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PRESENTATION
ONAUTOMOBILE
INDUSTRY
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It begins as early as 1769.
The automobile sector is one of the key segments ofthe economy having extensive forward and backwardlinkages with other key segments of the economy.
It contributes about 4 per cent in India's GrossDomestic Product(GDP) and 5 per cent in India's
industrial production.
Indian Automobile sales growth rate would be 9.5 % by2010.
INTRODUCTION TO AUTOMOBILE
SECTOR
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FACTS 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 tobecome 7th largest by 2016.
Sale of passenger cars in India is likely to grow at anaverage of 14.9% each year to touch 2.1 million mark by2010.
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KEY PLAYERS
Maruti TATAHyundai Honda
Ford GMSonalika International HMForce Toyota KirloskarM&M FiatSkoda Audi
Mercedes Benz BMWVolkswagon Mitshubishi
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AUTOMOBILE
2
WHEELLER
3
WHEELLER
PASSENGER
VEHICLE
COMMERCIAL
VEHICLE
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2 WHEELER
Market leader Hero Honda with market share 50%
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3 WHEELER
Market leaderMahindra &Mahindra with market share 42%
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PASSENGER VEHICLE
Market leaderMaruti with market share 52%
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COMMERCIAL VEHICLE
Market leader Tata Motor with market share 61%
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SEGMENTATION OFAUTOMOBILE
INDUSTRY Following is the segmentation that how much each sector comprises
of whole Indian Automobile Industry.
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INDIAN AUTO MARKET GROWTH
FOR THE YEAR2007-08
The automobile industry crossed a landmark with totalvehicle production of 10 million units.
Car sales was 8,82,094 units against 8,20,179 units in2007-08.
The two-wheeler market grew by 13.6 % with 70,56,317units against 62,09,765 units in 2007-08.
Commercial vehicles segment grew at 10.1 % with3,50,683 units against 3,18,430 units in 2007-08
The domestic automobile industry sales grew 12.8% at89,10,224 units as against 78,97,629 units in 2007-08.
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Medium and heavy commercial vehicles managed agrowth of 4.5%.
Light commercial vehicles sales growth was 19.4% at1,43,237 units against 1,19,924 units in 2007-08.
Three-wheelers sales rose by 17% at 3,60,187 unitsagainst 3,07,862 units in 2007-08.
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SALES PERFORMANCE IN 2009
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GDP
Directly and indirectly it employs more than 10 millionpeople.
The market value of Automobile Industry is more than US$8billion. and Contribution in Indian GDP is near about 4% and
will be double by 2016. The automobile industry in India grew at rate of 11.5 % over
the past five years, but growth rate in last year 2008-09 wasonly 0.7%.
FDI inflows in Automobile Industry 2008-09 was Rs.5,212 Cran increase of 47.25% compare to 2007-08.
In 2009, India emerged as Asia's fourth largest exporter ofautomobiles, behind Japan, South Korea and Thailand.
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SWOT OF
AUTOMOBILE INDUSTRY
STRENGTHS
Large domestic market
Sustainable labor cost advantage
Government incentives for manufacturing plants Strong engineering skills in design
Able to achieve significant gains in productivity
WEAKNESSES
Low labor productivity
High interest costs and high overheads
Rising cost of production
Low investment in Research and Development
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OPPORTUNITIES
Commercial vehicles Heavy thrust on mining and construction activity
Increase in the income level
Cut in excise duties
Rising rural demand
THREATS
Rising interest rates
Cut throat competition Lack of technology for Indian Companies
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FUTURE PROSPECT OFINDIAN
AUTOMOBILE SECTOR
Automobile industry expert predicts that by 2050 everysixth car in the world will be for Indians.
By 2010 India will take over Germany in sales volumes
and Japan by 2012 The Indian automobile component industry is estimated
to triple from USD 63 billion to USD 190 billion within aspan of six years by 2012.
Industry analysts predict this industry to touch USD13000 million mark by 2010, a cumulative growth of9.5% annually.
It is said that for every Re 1 spent, the auto sectorreturns Rs. 2.24 to the Indian economy.
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MICHAEL PORTERFIVEFORCE
MODEL
DEGREE OF RIVALRY
THREAT OF SUBSTITUTES
BARRIERS TO ENTRY
SUPPLIERS POWER
BUYERS POWER
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CONCLUSION
Industry across countries will have to meet challenges ofnewer technologies, alternative fuels and affordability ofautomobiles by people at large through constructivecooperation. The earlier we are able to achieve this the better
it would be for the world performance.
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