Automobile industry

2.  Introduction
 History
 Attractiveness
 Current growth
 Export
 Industry investment
 Segment know how
 Market advantage
 About sales
 Policies
 Key players
 Area of concern
 suggestion

3.  The industry has grown at a CAGR of 14% p.a.
over the last five years.
 Eleventh largest in the world.
 Largest two wheeler and three wheeler market.
 Second largest tractor manufacturer.
 Fifth largest commercial vehicle manufacturer.
 Forth largest car market in the Asia.
 Hyderabad is going to come up with first
automobile mall.

4.  The actual horseless carriage was introduced in
1893 by Charles & Frank Duryea.
 First car rolled out on the street of Mumbai in
1898.
 First luxury automobile was introduced by Rolls-
Royce in 1909.
 The year 1957 brought high-performance cars
such as Mercedes-Benz.
 The liberalization of 1991 opened the flood gates
of competition & growth.

5. •Large and growing domestic demand
•Export Potential
•Proven product Development capabilities
•High quality standards
•Stable economic policies
•Competitive manufacturing cost

6.  Crossed a landmark with total vehicle
production of 10 million units.
 Two wheeler sales grew by 11.42%
 Cars sales grew by 22.01%
 Utility vehicles sales by13.21%
 Multi purpose vehicles sales by 25.20%
 Commercial vehicles segment grew by
33.28%
 Estimated market size by 2012 Us $17 bn.

7.  Two wheelers are mostly exported from
India.
 Market registered a growth of
22.30%during 2007-08.
 Passenger vehicle export grew by 13.05%.
 Commercial vehicle export increased by
22.58%.
 Three wheeler export grew by 87.17%.
 Two wheeler export grew by 20.65%.

8. .
Strengths:-
 Cost competitiveness in terms of labor and raw
material.
 Established manufacturing base. Economics of scale
due to domestic market.
 Potential to harness global brand image of the parent
company.
 Global hub policy for small car like Hyundai, Suzuki,
etc.
Weaknesses:-
 Perception about quality.
 Infrastructure bottlenecks.

9. Opportunities:-
• Huge export markets such as Europe, America, Africa,
and others for Indian cars.
Threats:-
• China, Malaysia, Thailand, etc.
• Many other countries also have strategies for export
promotion.

10.  Continuous cost reduction.
 Improved technologies.
 Joint venture with foreign companies.
 Supply chain management.
 Improve infrastructure.
 Improve EXIM Regulation.

11.  Hero Honda contributes 50% in motor cycle.
 TVS makes 82% of the moped in country.
 Honda holds 46% in scooter.
 Among three wheeler Bajaj is the leader by
making 68% of total.
 Maruti Suzuki has 52% share in cars.
 In utility vehicles Mahindra holds 42% share.
 In commercial vehicles Tata motors has 60%
share.Tata motors is also world’s fifth largest
medium & heavy commercial vehicle
manufacturer

12.  Fast paced urbanization to rise from 28% to
40% by 2020.
 Middle class expanding by 30-40 million every
year.
 Growing population.
 Upward migration of household income.
 Deduction in excise duty.

13. COMPANY NAMECOMPANY NAME 2006-072006-07 2007-082007-08 GROWTGROWT
HH
Maruti SuzukiMaruti Suzuki 675059675059 764842764842 13.3%13.3%
Mahindra &Mahindra &
mahindramahindra
177965177965 231355231355 30%30%
Skoda motorsSkoda motors 1244412444 1418714187 14.1%14.1%
General motorsGeneral motors 3885738857 6654366543 71%71%
Hero HondaHero Honda 33367563336756 37037003703700 11%11%

14. Invest in India
Excellent Source for IT based
Engineering Solutions - for Product &
Process Integration
Scaling Costs
Optimising Resources
Twin Indian
Advantages…

15.  By 2010, India is expected to witness over Rs.
30,000 crore of investment.
 Maruti udyog has set up the second car plant
with an investment of Rs.6500 crore
 Hundai will bring in more than Rs.3800 crore in
India.
 Tata moters will be investing Rs.2000 crore &
ford about rs. 350 crore.
 Ashok leyland has announced over Rs. 1000 crore
of investment.

16. POLICIES RELATING TO THEPOLICIES RELATING TO THE
SECTOR : AUTO POLICYSECTOR : AUTO POLICY
• Policy for promoting integrated, phased,
enduring and self sustained growth.
•Allows automatic approval for foreign equity
investment.
•Lays emphasis on R&D activities
•Formulation of an appropriate auto fuel policy
•Confirms the government’s intention on
harmonizing the regulatory standards with the
rest of the world

17. The largest player in the Indian industry. Plans to launch
new and exciting products in the Indian markets,
including the ‘100,000’ car
Suzuki’s JV in India and the largest passenger car
manufacturer in India.
The third largest passenger car manufacturer in India
and one of the largest exporters of vehicles. Has
established India as one of its manufacturing bases in
the world. Is planning to invest heavily to boost exports
from India.
Has vision of capturing 10 % share of the Indian passenger
car market by 2010
One of the leading players in the Indian premium cars segment

18. One of the leading players in the Indian premium cars segment.
Plans to enter the small car segment by re-launching the Matiz
One of the largest players in the UV / MUV segment
The 2nd largest CV manufacturer in India
Other global players who are in India / have plans for India include -
Volvo, Daimler Chrysler, BMW and Nissan Motors
One of the leading players in the Indian premium cars segment

19. The largest 2 wheeler manufacturer in the world
The 2nd largest 2- wheeler manufacturer in India and the largest
3 wheeler manufacturer. Has plans for establishing a
manufacturing
facility in Indonesia
The third largest 2 wheeler manufacturer in India. Has plans
for establishing a manufacturing facility in Indonesia
Has recently entered the Indian market through its direct
Subsidiary (in addition to its JV – Hero Honda)
Has recently entered the Indian market through its direct
subsidiary

20. SEGMENT COMPANIES
Cars/SUVs Maruti Suzuki, Honda, Toyato, Skoda,
General Motors, Tata, Ford, Hyundai,
Daimler, Fiat, Chrysler.
Two-
wheelers
Tvs, Yamaha, HeroHonda, kinetic,
LML, Bajaj
CVs Tata, Swaraj Majda, Ashok Leyland,
M&M, Eicher,Volvo, Mitsubishi.
Tractors Escorts,New Holland,M&M, L&t,
Punjab Tractors.
GLOBAL PLAYERS IN INDIA

21.  Unstructured & uncontrolled growth of
cities & towns.
 High cost of fuel.
 Pollution problem.
 Responsibility towards environment.
 Lack of world-class infrastructure.
 Parking problem in big cities.
 Increasing competition from the Railway
& waterway.

22.  Produce vehicles that would support the
usage of the alternative fuel.
 Increase vehicle fuel economy for a given
fuel type.
 Development of hybrid technology.
 Safe driving.
 Environment friendly vehicles.
 Provide better infrastructure in &
between cities.

23.  THE HINDU (SURVEY OF INDIAN INDUSTRY
2007)
 www.indianauto.com
 www.autoexport.html
 www.automobileindustry.com