The automobile industry comprises many different companies and groups that work on designing, developing, making, marketing, and selling cars. It is one of the most money-making industries globally (from 16 per cent, such as in France, up to 40 per cent in countries like Slovakia). It’s also the field that spends the most on research and development.
The word “automobile” generates from the Greek word “autos,” which means “self,” and the Latin word “motivus,” which means “movement.” The word “automotive” refers to any vehicle that moves independently.
This word was first used to talk about cars in 1898. Elmer Sperry, who lived from 1860 to 1930, was the first person to use it.
History
In the 1860s, hundreds of companies made the first horseless carriages. This was the start of the auto industry. The United States has made more cars than any other country for a long time. Before the Great Depression, there were 32,028,500 cars on the road worldwide in 1929, and over 90% of them were made in the United States.
There was one car for every 4.87 people in the U.S. After 1945, the United States produced about 75% of the world’s cars. Japan passed the U.S. in 1980, but the U.S. took the top spot back in 1994. In 2006, Japan just beat out the U.S. in terms of production. They stayed on top until 2009 when China passed them with 13.8 million units. In 2012, China made almost twice as many units as the U.S., which only made 10.3 million units.
Japan was in the third position with 9.9 million units. From 1970 (when there were 140 models) to 1998 (when there were 260 models) to 2012 (when there were 684 models), the number of car models in the U.S. has grown by a factor of ten.
When cars were first made, workers put them together by hand. Engineers used to work on a car sitting still, but then they switched to a conveyor belt system where the vehicle went through several stations where more specialized engineers worked on it. Robotic equipment was added to the process in the 1960s, and today, most cars are mostly made with automated machinery.
The state of being safe means that you are protected from any risk, danger, damage, or cause of injury. In the automotive industry, “safety” means that the motor vehicle or its parts pose no threat or risk to its users, operators, or manufacturers. For the cars themselves, safety implies no chance of damage.
Safety is paramount in the auto industry, so there are a lot of rules to follow. To be sold on the market, cars and other motor vehicles must follow several rules, whether they are local or international. The standard ISO 26262 is thought to be one of the best ways to achieve functional safety in automobiles.
When making a car, if there are problems with safety, danger, a wrong product, or a destructive process, the maker can ask for a batch or the whole production run to be sent back. This is called “recalling” a product. Recalls happen in every industry, which the production of raw materials can cause.
At different points in the value chain, products and how they are used are tested and inspected. This has been done to ensure that the end-user is safe and secure and that the product meets the automotive industry standards. But the automobile industry is still apprehensive about product recalls, which can cost a lot of money.
Economy
In 2007, about 806 million cars and light trucks were on the road. They use more than 980 billion litres (980,000,000 m3) of gasoline and diesel fuel each year.
In many developed economies, the car is the primary way people get around. The Detroit office of Boston Consulting Group predicted that by 2014, the four BRIC markets would make up one-third of the world’s demand (Brazil, Russia, India and China). In the meantime, the auto industry in developed countries has slowed down.
It is also expected that this trend might keep going, especially since younger people in countries with many cities no longer want to own cars and prefer to use other ways to get around. Iran and Indonesia are two different countries that could be big automobile markets. Emerging markets already buy more cars than markets that have been around for a long time.
According to a study by J.D. Power, 51 per cent of the world’s sales of light vehicles were made in emerging markets in 2010. The 2010 study predicted that this trend would get worse. Newer reports from 2012 showed that the auto industry was slowing down even in the BRIC countries. The most cars were sold in the United States in 2000 when 17.8 million were sold.
In the month of July 2021, the European Commission released its “Fit for 55” legislation package which has essential rules for the future of the automotive industry. By 2035, all new cars sold in Europe must be zero-emission vehicles.
The governments of the 24 developed countries and a group of big car companies like GM, Ford, Volvo, BYD Auto, Jaguar Land Rover, and Mercedes-Benz agreed to “work toward the sales of all the new cars and vans being zero-emission globally by 2040, and by no later than 2035 in leading markets.”
The US, Germany, China, Japan, and South Korea, all of which make a lot of cars, and Volkswagen, Toyota, Peugeot, Honda, Nissan, and Hyundai, did not sign the pledge.
Let’s talk about the Top 10 Best Automobile Companies in India in 2022
- Tata Motors Ltd.
Revenue: Rs 296,917 Cr
Workers: 82,797
38.37 the promoter owns per cent.
Tata Motors is one of the most important automobile companies in India and worldwide. It helps people get around in more than 175 countries. There are many different kinds of cars, SUVs, trucks, and buses in the portfolio. As a result, the Company is the biggest of the Top 10 Automobile Companies in India by Turnover.
6.3% of the market for passenger vehicles
Commercial Vehicle: 45.1 per cent
The automobile company has a robust global network of 134 subsidiaries, associate companies, and joint ventures, such as Tata Daewoo in South Korea and Jaguar Land Rover in the UK. TML sells cars, including trucks with a Gross Vehicle Weight (GVW) of less than one tonne and up to 49 tonne, small, medium, and large buses and coaches, and passenger cars.
