled to start operations at the end of 2015. It will have an annual capacity of 120,000 units, of which 80,000 will be marketed in India and 40,000 will be exported to other countries.

 

 



Indian OEM: Tata Motors

Tata: plan to upgrade five leading models; to start production of Jaguar XF

Plan to refresh passenger vehicles  Tata Motors, which has been experiencing slow sales, disclosed HORIZONEXT, a plan to refresh passenger vehicles, in June 2013. The company will introduce eight upgraded and enhanced versions of five leading models. Among them, the Indigo eCS was significantly modified, featuring the all-new powertrain and suspension. The face-lifted Nano is equipped with various new features including a remote keyless entry system and an audio system with Bluetooth USB/AUX-in connectivity. The car went on sale in July 2013.
Production of Jaguar XF starts  In January 2013, Tata Motors-owned Jaguar Land Rover (JLR) started CKD production of the 2.2-liter diesel engine version of the Jaguar XF premium sedan at its Pune plant and launched the model in India. Its components are imported from JLR's Castle Bromwich plant in the U.K. The XF is JLR's second model that is assembled in India. The XF's 3.0-liter diesel engine version and 5.0-liter petrol version have been imported for sale in India.

 

 



European and Korean OEMs: Daimler, BMW, VW, Fiat and Hyundai

Daimler to double production capacity to 20,000 by 2014

Production of GL-Class starts  In August 2013, Mercedes-Benz India announced that it started production of the GL-Class premium SUV at its Chakan plant near Pune. The model released in May had been initially imported for sale in India. This is the first SUV under the Mercedes-Benz brand which is built outside the Tuscaloosa plant in the U.S.
Increased production capacity  In July 2013, Mercedes-Benz India revealed a plan to double production capacity at its Chakan plant to deal with demand increase in the future. The company will invest INR 2.5 billion to increase its annual capacity from the current 10,000 units to 20,000 units by 2014. The plant is scheduled to produce the A-Class and the B-Class starting in 2014.

 

BMW to boost annual production capacity by 3,000 units to 14,000 units

Production of MINI Countryman  In April 2013, BMW announced that it would start producing the MINI Countryman at the Chengalpattu plant near Chennai in Southern India. It is the first time for the MINI cars to be assembled outside Europe. The first models to be locally produced in Chennai are the MINI Cooper D Countryman and the MINI One Countryman. It was reported that production of these models has started in May 2013. The MINI cars have been imported for sale in India since 2012.
Enhancement of production capacity  In September 2013, BMW released a plan to increase investment in its Chengalpattu plant near Chennai. The company will add INR 2.1 billion to INR 1.8 billion announced earlier, so its total investment will amount to INR 3.9 billion by the end of 2013. Its annual production capacity will be expanded from 11,000 units to 14,000 units. At the Chengalpattu plant, the second assembly line is already operational and BMW can now produce up to eight models. (The company has been producing seven models as of September 2013.)

 

Audi starts production of Q3 compact SUV

 In September 2013, Audi announced that it has begun production of the Q3 compact SUV at Skoda's Aurangabad plant in Maharashtra State. This is the fifth Audi model to be assembled in India following the A4 and A6 saloons and the Q5 and Q7 SUVs. Demand for the Q series has been increasing in the country. With the launch of Q3 production, all the Q models are now locally assembled.

 

Fiat to introduce Jeep Wrangler and Grand Cherokee in late 2013

 In December 2012, Fiat India released a roadmap for strengthening its position in the Indian market. The road map includes the following initiatives: (1) Official launch of the Jeep brand in 2013. The company will start the import and sales of the Wrangler and Grand Cherokee SUVs towards the end of 2013; (2) Launch of nine new or significantly refreshed models (under Fiat or Jeep brand) in the next few years; and (3) Expansion of the distribution network from the current shared Tata-Fiat dealers to 120 independent dealers by the end of 2013.
 Fiat has a target to gain a 5% share in India's passenger vehicles market by 2015.

 

Hyundai Motors: launch plans and exports target

 Hyundai Motors has a plan to launch one or two new models every year in India for next three-four years. The automaker is focusing on South Africa and Latin American countries in addition to Europe to boost exports. It has set a target of over 8% growth in exports in fiscal year ending March 2014 (announced in September 2013).

