2. INTRODUCTION TO
AUTOMOBILE SECTOR
• It begins as early as 1769.
• The automobile sector is one of the key segments of
the economy having extensive forward and backward
linkages with other key segments of the economy.
• It contributes about 4 per cent in India's Gross
Domestic Product(GDP) and 5 per cent in India's
industrial production.
• Indian Automobile sales growth rate would be 9.5 % by
2010.
3. FACTS
• 9th largest automobile industry .
• 2nd largest two-wheeler market,
• 4th largest in Heavy Trucks.
• 2nd largest tractor manufacturer.
• 11th largest passenger car market and expected to
become 7th largest by 2016.
• Sale of passenger cars in India is likely to grow at an
average of 14.9% each year to touch 2.1 million mark by
2010.
4. KEY PLAYERS
Maruti TATA
Hyundai Honda
Ford GM
Sonalika International HM
Force Toyota Kirloskar
M&M Fiat
Skoda Audi
Mercedes Benz BMW
Volkswagon Mitshubishi
10. SEGMENTATION OF
AUTOMOBILE INDUSTRY
• Following is the segmentation that how much each sector comprises
of whole Indian Automobile Industry .
11. INDIAN AUTO MARKET
GROWTH FOR THE YEAR
2007-08
• The automobile industry crossed a landmark with total
vehicle production of 10 million units.
• Car sales was 8,82,094 units against 8,20,179 units in
2007-08.
• The two-wheeler market grew by 13.6 % with 70,56,317
units against 62,09,765 units in 2007-08.
• Commercial vehicles segment grew at 10.1 % with
3,50,683 units against 3,18,430 units in 2007-08
• The domestic automobile industry sales grew 12.8% at
89,10,224 units as against 78,97,629 units in 2007-08.
12. • Medium and heavy commercial vehicles managed a
growth of 4.5%.
• Light commercial vehicles sales growth was 19.4% at
1,43,237 units against 1,19,924 units in 2007-08.
• Three-wheelers sales rose by 17% at 3,60,187 units
against 3,07,862 units in 2007-08.
15. GDP
• Directly and indirectly it employs more than 10 million
people.
• The market value of Automobile Industry is more than US$8
billion. and Contribution in Indian GDP is near about 4% and
will be double by 2016.
• The automobile industry in India grew at rate of 11.5 % over
the past five years, but growth rate in last year 2008-09 was
only 0.7%.
• FDI inflows in Automobile Industry 2008-09 was Rs.5,212 Cr
an increase of 47.25% compare to 2007-08.
• In 2009, India emerged as Asia's fourth largest exporter of
automobiles, behind Japan, South Korea and Thailand.
16.
17. SWOT OF
AUTOMOBILE INDUSTRY
STRENGTHS
• Large domestic market
• Sustainable labor cost advantage
• Government incentives for manufacturing plants
• Strong engineering skills in design
• Able to achieve significant gains in productivity
WEAKNESSES
• Low labor productivity
• High interest costs and high overheads
• Rising cost of production
• Low investment in Research and Development
18. OPPORTUNITIES
• Commercial vehicles
• Heavy thrust on mining and construction activity
• Increase in the income level
• Cut in excise duties
• Rising rural demand
THREATS
• Rising interest rates
• Cut throat competition
• Lack of technology for Indian Companies
19. FUTURE PROSPECT OF INDIAN
AUTOMOBILE SECTOR
• Automobile industry expert predicts that by 2050 every
sixth car in the world will be for Indians.
• By 2010 India will take over Germany in sales volumes
and Japan by 2012
• The Indian automobile component industry is estimated
to triple from USD 63 billion to USD 190 billion within a
span of six years by 2012.
• Industry analysts predict this industry to touch USD
13000 million mark by 2010, a cumulative growth of
9.5% annually.
• It is said that for every Re 1 spent, the auto sector
returns Rs. 2.24 to the Indian economy.
20. CAREER
POSITION DETAIL FOR MBA STUDENT
• State - Head- Commercial
• Regional Manager- Commercial
• Regional Manager- Refurbishment
• Senior Manager-Refurbishment
• Sales Executive
• "MIS Manager“
• HR/Industrial
21. AUTOMOBILE JOB
DESCRIPTION
• To coordinate with the different department .
