Trends in the Indian automotive market

In 2018, the Indian automotive market and the local automotive industry achieved one of the best results in history. A total of 29 million vehicles were produced, an increase of 14 percent over the previous year. The front runners were two-wheelers with around 23 million units produced, followed by 4 million passenger cars, 1 million tricycles and 900,000 commercial vehicles. In the two-wheeled segment, the share of scooters in particular grew to over 7 million, testifying to their growing popularity. SUVs were able to exceed the limit of 1 million produced vehicles, so that every third passenger vehicle was an off-road vehicle.

The sales figures showed that India is currently one of the largest sales markets. The 2017 to 2018 fiscal year was one of the best years for automobile manufacturers in terms of sales figures. Growth was in the double-digit range and the Indian market surpassed Germany and is now in fourth place worldwide, just behind China, the USA and Japan. Annual car sales now stand at 3.28 million units, an increase of 9.23 percent. Two-wheelers have set a new record of 20 million units sold, with growth of 15 percent. Electric vehicles continue to have a difficult environment in India. Although there has been a doubling of the number of electric vehicles sold, from 25,000 in 2017 to around 56,000 in 2018, the share of total cars sold is less than 1 percent.
Exports by the Indian automotive industry also increased last year, rising by 16 percent. A total of 40 million units were registered for export. Exports of two-wheeled vehicles, of which 2.8 million were exported abroad, are leading the way. Both product groups, motorcycles and scooters, were able to set new records. At 380,000 units, tricycles jumped to over 40 percent more exported units than last year. The automotive sector in India can also be an opportunity for growth and globalisation for your company. The export of products to India often requires an obligatory India certification according to the Automotive Industry Standard (AIS). We will be happy to advise you comprehensively on AIS/TAC certification for India.
Here you can find more information about the AIS/TAC certification, BIS certification, WPC certification and TEC certification.
Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769261, US: +1 773 654-2673).
You can also download our brochures about the compulsory certifications here.

Good prospects for the Indian automotive industry

According to analyses by experts, there are good prospects for the Indian automotive industry in the period 2020 to 2026. In the scenario, the industry’s turnover is expected to reach 135 billion in 2020 and rise to 300 billion by 2026, with an average annual growth rate of 15 percent.
The individual sectors of the automotive industry contributed to the growth of the market in the period from 2017 to 2018 with the following figures: Two-wheelers 81 percent, cars 13 percent, tricycles and commercial vehicles 3 percent each. Exports in the same period grew by 16 percent for passenger cars, 20 percent for two-wheelers and 40 percent for tricycles.

Looking at the market development for automobiles in India between 2018 and 2019, both local sales figures and exports increased. The highest growth was recorded in exports of two and three-wheelers at 20 percent, commercial vehicles for the Indian market at 16 percent and export of passenger cars at 9.3 percent.

German automobile manufacturers were able to establish themselves well on the Indian market in the luxury vehicle segment. Mercedes-Benz, Audi and BMW, for example, have a combined market share of 82 percent and plan to increase their involvement in the Indian market. Profit from the growth and development of the automotive market and export your products to India. In many cases you will need an obligatory India certification according to the Automotive Industry Standard (AIS). We will be happy to provide you with comprehensive advice on AIS/TAC certification for India.
Here you can find more information about the AIS/TAC certification, BIS certification, WPC certification and TEC certification.
Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769261, US: +1 773 654-2673).
You can also download our brochures about the compulsory certifications here.

New Amendment of Central Motor Vehicles Rules Published October 1, 2019

In 1989 India’s first Central Motor Vehicle Rule (CMVR) was introduced. The CMVR are the rules which include regulations regarding to driver’s license, registration of motorized vehicles, traffic control, building and maintenance of motorized vehicles and more.
Since the initial introduction of these rules, they have been amended on a regular basis. The amendment notice is published twice a year on of April 1st and October 1st. The industry welcomes this step, as this makes it easier to know when updates will occur and the test labs can adjust their testing schedules and submit CMVR conformity certificates.

