One of the largest industries in the world by revenue is the Automotive industry, whereas India is the world’s fifth-largest Automotive industries in the world. According to the CAGR report, India, alone, sold 21.55 million vehicles between the financial year 2016 – 2020. And the industry increased 1.29% in those years. So, it is lucid that the industry is constantly growing and is one of the profitable industries for the economic growth of India as well as the world. But after the pandemic, the growth slowed down at a rapid pace. Being one of the top automotive companies in the world, Tata Motors also saw a huge loss in the 2020-2021 financial year.
In this article, we will try to take a glance at this industry’s current situation. But first, let me tell you one thing which is frequently faced by many. People, sometimes, have the wrong perceptions about the Automotive and Automobile industries. Let’s see that first and take a clear idea of what both terms mean.
Difference between Automotive and Automobile Industries
Though both terms relate to the vehicle industry, there are some differences. The automotive industry is responsible for making, designing, developing, manufacturing, marketing, and selling motor vehicles. The automobile industry is part of the whole automotive industry. The former industry doesn’t do the maintenance of the automobiles like repair shops or motor fuelling.
Top brands in the Automotive Industry
Using homogenous technology, India has made some of the biggest brands around the world. It is now one of the fastest-growing industries in India. The top companies such as Tata Motors, Hyundai, Maruti, Honda, and Mahindra are literally the big bulls in the market right now. Where Tata Motors is best known for its Sumo, Indica, Tiago, Safari, Nexon, etc, Mahindra is known for its Scorpio, Bolero, XUV500, etc. Honda has produced some well-known vehicles like Honda City, Jazz, Accord, and many more. Hyundai is yet another big bull providing such models like i10, Xcent, Santro, etc. Now, let’s see which company is in what position.
Market Position in 2021
As the Covid situation has shown us a lot of things, it has affected the Indian Automotive market also. Every sector has been affected by its impact around the world. Investors were looking for the right time to invest in this sector, now they can surely do it by doing some extensive research because the pandemic has shown us a terrific loss. Hyundai sold 4, 23, 642 units in 2020 less than the previous years but the authority is predicting the market will see a hike at the end of this year. According to the company report, Tata Motors sold 4, 64, 515 units in the financial year 2021 which is 5% more than the previous year. It is expected to grow in the coming future. On the other hand, another one of the top Automotive companies in the World, Maruti reported a total sales of 1, 457, 861 units for the financial year20-21 which is 6.7% less than the previous year. Honda also saw 27% of growth in the last month because of their discounted price. They sold 9, 072 units in April only in the domestic market. The authority from Mahindra, another big name in the industry, reported a 9.5% growth in the passenger vehicle segment as of March 2021. The previous year was cursive for all industries as well as Mahindra. They didn’t sell any vehicles because of the pandemic. Now the market is rising again and giving investors hope for a better market. So, it is clearly seen that the market is fluctuating but the hope for growth is there.