2. PRESENTED BY:
SYED SALMAN AHMAD RIZVI
MUHAMMED NIYAS NM
MOHD SHAHNAWAZ
UNDER THE KIND SUPERVISION OF:
Dr. MOHD ADIL Sir
(ALIGARH MUSLIM UNIVERSITY CENTRE KERALA)
4. INTRODUCTION
Indian automobile industry is one of the most vibrant
industries.
The industry contributed 7% of the country’s GDP. It
comprises passenger cars Two wheelers, Three
wheelers and commercial vehicles.
It is the 7th largest Industry in the world after China,
Europe, USA, Japan, Germany and South Korea. with
annual production of 4 million vehicles.
5. The first car on Indian road was in
1897.The owner was Mr foster.
The first Indian who owns the car was
Jamshedji Tata in 1901.
Hindustan Company established in 1942.
HISTORY
8. SIAM and automotive components manufacturer
association of India (ACMA) are the two apex bodies
appointed by the government of India to work for the
development of the automobile industry.
SIAM is the important channel of communication for
the automobile industry with government, national,
and international organisation.
SIAM is actively participates in formulation of rules
regulation and policies related to the automotive industry.
SIAM (society of Indian automobile and
manufacturer)
PRESIDENT
VIKRAM S KILOSKAR
(VICE CHAIRMAN, TOYOTA)
9. BMW Invested US$ 1 billion in India for manufacturing its
SUVs X5, X5 i drive30D. Earlier it was totally imported.
Japan Izusu motors invested Rs.3000 crores in Chennai
plant to manufacture its Pick up vehicles.
Toyota kirloskar invested Rs.500 Crores for manufacturing
parts and engines for Sedan and hatchback cars.
Volkswagen invested Rs.56 crores for manufacturing parts of
Polo and Vento for exports.
RECENT INVESTMENTS
10. The automobile manufacturing industries are located in 3 zones of India North,
West and South
NORTH ZONE
HARYANA (HERO,YAMAHA,MARUTI SUZUKI )
NOIDA (HONDA)
WEST ZONE
MAHARASHTRA (GM,VOLKSWAGON,SKODA,MAHINDRA,TATA,MERCEDES
BENZ AUDI,FIAT AND FORCE MOTORS)
GUJRAT (AMW,TATA NANO PLANT)
SOUTH ZONE
CHENNAI (FORD,HYUNDAI,MITSUBIDHI,NISSAN,BMW AND DUTSUN)
BANGALURU (TOYOTA)
Geographic location
11. SIAM divides the Indian passenger cars in the following
segment. It is the technical segmentation on the basis of
length.
CAR SEGMENTS IN INDIA
Car segment Lenth(mm) Car model
A1 Upto 3400mm Nano
A2 3401to 4000mm Alto,i10,Wagon R
A3 4000 to 4500mm City, Dzire, Manza
A4 4500 to 4700mm Corolla, Optra
A5 4700 to 5000mm Accord, Camry, Sonata
A6 More than 5000mm BMW 7,Mercedes S
B1 VANS Omni, Versa,Enjoy
B2 MUV/MPV Innova, Xylo, Tavera
SUVs SUVs Safari, Scorpio, Pajero
12. Car segment Price(Lakhs) Body type Models
A Upto 3.5 lakhs Mini Hatchback Alto,Nano,Eon
A1 4 to 8 lakhs Hatchback Wagon R,i20,Figo
B1 varries Vans Omni,versa,Enjoy
B2 varries MUV/MPV Innova,tavera
C1 7 to 10 laks Sedan City,Sunny,Etios
D1 10 to 25 lakhs Luxury Sedan Corolla,Optra,Fluence,Accord,Ca
mry
D2 Above 25
lakhs
premium Sedan BMW AUDI Mercedes Volvo
SUVs Varries SUVs Safari,Scorpio,Pajero,Fortuner
Segmentation on the basis of price
16. Auto expo is the Indian automotive show held every after two years in New
Delhi and NCR region.
The first Auto Expo was held in the year 1986.
It is the Asia’s largest and worlds second largest motor show.
It is the showcase of India and world automobiles industries.
It is organized jointly by SIAM, ACMA ,and CII with the help of various
sponsors.
AUTO EXPO
17. Production Cars
Maruti Celerio
Audi A3
BMW 3series
Mercedes GLA class
Maruti XA Alpha
Hyundai iX 25
Datsun Go
Maruti Suzuki Ciaz
Honda Mobilio
Tata safari Laddakh
Cars launches in auto Expo 2014
Concept cars
Nissan GTR
Fiat Aventura
BMW I8
Bajaj U Car
Audi Sports Quatro
32. Renault Duster:
Launch in July 2012
Booking in first two month – 18000
Waiting period - 4 months
Sales in 2013 – 51411 units
Ford Ecosport:
Launched on June 2013
Booking within 17 days – 30000
Waiting period – 6 months
Sales in 2013 – 33702 units
contd…
33. Maruti Xa Alpha
Concept was shown in auto Expo 2012.
