India’s automobile industry has played a pivotal role in the national and global employment sectors in recent years. It has become a breeding ground for some of the world’s most prominent automobile manufacturers. This thriving sector contributes significantly to India’s GDP, accounting for 6.4% and providing over 80 lakhs of direct jobs.
Beyond its economic impact, the automobile industry deeply influences the real estate market, creating demand for industrial and commercial spaces, plots, warehouses, offices, research and development centres, and residential properties.
Business landscape in India
India’s business landscape is a diverse tapestry of industries and sectors. The country’s economy is driven by a robust services sector, including IT and outsourcing, contributing significantly to its GDP. Manufacturing industries, such as automotive, pharmaceuticals, and textile, play a pivotal role in job creation and export. Agriculture remains a vital sector, employing a large portion of the population. Additionally, India has a burgeoning startup ecosystem, attracting global attention, and its retail and consumer markets continue to expand, reflecting the nation’s immense economic potential.
Top automobile companies in India
Hyundai Motor India
Industry: Automobile, Auto Ancillaries, Electric Vehicle & Dealers
Sub Industry: Automobiles
Company Type: MNC
Location: City Center, Sector 29, Gurugram, Haryana 122022
Founded Year: 1996
Hyundai entered the Indian market in 1996 and secured a prominent position among the biggest automobile companies in India. Hyundai Motor India Limited (HMIL) is a wholly-owned subsidiary of Hyundai Motor Company (HMC). HMIL has 12 car models across segments, including:
- GRAND i10 NIOS,
- All New i20,
- i20 N Line,
- AURA,
- VENUE, and more.
Hyundai exports to around 85 countries, making it a key player in India’s automotive exports. Hyundai is known for its stylish designs, safety features, and value for money, making it a top choice for Indian consumers.
Tata Motors
Industry: Automobile, Auto Ancillaries, Electric Vehicle & Dealers
Sub Industry: Automobiles
Company Type: MNC
Location: Dr. Annie Besant Road, Worli, Mumbai – 400018
Founded Year: 1945
Tata Motors, holding a market share of -1.7% in passenger vehicle sales in 2023, is one of the leading automobile companies in India. Originally known as Tata Engineering and Locomotive Company Ltd. (TELCO), the company ventured into passenger vehicles with the launch of the Indica hatchback in 1998. Tata Motors is known for its indigenous innovation, safety standards, and various vehicle options, from hatchbacks to SUVs. Notable Tata Motors models that reflect its commitment to electric mobility in India include:
- Tiago,
- Nexon,
- Altroz, and
- Nexon EV.
Mahindra & Mahindra (M&M)
Industry: Automobile, Auto Ancillaries, Electric Vehicle & Dealers
Sub Industry: Automobiles
Company Type: MNC
Location: Gateway Building, Apollo Bunder, Mumbai – 400001
Founded Year: 1945
Mahindra & Mahindra is a global company that manufactures trucks, buses, tractors, two-wheelers, electric vehicles, and tractor solutions. Mahindra is the largest manufacturer of SUVs in India, with popular models like Scorpio, Thar, and XUV 500. Known for its off-roading capabilities and robust build quality, Mahindra vehicles are trusted by Indian consumers. The company strongly emphasises safety and offers various SUVs catering to customer preferences.
Toyota Kirloskar India
Industry: Automobile, Auto Ancillaries, Electric Vehicle & Dealers
Sub Industry: Automobiles
Company Type: MNC
Location: Bidadi, Ramanagara District, Karnataka – 562 109
Founded Year: 1997
Toyota, a Japanese automaker, established its presence in India through a joint venture with the Kirloskar Group in 1997. While it may lag behind larger competitors in sales volumes, Toyota compensates with a rich product mix and robust export operations. Toyota Fortuner SUV and Innova MPV are among its best-selling models in India. Toyota is globally recognised for its quality, reliability, and safety features. Toyota’s focus on continuous improvement (Kaizen) ensures it delivers high-quality vehicles with a strong resale value to Indian consumers.
Honda Cars India
Industry: Automobile, Auto Ancillaries, Electric Vehicle & Dealers
Sub Industry: Automobiles
Company Type: MNC
Location: Surajpur, Kasna Road Greater Noida – 201306
Founded Year: 1995
Honda entered the Indian market in 1995 and made a significant impact with the launch of the City sedan in 1998. Honda Cars India Ltd. (HCIL) is known for its refined engine technology, spacious cabins, and strong resale value. The company offers models like City, Amaze, WR-V, and Jazz, catering to diverse customer needs. Honda’s commitment to quality, durability, safety, and fuel efficiency has made it popular among Indian car buyers.