• To sketch new ideas .
• To get opinions of the users and clients and work towards
getting better results.
• To plan, implement and design the blueprints for every part
of the model.
• To build up prototypes for a new model
• Building up the actual model
• To conduct various quality tests
22. EDUCATION REQUIREMENT
FOR AUTOMOBILE JOBS
• Bachelor’s Degree
• Diploma in Automobile/ Mechanical engineering
• Post Graduate degree
• Master’s degree
• MBA (Master’s of Business Administration)
24. AUTOMOBILE JOB SALARY
• Beginner (0-1 years of experience)
Monthly: Rs.8,000 to Rs.18,000
Annual: Rs.0.96 lakhs to Rs.2.16 lakhs
• Professional ( 2-3 years of experience) :
Monthly: Rs. 18,000 to Rs. 30,000
Annual: Rs.2.16 lakhs to Rs. 3.60 lakhs
• Automobile Manager professional ( 5 and above years of
experience)
Monthly: Rs. 30,000 to Rs. 50,000
Annual: Rs.3.60 lakhs to Rs. 6.00 lakhs
25.
26. JOBS IN SELLING UNITS (SHOWROOMS)
• CRM (Package: Rs 12000 to Rs 18000) +
Incentives
• HR Manager (Package: Rs 12000 to Rs 18000)
• Sales Manager (Should be experienced) salary
starts from Rs 20000 + incentives.
• Event Manager (Package: Rs 12000 to Rs 18000)
27. CITIES WHERE IT WILL BE
EASIER TO FIND AN
AUTOMOBILE JOB
• Mumbai
• Delhi
• Chennai
• Pune
• Hyderabad
• Gurgaon
• Bangalore
• Chandigarh
• Kolkatta
• Ahmedabad
28. PROBLEMS RELATED TO
RECRUITMENT IN
AUTOMOBILE SECTOR
• Attrition and skill migration
• Talent Crunch
• Lower Salary hikes
29. MICHAEL PORTER FIVE
FORCE MODEL
• DEGREE OF RIVALRY
• THREAT OF SUBSTITUTES
• BARRIERS TO ENTRY
• SUPPLIER’S POWER
• BUYER’S POWER
30. INTRODUCTION TO TATA
MOTORS
• Tata Motors Limited is a multinational corporation
headquartered in Mumbai, India. Part of the Tata Group
• Established in 1945, when the company began
manufacturing locomotives, the company manufactured
its first commercial vehicle in 1954 in a collaboration with
Daimler-Benz AG, which ended in 1969.
• Tata Motors has a consolidated revenue of USD 16
billion after the acquisition of British automotive brands
Jaguar and Landrover in 2008.
• It is India's largest company in the automobile and
commercial vehicle sector.
31. INTRODUCTION CONTINUED ….
• The company is the world’s fourth largest truck
manufacturer, and the world’s second largest bus
manufacturer. In India.
• Tata Motors is a dual-listed company traded on both the
Bombay Stock Exchange as well as on the New York
Stock Exchange.
• In 1998 it launched Tata Indica, India's first fully
indigenous passenger car.
• Tata ranks as the leader in every commercial vehicle
segment, and is in the top 3 makers of passenger cars.
Tata Motors is also the designer and manufacturer of the
iconic Tata Nano, which is the cheapest car in the world.
32. SWOT
STRENGTHS
• The internationalization strategy
• Expertise.
• Intensive management development.
• Successful alliance with Italian mass producer Fiat since
2006.
WEAKNESSES
• The company's passenger car products are based upon
3rd and 4th generation platforms.
• Tata has not got a foothold in the luxury car segment in
its domestic, Indian market.
33. SWOT CONTINUED…….
OPPORTUNITIES
• Purchased the Land Rover and Jaguar brands from Ford
Motors for UK £2.3 million in 2008.
• Tata Motors Limited acquired Daewoo Motor's
Commercial vehicle business in 2004 for around USD
$16 million.
• Nano is the cheapest car in the World introduced by
TATA.
