automobile indystry 1

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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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automobile indystry 1

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