Question : PRODUCTION OF CARS



(a) whether the car manufacturing companies have decreased the production of cars due to increase in the prices of petrol and gas;

(b) if so, the details thereof along with the percentage of production decreased and the names of such car companies; and

(c) the reaction of the Government thereto?

Answer given by the minister


MINISTER OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI PRAFUL PATEL)

(a)      & (b): As per the information received from the Society of Indian Automobile Manufacturers (SIAM), Passenger Car production in India was growing at a rate of over 17% during the last 10 years. However, due to the increase in fuel price, low GDP growth rate, exorbitant material cost, high interest rate, and slow economic growth, the production growth has reduced to a marginal 1% during April-Nov 2012-13 against its corresponding period of 2011-12. Out of 16 Car manufacturers, 9 companies have reported decreased production, three more companies have reported only marginal growth (less than 4%) and only four companies have been doing well. Company wise production of passenger cars during April-November 2012 and April-November 2011 along with growth rate is given below.


Category Production (In Nos.) April-November
Manufacturer 2011-12 2012-13 % Growth
Passenger Cars
BMW India Pvt Ltd 6,872 5,860 -14.73
Fiat India Automobiles Pvt Ltd 11,401 6,021 -47.19
Ford India Pvt Ltd 75,765 75,321 -0.59
General Motors India Pvt Ltd 59,375 45,293 -23.72
Hindustan Motors Ltd 1,912 1,535 -19.72
Honda Cars India Ltd 26,719 49,045 83.56
Hyundai Motor India Ltd 420,503 423,829 0.79
Mahindra & Mahindra Ltd 12,180 10,932 -10.25
Maruti Suzuki India Ltd 579,717 598,512 3.24
Mercedes-Benz India Pvt Ltd 4,931 3,605 -26.89
Nissan Motor India Pvt Ltd 83,343 94,345 13.20
Renault India Pvt Ltd 1,131 8,099 616.09
SkodaAuto India Pvt Ltd 20,447 21,259 3.97
Tata Motors Ltd 161,582 140,686 -12.93
Toyota Kirloskar Motor Pvt Ltd 52,807 63,268 19.81
Volkswagen India Pvt Ltd 57,092 43,828 -23.23
Total Passenger Cars 1,575,777 1,591,911 1.02

(c): Various steps have been taken in pursuance of Automotive Mission Plan (2006-16) and the new Foreign Trade Policy provides additional incentives which will expectedly boost the production of cars.