The CMVR amendment 2019 contains many changes, including changes related to road safety. Fines for offences will be raised to reduce the amount of accidents and improve the road safety in India. With the new amendments it is possible to get a one-month imprisonment for speeding and penalties up to six-months imprisonment for offences related to accidents.
Driving without driver’s license, drunk driving and dangerous driving maneuvers will be punished with higher fines (e.g. the fine for driving without driver’s license will be increase by 10 times to what would be 64 Euros converted).
These changes are very important since India experiences many car accidents. Since 2000 the road length has increased by 39%, whereas the number of motorizes vehicles has increased by 158%, raising the likelihood of road incidence disproportionately.
Here you can find more information about the AIS/TAC certification, BIS certification, WPC certification and TEC certification.
Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).
You can also download our brochures about the compulsory certifications here.

India has rising demand for imported automotive components

Numerous renowned automobile manufacturers are stepping up their activities in India and the demand for components is growing as a result. Nissan plans to expand the capacity of its Chennai plant to 400,000 units over the next few years and to launch eight new models on the Indian market. Toyota plans to invest 165 million US dollars in new engine plants and other projects. South Korean carmaker Hyundai has received approval from the Indian state of Tamil Nadu to invest $970 million in expanding its electric vehicle business. SAIC, a state-owned car manufacturer from China, will start its own business in India later this year and has already had a local subsidiary, MG Motor India, since March 2018. With an annual production of 20,000 vehicles from the Chakan plant, Mercedes-Benz is already the largest manufacturer of luxury vehicles in India. In October 2018, Honda Motor Company commissioned the construction of its third production site in India. The new plant, which involves an investment of 1.31 billion US dollars, will produce hybrid and electric vehicles.

Analysts forecast that by 2026 the import volume of automotive components to India will almost double from currently 14 billion US dollars to 25 billion US dollars. Further details also mention certain product groups for which there will be a particularly high demand. Among other things, there will be increased demand in India in the future for transmissions, electronic components for the engine, bodies and body parts, components for two-wheelers, assemblies and components for steering wheels, and complete engines with a displacement of more than 250 cm³. As early as 2017, India had a trade deficit of 150 billion US dollars with Germany in the automotive components sector. It can therefore be assumed that with the increasing growth of the Indian automotive industry there will be a demand for components from Germany. You too can benefit from the growth in India. The export of products to India, especially cars and car parts, often requires mandatory India certification according to the Automotive Industry Standard (AIS). We will be happy to advise you comprehensively on the AIS/TAC certification for India.
Here you can find more information about the BIS certification, AIS/TAC certification, WPC certification and TEC certification.
You can also download our brochures about the compulsory certifications here.

The Indian market for passenger cars 2018 at a glance

India’s largest automobile manufacturer Maruti Suzuki was able to maintain its leading position in 2018. With a market share of just under 50 percent and over 1.64 million vehicles sold, the group further increased its sales figures from the previous year by 13.84 percent. Maruti Suzuki’s good performance in the market has also increased its market share by 3 percentage points. The presence and sales figures were increased both among urban buyers and in the rest of the country. This was due in part to the numerous new models that were well received by customers. In particular, these included the Maruti Suzuki Dzire, the new Swift, the Baleno, which continues to be in high demand, and the Vitara Brezza, which helped the Group achieve renewed growth. In addition, around 120,000 vehicles were exported abroad.

The number two in the Indian automotive market, Hyundai Motor India, the subsidiary of the South Korean group, performed well in 2018. Growth of 5 percent was reported and sales figures of 536,000 vehicles, corresponding to a market share of 16.3 percent. The launch of the new facelift models of the Hyundai Grand i10 and Hyundai i20 together with the premiere of the Verna were the striking successes of the past year. The Hyundai plant in Chennai was very well utilized with the production of the Creta to meet the high demand for this model. Hyundai Motor India also exported 153,00 vehicles, preferably to the Middle East.
The rest of the Indian market is shared by both domestic and international car manufacturers with shares of between eight and three percent. Listed by market share are Mahindra & Mahindra, Tata Motors, Honda Cars India and Toyota. Renault India is the only European to have suffered a 24 percent drop in sales to 10,000 vehicles or a market share of three percent. In the current year, attempts are being made to market the Kwid and the petrol engine version of the Captur better so as not to fall below the threshold of 10,000 units. All in all, the Indian market for passenger cars continued to develop well and promises good opportunities for your company as well. The export of products to India often requires mandatory India certification according to the Automotive Industry Standard (AIS). We will be happy to advise you comprehensively on the AIS/TAC certification for India.
Here you can find more information about the BIS certification, AIS/TAC certification, WPC certification and TEC certification.
You can also download our brochures about the compulsory certifications here.

