current and past scenario of automobile industry

1. AUTOMOBILES INDUSTRY
PRESENTERS:
ESHA GUPTA
GAURAV KUMAR
RISHNITA BHANDARI

2. The automobiles industry is one of the core industries in India.
A well developed transportation system plays a key role in the
development of an economy, and India is no exception to it. Automobile
is one of the largest industries in the global market. Automobile sector is
leader in product and process technologies in the manufacturing sector.
It has been recognized as one of the drivers of economic growth.
In the past few years, the production and management systems in the
India automobiles industry have been revolutionaries. The fast growth of
automobiles industry is due to the convergence of a lot of positive
factors. These factors have resulted in the introduction of new models.
Introduction

3. • The history of automobile industry is over four centuries old.
• Invention in Automobile industry was first done in 1769 by a French
Engineer named Nicolasan J. Cugnot. He invented the first ever self
powered, three wheeled, military tractor that made the use of a steam engine.
The range then was very limited.
• These automobiles were made very heavy & large and also took ample
amount of starting time.
• With the invention of a steam engine driven automobile came an era of
electric carriage.
• The first theoretical plans for a motor vehicle were drawn by Leonardo da
Vinci and Isaac Newton.
• History of Automobile Industry reveals that US dominated the automobile
markets around the globe.
• The US Automobile Industry was flooded with foreign automobile
companies, especially Japan, Germany within a very short period.
• Automobiles in India goes back to 1851. Simpson & Co. built the first steam
car and a steam bus in India.
History of Automobiles

4. • The first car ran on India’s road in 1898 in Bombay.
• In 1947, Bajaj started assembly of Auto in its scheme of replacing cycle
rickshaw by auto.
• After Independence, the Government in India and the private sector launched
efforts to create and automotive component manufacturing industry to supply
to the automobile industry.
• Due to nationalization and License Raj, the growth was relatively slow in the
1950s and 1960s which hampered the Indian Private sector.
• The growth in later years was majorly driven by tractors, commercial
vehicles and scooters. Cars were still a luxury.
• Until 1982, only three manufacturers had swayed the sector, Hindustan
Motors, Premier Automobiles and Standard Motors.

6. • Cars/SUVs:
Suzuki, Honda, Toyota, Mitsubishi, GM, Ford, Daimler-Chrysler, Skoda, Fiat,
Hyundai, TATA, M&M
• Two – wheelers:
TVS, Hero Honda, Bajaj, Yamaha, Kinetic, LML
• CVs
TATA, Ashok, Leyland, Tatra, Eicher-Mitsubishi, Swaraj-Mazda, M&M, Volvo
• Tractors
Escorts, M&M, L&T, Punjab Tractors, New Holland, Renault
Classification of Automobiles

7. • Today, The Automobile industry in India has become one of the
largest manufacturing sectors all over the World.
• The automotive Industry in India is now working in terms of the
dynamics of an open market. Number of Multinational Companies
are now operating in India.They are operating either as wholly
owned subsidiaries of in collaboration with their Indian partners.
• In financial terms, it is in terms of revenues, profits, taxes and
employment. In quality terms it is in terms of quality processes,
efficiency improvements, and product innovation.
• Established automobile testing and R&D centers are set up in
various parts of the country.
Present Scenario Of
Indian Automobile Industry

8. • Starting from Tata’s small car Tata Nano’s successful entry in India
Automobile Sector, Indian market has steamed up the opportunities
of growth available in alternative segments like electric cars, natural
gas run vehicles etc.
• Auto Companies achieving high productivity through best practices:
i. T Q M
ii. T P M
iii. Six Sigma
iv. Lean Manufaturing

9. • India and the Stats
 5th Largest Commercial Vehicle Manufacturer in the World
 4th Largest Car Market in Asia - crossed the 1 million mark
 # 1 Global Motorcycle Manufacturer is in India
 Largest Two-Wheeler Manufacturer in the World
 2nd Largest Tractor Manufacturer in the World

10. Passenger Car Market
2006-07
Total Units – 975,703
2016-17
Total Units - 1,756,265
Mini
19%
Compact
56%
Mid-size
20%
Executive
2%
Premium
& Luxury
3%
Mini
19%
Compact
56%
Mid-size
20%
Executive
2%
Premium &
Luxury
3%

