AUTOMOBILE INDUSTRY - ANALYSIS

MURALSAUTOMOBILE INDUSTRY - ANALYSISAUTO INDUSTRY - INDIAthe Indian automobile sector is one of its most vibrant industries. The industry accounts for 22 per cent of the country's manufacturing gross domestic product (GDP). It comprises passenger cars, two-wheelers, three-wheelers and commercial vehicles and is currently the seventh-largest in the world with an average annual production of 17.5 million vehicles, of which 2.3 million are exported.

DOMESTIC CAR SALESIncrease by15% this year1.33 lakhs unit last year1.54 lakhs units this yearCommercial vehiclesDown by 6%16955 last year15468 this year3 wheelers23% rise52543 this year42541 last yearMotor cycles9.1 lakh vehicles this year7.95 lakh units last year

scooters30% increase in sales3.69 lakh vehicles this year2.83 lakh vehicles last yearOver all sales in industry18% increase compared with last year16.60 lakhs units this year14.12 lakhs units last yearproductionThe industry produced a total 1,943,134 vehicles including passenger vehicles, commercial vehicles, three wheelers and two wheelers in August 2014 as against 1,691,699 in August 2013, registering a growth of 14.86 percent over the same month last yearexportsIn April-August 2014, overall automobile exports grew by 21.30 percent over the same period last year. Passenger Vehicles, Commercial Vehicles, Three Wheelers and Two Wheelers grew by 0.17 percent, 16.51 percent, 14.53 percent and 29.16 percent respectively during April-August 2014 over the same period last year.

Installed capacity

Two wheeler production

Market share by volume

Maximum salesHonda Motorcycle & Scooter India (HMSI) has notched the maximum gains in the first quarter (April-June 2014) of fiscal year 2014-15.Recently released SIAM sales numbers for Q1 FY2014-15 reveal that the domestic Indian two-wheeler industry has grown by a healthy 13.70 percent, selling a total of 3,968,967 units.The fiscals first quarter sees some shuffling of positions among the top four players Hero MotoCorp, HMSI, Bajaj Auto and TVS Motor Company, where Hero and Bajaj lose some market share and the other players gain some crucial percentage points.

Hero Heros market share for Q1 FY2014-15 stands at 42.29 percent as against 43.77 percent a year ago. Interestingly, Heros sales for Q1 this year grew by 9.85 percent lost out on market share. The company sold 16,78,476 units between April-June 2014 as against 15,27,980 units during April-June 2013. Heros aggressive new product development will largely define its growth and market share retention over the next two years. - Honda motor cycle scooter of IndiaStanding out was HMSI, which primarily ate into the market shares of industry leader Hero MotoCorp and also Bajaj Auto. Honda registered domestic sales of 953,501 units during Q1, up by an impressive 34.15 percent over 710,774 units sold during Q1 of the last fiscal. With this, HMSIs market share has jumped up by 3.66 percentage points to 24.02 percent (Q1 FY2013-14: 20.36 percent). - See more at:

HMSI TARGETS AND AMBITIONSChasing its ambitious sales target of 45 lakh units for the ongoing fiscal, the company will now focus on more than quadrupling the Q1 sales numbers in the next three quarters. To do so, besides penetrating deeper into the countrys rural pockets, HMSI plans to clearly depend on the newly launched 110cc mass commuter motorcycle, CD 110 Dream, also the most affordable Honda in India ever. Another project expected to bolster its (urban) sales in the near future will the upcoming 160cc premium commuter motorcycle, which will be squarely targeted at Bajajs Pulsar 150, Yamahas FZ-S and FZ16, and TVS Apache RTR 160 bikes. -

FUTURE TECHNOLOGIES1) Connected Cars2) Intelligent Public Transportation3) Green Cars4) Cloud & Big Data

CHALLENGES IN AUTO INDUSTRYSmaller engines with greater power, make the engines and ultimately the cars too hot. Replacing steel with plastic will make cars lighter and hence more fuel efficientFUEL EFFICIENT CARSVOLKSWAGEN POOR SHOW VWs sales in Brazil during January-June fell 18.7 per cent to 301,000 units from 370,000 units in 2013. Russia was down 8.4 per cent to 143,000 units from 156,000 units. India witnessed the steepest fall with numbers crashing by nearly 33 per cent to 34,000 units from 50,000 units in the first half of 2013CHINA MARKET DOING WELL China where VWs sales soared to 1.82 million vehicles from 1.54 million, a jump of 17.5 per cent. Thanks to Chinas incredible showing, the groups volumes in the BRIC economies were up 8.1 per cent to 2.29 million units in the first half of this year from 2.12 million in 2013INVESTMENTS AND MARKET SHAREIt has set aside a staggering investment of 18.2 billion in China over the next four years which will see its group sales go up to four million vehicles. VW is already the market leader in the country with a 21 per cent market share and a host of joint ventures with local brands like FAW and SAIC Motor CorpIS AUTO INDUSTRY DOING GOODITS NOT DOING GOODTHE SALES OF new cars of about 2.4 millionTHIS SEGMENT SOLD 2.8MILLION CARSTHIS SEGMENT IN EUROPE SELLS 3:1IN INDIA IT SELLS 1:2

32SEGMENT DETAILSpredominantly a domain of the unorganized sector, is slowly getting organized. Thought it is still small as a part of the overall market, trends point towards growthCOMPANY SOLD THIS SEGMENT57,000 cars through dealers and about 70,000 cars sales through business to business platform.Indian Blue Book NEW PLATFORM BY THE COMPANYpricing guide that incorporates transaction data.AVERAGE CAR PRICE IN THIS SEGMENT IS 4 LAKHSBUYERS ARE IN AGE GROUP OF 30 - 35KEY SUCCESS FACTORSIDENTIFY KSFCUSTOMER SEGMENTATIONCOMPARE COMPANY PERFORMANCEIMPACT ANALYSIS OF RESULTS

IDENTIFY CSFIDENTIFY CHALLENGESCREATE STRATEGIC PLANCOMPARE SERVICE WITH COMPETITORSEXAMINE COMPETITIONADJUST PRODUCTION STRATEGYIMPLEMENT CSFWHAT DO CUSTOMERS WANTHOW DOES THE FIRM SURVIVE COMPETITIONTECHNOLOGY RELATED CSFMANUFACTURINGDISTRIBUTIONMARKETINGSKILL RELATEDORGANIZATIONAL CAPABILITIES