AUTOMOBILE
INDUSTRY
AUTOMOBILES
A self-propelled passenger vehicle that usually has four wheels
and an internal-combustion engine, used for land transport.
Also called motorcar.
AUTOMOBILES
Two wheelers Three wheelers Passenger cars Commercial vehicle
SCENARIO OF AUTOMOBILE INDUSTRY
According to SIAI the growth rate of automobile industry is 31.05%
per annum.
Automobile industry in India has an annual production of over 11
million vehicles and exports of 1.5 million.
Indian passenger vehicle market is dominated by cars (79%).
AUTOMOBILE SECTOR
automobile industry in India is the seventh largest in the world.
Chennai is the major chunk of India's car manufacturing industry and
hence known as 'Detroit of India'.
Car had touched the Indian streets for the first time 1898.
India is presently ranked 17th amongst auto car manufacturing
countries in the world.
TOP TEN PLAYERS
• Maruti Udyog Limited
• Hero Motors Limited
• Tata Group
• Bajaj Auto Limited
• Mahindra Group
• Ashok Leyland
• Yamaha Motor India
• Hyundai Motors India Limited
• Toyota Kirloskar Motor Private Limited
• Honda Siel Cars India Limited
STATISTICS
India stands second in the world small car market.
India is the 4th largest car market in Asia recently.
Passenger car market in India is the eleventh largest in the world.
Automobile sector contributes about 4% to the India’s GDP and 5% in India’s
industrial production.
Second largest 2 wheeler market in the world.
India is the fifth largest commercial vehicle manufacture in the world.
Domestic Market Share for 2009-10
Passenger Vehicles 15.86
Commercial Vehicles 4.32
Three Wheelers 3.58
Two Wheelers 76.23
HISTORY
The history of the automobile begins as early as 1769, with the creation
of steam-powered automobiles.
In 1806, the first cars powered by internal combustion engines running
on fuel gas appeared.
petrol-fueled internal combustion engine were introduced in the year
1885.
Exports
Automobile Exports registered a growth of 22.30 percent during
the current financial year.
Automobile Exports Trends (Number of
Vehicles)
Category 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Passenger 129,291 166,402 175,572 198,452 218,401 335,729 446,146
Vehicles
Commercial 17,432 29,940 40,600 49,537 58,994 42,625 45,007
Vehicles
Three 68,144 66,795 76,881 143,896 141,225 148,066 173,282
Wheeler
s
Two Wheelers 265,052 366,407 513,169 619,644 819,713 1,004,174 1,140,184
Grand Total 479,919 629,544 806,222 1,011,529 1,238,333 1,530,594 1,804,619
CONTRIBUTION TO EXPORTS BY MAJOR
INDIAN PLAYERS IN PASSENGER CAR
SEGMENT
• Maruti udyog Ltd - 20%
• Tata motors - 12%
• Others - 68%
SHARE OF EACH PLAYER
MARUTHI
2% 3%
2%2% 4% TATA MOTOR
HYUNDAI
47%
GM
FORD
27%
HONDA SIEL
MAHINDRA & RENAULT
13%
OTHERS
BARRIERS TO ENTRY
Low High
1 2 3 4 5
Economy of
scale
Brand identity
Product
differentiation
Switching cost
Access to
channel of
distribution
Capital
requirement
Access to
technology
Accessto raw
material
Govt
Protection
Barriers to Exit
Low High
1 2 3 4 5
Asset
Specialization
Cost of Exit
Govt
Restriction