Automobile Industry 1

8/3/2019 Automobile Industry 1

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Automobile

Industry:

By:GROUP 7Abhishek KumarArijeet GuhaKiran GuptaK. Bharat

Shaivya GuptaSyed Arshed
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What is an automobile? An automobile is a wheeled motor vehicle used

for transporting passengers, which also carries itsown engine or motor.
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Automobile Industry overview:India's passenger car and commercial vehiclemanufacturing industry is the seventh largest in theworld , with an annual production of more than 2.6million units in 2009. In 2009, India emerged as Asia'sfourth largest exporter of passenger cars, behind Japan,

South Korea and Thailand.

The automobile industry in India :

The automobile industry in India happens to be theninth largest in the world

India emerged as the fourth largest exporter ofautomobiles.

It is the second largest two-wheeler market in theworld

It is the fourth largest commercial vehicle market in

the world.
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Industry Structure
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Industry Environment

PEST ANALYSIS of Industry Environment

Political factors Reduction in Import Duties

Auto Policy

Government regulation and support

Fiscal Policy Encouraging Foreign Direct Investment
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8/28

Economical factors

The industry is in a slowdown phase due to factorslike:

high interest rates

rising levels of inflation

lack of easy finance

global oil prices

raw material prices have increased by about 50% forsome players and doubled for the less fortunateones.
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9/28

Social factors Literacy levels

Changing income levelsChanging family structure

Population growth in India Use of cars as cabs Change in the lifestyle of Indians Increased youth population Increased concern for social statusand standard of living

Growth in urbanization Low interest rates translating to low Financing ans acquisition costs hence greater

affordability 85% of cars financed in India
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10/28

Technological factors

Fuel Efficiency Common Rail Diesel technology Variable Valve Timing Hybrid Cars Fuel efficient

Low emission Quietness Concept Cars Bio fuel for commercial utilization

Safety Technology

Wheel lock upAdditional breaking forceAir BagFront Side Rear end collisionWhiplash Injury lesseningVehicle stability control
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11/28

Industry Growth and Trend On 22 February 2010, Hyundai motors exported its10,00,000th car, the feat which was achieved by the firm in

just over 10 years. Hyundai Motors is the largestpassenger car exporter and the second largest carmanufacturer in the country.

General Motors has announced its plans to export not lessthan 50,000 cars made in India by the year 2011.

Ford Motors is to setup a manufacturing facility costingabout US$500 million in India with an annual capacity of250,000 cars. The firm has stated that the facility will playa major part in its strategic plan to make India a hub for its

global production business. Fiat motors has stated that it will source a big volume of

auto components from India worth about US$1 billion. In the year 2009, India overtook China by emerging as the

fourth largest exporter of cars in Asia.
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Documents

Automobile Industry 1