 

 



Commercial vehicle manufacturers: Daimler, Scania and Volvo

Daimler: BharatBenz trucks for India and FUSO trucks for export markets

Launch of BharatBenz medium-duty trucks  In February 2013, Daimler's Indian subsidiary, Daimler India Commercial Vehicle (DICV), launched the BharatBenz medium-duty trucks with a gross vehicle weight (GVW) of 9-12 tons. Those trucks are produced at its Oragadam plant. They had been designed based on Mitsubishi Fuso's Canter light truck and Fighter medium-duty truck.
 DICV revealed a plan to launch 17 trucks under the BharatBenz brand by 2014.
Cooperation between Mitsubishi Fuso and DICV  In May 2013, Daimler has enhanced cooperation between its India's subsidiary DICV and Mitsubishi Fuso to expand businesses in Asian and African markets. Two companies will integrate their product portfolios and strengthen their development, joint purchase and production functions. They have planned an annual sales target of 290,000 units by 2020.
Production of FUSO trucks for emerging countries  As a part of their cooperative activities above, DICV began production of the FUSO strategic trucks for Asian and African markets starting in April 2013. They are heavy-duty trucks with a GVW of 25-49 tons and medium-duty trucks with a GVW of 9-16 tons. The heavy-duty trucks are based on the Mercedes-Benz Axor while the medium-duty trucks are based on Mitsubishi Fuso's Canter and Fighter. DICV has already been producing the BharatBenz and Mercedes-Benz trucks for Indian market. The FUSO trucks produced in India will be sold exclusively in markets in surrounding countries.
Export of FUSO strategic trucks  DICV has begun export of the FUSO trucks to Sri Lanka, Kenya and Zambia by September 2013 and will export them to Bangladesh and Brunei within 2013. It will also sell the FUSO trucks to other Asian and African countries including Indonesia, Thailand, Malaysia, Tanzania, Malawi, Uganda, Zimbabwe, Mozambique, Mauritius and the Seychelles starting in 2014.

 

Scania: construction of its first plant in India and launch of intercity buses

Construction of new plant  In July 2012, Scania has invested around INR 2.5 billion to construct a new plant in Bangalore, Karnataka. This is the company's first plant in India and is scheduled to start operations by the end of 2013. The plant will initially start CKD assembly for truck and bus chassis and will build bodies of city buses and coaches in the future. Scania plans to have an annual production capacity of 2,000 heavy-duty trucks and 1,000 intercity buses by 2017.
Launch of intercity buses  In February 2013, Scania announced that it would launch the Metrolink intercity buses and coaches in India. Three models with a capacity to accommodate 45, 49 and 53 passengers are available. First deliveries to customers will take place in mid-2013. In early 2014, Scania will start CKD production of the Metrolink buses at its new plant in Bangalore.

 

Volvo Group and Eicher Motors start operations of joint venture engine plant

 VE Commercial Vehicles Limited (VECV) is a joint venture established by Volvo Group and Eicher Motors, India's leading commercial vehicle manufacturer. In July 2013, VECV started operations of its new engine plant in Pithampur, Madhya Pradesh in Central India. The joint venture has invested INR 3.75 billion for the first phase to build an annual capacity of 25,000 engines. It plans to add an investment of INR 1.25 billion to gradually increase a capacity up to 100,000 engines as per the market requirements.
 At its new plant, VECV is producing engines with a displacement of 5.0-8.0 liters and a maximum output of 180-350 hp. Volvo Group has a plan to make VECV a global manufacturing hub for medium duty engines which meet Euro 6 emissions standard. VECV's new plant will supply base engines to Volvo Group's Venissieux plant in France where these engines are assembled. VECV is also producing engines which are compliant with Euro3/Euro 4 (BS3/BS4 in India) at its new plant. They will be supplied for Volvo Group and VECV's trucks for Asian countries.

 

 



Production Forecast by LMC Automotive: Indian production to reach 5.84 million in 2016

(LMC Automotive、August 2013)

 India production forecastAccording to LMC Automotive's forecast in August 2013, Indian light vehicle production for 2013 is projected to shrink by 11% year-on-year to 3.61 million units. The slump in domestic sales, as well as weak exports, have forced manufacturers to slash output this year. However, India's economy is expected to have hit the bottom and will pick up in H2 2013, though quite slowly. After 2014, rapid growth of the middle class will continue to help boost domestic demand. Production is anticipated to increase by 16-18% p.a. in the period of 2014-16 and reach 5.84 million units by 2016.