Tata Motors is market leader for commercial vehicles in India

India-based Tata Group, with its commercial vehicle division of Tata Motors, has further increased its market share compared to 2017. Sales figures rose by 23 percent to a total of 376,456 units. In recent years, the conglomerate has restructured its vehicle business and now appears to be benefiting from it.

Mahindra & Mahindra is in second place with a market share of around 25 percent and sold 216,800 units, 20 percent more than in 2017. The market share, on the other hand, remained almost unchanged. Competitor Ashok Leyland is in third place with a similar market share to last year, but increased its sales by 19 percent to 158,612 units.

VE Commercial Vehicles, a joint venture of Volvo and Eicher Motors, has a comparatively small share of the Indian commercial vehicle market. The market share was 6.52 percent, the sales figures 56,927 units. The joint venture sells the respective brands separately, resulting in 55,782 units of Eicher and 1,055 units of Volvo. Measured in terms of sales figures, the company grew by 12.5 percent. The manufacturer Force Motors has a small but steady market share of 2.59 percent in India. The company is known for the production of Mercedes minibuses under licence, but with a slightly modified design for the needs of the Indian market. Overall, the structure of the commercial vehicle market remained almost unchanged, but sales figures for all manufacturers increased. You too can benefit from the growth in India. The export of products to India, in particular cars and car parts, in many cases requires mandatory India certification according to the Automotive Industry Standard (AIS). We will be happy to advise you comprehensively on the AIS/TAC certification for India.
Here you can find more information about the BIS certification, AIS/TAC certification, WPC certification and TEC certification.
You can also download our brochures about the compulsory certifications here.

Mandatory certification for certain power supplies in India

By the end of 2016, the Indian Ministry of Electronics and Information Technology had already published the corresponding order. The certification applies to power supplies for servers and storage devices and must comply with the BIS standard. The manufacturer of the power supplies is responsible for certification. This means that even if one buys power supplies and installs them in one of his devices, they must have a separate certification. The certification process includes submitting the BIS application documents and submitting a test report of the respective power supply unit.

Here is an overview of the most important key points: The manufacturer must have a branch or an authorized representative in India. The equipment must be tested in India and the results must be available within 90 days of submission of the application documents. The manufacturer has 7 business days to clarify any discrepancies with the BIS, otherwise certification will be refused. If the certification is successful, a BIS R-number will be issued which is valid for two years. India Certification can provide this complete service for you. Our experience and contacts to test laboratories and the BIS shorten the duration and enable a smooth certification process.

For any questions regarding the BIS certification, please contact us.

Here you can find more information about the BIS certification, AIS/TAC certification, WPC certification and TEC certification.

You can also download our brochures about the compulsory certifications here.

Changes in India for market surveillance of registered products

It has recently been announced that the Indian Ministry of Electronics and Information Technology (MeitY), responsible for monitoring the BIS standards, has introduced a new procedure for market surveillance of registered products. The new procedure applies to all products listed by BIS on three different lists since August 2017. Instead of the Ministry, the STPI (Software Technology Parks of India) now administrates the monitoring process.

This includes the procurement, storage and delivery of test samples as well as the collection of fees. The new process also requires the fees to be paid in advance to the STPI in order to finance its monitoring activities. The proposed changes require manufacturers to submit a list to the STPI of all products previously registered with BIS with the corresponding sales price for each product. Once the STPI has reviewed each applicant’s product list, a certain amount must be transferred to the STPI. The amount consists of the sales price, testing fees, transport and packaging, and storage.

The fees will be comparable to the previous costs for BIS monitoring. The key difference is that the fees will now have to be paid in advance. Once the amount has been determined by the STPI, it can either be transferred directly by the manufacturer or by an authorised Indian representative to the Authority’s account.

We recommend that manufacturers begin compiling the necessary documentation to prepare for submission to STPI in a timely manner. Since the documentation requirements vary depending on the target group of registered products, please contact us for more information on creating the required documentation for your product type.

Here you can find more information about the BIS certification, AIS/TAC certification, WPC certification and TEC certification.

You can also download our brochures about the compulsory certifications here.