Top 10 Best Automobile Companies in India 2023

Given that the automobile industry is crucial to both macroeconomic expansion and technological advancement, it has historically been a reliable barometer of how the Indian economy is performing. Due to India’s large proportion of young people and expanding middle class, the two-wheeler category dominates the industry in terms of volume. Additionally, the expanding interest of businesses in investigating the rural markets contributed to the sector’s expansion. 

The demand for commercial vehicles is developing as a result of expanding passenger and logistical sectors. New trends, such as the electrification of automobile, especially three-wheelers and small passenger cars, are expected to fuel market expansion in the future.

India is the world’s largest tractor maker, second largest bus manufacturer, and third largest producer of heavy trucks, giving it a significant position in the market for heavy automobile. In FY22, 22.93 million automobiles were produced annually in India.

Additionally, a number of government-sponsored programmes, including the Automotive Mission Plan 2026, the scrappage policy, and the production-linked incentive programme in the Indian market, are anticipated to elevate India to a position of prominence in the global two- and four-wheeler markets by 2022.

Market Size

The market for passenger cars in India was estimated at US$ 32.70 billion in 2021, and by 2027, it is anticipated to have grown to US$ 54.84 billion, with a CAGR of nearly 9%.

By 2025, it is predicted that India’s electric vehicle (EV) market will be worth Rs. 50,000 crore (US$ 7.09 billion). According to a CEEW Centre for Energy Finance report, India might have a US$206 billion market for electric vehicles by 2030. This will require investing US$ 180 billion in infrastructure for automotive production.

NITI Aayog and the Rocky Mountain Institute (RMI) estimate that by 2030, the Indian EV finance market will likely be worth Rs. 3.7 lakh crore (US$ 50 billion). According to a report by the India Energy Storage Alliance, the country’s EV industry is anticipated to grow at a CAGR of 36% until 2026. Additionally, it is anticipated that within the same time period, the EV battery market will grow at a CAGR of 30%.

The Indian automobile sector plans to five-fold its car exports between 2016 and 2026. The total number of automobiles exported from India in FY22 was 5,617,244.

Investment

Several automakers have started making significant investments in various sectors of the business over the past few months in order to keep up with the escalating demand. Between April 2000 and March 2022, the sector attracted equity inflows from foreign direct investors (FDI) of US$32.84 billion, or 6% of all FDI in equities during that time.

The following are some recent or upcoming investments and advances in India’s automotive industry:

• With 98,318 units sold in July 2022, Maruti Suzuki was India’s top automaker.
• The total number of passenger vehicles*, three-wheelers, two-wheelers, and quadricycles produced in June 2022 was 2,081,148.
• Tata Motors announced plans to invest Rs. 24,000 crore ($3.08 billion) over the following five years in its passenger vehicle division in April 2022.
• To finance its future needs, including EV expansion, MG Motors, a subsidiary of China’s SAIC Motor Corp, announced plans to raise US$ 350–500 million in private equity in India in March 2022.
• Tata Power and Apollo Tyres Ltd. announced a strategic cooperation in February 2022 for the construction of 150 public charging stations around India.
• In order to increase its capacity for producing electric vehicles, two-wheeler EV manufacturer HOP Electric Mobility, a diversified business venture of Rays Power Infra, plans to invest Rs. 100 crore (US$ 13.24 million) during the next two years.
• In 2021, investment into EV start-ups reached a record high, rising by about 255% to reach Rs. 3,307 crore (US$ 444 million).
• To deliver their first electric two-wheeler within the next two years, TVS Motor Company and BMW Motorrad established a partnership in the two-wheeler EV area in December 2021.
• With the aim of releasing six EVs by 2028, Hyundai announced plans to invest Rs. 4,000 crores (US$ 530.25 million) in R&D in India in December 2021.
• To achieve India’s EV goals, an overall expenditure of Rs. 12.5 trillion (US$ 180 billion) in car manufacturing and charging infrastructure is needed until 2030.

Government Initiative

The Indian government supports foreign investment in the auto industry and has authorised 100% FDI under the automatic method. The Indian government has recently taken a number of initiatives, including:

