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AUTOMOTIVE INDUSTRY
The automotive industry designs, develops, manufactures, markets, and sells the
worlds motor vehicles. In 2007, more than 73 million motor vehicles, including cars and
commercial vehicles were produced worldwide.
In 2007, a total of 71.9 million new automobiles were sold worldwide: 22.9 million in
Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in Latin
America, 2.4 million in the Middle East and 1.4 million in Africa. The markets in North
America and Japan were stagnant, while those in South America and Asia grew strongly. Of
the major markets, Russia, Brazil, India and China saw the most rapid growth.
About 250 million vehicles are in the United States. Around the world, there were about
806 million cars and light trucks on the road in 2007; they burn over 260 billion gallons of
gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially in China and
India.
In 2008, with rapidly rising oil prices, industries such as the automotive industry are
experiencing a combination of pricing pressures from raw material costs and changes in
consumer buying habits. The industry is also facing increasing external competition from the
public transport sector, as consumers re-evaluate their private vehicle usage.
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the
automobile industry of India has come a long way. During its early stages the auto industry
was overlooked by then Government and the policies were also not favorable. The
liberalization policy and various tax reliefs by the Govt. of India in recent years have made
remarkable impacts on Indian automobile industry. Indian auto industry, which is currently
growing at the pace of around 18% per annum, has become a hot destination for global auto
players like Volvo, General Motors and Ford.
A well developed transportation system plays a key role in the development of an
economy, and India is no exception to it. With the growth of transportation system the
automotive industry of India is also growing at rapid sped, occupying an important place on
the canvas of Indian economy.
Automobile industry in India- 10th largest in the world with an annual production of
approximately 2 million units is expected to become one of the major global automotive
industries in the coming years. A number of domestic companies produce automobiles in
India and the growing presence of multi-national investment too, has led to an increase in
overall growth. Following the economic reforms of 1991 the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed
Today Indian automotive industry is fully capable of producing various kinds of vehicles
and can be divided into three broad categories: cars, two-wheelers and heavy vehicles. The
industry is estimated to be US $ 34 billion industry with exports contributing 5% of the
revenues.
The growth of the Indian middle class with increasing purchasing power along with the
strong growth of the economy over the past few years has attracted global major auto
manufactures to the Indian market. Moreover, India provides trained manpower at
competitive costs making India a favored global manufacturing hub. The attractiveness of the
Indian market on one hand combined with the stagnation of the auto sector in markets such as
Europe, US and Japan on the other , have resulted in shifting of new capacities and flow of
capital to the Indian auto industry.
The Indian automobile industry has been growing at the rate of 15-27 % over the past 5
years. According to the United Nations Industrial Development Organizations, (UNIDO)
International Year Book of Industrial Statistics 2008, India ranks 12th in the list of worlds
top 15 automakers.
COMPANY PROFILE
INTRODUCTION
The company is the flagship of the Hinduja Group, one of the largest commercial
vehicle manufacturers in India. The company is headquartered in Chennai, India. Their
manufacturing footprint is pan-India with two facilities in Prague (Czech Republic) and Ras
Al Khaimah (UAE).
Ashok Leyland Ltd was incorporated in the year 1948 with the name Ashok Motors.
The company was set up in collaboration with Austin Motor Company, England for the
assembly of Austin cars. In The year 1949, they commenced production at the factory
situated at Ennore, south of Madras. Also, they rolled out the first indigenously assembled
A40 Austin car.
Founded in 1948, operating six plants, Ashok Leyland also makes spare parts and
engines for industrial and marine applications. It sells about 60,000 vehicles and about 7,000
engines annually. It is the second largest commercial vehicle company in India in the medium
and heavy commercial vehicle (M&HCV) segment with a market share of 28% (200708).
With passenger transportation options ranging from 19 seaters to 80 seaters, Ashok Leyland
is a market leader in the bus segment. The company claims to carry more than 60 million
passengers a day, more people than the entire Indian rail network. In the trucks segment
Ashok Leyland primarily concentrates on the 16 ton to 25 ton range of trucks. However
Ashok Leyland has presence in the entire truck range starting from 7.5 tons to 49 tons. With a
joint venture with Nissan Motors of Japan the company made its presence in the Light
Commercial Vehicle (LCV) segment (<7.5 tons).
Product range of the company includes:
Buses
Trucks
Engines
Defence & Special Vehicles
Associates Companies:
Milestones:
Awards/Achievements:
In the journey towards global standards of quality, Ashok Leyland reached a major milestone
in 1993 when it became the first in India's automobile history to win the ISO 9002
certification. The more comprehensive ISO 9001 certification came in 1994, QS 9000 in
1998 and ISO 14001 certification for all vehicle manufacturing units in 2002. It has also
become the first Indian auto company to receive the latest ISO/TS 16949 Corporate
Certification (in July 2006) which is specific to the auto industry.