Indian automobile

1. ANALYZINGTHEAUTOMOBILEINDUSTRYWITH
SPECIALREFERENCETOTOYOTA
- Neeraj Sajwan
MBA (Sync.)
127627

3. IndianAutomobileIndustry
•Facts
•Second Largest two wheeler manufacturer in
the world
•Largest tractor and three wheeler
manufacturers in the world
•Fourth largest Commercial vehicle market in
the world
•Eleventh largest passenger car market in the
world

4. IndianAutomobileIndustry
•Trends
•Growth of exports of 33.57 % FY 2011-12.
•Output of commercial vehicles has grown 2.8 times
compared to the 2.2 times increase in passenger cars
•For every passenger car turned out, there are almost 7
two-wheelers produced

5. IndianAutomobileIndustry
• Growth Potential
• The automobile industry had a growth of 15 %
during April-January 2011
• Can become World’s third largest automobile
market in 2030.
• By 2016, Automotive sector can DOUBLE its
percentage contribution to GDP from current
levels of 5% (US$50 billion) to 10% ($180
billion).

6. Objective
• To Analyze the Future Prospective of Toyota in the Indian
Automobile Industry

7. WhyIndia?

8. WhyIndia?
• Rising industrial and agricultural output
• Favorable demographic distribution with rising working
population and middle class
• Urbanization
• Greater affordability of vehicles
• Easy finance schemes

9. ResearchMethodology
• The data was collected from the following sources:
• Questionnaires
• Feedback forms

10. PESTANALYSISOFINDIANAUTOMOBILEINDUSTRY
Political
• Indian govt. launched AUTO POLICY for its Self
Sustained growth
• Allowed Foreign Equity Investment up to 100%
• Formulation of FUEL POLICY
• Promotes for Vehicles propelled by AES

11. ECONOMIC
• Weighted Tax Deductions up to 150% for in house R&D
activities.
• Reduced Interest rates for export financing.
• Economy has grown over 8.5% per annum for last 5
years.
• Manufacturing sector has grown 8-10 % for last few
years.

12. Social
• Changed Lifestyle leads to Increased demand
• The Average family size is 4 which makes it favorable to
buy a four wheeler.
• 4th largest economy on PURCHASING PARITY INDEX
• Preference for small and compact car
• Preference for Fuel efficient cars with low maintenance

13. TECHNOLOGICAL
• More & more emphasis on Research & Development.
• Government is promoting NATRIP(National Automotive
testing and R&D Infrastructure Project) to support the
growth of Auto industry in India.
• Customized solutions (Designer cars etc)can be provided
with proliferation of technology.
• With Entry of global brands both product and production
process has been improved.

14. FiveForcesWithinAutoIndustry
• Threat of New Entrants
• Bargaining Power of suppliers
• Bargaining power of buyers
• Threat of substitute products
• Rivalry among competing firms

15. ToyotaMotorCorporation
• Toyota Motor Co. was established as an independent
company in 1937. Although the founding family name is
Toyoda, the company name was changed to
• Toyota Motor Corp. grabbed more U.S. retail market share
than Ford Motor Co. in early November and it was less
than one share point behind General Motors Corp

16. S.W.O.TANALYSIS
Strengths
• Partnerships
• EPA Global 500 Award
• #1 of Japanese Producers
• SUVs

17. Weaknesses
• Poor Website
• Hiring and training people

18. Opportunities
• Hybrid Engines
• Rocketing oil prices have seen sales of the new hybrid
vehicles increase

19. Threats
• competitive rivalry in the car market

20. TomatchthegrowthofIndianautomobilemarket
• Long term commitment and a slower approach
• Additional investment
• New plant
• Scheduled to increased the production
• Global production base
• localized

21. Conclusion
• It is quite possible toyota might overtake not just M&M but
also TATA in the next three to five year

22. Recommendation
• Research & Development
• Improve fuel efficiency
• Local outreach programs
• Market survey
• Offensive marketing strategy

23. References
• www.acmainfo.com
• www.wikipedia.org
• www.siamindia.com
• www.ibef.org
• Ernst & Young Auto Track
• www.economywatch.com
• www.business-standard.com
• The Economic Times
• Hindu Business Line
• www.automobileindia.com
• automobiles.mapsofindia.com