Automotive Insider

The Secret’s Out: India’s Auto Industry on Undeniable Growth Streak

With humble beginnings dating back to the 1940’s, India’s automotive industry got off to a slow start due to tight government restrictions on the private sector. It wasn’t until India’s economic liberalization in 1991 that the automotive industry was really allowed to expand to reach its full potential. Starting with the growth of Indian automobile companies such as Maruti, Tata Motors and Mahindra and Mahindra, India began to gain a hold on the industry as a whole. As a result of this, multinational manufacturers began to take notice and invest in India’s automobile market as well. In early 2009, more than 100,000 passenger cars were sold in India.

For having such a slow start, India has gained pace quite well. It is cited that it is now the ninth largest automobile industry in the world, with a recorded production of 2.3 million units in 2008 alone. In 2009, India became Asia’s fourth largest exporter of cars (the top three spots went to Japan, South Korea and Thailand). Automobile companies such as Nissan, Volkswagen, Toyota and Hyundai have all expanded their manufacturing facilities to India, with Nissan and Hyundai predicting to export upwards of 250,000 vehicles from these sites by 2011.

In fact, the industry has taken off so well that India has become not only a site for manufacturing but a target consumer market for large international manufacturers. One such company is Toyota, which unveiled the concept version of The Etios at the 10th Auto Expo in New Delhi last week. The Etios is a compact car being developed specifically for India’s family market. Chief engineer of the Etios, Yoshinori Noritake, spoke about its development at the expo, explaining that more than four years and 2,000 engineers have gone into the vehicle’s making. To make sure that the car served the customers’ needs, Noritake visited several Indian cities and homes to get direct customer feedback about their preferred vehicle features. In an effort to keep costs down, Toyota is even attempting to use local parts whenever possible.

The New Delhi Auto Expo 2010; its success speaks volumes about the incredible growth of India’s auto industry. Before the show even began on January 5, it was expected to be the world’s second largest auto show ever to be held. However, bringing in more than 2 million visitors in 7 days and boasting 25 new vehicle launches; it turned out to be the world’s largest auto expo to date, beating out Shanghai’s Auto Expo 2009.

Further solidifying India’s emergence in the automotive industry is another development unveiled at the New Delhi Auto Expo 2010: the DYP-DC Center for Automotive Research and Studies. This innovative institute will combine the expertise of the DY Patil Group with the design genius of Dilip Chhabria, a world-renowned automotive designer to provide its students with world class automobile design instruction. In the words of the Mr. Chhabria himself, the institute was created with the goal to develop design, business and manufacturing skills alike, as well as to “ensure the non commoditization of skills across the board.” This is just one more example of continued success for India, first in manufacturing and engineering, and now in industry expertise in every sense of the word.