With a market share of 45.1% and sales of 4,68,788 vehicles in FY 2018-19, TML is the leader in India’s CV market. It has gained market share in the sector of Medium and Heavy Commercial Vehicle (MHCV), Intermediate Light Commercial Vehicle (ILCV), and Small Commercial Vehicle (SCV) segments.
Tata Motors is the biggest car company in India. In FY 2018-19, the TML’s market share in the PV segment grew by 60 bps to 6.3%. It is one of the best automobiles companies in India that makes cars.
2. Maruti Suzuki India Ltd
Revenue: Rs 83,281 Cr
Workers: 33,180
56.21 the promoter owns per cent.
India’s market leader in the passenger car market. In 1981, the Company was set up. In 1982, the Indian government and Suzuki Motor Corporation (SMC) in Japan signed a deal to work together. In 2002, the Company became a part of SMC. Maruti is India’s second-biggest car company based on how much money they make.
Fifty-three per cent of the market is made up of passenger vehicles.
The Company is now SMC’s largest subsidiary regarding how much it sells and how much it makes. SMC has 56.21 per cent of its equity stake right now. Based on the Market share, Maruti Suzuki is the biggest car company in India.
The Company has two state-of-the-art factories in Gurugram and Manesar, both in Haryana. Together, these two factories can make 1.58 million units per year.
3. Mahindra & Mahindra Ltd
Revenue: Rs 77,077 Cr
Market Cap: Rs 70,725 Cr.
Workers: 42,875
Promoter holdings: 18.90%
Mahindra & Mahindra Ltd. is the leading automobile company of the Mahindra Group. It makes and sells mobility products and farm solutions. It is one of India’s best car automobile companies. Since 1947, when they put together their first car, The Company has multiplied. By total sales, it is the third-largest car company in India.
Share of the market (CV): 25.3%
Passenger Vehicles: 7.4 per cent
40.2 per cent of the tractor.
UV: 25 per cent
LCV: 44.5 per cent
Today, The Company sells a wide range of products and services, including SUVs, electric vehicles, pickups, commercial vehicles, tractors, two-wheelers, and construction equipment. It is one of the essential Indian car companies.
4. Hero MotoCorp Ltd.
Hero MotoCorp Ltd. made more two-wheeled vehicles than any other company in the world in 2001, based on the number of units sold in a calendar year, and has kept this coveted title for the past 18 years. It has more than 90 million happy customers worldwide, and through its products and services, it continues to work for social and economic progress and empowerment.
Revenue: Rs 32,871 Cr
Workers: 8,551
34.63 the promoter owns per cent.
Share of the market: 36%
It was the first automobile Indian two-wheeler company to set up a manufacturing base in Latin America. In 2016, it started making bikes in Colombia. Hero group is a part of the Company.
Hero MotoCorp can make about 9 million two-wheelers per year with its factories working together. It is the fourth largest automobile company in India. It is one of the Top 10 companies that make cars.
Hero MotoCorp’s Chairman, Dr Pawan Munjal, has increased to 37 countries in Asia, Africa, and South and Central America. Hero MotoCorp is a genuinely international business, with employees from India, Bangladesh, Colombia, Germany, Austria, Japan, and France, among other places.
Hero MotoCorp is the market leader in India, which has the largest market for two-wheeled vehicles in the world. It has more than 50% of the domestic motorcycle market. Hero MotoCorp has seven factories that are the best in the world. Five of them are in India, and one each is in Colombia and Bangladesh.
5. Bajaj Auto Ltd.
Bajaj Auto is the world’s third-largest maker of motorcycles and the largest maker of three-wheelers. It sells its products in more than 70 countries. It has a significant impact on many industries, from cars to banking (two-wheelers manufacturers and three-wheelers manufacturers). It is a part of the Bajaj Group.
Revenue: Rs 30,598 Cr
Workers: 8,064
53.52 per cent of Promoter holdings
18.7% of the market share
The Bajaj brand is well-known in many countries in Latin America, Africa, the Middle East, South Asia, and Southeast Asia. Bajaj Auto is the fourth largest three- and two-wheeler manufacturer globally. In addition, the automobile company is fifth on the list of the top 10 automobile companies in India that make cars.
Bajaj Auto International Holdings BV is a branch of Bajaj Auto Ltd. based in the Netherlands. Through this subsidiary, Bajaj Auto has invested a total of €198.1 million (H 1,219 crore) in KTM AG of Austria (KTM), the fastest-growing motorcycle brand globally, over the years. As a result, Bajaj Auto now owns about 48 per cent of KTM.
6. Ashok Leyland
Ashok Leyland is the biggest automobile company in the Hinduja group. It is the second-biggest maker of commercial vehicles in India, the fourth-biggest maker of buses globally, and the tenth biggest maker of trucks in the world.
Revenue: Rs 28,476 Cr
11, 966 workers.
51.13 per cent of Promoter holdings
The Company’s main office is in Chennai, India. It has nine manufacturing plants worldwide, 7 of which are in India and 1 in Ras Al Khaimah, United Arab Emirates (UAE). Ashok Leyland has a portfolio that is well-rounded in the car business. According to a recent list, Ashok Leyland is the 38th best brand in India.
