auto mobile industry preformance
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Automobile Industry Performance-
Prepared By
PRAVEEN KOHINKAR
key contributor to the Indian economy
Indian Market Overview
Largest Two-Wheeler Manufacturer in the World
2nd Largest Tractor Manufacturer in the World
5th Largest Commercial Vehicle Manufacturer in the World
Global Motorcycle Manufacturer is in India
4th Largest Car Market in Asia - crossed the 1 million mark
Key players in the Indian auto industry - Passenger Cars and CVs
The largest player in the Indian industry. Plans to launch new and excitingproducts in the Indian markets, including the ‘100,000’ car
Suzuki’s JV in India and the largest passenger car manufacturer in India
The third largest passenger car manufacturer in India and one of the largest exporters of vehicles. Has established India as one of its manufacturingbases in the world. Is planning to invest heavily to boost exports from India
Has vision of capturing 10 % share of the Indian passenger car market by 2010
One of the leading players in the Indian premium cars segment
One of the leading players in the Indian premium cars segment
Key players in the Indian Auto Industry - Passenger Cars and CVs
One of the leading players in the Indian premium cars segment.
One of the largest players in the UV / MUV segment
The 2nd largest CV manufacturer in India
Worlds Leading supplier of Commercial Tansport, The brand isshared between Volvo Group and Volvo Cars
Has great plans for India it is willing to postion India as its manufacturing base; it has joined hands with Renault and Mahindra to produce cars. As its sister Renault has decided to enter India in a bigger way with car like Logan, Nissan also wants to join the fray
Key players in the Indian Auto Industry - Passenger Cars and CVs
Bajaj Auto, the largest three-wheeler maker in the country, said it is planning to enter the four-wheeler market with small cars has taken up the challenge of making India's cheapest car.
The GERMAN gIANT
Key players in the Indian Auto Industry - 2 wheelers
The largest 2 wheeler manufacturer in the world
The 2nd largest 2- wheeler manufacturer in India and the largest 3 wheeler manufacturer. Has plans for establishing a manufacturingfacility in Indonesia & Also Planning to Enter in four wheels
The third largest 2 wheeler manufacturer in India. Has plans for establishing a manufacturing facility in Indonesia
Has recently entered the Indian market through its direct subsidiary( in addition to its JV – Hero Honda)
Has recently entered the Indian market through its direct subsidiary
Key players in the Indian Auto Industry - 2 Wheelers
Still Struggling to show its presence in Indian Market, is also planning to launch Scooter By-2009
After its Success in 3&4 Wheelers Recently A 250 bn Group Completed its Portfolio By Entering in 2 Wheeler segment
Current Scenario
Weak demand across all segments drag aggregate volume growth to record first monthly decline during FY09, volumes shrink 9% YoY during Oct-08
Major players post negative sales growth during festivals month despite new variants/launches
Higher interest rates and stiff credit norms reduce affordability – main villains for decline Dip in consumer confidence and postponement of purchases ahead of new model launches
further dent demand CVs witness sharp 36% YoY decline, while domestic passenger cars and 2-Wheelers also
tripped Exports maintained strong growth; rising 41% YoY with sales of 144,083 units during Oct ’08
Outlook
Domestic macro scene remains challenging with production cuts and job-losses across industries.Bunching of all negative forces might see auto sales see weakest quarter (3Q) ending Dec ’08
Huge capex incurred by major auto players would squeeze the free cash flows as well as return ratios for the companies
Drop in commodity prices and softening interest rates could give relief to the auto majors by lifting cost pressure
Short-term outlook is grim. Recent liquidity transfusions by the central bank and global stimuli make long term outlook positive on the sector
Near term, we maintain neutral outlook on the sector. Long term, the outlook is positive with favorable demographics, lower penetration and prospects of return to higher margins
Positive Factors Good performance of the economy – higher all round growth leading to high GDP growth of 8% Brisk activities on infrastructural development Emergence of India as an manufacturing hub for the Automotive Industry
Negative Factors
No Excise duty reduction on passenger vehicles No Softening of interest rates and improved financing Cancellation on Availability of finance in rural and urban areas on 2 Wheelers Global Recession Impact hitting badly since mid of 2008 Increase in input prices
Crude oil & derivatives Ferrous & Non-Ferrous Metals Natural rubber Increase in Steel Prices
Automobile Domestic Sales Trends
Automobile Domestic Sales Trends
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
Year
sale
s Fi
gure
s
Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers
Passenger Vehicles 707,198 902,096 1,061,572 1,143,076 1,379,979 1,547,985
Commercial Vehicles 190,682 260,114 318,430 351,041 467,765 486,817
Three Wheelers 231,529 284,078 307,862 359,920 403,910 364,703
Tw o Wheelers 4,812,126 5,364,249 6,209,765 7,052,391 7,872,334 7,248,589
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
OverAll Indian Automobile Market Scenario (2007-08)
CVs4%
Total Passenger Vehicles14%
Three Wheelers4%
Two Wheelers78%
2 Wheeler Sales performance F/Y Wise
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
Year
Motor Cycles
Scooters
Mopeds
Motor Cycles 2887194 3647493 4170445 4964753 5815417 6553664 5768341
Scooters 908268 825648 886295 922428 908159 940673 1050167
Mopeds 408263 338985 307509 322584 332741 355870 415051
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
%
Used Cars V/s New Cars
100,000 Dream Car By TATA & BAJAJ
New Cars50%
Used Cars50%
Used Cars sale v/s New Car sale
Premium Segment0.6%
99.4% Entry level, Deluxe, Scooter-
Segment
Premium Segment includes Vehicles Above 75000(Pulsar220,Karizma, Yamaha R1)
Jan 2009-The Wait is Over
The TATA Dream Car(1 Lac Car) The Long awaited TATA NANO Queen is on
the way Will push up the 4 wheeler Market & change
the landscape of the Indian passenger cars
Hamara Bajaj takes to four wheels&has taken up a challenge fo making indias cheapest Car
The Another Queen is getting Ready to Hit The Indian Roads
Bajaj s Cheapest Car—Getting Prepared
2009
2010
2011
2012
2013
0
5
10
15
20
25
30
% Sales
Indian Automotive Ahead
Cars No longer remains a status symbol
Car becomes common in middle class segment too like cell phones
India Next
• Traffic Jams • Parking Space Problem
• Fluctuation in Petrol Prices • Increase in No of Accidents
• Increase in Travelling Time • Less Mileage
%
Back 2 Pavillion
Car can be used only as family transport vehicles
2 Wheeler the only option that remains with indian to lead a comfortable life
100,000 Car Customers
One Lac Car Customers