Automotive Sector


India grows into the world’s third-largest passenger-vehicle market and has the scope to expand its share in the global auto components trade to 4%-5% by 2026.
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Winning Partnerships in India

The industry currently manufactures 26mn vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers and Quadricycles in April’19-March 2020, of which 4.7mn are exported. This started with joint ventures from US, Japan and Europe. Today the eco-system has developed to accommodate stand-alone vehicle manufacturers, spares and services including EV.

In early 2002, while Hero MotoCorp-Honda and TVS-Suzuki were joint ventures with equity participation, the Bajaj Auto-Kawasaki tie-up was based on licensing of technology. After two decades now, all the three Indian players, Hero MotoCorp with Bajaj Auto and TVS Motor have been successful at keeping foreign competitors, at bay. They have been able to chart their own destinies without their erstwhile partners.

India also holds a strong position in the international heavy vehicles arena as it is the largest tractor (such as Escorts*, TAFE, Standard corp.) manufacturer, second-largest bus manufacturer (like TATA, Ashok Leyland*) and third largest heavy trucks (like Eicher, Hindusthan motors, Force motors) manufacturer in the world.

Maruti Suzuki: lesson for JV’s in India

Japan’s Suzuki Motor Corporation (SMC), holding a 54.2% stake in Maruti is engaged in the manufacturing, purchase, and sale of motor vehicles and spare parts from early 1981. The ultimate evidence of Maruti Suzuki’s mastery of its supply chain is in its overwhelming dominance of India’s passenger car market. It’s not easy to build 1.5 million cars a year that price conscious Indians will buy. Just ask the competition. More than 76% of the 246 suppliers are situated within 100 kms of the plant.

India - EV manufacturing hub.

Mahindra & Mahindra  investing US$400mn on developing EV platform by combining capabilities of its operations across the globe, including Detroit and Italy. Its MoU with REE (Automotive) an Israeli company is for smaller trucks and commercial vehicles. e2o was followed by the launch of the e-Verito, an electric sedan and a pick-up van eSupro. Today, there are over 32,000 Mahindra EVs on Indian roads that have covered over 230 million kilometres. The e2o has been launched in the UK too. More importantly, Tesla India Motors and Energy Private Limited, has announced that the brand will begin a manufacturing unit in a new economic corridor on the outskirts of Bengaluru. Tesla Model 3 likely to be the first ‘Made-in-India’ Tesla.


*Other notable Joint ventures in Automobile India:   



Indian company

Foreign Tie-up




Ashok Leyland

Nissan Motors















Renault SA


Compact sedan





Trucks, Buses

Auto component Supply chain path to global India

India’s component industry already has the right set of resources, a well-defined supply-chain, and an in-depth understanding of the automotive business. By leveraging these assets and focusing on EV/ green energy component development and manufacturing as demand increases, the industry can potentially gain a strong foothold in domestic and export mark.

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