• Oil firms working under the Ministry of Petroleum and Natural Gas have erected a total of 532 EV charging stations as of July 15, 2022, as part of the FAME India Scheme I & II (MoPNG).
• Mr. Nitin Gadkari, Minister of Road Transport and Highways, announced plans to launch Bharat NCAP, India’s own programme for evaluating car safety, in February 2022.
• In February 2022, the government selected 20 automakers to receive production-linked incentives (PLI) as part of its strategy to boost domestic automobile production and draw in new capital. These automakers included Tata Motors Ltd., Suzuki Motor Gujarat, Mahindra and Mahindra, Hyundai, and Kia India Pvt. Ltd. The 20 automakers have suggested an investment of about Rs. 45,000 crore ($5.95 billion) overall.
• The following projects were outlined by the government in the Union Budget 2022–2023:     
• In order to make electric vehicles (EVs) more appealing to potential buyers, the government approved a battery-swapping policy that will allow depleted batteries to be switched out for charged ones at specific charging stations.
• The Prime Minister’s Gati Shakti Plan calls for a 25,000 km increase in the length of India’s national highways between 2022 and 2023.
• In November 2021, the Union Government expanded the PLI programme for automobiles to include more than 100 cutting-edge technologies, such as alternative fuel systems like compressed natural gas (CNG), flex fuel engines that comply with Bharat Stage VI, electronic control units (ECU) for safety, advanced driver assistance systems, and e-quadricycles.
• After obtaining the necessary approvals from the Supreme Court of India, the government intends to make it essential for automobile manufacturers to create flex-fuel engines, Mr. Nitin Gadkari, Minister of Road Transport and Highways, declared in September 2021.
• The Indian government announced a PLI programme in September 2021 for automobile and auto parts valued at Rs. 25,938 crore ($3.49 billion). By 2026, this programme is projected to attract investments totaling more than Rs. 42,500 ($5.74 billion) and generate 7.5 lakh new employment in India.

• The Vehicle Scrappage Policy, introduced by Prime Minister Mr. Narendra Modi in August 2021, aims to gradually phase out obsolete, environmentally hazardous vehicles in a safe manner.
• Incentives of US$ 3.5 billion are proposed by the Indian government as part of a revised programme to promote the production and export of clean technology automobile over a five-year period until 2026.
• India opened the NATRAX, the fifth-largest high-speed track in the world and the longest in Asia, in July 2021.
• Incentives have supported 87,659 electric automobiles, and 6,265 electric buses have been approved for usage by various state/city transportation undertakings as of June 2021, totaling Rs. 871 crore (US$ 117 million).
• A PLI plan for the production of Advanced Chemistry Cells (ACC) with a budget of Rs. 18,100 crores (US$ 2.33 billion) was authorised by the Central Government in May 2021. Four companies were chosen to receive the incentives in March 2022: Reliance New Energy Solar Limited, Ola Electric Mobility Private Limited, Hyundai Global Motors Company Limited, and Rajesh Exports Limited.

Now let’s have a look on the Top 10 Best Automobile Companies in India 2023 –

1. Tata Motors

The Tata Group includes the multinational Indian automaker Tata Motors Limited, which has its headquarters in Mumbai. The company makes luxury and sports cars, as well as passenger cars, lorries, vans, buses, and coaches.

Formerly known as Tata Engineering and Locomotive Company, the company was founded in 1945 to manufacture locomotives (TELCO). As part of a collaboration with Daimler-Benz AG that lasted until 1969, the company created its first commercial automobile in 1954. When Tata Motors unveiled the TataMobile in 1988 and the Tata Sierra in 1991, it entered the passenger vehicle industry as the first Indian business to produce a homegrown car that was competitive.

The South Korean commercial vehicle maker Tata Daewoo and the British luxury car manufacturer Jaguar Land Rover are Tata Motors’ two primary divisions (which produces the Jaguar and Land Rover automobiles). Along with a joint venture with Hitachi that makes construction equipment, Tata Motors also has joint ventures with Stellantis and Hitachi that produce automobiles and automotive parts under the Fiat Chrysler and Tata brands. TPG, a private equity group, invested $1 billion in Tata Motors’ electric vehicle segment on October 12, 2021..

2. Maruti Suzuki

Maruti Suzuki India Limited, formerly Maruti Udyog Limited, is a New Delhi-based Indian car manufacturer. Since it was founded in 1981, the Indian government has owned it. The Suzuki Motor Corporation of Japan acquired it in 2003. As of February 2022, Maruti Suzuki held a 44.2 percent market share of the Indian passenger car market.

In India, Maruti Suzuki has 380 Nexa sales outlets spread across 228 cities and 2,413 Arena sales outlets spread over 1,992 cities. By 2020, the company wants to have 4,000 shops in its sales network. In India, there are 4044 service stations spread throughout 1,861 cities. The dealership network of Maruti is greater than all of the other well-known firms put together. The company’s principal source of revenue is its service. The majority of the gas stations are run via franchise agreements, with local workers being trained by Maruti Suzuki. Additionally, there are the Express Service stations, which will send a repairman to the car if it is far from a typical service location.

