Country Analysis India With Special Reference To The Automobile Sector
1. COUNTRY ANALYSIS- India With special reference to the Automobile Industry KhageshAgarwal (05/09) SaurabhAgarwal (33/09) Anubha Jain (111/09) Sulabh Jain (147/09) DeepeshBansal (153/09)
2. Country Analysis To anticipate and foster changes in the business environment is a prerequisite to success Building a holistic picture that integrates:
3. Strategy National strategy is reflected in the goals and policies of the decision maker It can be deduced from the govt. actions and statements
4. Policies: govt. actions aimed towards achievement of national goals influence resource mobilization and allocation the form of the market country‘s external orientation (inward or outward)
8. Players in the game: Bring about transformation of resources Firms, government organizations, NGO’s and social groups
9. Rules of the game: Understanding the code of conduct Defining what is right/wrong Can be both formal and informal International Dimension: Resolving conflicts arising of cross-cultural dimensions Knowledge of policies towards outside world Outside of forces that influence our policies
10. Policy evaluation Examining inter-relationships between components Benchmarking performance against standards Evaluate relationships between policies and national development The effect of policy on resource mobilization resource allocation across competing sectors efficiency of resource mobilization
28. Auto Industry Numbers Overall Market Over all Production increased from 10.85 million vehicles in 2007-08 to 11.17 million vehicles in 2008-09 Passenger vehicles increased marginally from 1.77 million to 1.83 million Two-wheelers increased from 8.02 million to 8.41 million Domestic Market Vehicles sold including PV,CV 2W and 3W in 2008-09 was 9.72 million as compared to 9.65 million in 2007-08. Exports Sales increased from 1.23mn units in 2007-08 to 1.53 million units in 2008-09 As per the Automotive Mission Plan (AMP) 2006-2016 total turnover of the automotive industry in India would be in the order of US$ 122 billion-159 billion in 2016
29. Category wise numbers Two Wheeler Dominated by Motorcycles 80% , Scooters 14% Mopeds 6% Domestic - 7.25mn units . Hero Honda 42% & Bajaj 27% share CAGR – 9.5% Exports 819000 units (07-08) . Bajaj Auto 59% TVS 17% share CAGR – 41% Passenger Vehicles Dominated by Cars 78% , MUV/SUV 22% Domestic – 1.5mn units Maruti-46% Tata-15% Hyundai 14% CAGR -14.8% Exports - 217000 units (07-08) Maruti 66% Hyundai 24% CAGR – 26% Dominated by M&HCV – Goods 48% Passenger 38% , Rest by LCV-4% Domestic – 487 thousand units , Tata-62% Ashok Leyland -15% CAGR- 22% Exports – 59 thousand units, Tata 67% Ashok Leyland 12% CAGR -30.6% Commercial Vehicles Three Wheeler Dominated by Passenger Carriers with 64% share , Goods Carrier -36% Domestic – 365 thousand units , Bajaj -42% Piaggio-41% CAGR-10.5% Export – 141 thousand units , Bajaj -97% CAGR -44.5%
30. The Indian Auto Components Market Original Equipment Manufacturers (OEMs) Replacement Parts Production and Distribution : e.g. Air filters, oil filers and replacement lights Rubber Fabrication : tyres, hoses, belts etc. Estimated component market size is US$ 6.7 bn The exports of auto components industry has grown at a rate of nearly 30 per cent CAGR over the last four years.
52. Possible increase of interest rates (by 2-2.5% BPLR) because of planned government borrowing.Can Stunt Growth
53. Social Factors Rapid Urbanization of semi urban regions Rising aspirational levels. Improvement in living standards of middle class Increased spending on Fashion & lifestyle comforts. Seeking “Value for money”- consumer behavior Increasing customer emphasis on aesthetics and comfort. A perfect marriage of rise in disposable income and demographic dividend (From US$ 556 per annum US$ 1150 by 2015)
Ernst & Young analysis, passenger vehicle sales in the country will grow at a CAGR of 12 per cent to touch 3.75 million units by 2014 as against 1.89 million units at the end of 2008-09
Two wheelers - Majority of exports are to Bangladesh, Sri Lanka, Bhutan and Nepal• PV - Exports are made to South America, Africa, Europe, Latin America and the Middle East.CV - Major portion of the exports are to Sri Lanka, Gulf countries and Africa 3 Wheelers Auto exports to Sri Lanka, Egypt, Nepal, Bangladesh among other countries