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Trends in the Indian automotive market
In 2018, the Indian automotive market and the local automotive industry achieved one of the best results in history. A total of 29 million vehicles were produced, an increase of 14 percent over the previous year. The front runners were two-wheelers with around 23 million units produced, followed by 4 million passenger cars, 1 million tricycles and 900,000 commercial vehicles. In the two-wheeled segment, the share of scooters in particular grew to over 7 million, testifying to their growing popularity. SUVs were able to exceed the limit of 1 million produced vehicles, so that every third passenger vehicle was an off-road vehicle.
The sales figures showed that India is currently one of the largest sales markets. The 2017 to 2018 fiscal year was one of the best years for automobile manufacturers in terms of sales figures. Growth was in the double-digit range and the Indian market surpassed Germany and is now in fourth place worldwide, just behind China, the USA and Japan. Annual car sales now stand at 3.28 million units, an increase of 9.23 percent. Two-wheelers have set a new record of 20 million units sold, with growth of 15 percent. Electric vehicles continue to have a difficult environment in India. Although there has been a doubling of the number of electric vehicles sold, from 25,000 in 2017 to around 56,000 in 2018, the share of total cars sold is less than 1 percent.
Exports by the Indian automotive industry also increased last year, rising by 16 percent. A total of 40 million units were registered for export. Exports of two-wheeled vehicles, of which 2.8 million were exported abroad, are leading the way. Both product groups, motorcycles and scooters, were able to set new records. At 380,000 units, tricycles jumped to over 40 percent more exported units than last year. The automotive sector in India can also be an opportunity for growth and globalisation for your company. The export of products to India often requires an obligatory India certification according to the Automotive Industry Standard (AIS). We will be happy to advise you comprehensively on AIS/TAC certification for India.
Here you can find more information about the AIS/TAC certification, BIS certification, WPC certification and TEC certification.
Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769261, US: +1 773 654-2673).
You can also download our brochures about the compulsory certifications here.
Good prospects for the Indian automotive industry
According to analyses by experts, there are good prospects for the Indian automotive industry in the period 2020 to 2026. In the scenario, the industry’s turnover is expected to reach 135 billion in 2020 and rise to 300 billion by 2026, with an average annual growth rate of 15 percent.
The individual sectors of the automotive industry contributed to the growth of the market in the period from 2017 to 2018 with the following figures: Two-wheelers 81 percent, cars 13 percent, tricycles and commercial vehicles 3 percent each. Exports in the same period grew by 16 percent for passenger cars, 20 percent for two-wheelers and 40 percent for tricycles.
Looking at the market development for automobiles in India between 2018 and 2019, both local sales figures and exports increased. The highest growth was recorded in exports of two and three-wheelers at 20 percent, commercial vehicles for the Indian market at 16 percent and export of passenger cars at 9.3 percent.
German automobile manufacturers were able to establish themselves well on the Indian market in the luxury vehicle segment. Mercedes-Benz, Audi and BMW, for example, have a combined market share of 82 percent and plan to increase their involvement in the Indian market. Profit from the growth and development of the automotive market and export your products to India. In many cases you will need an obligatory India certification according to the Automotive Industry Standard (AIS). We will be happy to provide you with comprehensive advice on AIS/TAC certification for India.
Here you can find more information about the AIS/TAC certification, BIS certification, WPC certification and TEC certification.
Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769261, US: +1 773 654-2673).
You can also download our brochures about the compulsory certifications here.
New Amendment of Central Motor Vehicles Rules Published October 1, 2019
In 1989 India’s first Central Motor Vehicle Rule (CMVR) was introduced. The CMVR are the rules which include regulations regarding to driver’s license, registration of motorized vehicles, traffic control, building and maintenance of motorized vehicles and more.
Since the initial introduction of these rules, they have been amended on a regular basis. The amendment notice is published twice a year on of April 1st and October 1st. The industry welcomes this step, as this makes it easier to know when updates will occur and the test labs can adjust their testing schedules and submit CMVR conformity certificates.
The CMVR amendment 2019 contains many changes, including changes related to road safety. Fines for offences will be raised to reduce the amount of accidents and improve the road safety in India. With the new amendments it is possible to get a one-month imprisonment for speeding and penalties up to six-months imprisonment for offences related to accidents.
Driving without driver’s license, drunk driving and dangerous driving maneuvers will be punished with higher fines (e.g. the fine for driving without driver’s license will be increase by 10 times to what would be 64 Euros converted).
These changes are very important since India experiences many car accidents. Since 2000 the road length has increased by 39%, whereas the number of motorizes vehicles has increased by 158%, raising the likelihood of road incidence disproportionately.
Here you can find more information about the AIS/TAC certification, BIS certification, WPC certification and TEC certification.
Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).
You can also download our brochures about the compulsory certifications here.
India has rising demand for imported automotive components
Numerous renowned automobile manufacturers are stepping up their activities in India and the demand for components is growing as a result. Nissan plans to expand the capacity of its Chennai plant to 400,000 units over the next few years and to launch eight new models on the Indian market. Toyota plans to invest 165 million US dollars in new engine plants and other projects. South Korean carmaker Hyundai has received approval from the Indian state of Tamil Nadu to invest $970 million in expanding its electric vehicle business. SAIC, a state-owned car manufacturer from China, will start its own business in India later this year and has already had a local subsidiary, MG Motor India, since March 2018. With an annual production of 20,000 vehicles from the Chakan plant, Mercedes-Benz is already the largest manufacturer of luxury vehicles in India. In October 2018, Honda Motor Company commissioned the construction of its third production site in India. The new plant, which involves an investment of 1.31 billion US dollars, will produce hybrid and electric vehicles.
Analysts forecast that by 2026 the import volume of automotive components to India will almost double from currently 14 billion US dollars to 25 billion US dollars. Further details also mention certain product groups for which there will be a particularly high demand. Among other things, there will be increased demand in India in the future for transmissions, electronic components for the engine, bodies and body parts, components for two-wheelers, assemblies and components for steering wheels, and complete engines with a displacement of more than 250 cm³. As early as 2017, India had a trade deficit of 150 billion US dollars with Germany in the automotive components sector. It can therefore be assumed that with the increasing growth of the Indian automotive industry there will be a demand for components from Germany. You too can benefit from the growth in India. The export of products to India, especially cars and car parts, often requires mandatory India certification according to the Automotive Industry Standard (AIS). We will be happy to advise you comprehensively on the AIS/TAC certification for India.
Here you can find more information about the BIS certification, AIS/TAC certification, WPC certification and TEC certification.
You can also download our brochures about the compulsory certifications here.