3. Mahindra & Mahindra

Mumbai is home to the global Indian automobile manufacturing company Mahindra & Mahindra Limited (M&M). It started off as Mahindra & Muhammad in 1945 before changing its name to Mahindra & Mahindra. M&M is one of India’s top car producers by production and is a member of the Mahindra Group. The largest volume producer of tractors worldwide is its subsidiary Mahindra Tractors. In 2018, Fortune India 500 placed it 17th among the top businesses in India. Maruti Suzuki and Tata Motors are two of its main rivals in the Indian market.

The company manufactures SUVs, Multi Utility Vehicles, Pickups, Lightweight Commercial Vehicles, Heavyweight Commercial Vehicles, Two Wheeled Motorcycles, and Tractors under the “Mahindra” brand name. Mahindra continues to do business with foreign firms like Renault SA in France.

With a global footprint, M&M exports their goods to a number of nations. Among its international automotive subsidiaries are:

• Mahindra Europe S.r.l. based in Italy,
• Mahindra Automotive North America (MANA) in US.,
• Automobili Pininfarina in Italy
• Mahindra South Africa
• Mahindra Australia
• Mahindra Brazil & Mexico

4. Hero MotoCorp

A multinational Indian manufacturer of motorcycles and scooters with its headquarters in New Delhi is Hero MotoCorp Limited, formerly known as Hero Honda. In India, where it has a market share of over 37.1% in the two-wheeler sector, the firm is one of the biggest makers of two-wheelers in the entire world. The market value of the company was 59,600 crore ($7.5 billion) as of May 27, 2021.

In Dharuhera, Gurugram, Neemrana, Haridwar, and Halol, Hero MotoCorp has five production sites. In the Andhra Pradesh city of Chittor, a new manufacturing complex is now being built. The corporation spent 1600 crores building this new complex, which is spread across 600 acres. Over 76 lakh (7.6 million) 2-wheelers can be produced annually at these plants combined. In India, Hero MotoCorp has a sales and service network that includes more than 6,000 dealerships and service locations.

5. Ashok Leyland

With its headquarters in Chennai, Ashok Leyland is an international Indian automaker. Hinduja Group is the owner. Ashok Motors, the company that launched it in 1948, changed its name to Ashok Leyland in 1955. With a market share of 32.1% in 2016, Ashok Leyland ranked second among commercial vehicle manufacturers in India, third among bus manufacturers globally, and tenth among truck manufacturers globally.

The company has manufacturing plants at Ennore, Bhandara, two in Hosur, Alwar, and Pantnagar in addition to its corporate office in Chennai. A bus manufacturing site is located in Ras Al Khaimah (UAE), another is in Leeds, United Kingdom, and a joint venture with the Alteams Group produces high-press die-casting extruded aluminium components for the automotive and telecommunications industries. Ashok Leyland, which has nine facilities, also produces industrial and marine engines and replacement parts.

6. Bajaj Auto Limited

An international car manufacturing business with its headquarters in Pune is called Bajaj Auto Limited. It makes auto rickshaws, scooters, and motorcycles. A member of the Bajaj Group is Bajaj Auto. In Rajasthan in the 1940s, Jamnalal Bajaj (1889–1942) founded it.

The second-largest motorbike manufacturer in India is Bajaj Auto, which ranks third in the world. The largest three-wheeler manufacturer in the world is there. The most valuable two-wheeler firm in the world as of December 2020 was Bajaj Auto, which had a market capitalization of $1 trillion (US$13 billion).

7. TVS Motor Company Limited

Indian multinational motorcycle manufacturer TVS Motor Company, also known as TVS, is based in Chennai, Tamil Nadu. With an annual revenue of over 20,000 crore (US$2.5 billion), it is the third-largest motorbike manufacturer in India. The corporation can produce more than four million vehicles annually and sells three million units annually. With exports to more than 60 nations, TVS Motor Company is also India’s second-largest exporter of two-wheelers.

In terms of size and revenue, TVS Motor Company Ltd (TVS Motor), a part of the TVS Group, is the biggest business in the organisation.

The TVS Group operates in a wide range of industries, including those related to transportation, textiles, education, electronics, energy, real estate, insurance, and investing. has under its care more than 90 businesses.

The business operates one factory in Indonesia and three factories in India (Hosur in Tamil Nadu, Mysore in Karnataka) (Karawang). One of the top 10 automakers in India is the company.

8. Toyota Kirloskar Motor Private Limited

An Indian joint venture between Toyota Motor Corporation (89%) and Kirloskar Group (11%), Toyota Kirloskar Motor Private Limited (TKM) is responsible for the production and sale of Toyota vehicles in India. The corporate office is situated in Bidadi, Karnataka, not far from Bengaluru.

