1. Presented by
Chaithra C N
Aruna K N

2.  A number of environmental factors influence
the organization.
 For the firm to make profit it must create value
for customers or buyers, while creating value
for its buyers the firm must closely look at the
rivals who are there in the arena competing for
the same ‘space’.

3.  The Indian automobile industry has emerged
as a sunrise sector in the Indian economy.
 India is emerging as one of the world`s fastest
growing passenger car markets and second
largest two wheeler manufacturer.
 India is the largest base to export compact cars
to Europe.

4.  While the industry is highly capital intensive in
nature in case of four-wheelers, capital
intensity is a lot less for two-wheelers.
 Though three-wheelers and tractors have low
barriers to entry in terms of technology, four
wheelers is technology intensive. .

5.  As compared to their global counterparts, both
the two-wheeler as well as four wheeler
segments are relatively lesser fragmented.
However, things are changing, especially on the
passenger cars front as many foreign majors
are eyeing the Indian market.
 As a result, pricing power is likely to diminish
going forward.

6.  The automobile industry, one of the core
sectors has undergone metamorphosis with
the advent of new business and manufacturing
practices in the light of liberalization and
globalization.
 Example of Indian automobile industries in
India- ford motors, Audi, Maruthi Suzuki,
Mahindra and Mahindra, fiat etc.

8.  Strengths
1. Increase in the export
levels.
2. Low cost and cheap
labor.
3. Investments by foreign
car manufacturers.
4. Large pool of engineers.

9.  Weaknesses:
1. Low labour productivity.
2. High interest rate and
overhead level.
3. Low investment in R&D
area.
4. Low quality compared to
other automotive
countries.

10.  Opportunities:
1. Growing population in the
country.
2. Rising living standars.
3. Incrase in income levels.
4. Better car technology is
demanded.
5. Rising rural demand.
6. Women drivers have
increased.

11.  Threats:
1. Less skilled labour.
2. Lack of technologies for Indian companies.
3. Increase in import tariff and technological cost,
4. Increased congestion in the urban areas.