Share of the market in the M&HCV Bus segment: 41.2%
Ashok Leyland makes trucks with gross vehicle weights of 2.5T to 49T, buses with 16 to 80 seats, vehicles for defence and special applications, and diesel engines for industrial, genset, and marine uses.
In 2016, Ashok Leyland put out India’s first electric bus and Euro 6 truck. Every day, more than a million people use Ashok Leyland buses to get where they need to go, and 7,000,000 trucks keep the economy moving.
7. TVS Motor Company Limited
TVS Motor Company is the third-biggest two-wheeler maker in India. It made 15129 Cr INR in sales last year (2017-18). This automobiles Company tends to produce 4 million two-wheelers and 120,000 three-wheelers every year.
Revenue: Rs 15,129 Cr.
5121 workers.
Promoter’s share: 57.40 per cent
TVS Group is involved in many different types of business, such as automobiles, aviation, education, electronics, energy, finance, housing, insurance, investment, logistics, service, textiles, and logistics. Has more than 90 companies under its wing.
The Company has four factories in India (Hosur in Tamil Nadu, Mysore in Karnataka, Nalagarh in Himachal Pradesh), and one in Indonesia (Karawang). The Company is one of India’s top 10 automobiles companies.
8. Eicher Motors Ltd
Royal Enfield’s parent company, Eicher Motors Limited (EML), is publicly-traded. Royal Enfield is the world leader in middleweight motorcycles. Since 1901, Royal Enfield has been making its unique motorcycles, making it the world’s oldest motorcycle brand that is still in production.
Royal Enfield has modern development centres in Leicestershire, UK, and Chennai, India. Its motorcycles are made in Tamil Nadu, India, and are sent worldwide. In addition to producing motorcycles, Eicher has a partnership with Sweden’s AB Volvo called Volvo Eicher Commercial Vehicles Limited (VECV). This automobile company is helping India and other developing countries modernize their commercial vehicle markets.
VECV has a full line of trucks and buses ranging from 5 to 55 tons. Its integrated manufacturing plant in Pithampur, Madhya Pradesh, is the centre of the world for Volvo Group’s 5- and 8-liter medium-duty engines. As a result, the Company is number eight on the list of the top ten automobiles companies in India that make cars.
9. Force Motors Limited
Shri. N. K. Firodia started Force Motors in 1958, intending to make commercial transportation affordable for the masses by using the best technology and creating products that are cheap, reliable, and good at what they do. As a result, the Company is number 9 on India’s top 10 automobiles list.
Revenue: Rs 3,487 Billion
ROE: 7.67 per cent
6.48 per cent growth in sales over three years
Today, its lineup includes Small Commercial Vehicles (SCV), Multi-Utility Vehicles (MUV), Light Commercial Vehicles (LCV), Special Utility Vehicles (SUV), and Agricultural Tractors. So, whatever the problem is, Force has a solution.
10. SML ISUZU Ltd
Since 1985, SML Isuzu Ltd. (SMLI) has made commercial vehicles that people can trust. It has been making Light and Medium Commercial Vehicles for the Indian market for more than 33 years. SMIL is the first Company to make and sell custom-built, state-of-the-art buses, ambulances, and other vehicles. It is at the bottom of India’s best car companies list.
Revenue: Rs 1,312 Billion
0.78 per cent Dividend Yield
ROE: 4.79 per cent
6.51 per cent growth in sales over three years
Sumitomo Corporation, Japan, and Isuzu Motors, Japan, each own 15% of the Company. It is one of India’s Top 10 Automobile Companies.
Conclusion:
The word “automobile” was first used to talk about cars in 1898. The U.S. has made more cars than any other country for a long time. In 2012, China made almost twice as many units as the U.S. only made 10.3 million units. In 2007, about 806 million cars and light trucks were on the road.
They use more than 980 billion litres (980,000,000 m3) of gasoline and diesel fuel each year. Emerging markets already buy more cars than markets that have been around for a long time. In 2010, 51 per cent of the world’s sales of light vehicles were made in emerging markets. By 2035, all new cars sold in Europe must be zero-emission vehicles. TML is the biggest of the Top 10 Automobile Companies in India by turnover.
Tata Motors is the biggest car company in India. Based on how much money they make, Maruti Suzuki is India’s second-biggest car company. Mahindra & Mahindra is one of the essential Indian automobiles companies. It creates and sells mobility products and farm solutions. Hero MotoCorp is the market leader in India, which has the largest market for two-wheeled vehicles in the world.
Bajaj Auto is the world’s third-largest maker of motorcycles and the largest maker of three-wheelers. It sells its products in more than 70 countries. Ashok Leyland has nine manufacturing plants worldwide, 7 of which are in India. Since 1901, Royal Enfield has been making its unique motorcycles. TVS Motor Company is the third-biggest two-wheeler maker in India and is one of India’s top 10 automobiles companies.
VECV’s integrated manufacturing plant in Pithampur, Madhya Pradesh, is the centre of the world for Volvo Group’s 5- and 8-liter medium-duty engines. As a result, VECV is number eight on the list of the top ten automobiles companies in India that make cars.