Hero MotoCorp
Industry: Automobile, Auto Ancillaries, Electric Vehicle & Dealers
Sub Industry: Automobiles
Company Type: MNC
Location: Nelson Mandela Road, New Delhi – 110070
Founded Year: 1984
Hero MotoCorp is the world’s largest manufacturer of two-wheelers, based in India. It grew to be India’s largest two-wheeler manufacturer in 2001. Hero is known for its excellent range of two-wheelers, combining style and comfort. Their focus on innovation and developing vehicles for all budgets has made them a household name in India. With a strong dealer network and a commitment to quality, Hero MotoCorp continues to lead the way in the Indian two-wheeler market.
Maruti Suzuki India
Industry: Automobile, Auto Ancillaries, Electric Vehicle & Dealers
Sub Industry: Automobiles
Company Type: MNC
Location: Imt Manesar, Gurgaon – 122051
Founded Year: 1981
Maruti Suzuki India was incorporated on February 24 1981 with the name Maruti Udyog Ltd. The Company was formed as a Government Company with Suzuki as a minor partner to make a people’s car for middle class India. Maruti Suzuki India Limited is the Indian subsidiary of Japanese automaker Suzuki Motor Corporation. As of September 2022, the company had a leading market share of 42 percent in the Indian passenger car market. The company is known for making low-maintenance cars for the Indian market.
Kia Motors
Industry: Automobile, Auto Ancillaries, Electric Vehicle & Dealers
Sub Industry: Automobiles
Company Type: MNC
Location: Gachibowli, Hyderabad – 500008
Founded Year: 1944
Kia Corporation, commonly known as Kia and Kia Motors Corporation, is a South Korean multinational automobile manufacturer headquartered in Seoul, South Korea. It is South Korea’s second largest automobile manufacturer, after its parent company, Hyundai Motor Company, with sales of over 2.8 million vehicles in 2019.
Commercial real estate demand in India
Office space: With the booming growth of automobile companies, the need for extensive office space is rising in India. This surge in demand has fueled the expansion of commercial real estate across the city. The result? New office complexes and business hubs are springing up in various parts of India, enhancing the city’s suburban and peripheral areas.
Rental property: The influx of automobile firms has breathed new life into India’s rental property market. Property owners are reaping the benefits of a consistent demand for commercial spaces, leading to competitive rental rates and increased property values.
Moreover, developers increasingly focus on versatile mixed-use developments that seamlessly blend residential, commercial, and retail spaces. This innovative approach caters to the diverse needs of working professionals and residents, forging self-sustaining neighbourhoods that define India’s real estate industry.
Impact of automobile industry in India
Automobile companies in India have had a transformative impact on the country’s economy and global standing. They’ve driven economic growth, created millions of jobs, and positioned India as a global technology hub. India’s Automobile sector is a key player in outsourcing, software development, and automobile services worldwide, attracting foreign investment and boosting exports. It has also played a crucial role in skill development and shaping India’s image as a global tech hub.
FAQs
How does India’s automobile industry rank globally?
India is the third-largest automobile market globally, surpassing Japan and Germany in sales volumes.
Which are the top automobile companies in India?
Some of the top automobile companies in India include: Tata Motors Mahindra & Mahindra Hyundai Honda Cars India Hero MotoCorp Toyota Kirloskar India
Which Indian automobile company is known for its luxury cars?
Tata Motors’ subsidiary, Jaguar Land Rover, is known for producing luxury cars.
Which car brand focuses on luxury and premium vehicles?
Brands such as Mercedes, Audi, and BMW focus on luxury and premium vehicles.
Which Indian automobile company is known for manufacturing commercial vehicles?
Ashok Leyland is renowned for manufacturing commercial vehicles like trucks and buses.
Which car brand prioritises safety features in India?
All of the vehicles from Tata Motors, Mahindra, Toyota, and Honda include a wide variety of safety features.
Which car brand boasts the best resale value?
Toyota vehicles are known for their dependability and longevity, which helps them maintain a high resale value. Thanks to their strong brand image and high demand in the used automobile market, Honda and Maruti Suzuki both continue to hold significant resale value.
Which car brand excels in after-sales service?
Hyundai and Toyota boast an extensive service network across India, ensuring convenient and reliable customer after-sales support.
