7/31/2019 Export of Automobile -By Sandeep Kumar Sec A

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BY SANDEEP KUMAR (016)

BY SANDEEP KUMAR (a1802011016)

Sec A, SEM 2ND 

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INTRODUCTIONsixth largest passenger vehicle producer

in the world

the fastest growing globally, the secondfastest growing automobile market in

the world Asia's fourth largest exporter of 

passenger cars 

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India's car manufacturing industry is based aroundthree clusters in the south, west and north.

 About 91% of the vehicles sold are used by householdsand only about 9% for commercial purposes

Chennai is the biggest with 35% of the revenue share.The western hub near Maharashtra is 33% of the

market. The northern cluster is primarily Haryana  with 32%

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The Indian Automobile Industry manufactures over 11million vehicles and exports about 1.5 million each year

The dominant products of the industry are two wheelers with a market share of over 75% andpassenger cars with a market share of about 16%.

Commercial vehicles and three wheelers share about9% of the market between them..

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TRAGATE annual vehicle sales are projected to increase to 5

million by 2015 and more than 9 million by 2020

 With a rapidly growing middle class, all the advantagesof this sector in India are yet to be leveraged.

Utilising manufacturing plants to optimum level andunderstanding implications from the government

policies are the essentials in the Automotive Industry of India.

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TRAGATE infrastructure creation, create favourable and

predictable business environment, attract investmentand promote research and development

products of world-class quality establishing costcompetitiveness and improving productivity in labourand in capital

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Tata Motors and Maruti Suzuki 

have material cost of about 80%but are recording profits aftertax of about 6% to 11%.

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Tata Motors is leading the commercial vehicle segment with a market share of about 64%.Maruti Suzuki isleading the passenger vehicle segment with a marketshare of 46%. Hyundai Motor India and Mahindra andMahindra are focusing expanding their footprint in theoverseas market. Hero Honda Motors is occupyingover 41% and sharing 26% of the two wheeler marketin India with Bajaj Auto. Bajaj Auto in itself isoccupying about 58% of the three wheeler market.

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The key to successin the AUTOMOBILE

industry is to improve labourproductivity, labour

flexibility, and capitalefficiency 

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Mahindra  According to New York Times Mahindra Scorpio Jeep 

in service with the Italy 's CNSAS.

India's automobile exports have grown consistently and reached $4.5 billion in 2009, with UnitedKingdom being India's largest export market followedby Italy , Germany , Netherlands and South Africa.India's automobile exports are expected to cross $12billion by 2014.

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Hyundai, the biggest exporter from the country, now ships morethan 250,000 cars annually from India. Apart from shipments toits parent Suzuki, Maruti Suzuki also manufactures small cars forNissan, which sells them in Europe. Nissan will also export small

cars from its new Indian assembly line. Tata Motors exports itspassenger vehicles to Asian and African markets, and is inpreparation to launch electric vehicles in Europe in 2010. Thefirm is also planning to launch an electric version of its low-costcar Nano in Europe and the U.S. Mahindra & Mahindra ispreparing to introduce its pickup trucks and small SUV models

in the U.S. market. Bajaj Auto is designing a low-cost car for theRenault Nissan Automotive India, which will market the product worldwide. Renault Nissan may also join domestic commercial vehicle manufacturer Ashok Leyland in another small carproject.

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This list is of cars that are officially available andserviced in India. While other cars can be imported tothe country at a steep 105% import duty , car-makerssuch as Alfa Romeo, McLaren, Pagani, Cadillac,Chrysler, SSC, Zenvo, SEAT, MINI, Smart, Daihatsu,Lexus, Infiniti, Acura, Saab, Spyker, Lotus, Ariel,Caterham, Peugeot-Citroën, Mazda, Jeep, SsangYong,

Kia, GAZ and Proton are in varying stages of officialintroduction to the Indian automobile market.

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AUTO POLICY 

(i) Exalt the sector as a lever of industrial growth andemployment and to achieve a high degree of value addition inthe country;

(ii) Promote a globally competitive automotive industry andemerge as a global source for auto components;

(iii) Establish an international hub for manufacturing small,affordable passenger cars and a key center for manufacturingTractors and Two-wheelers in the world;

(iv) Ensure a balanced transition to open trade at a minimal riskto the Indian economy and local industry;

(v) Conduce incessant modernization of the industry andfacilitate indigenous design, research and development;

(vi) Steer India's software industry into automotive technology;

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(vii) Assist development of vehicles propelled by alternate energy sources;

(viii) Development of domestic safety andenvironmental standards at par with internationalstandards.

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AUTOMOTIVE INDUSTRY 

India manufactures about 38,00,000 2-wheelers, 5,70,000passenger cars, 1,25,000 Multi Utility Vehicles, 1,70,000Commercial Vehicles and 2,60,000 tractors annually. Indiaranks second in the production of two wheelers and fifth in

commercial vehicles. The auto sector (excluding Tractors) attained a steep

cumulative annual growth of 22% between 1992 and 1997.The Tractors achieved a cumulative annual growth of 16%.Component production grew by 28%. There has been a

slowdown in the automobile sector in the past two years.However, the component industry maintained a low butpositive growth rate mainly due to its export performance.Over the years, the component industry has maintained a10% - 12% share of exports in the total production

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FOREIGN DIRECT INVESTMENT  Automatic approval for foreign equity investment upto

100% of manufacture of automobiles and componentis permitted

IMPORT TARIFF

In respect of items with bound rates viz. Buses, Trucks,Tractors, CBUs and Auto components, Government will give adequate accommodation to indigenous

industry to attain global standards Appropriate measures including anti dumping duties

 will be put in place to check dumping and unfair tradepractices

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EXCISE DUTY 

Motor Cars

9.1.1 The ownership of cars in India is just 6 per thousand of population as against 500 in the developed economies. The

contribution of the auto sector to the GDP and employment islikewise low. Expansion of local demand holds great potentialand is vital to install scale volumes of production.

 

9.1.2 Domestic demand mainly devolves around small cars not

exceeding 3.80 meters in length. Small cars occupy less of roadspace and save on fuel. These capture more than 85% of themarket. India can build export capability and become an Asianhub for export of small cars. The growth of this segment needs tobe spurred.

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THANK YOU