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    A Presentation on Landscape of

    Automobile Industry sector

    Consulting Club

    http://images.google.co.in/imgres?imgurl=http://www.solomanufacturing.com/gifs/logo-3.jpg&imgrefurl=http://www.solomanufacturing.com/clientele.html&h=186&w=173&sz=6&hl=en&start=1&tbnid=I0f9qcz38GThfM:&tbnh=102&tbnw=95&prev=/images%3Fq%3Dmahindra%2B%2526%2Bmahindra%2Blogo%26svnum%3D10%26hl%3Den%26lr%3Dhttp://www.lumaxindustries.com/images/logo_tata.gifhttp://www.kineticindia.com/index.htmhttp://www.bajajauto.com/index.htm
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    Evolution of Automobile Industry

    Initial YearsManufacturing was licensed

    High Customs duty on import

    Steep excise duties &

    sales tax

    2 Major players:remier !utomo"iles #td& Hindustan Motors

    $%'s

    (ntry of M)#* "etter product*with go+ernment support

    Seller,s Mar-et

    #ong .aiting eriods

    (arly to mid %'s

    Seller,s mar-et and longwaiting periods

    /e0licensing in $%%1

    emo+al of capacityrestrictions

    /ecrease in customs &excise

    !uto finance "oom0 moreplayers 3foreign "an-s & non"an-ing companies* "etterschemes4

    Mid %'s 5 (arly 2'''s

    6uyers mar-et

    Increase in Indigeni7ation

    (asy !uto finance

    Manufactures di+ersifyinginto related acti+ities:

    finance lease* fleetmanagement* insuranceand used car mar-et

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    Trends in the automobile sector

    C!; $=4>?

    C!; $>42?

    C!;1%?/omestic Sales ha+e "een growing strongly

    (xports ha+e nearly tripled in the last = years

    #argest three wheeler mar-et in the world

    >thlargest passenger +ehicle in !sia

    >thlargest tractor in the mar-et

    =thlargest commercial +ehicle mar-et in theworld

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    egment !ise mar"et share

    8wo .heeler

    8hree.heeler

    assenger+ehicles

    C?B

    2 wheelers form the "ul- of exports as well* "ut are losing share to assenger+ehicles

    8he growth in the two wheeler mar-et is dri+en "y the motorcycle mar-et and isexpected to grow at $>0$= ? year on year

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    The #ey Players

    Commercialvehicles

    TATA Motors, Ashok Leyland, Swaraj Mazda,Mahindra & Mahindra ,Forcemotors, Eicher Motors

    assen!ervehicle

    TATA Motors, Mar"ti #dyo!, $onda Motors, Toyata, Skoda, Mahindra &Mahindra, %aimler Chrysler, $ind"stan Motors

    Two heeler $ero $onda, 'ajaj A"to, $onda Motors, T(S Motors, )amaha , *inetic Motors

    Three heeler 'ajaj A"to, ia!!io +ndia

    8wo wheeler

    assenger +ehicle

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    9pportunity India 0 ast pace ;rowth

    Lar!est democracy

    th lar!est economy -y inde.

    /th lar!est ener!y cons"mer

    ForE. reserves skyrocket 0rom #S% 1 -n 213345 to

    #S6 477 -n 22Fe-r"ary, 13385

    9% !rowth to contin"e -etween /:; 9oldman Sachs

    Leadin! in +T & '?

    ?il & 9as and 'iotechnolo!y s"nrise ind"stries

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    8wo .heeler Mar-et

    resent estimated si7e =4> mn units per yearC!; 3last = yearsB $'?

    Avera!e two:wheelers @er 4333 @eo@le

    India 2AChina '

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    !uto Component Mar-et

    (stimated mar-et si7e )SD @4A "n

    (stimated mar-et si7e 32'2'B )SD >A "n

    rojected C!; 2=?

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    $@ Cos

    21A Cos$ E = Mill )S D

    = E =' Mill )S D

    =' E =''Mill )SD

    $>% Cos

    !uto Component Industry Structure

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    IndiaF ! Home to glo"al players

    rod"ct layersCarsS#(s S"z"ki, $onda, Toyota,

    Mits"-ishi, 9M, Ford, %aimler:

    Chrysler, Skoda, Fiat, $y"ndai,

    Tata, M&M

    Two:wheelers T(S, $ero $onda, 'ajaj, )amaha,

    *inetic, LML

    C(s Tata, Ashok Leyland, Tatra, Eicher:

    Mits"-ishi, Swaraj:Mazda, M&M,

    (olvoTractors Escorts, M&M, L&T, "nja-

    Tractors, Bew $olland, +TL:

    ena"lt, Dohn:%eere, Steyr

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    Manufacturing Hu" for

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    India 0 Manufacturing Hu" for Components

    iat sourcing components

    ord full fledged component sourcing team

    8oyota Motors ;lo"al Hu" for 8ransmissions

    /aimler Chrysler sourcing G A' million (uro

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    (urope

    2&?

    !sia2A?

    !merica

    2&?!ustralia2?

    !frica

    $$?

    9thers

    >?

    (xport from India

    !uto Components expand mar-ets a"road

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    6uy from India

    9eneral Motors, #SA: 9lo-al "rchasin! Team 2$alol5

    (olvo, Sweden: 9lo-al '"yin! Team 2'an!alore 5

    +nternational Tr"ck & En!ine Co: 9lo-al "rchasin!

    C"mmins, #SA: 9lo-al "rchase Team 2"ne5

    Cater@illar, #SA: 9lo-al @"rchase sta00 2%elhi5 %el@hi, #SA: +nternational "rchase ?00ice

    Motorola A"tomotive Electronics %ivision, #SA

    (isteone.@ortin! +ndia:made com@onents worldwide

    Major 8ier $ suppliers "uying auto0componentsfrom India for their glo"al reuirements

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    artners with India

    Tier 4 Com@anies levera!e localman"0act"rers 0or Contract

    Man"0act"rin!

    Mitsu"ishi and ord tie0up with

    Hindustan Motorsawasa-i ties0up with 6ajajHero ties with Honda

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    $uture prospectsIndia Advantage%&'&'

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    8he Mar-et !d+antage

    ast paced ur"anisationto rise from 2? to >'? "y 2'2'

    Middle class expanding "y1' 0 >' million e+ery year

    ;rowing wor-ing population

    )pward migration of

    household income le+els

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    8he Juality & roducti+ity !d+antage

    A"to Com@anies achievin! hi!h@rod"ctivity thro"!h -est @ractices>

    T MT MSi. Si!maToyota rod"ction Systems Lean

    Companies growing in ran-s can offerHighest arts er Million le+els of uality

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    8he olicy !d+antage

    A"to olicy 1331 @romotes an

    inte!rated a"tomotive sector

    1334: "antitative estrictions were

    removed

    +ncentives 0or & %

    Strin!ent environmental controls

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    a+ora"le /emographics Impro+ing income cur+e & low rates $ ;lo"al Motorcycle Manufacturer

    #argest 8wo0.heeler Manufacturer 2nd #argest 8ractor Manufacturer =th #argest Commercial

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    Thank You