34. SWOT CONTINUED……
THREATS
• Other competing car manufacturers have been in the
passenger car business for 40, 50 or more years.
• Sustainability and environmentalism could mean extra
costs for this low-cost producer.
• Rising prices in the global economy could pose a threat
to Tata Motors Limited on a couple of fronts.
• The price of steel and aluminium is increasing putting
pressure on the costs of production.
• Many of Tata's products run on Diesel fuel which is
becoming expensive globally and within its traditional
home market.
35. MARUTI UDYOG LIMITED
• Maruti Suzuki India Limited is a publicly listed
automaker in India.
• It was the first company in India to mass-produce and
sell more than a million cars.
• It is the market leader in India and on 17 September
2007, Maruti Udyog was renamed Maruti Suzuki India
Limited.
• The company headquarter is in Gurgaon,Haryana.s
• Established in December 1983, Maruti Suzuki India Ltd.
has ushered a revolution in the Indian car industry.
36. INTRODUCTION OF MUL
CONT…..
• This car is meant for an average Indian individual which
is affordable as well as has elegant appeal.
• Maruti Suzuki India Ltd. is the result of collaboration of
Maruti with Suzuki of Japan.
• The company has crossed the milestone of becoming
the first Indian company in March 1994, by
manufacturing in totality one million vehicles.
37. SWOT
STRENGTHS
• Established distribution and after-sales networks
• Understanding of the Indian market and ability to liaison
with the government
• Ability to design products with differentiating features
• Brand Image
• Experience and Know-how in technology
WEAKNESSES
• Lack of experience with the foreign market
• Inexperience with foreign workforce
• Heavy Import tariffs
38. SWOT CONTINUED…….
OPPORTUNITY
• Increased purchasing power of Indian middleclass
category
• Govt. subsidies
• Tax benefits
• Foreign collaboration
THREATS
• Threats from Chinese manufacturers
• Indian as well as foreign competitors
39. MAHINDRA & MAHINDRA
• Incorporated on 2nd October 1945 by two brothers Mr. J
C Mahindra & Mr. K C Mahindra.
• Converted into public limited company in 1955.
• Started with manufacturing General Utility Vehicles.
• Also started manufacturing Tractors and LCV(Light
Commercial Vehicles)
40. CONTI…
• Major Players in Utility vehicle segment and Tractor
segment.
• One amongst the top five tractor manufacturing
companies in the world
• Very indigenous regarding very little help from foreign
technology sources.
• Presence in countries of Europe, Latin America, Africa
and United States of America
41. SWOT ANALYSIS
STRENGTH
• Very high Brand recall in Tractors Market.
• Continuous Innovation.
• Strong Research & Development
WEAKNESS
• High dependence on Rural Market.
42. OPPORTUNITY
• 10 tractors per 1000 hectares of agricultural area,
much below world average.
• Huge untapped Market.
THREAT
• Entry of Competent Foreign & Domestic Players in
Tractors Market.
43. HERO HONDA
• Joint venture – Both Hero Cycles(India) and Honda
Motor Company (Japan) holds 26%stake.
• Incorporated in January 1984.
• Market leader in Two Wheeler Segment with 55 % of
domestic market .
• Two Manufacturing Units Located at Gurgaon and
Dhaurhera in Hariyana.
44. SWOT ANALYSIS
STRENGTH
• Excellent ability to Understand Customer Needs and deliver
best suitable products.
• Recognized and established Brand name.
• Products with Superior Performance, Low maintenance and
high resell value.
WEAKNESS
• Honda Motor Company is dominant partner.
• Lack of technical capabilities of Honda Motors may degrade
the performance of the company and its products.
45. OPPORTUNITY
• Global Expansion.
• Expansion of Target Market
• Huge Indian market.
THREAT
• Honda and Scooter India can take away market Share
and form joint venture to go sour.
• Emergence of strong Players.
• FDI Announcement 100 % may attract foreign players to
domestic market.
46. CONCLUSION
Industry across countries will have to meet challenges of
newer technologies, alternative fuels and affordability of
automobiles by people at large through constructive
cooperation. The earlier we are able to achieve this the better
it would be for the world performance.