Indian light vehicle production forecast by make

(Units)
SALES GROUP GLOBAL MAKE 2010 2011 2012 2013 2014 2015 2016
Total 3,242,134 3,635,841 4,052,464 3,607,374 4,250,486 5,021,028 5,841,131
BMW Group BMW 4,083 10,293 9,071 6,574 8,022 9,332 11,544
MINI 0 0 0 98 100 98 114
BMW Group Sub-total 4,083 10,293 9,071 6,672 8,122 9,430 11,658
Daimler Group Fuso 0 0 0 0 1,402 1,711 1,374
Mercedes-Benz 5,090 7,354 6,020 5,560 10,660 12,023 15,265
Daimler Group Sub-total 5,090 7,354 6,020 5,560 12,062 13,734 16,639
Fiat-Chrysler Group Fiat 23,113 18,395 16,748 5,264 35,667 57,031 67,647
Jeep 0 0 0 0 0 10,672 46,662
Fiat-Chrysler Group Sub-total 23,113 18,395 16,748 5,264 35,667 67,703 114,309
Ford Group Ford 93,944 118,867 125,184 132,823 213,194 327,771 373,381
General Motors Group Chevrolet/Daewoo 89,724 91,265 85,137 62,871 87,247 106,320 106,262
Honda Group Honda 62,290 44,585 98,084 116,797 209,328 269,762 311,829
Hyundai Group Hyundai 600,478 619,678 647,731 638,621 530,710 572,011 621,831
Isuzu Motors Isuzu 17,853 20,789 23,052 14,122 29,036 27,298 29,530
Mahindra Group Mahindra 290,141 418,108 499,466 388,064 445,825 515,490 613,673
Ssangyong 0 0 271 4,594 9,814 12,041 15,277
Mahindra Group Sub-total 290,141 418,108 499,737 392,658 455,639 527,531 628,950
Mitsubishi Motors Mitsubishi 3,231 2,585 5,223 1,984 2,238 2,700 3,198
Other Piaggio 9,845 11,009 10,625 5,796 6,076 7,461 8,893
Other Indian Manufacturers Bajaj 0 0 0 6,048 30,541 37,820 44,918
Eicher 2,724 2,186 839 810 1,615 2,236 2,656
Force 24,647 30,457 34,311 25,951 32,980 38,637 48,540
Hindustan 8,074 3,144 4,119 4,810 6,371 7,292 2,535
ICM 0 0 0 0 5,052 5,949 7,428
Leyland 0 2,583 27,970 34,932 70,343 81,466 92,226
Premier 3,721 4,580 4,843 3,435 4,189 5,481 7,574
Other Indian Manufacturers Sub-total 39,166 42,950 72,082 75,986 151,091 178,881 205,877
Renault-Nissan Group Dacia 10,247 0 11,704 77,164 97,401 110,946 121,087
Datsun 0 0 0 0 13,726 33,824 45,230
Nissan 92,922 165,955 169,843 132,119 189,547 203,369 242,509
Renault 0 17,518 37,786 24,589 22,065 28,549 38,296
Samsung 0 252 1,363 152 0 0 0
Renault-Nissan Group Sub-total 103,169 183,725 220,696 234,024 322,739 376,688 447,122
SAIC Group Wuling 0 0 11,216 24,124 29,751 34,068 40,380
Suzuki Group Maruti 569,263 486,542 452,766 473,916 416,079 462,081 553,506
Suzuki 644,653 639,601 704,072 724,047 809,544 920,860 1,054,829
Suzuki Group Sub-total 1,213,916 1,126,143 1,156,838 1,197,963 1,225,623 1,382,941 1,608,335
Tata Group Jaguar 0 0 0 244 223 249 310
Land Rover 0 378 950 887 829 910 1,652
Tata 556,327 666,017 722,370 408,253 559,167 656,346 768,833
Tata Group Sub-total 556,327 666,395 723,320 409,384 560,219 657,505 770,795
Toyota Group Toyota 75,664 136,437 194,164 172,965 216,243 270,715 330,619
Volkswagen Group Audi 2,338 4,282 5,757 10,321 13,614 15,548 17,294
Skoda 18,317 32,945 54,036 26,571 43,750 49,970 53,939
Volkswagen 33,445 80,036 87,743 72,868 98,137 122,991 140,290
Volkswagen Group Sub-total 54,100 117,263 147,536 109,760 155,501 188,509 211,523
Source: LMC Automotive "Global Automotive Production Forecast (August 2013)
(Note) 1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons.
2. All rights reserved. Reproduction of any data will require permission of LMC Automotive.
3. For more detailed information or inquiries of forecast data, please contact LMC Automotive.


Source: OEMs' press releases and various media reports

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