In a joint venture with the Kirloskar Group, Toyota Motor Corporation entered India in 1997. 89% of the shares are held by Toyota Motor Corporation (TMC), while Kirloskar Group owns the final 11%. Its headquarters are in Bidadi, Karnataka, not far from Bengaluru.

With the launch of the Qualis in 2000, the firm introduced its first product to the Indian automobile market. Sales of the model, which competes in the multi-utility vehicle (MUV) market, increased quickly—in just two years—to take 20% of the market from reputable domestic producers like Mahindra and Tata Motors. Toyota debuted the Camry and Corolla, respectively, in 2002 and 2003.

The Innova, which is built on a contemporary IMV platform, was introduced by TKM in 2005 to replace the Qualis. Later, new models like the IMV series Fortuner SUV and the Hilux pickup truck were unveiled. The sales and service network expanded from 22 locations in 2000 to 166 in 2011 and 359 in 2019 to serve the new products.

The Etios was the first model that TKM produced under the Entry Family Car (EFC) programme, which began in 2010. More than 2,000 employment were created by the vehicle’s production at TKM’s recently constructed second plant and about 500 jobs were established at Toyota Kirloskar Auto Parts Private Limited.

Toyota launched its upscale Lexus brand in the nation in 2017.

9. Eicher Motors Ltd.

With its headquarters in New Delhi, Eicher Motors Limited is an Indian multinational automobile manufacturer that also produces commercial vehicles and motorbikes. Middleweight motorcycle maker Royal Enfield is a subsidiary of Eicher. 

The commercial interests of The Eicher Group are varied and include the design and development, production, and local and global marketing of trucks, buses, motorcycles, automotive gears, and components. The prospective growth sectors of management consulting services, specialised engineering, and maps and trip manuals have all received investment from Eicher. 

A joint venture between the Volvo Group and Eicher Motors Limited is called VE Commercial Vehicles (VECV) Limited (EML). Five business units make up VECV:

• Eicher Trucks and Buses
• Volvo Trucks India
• Eicher Engineering Components
• VE Powertrain

10. Volkswagen India

Volkswagen Group, a German automaker, has a completely owned subsidiary in India called Skoda Auto Volkswagen India Private Limited.

Volkswagen Group India announced on October 7, 2019, that its three Indian subsidiaries, Volkswagen India Pvt Ltd (VWIPL), Volkswagen Group Sales India Pvt Ltd (NSC), and Skoda Auto India Pvt Ltd (SAIPL), would combine to form a new company with the name “Skoda Auto Volkswagen India Pvt Ltd,” which will have its headquarters in Pune. The initial Managing Director of Skoda Auto Volkswagen India was selected as Gurpratap Boparai.

In India, they concentrate on the production and sale of Volkswagen, Audi, and Skoda automobiles. They also help Volkswagen Group automakers Porsche and Lamborghini sell their vehicles in India.

Two production facilities are run by the corporation. With a capacity of 200,000 vehicles per year, Volkswagen India historically possessed the first facility at Chakan, close to Pune, Maharashtra. The other plant, which was formerly run by Skoda Auto India in Aurangabad, Maharashtra, was mostly utilised for the CKD assembly of Volkswagen, Skoda, and Audi vehicles. The Karoq, Skoda’s first ever imported small SUV model, was released in 2020.

Volkswagen’s state-of-the-art factory in Chakan, Pune, contains an engine assembly facility that was added to the previously stated plant in 2015 for about 240 crore (710 million euros). According to reports, the plant has a production capacity of 98,000 engines per year.

Road Ahead

The availability of competent labour at reasonable prices, strong R&D facilities, and affordable steel manufacturing are only a few of the elements that influence the automobile business. The sector offers excellent chances for investment as well as direct and indirect employment for both skilled and unskilled labour. By 2030, the electric car industry is anticipated to generate five crore employment.

The Indian government introduced the nation’s first double-decker electric bus in Mumbai in August 2022. The government believes that modernising the nation’s transportation infrastructure is vital in the long run. With an emphasis on urban transportation reform, it is working to develop an integrated electric vehicle (EV) mobility ecosystem with a low carbon footprint and high passenger density.

In response to rising public demand for more environmentally friendly transportation options, the government’s policy and policies are meant to encourage broader adoption of electric vehicles.

By 2023, the Indian government anticipates that the vehicle industry would bring in $8–10 billion in domestic and foreign investments. By 2030, India might be a global leader in shared transportation, opening doors for electric and driverless vehicles.

After recovering from the COVID-19 pandemic’s effects, the Indian auto industry is anticipated to have rapid growth in 2022–2033. In 2022–2023, sales of electric vehicles, particularly two-wheelers, are projected to increase.