AUTOMOBILE
INDUSTRY
Presented By:
VIVEK AGARWAL
OBJECTIVES OF
PRESENTATION
• Introduction to the Sector .
• Evolution of the Sector .
• Key Products .
• Key Players .
• Contribution to the Economy in terms of GDP .
• International Presence .
• SWOT Analysis .
• Future of the Sector .
INTRODUCTION
• It begins as early as 1769.
• The automotive 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.
• This sector has generated about 4.5 lakh of direct
employment and about one crore of indirect
employment.
FACTS & FIGURE
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.
EVOLUTION
INITIAL YEARS - BEFORE 1980’s
Manufacturing was licensed.
Excise duties, sales tax & custom duty.
Premier automobiles Ltd & Hindustan Motors .
PROTECTIONISM – 1980’s
Entry of MUL, Better Product with govt. support .
Seller’s Market .
Long waiting periods .
EVOLUTION Cont….
LIBERALIZATION – 1990’s
Delincensing in 1993 .
Decrease in custom & excise .
Auto finance boom more players .
Joint ventures trend .
GLOBALIZATION - 2000’s
Buyers market .
Easy finance .
Diversifying to related activities .
KEY PLAYERS
• Maruti • M&M
• TATA • Fiat
• Hyundai
• Skoda
• Honda
• Ford
• Audi
• GM • Mercedes Benz
• Sonalika International • BMW
• HM • Volkswagon
• Force • Mitshubishi
AUTOMOBILE
3 WHEELLER PASSENGER COMMERCIAL
2 WHEELLER
VEHICLE VEHICLE
SEGMENTATION OF
AUTOMOBILEPASSENGER
INDUSTRY
VEHICLE
15%
COMMERCIAL
VEHICLE
4%
3WHEELER
4%
2WHEELE
R
77%
2 WHEELER
Market leader Hero Honda with market share 50%
3 WHEELER
Market leader Mahindra & Mahindra with market share 42%
PASSENGER VEHICLE
Market leader Maruti with market share of 52%
COMMERCIAL VEHICLE
Market leader Tata Motor with market share 61%
GDP
• GDP Directly and indirectly employs more than 10 million
people.
• The market value of Automobile Industry is more than US$8
billion.
• Contribution in Indian GDP is near about 4% and will be
double by 2016.
• FDI inflows in Automobile Industry 2008-09 was Rs.5,212
Cr an increase of 47.25% compare to 2007-08.
SWOT ANALYSIS
STRENGTHS
• Large domestic market .
• Sustainable labor cost advantage .
• Government incentives for manufacturing plants .
• Strong engineering skills in design .
WEAKNESSES
• Lack in proper infrastructure .
• Not proper sale services .
• Rising cost of production .
• Low investment in Research and Development .
CONTD…
OPPORTUNITIES
• Hydrogen as automotive fuel.
• Innovative technologies.
• Ecosystem.
• Rising rural demand .
THREATS
• Rising interest rates .
• Cut throat competition .
• Lack of technology for Indian Companies .
INTERNATIONAL PRESENCE
• TATA acquired Jaguar & Land Rover.
• Ashok Leyland .
• Mahindra & Mahindra.
• United Kingdom is the India’s largest export market.
• In 2009 India (0.23m) surpassed China (0.16m) .
• Asia's fourth largest exporter of cars after
Japan (1.77m),
Korea (1.12m)
and Thailand (0.26m)
FUTURE
• Automobile industry expert predicts that by 2050 every
sixth car in the world will be for Indians.
• Nissan Motors plans to export 2,50,000 vehicles
manufactured in its India plant by 2011.
• 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.
• Passenger car production in India is projected to cross
three million units in 2014-15.
• Motorcycle sales will perform positively in future,
exceeding 10 Million units by 2012-13.
HAVE
A
NICE JOURNEY