Comming: End 2015
Estim: Rs 7.5-10 lakhs
Compititors:Duster,Ecosport etc.
Hyundai iX25
Coming: 2015
Estim: Rs 10 lakhs
Compet:Duster,Ecosport,Terrano etc.
UPCOMING CARS IN INDIA
34. Ford Figo plus
Coming: early 2015
Estim: Rs 5-7.5 lakhs
Compet:Dzire,Amaze,Xcent.
Honda Accord
Coming: Mid 2015
Estim:Rs 22-25 lakhs
Compet: camry,superb,passat.
Contd…
36. Maruti’s new Alto K10
Priced at Rs 3.82 lakhs
Alto K10 was launched on
3 November 2014
Automatic gear shift
Improved fuel efficiency of 15%
World cheapest automatic car
Recent Launch
37. Input cost
Fuel prices
Interest rates
Environmental Regulations
Government Taxes
Distribution channels
Factor affecting the growth of
auto industry
39. Growth in Economic Activity
Road Network Development
Low interest rates.
Wide variety and easy availability of
Financing options.
High sensitivity to Fuel prices
Key Market Drivers
40. TATA Motors has improved slightly but continues to
remain in negative territory as it sold 27,249 units
in the domestic market reporting a 17% fall.
TATA saw its medium and heavy commercial
vehicles portfolio rise 30%at 10532 units in
October 2014, commercial vehicle sales were up
8.59% in september 2014.
Sales decline 10.14% from april to september 2014
TATA MOTORS
42. Largest commercial vehicle manufacturer, reported as
23.1%growth in October 2014 sales at 8375 units as
against 6803 units in the year 2013
Its medium and heavy commercial vehicle reported
sales 5838 units while light commercial vehicle portfolio
reported sales of 2537 units
ASHOK LEYLAND
43.
44. Strong service network with 940 touch points (and growing)
48 strong 3S Dealership going up to nearly 100 in the next 12 to 18
months
Sprawling dealership reflects Mahindra Navistar’s serious
commitment to CV Business
The existing LCV and new HCV range to be sold and serviced from
new dealerships
Offers products between 4.5 and 9 tonne and between 25 and 40
tonne, including Rigid Truck, Multi Axle truck, Tipper and Tractor
Trailer.
Over 2500 HCVs on the roads; Crossed 10,000 LCVs sales per
annum
Mahindra
47. Indian Commercial Vehicle Industry poised for major growth
phase
•Despite challenges, the Industry catching up fast with global
trends & standards - both on technology and quality processes
Indian auto component Industry well positioned to grow at 14%
(CAGR)
Indian Auto Industry likely to retain Low cost advantage for a
sizeable period
Attractive collaboration opportunities between Indian CV industry /
Auto component manufacturing with global OEMs and the Supply
Chain majors
Great opportunity to partner & use India’s competitive advantages
for sourcing and setting up collaborative operations
The Future Outlook
49. India is the 2nd largest manufacturer of 2-
wheelers in the world
Industry started up in early 50s and The
Automobile Products of India(API) started
manufacturing in the country
2-wheeler market was opened for foreign
countries in mid 1980s
Bikes are the major segment of India, others
are scooters and mopeds
Introduction
51. 1983 – Joint Collaboration Agreement with Honda Motor Co. Ltd.
Japan and Hero was signed
1985 - First motorcycle "CD 100" rolled out.
1987 - 100,000th motorcycle produced.
1994 - New motorcycle model - "Splendor"
introduced. 1,000,000th motorcycle produced.
1999 - New motorcycle model 150 cc segment- "CBZ"
introduced.
2003 – Hero Honda becomes the first Indian Company to cross
the cumulative 7 million sales mark
2011 - New licensing arrangement signed between Hero and
Honda (Hero Honda is renamed as Hero)
MILESTONES
52. Bajaj Auto Ltd
TVS Motor Company
Honda Motorcycle and Scooter India (Pvt.) Ltd
Hero MotoCorp India Limited
Suzuki Motor Corporation
Royal Enfield Motors India Ltd
Yamaha Motors India Pvt. Ltd
Kinetic Motor Co. Ltd
Monto Motors
LML (India) Limited
Two Wheeler Manufacturers
74. Strength
Easy availability of spare parts, cost of parts is
low.
Has a high brand loyalty amongst the customers
Innovation in fuel efficient bikes in 150cc
segments
Mergers from international brands
Exports of bikes is increasing
SWOT Analysis of industry
75. Weakness
Not getting the technical expertise from
Similar type of models with same specification
Capacity utilization is low
Skilled labor
Continued…
76. Opportunity
Increase in disposal income
Credit financing by banks is increasing
Increase in sale of sports bike segment
Threats
Increase in fuel prices
Inflation
Economic slowdown
Continued…
77. Competition is high and increasing. Life cycle stage
is in growth.
Trade export in this sector is medium and imports
is low.
Entry of international brands in the sector e.g. KTM
and Kawasaki tends to shift the customer’s taste
and preference.
Two Wheeler Industry