11.  Present estimated size 5.4 mn units per year
Two Wheeler Market

12. FDI INFLOW
The Government of India allows 100%FDI in Automobile sector through automated route.
Some of the highlights of Union budget 2017-2018:
• Reduction in corporate tax rate for MSMEs
• Development of roads
• Allocation towards funding of the electric and hybrid vehicle programme through the FAME
scheme.
FISCAL INCENTIVES
• To promote export of manufactured green technology products, the export obligation has been
reduced under Export Promotion Council Goods Scheme.
• Excise duty on chassis of Ambulance reduced from 24% to 12.5%
GOVERNMENT INITIATIVES AND INVESTMENTS

13. • INNOVATION AND R&D
AUTOMOTIVE MISSION PLAN 2016-2026:
• Indian automotive industry is one of the prime mover of Manufacturing sector and Make In India
initiative
• Specific interventions are developed to sustain and improve manufacturing competitiveness and to
address the challenges of environment and safety.
NATIONALAUTOMOTIVE TESTING AND R&D INFRASTRUCTURE PROJECT
(NATRIP):
• The main focus is providing low-cost manufacturing and product development solution.
FASTER ADOPTION AND MANUFACTURING OF HYBRID AND ELECTRIC VEHICLES
(FAME):
• The objective is to incentivise, develop, manufacture, promote hybrid/electric vehicle through
domestic technology
• It aims to achieve a cumulative fuel saving

14. THE NATIONAL ELECTRIC MOBILITY MISSION PLAN 2020 (NEMMP):
• The objective of this body is to encourage reliable, affordable and efficient xEV
(hybrid and electric vehicles)
• Promotion and development of indigenous manufacturing capabilities, required
infrastructure, consumer awareness and technology
PILOT ELECTRIC VEHICLE PROJECT:
• The Department of Heavy Industry is launching pilot project on electric vehicles under NEMMP
2020 scheme with dual purpose of adopting the benefits of clear, greener modes of transportation
and also to explore the viable operational modalities.
EXAMPLE: RENAULT KWID
Manufactured with over 98% localisation and epitomises the 'Make in India' ideology.

15. Future of the Indian automobile industry

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WESTERN EUROPE AND INDIA 2016

18. Factors determining growth of the industry
 Fuel economy and demand for greater fuel efficiency
 Sturdy legal and banking infrastructure
 Increased affordability, heightened demand in the small car segment and the
surging income of the Indian population
 India is the third largest investor base in the world
 The Government technology modernization fund is concentrating on establishing
India as an auto-manufacturing hub.
 Availability of inexpensive skilled workers
 Market segmentation and product innovation

19.  BMW plans to manufacture a local version of below-500 CC
motorcycle, the G310R, in TVS Motor’s Hosur plant in Tamil Nadu
 General Motors plans to invest US$ 1 billion in India by 2020, mainly to
increase the capacity at the Talegaon plant in Maharashtra from
130,000 units to 220,000 by 2025.
 Ford Motor Co. plans to invest Rs 1,300 crore (US$ 195 million) to
build a global technology and business center in Chennai
 Electric car maker Tesla Inc. is likely to introduce its products in India
 South Korea’s Kia Motors Corp is close to finalizing a site for its first
factory in India
Major investments and developments
of Indian automobile industry

20. STRENGTHS:
• Large domestic market
• Sustainable labor cost advantage
• Government incentives
• Strong engineering skills in
design
WEAKNESSES:
• Low labor productivity
• High cost of production due to
push up in various forms of taxes
• Low investment in R&D
• Poor infrastructure
OPPORTUNTIES:
• Cut in excise duties
• Rising rural demand
THREAT:
• Cut throat competition
• Rising input costs
SWOT Analysis

21. CONCLUSION
The Automobile industry has potential for facilitating faster and easier mobility of
people and goods across regions, countries. Thus wheel of development is
powered by this industry and for its barrier free development, country needs to
come together and develop better understanding of challenges of newer
technologies, alternative fuels and affordability at large. India has phenomenonal
growth in last decade. A market trend is growing at faster rate so Indian
automobile market should grab the opportunities through diversification of export
basket in untouched foreign counties. Thus strict quality standards, services, and
use of latest technology can provide an edge over competitors across the globe.
Conclusion

22. Thank You.