sectorial analysis ppt

7/31/2019 Sectorial Analysis Ppt

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SECTORIAL ANALYSIS

ON

INDIAN AUTOMOBILE

SECTOR

PRESENTED BY:-SOURAV PAL

NITISH SAHAI

DHIRENDRA SINGH DHRUV

BHANESH GOURAV


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INTRODUCTION

At present time, Indian automobile industry

is making a major contribution in increasing

the country's GDP by 9% every year.

Annually, growing at an average rate of 30%

and marking itself as one of the fastest

growing industries in India.


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OVERVIEW

According to SIAM; annual car sales are

estimated to reach 5 million vehicles by 2015

and more than 9 million by 2020 .

Hyundai Motors, Nissan, Toyota, Volkswagen

and Suzuki have expanded their

manufacturing facilities owing to India's

strong engineering base and expertise in themanufacturing of low-cost, fuel-efficient cars.


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INDIAN AUTOMOBILE INDUSTRY AT GLOBAL

LEVEL

India ranks 1st in the global two-wheeler market.

India is the 4th biggest commercial vehicle market

in the world.

India ranks 11th in the international passenger carmarket.

India ranks 5th pertaining to the number of bus

and truck sold in the world. India is the second largest tractor manufacturer in

the world.


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Listed below is the statistics showcasing export sales rate of

Indian automobile industry for the year 2009-10 :-

PASSENGER

VEHICLES

COMMERCIAL

VEHICLES

THREE

WHEELERS

TWO

WHEELERS

GRAND TOTAL

446146

45007173282

1140184

1804619

25% 2% 10% 63%

EXPORT SALES

SALES PERCENTAGE %


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Listed below is the statistics showcasing domestic market

sales rate of Indian automobile industry for the year (2009-

10) :-

SEGMENTS PASSENGER

VEHICLES

COMMERCIAL

VEHICLES

TWO WHEELERS THREE WHEELERS TOTAL

0

1,949,776

531,395

9,371,231

440,368

12,292,770

0 16% 4% 76% 4%

Domestic Market SalesSeries1 Series2 Series3


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HISTORY

The first car ran on India's roads in 1897. Until the1930s, cars were imported directly, but in very smallnumbers.

Focused on servicing, dealership, financing andmaintenance of vehicles.

In 1947, the Government of India and the private sectorlaunched efforts to create an automotive componentmanufacturing industry to supply to the automobile

industry. Indias Transportation requirements were met by

Indian Railways till the 1950's.
http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Private_sectorhttp://en.wikipedia.org/wiki/Private_sectorhttp://en.wikipedia.org/wiki/Government_of_India


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After 1970, the automotive industry started to grow, but

the growth was mainly driven by tractors, commercial

vehicles and scooters. Cars were still a major luxury.

In the 1980s, a number of Japanese manufacturers

launched joint-ventures for building motorcycles and

light commercial-vehicles. It was at this time that the

Indian government chose Suzuki for its joint-venture

to manufacture small cars.

Following the economic liberalisation in 1991 and the

gradual weakening of the license raj, a number of Indian

and multi-national car companies launched operations.
http://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Small_carhttp://en.wikipedia.org/wiki/Liberalisationhttp://en.wikipedia.org/wiki/Liberalisationhttp://en.wikipedia.org/wiki/Small_carhttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Motorcycles


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SEGMENTATION

AUTOMOBILE

TWO WHEELER THREEWHEELER

PASSENGERVEHICLES

COMMERCIALVEHICLES

MOTORCYCLE SCOOTERS SCOTERETTES MOPEDS

H . C . V M . C. V L . C . V


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MARKET SHARE


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1. TWO WHEELERS

.Motorcycles.

.Scooter.

. Mopeds


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2. THREE WHEELERS


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3. PASSENGER VEHICLES


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4. COMMERCIAL VEHICLES

H . C . V

M . C. V

L . C . V


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SECTOR ANALYSIS

Important Committees :-

Ministry of Shipping, Road Transport & Highways(MOSRT&H).

Ministry of Environment & Forests .

Ministry of Petroleum & Natural Gas.

The principal instrument governing the sector is the MotorVehicles Act, 1988 (MVA) along with the Central Motor VehiclesRules 1989 (CMVR).


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MOSRT&H constituted two committees:-

a) Central Motor Vehicles Rules-Technical Standing Committee(CMVR-TSC) ,

b) Standing Committee on Implementation of EmissionLegislation (SCOE),

c) Automotive Industry Standards Committee (AISC), and

d) Standing Committee on Implementation of EmissionLegislation (SCOE)

.


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Major Policies :-

Auto Policy :-To establish a globally competitive industry inIndia and to double its contribution to the economy.

Some of its initiatives are:-

Raised industrial growth and employment &a high degree of value

addition in the country.

Promoted globally competitive industry and emerged as a global

source for auto components.


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Development of vehicles propelled by alternate energy

sources.

Development of domestic safety and environmentalstandards at par with international standards.

Established an international hub for manufacturing small,

affordable passenger cars, Tractors and Two-wheelers inthe world.


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STUDY OF DECADE

(2001-2007)

Production was the wide variety of vehiclesincluding 17 lakh four wheelers and over 80 lakhstwo and three wheelers in 2005-06.

Cumulative growth of some important segments in April2006-December 2007 was

Passenger Vehicles: 22.91%

Passenger cars: 24.76%

Utility Vehicles: 12.69%Multi Purpose Vehicle: 28.38%

Commercial Vehicle: 36.12%

Medium and heavy Commercial Vehicle: 36.74%

Light Commercial Vehicle : 35.25%


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The automobile industry had an investment of nearly

50,000 crore in (2002-03).

In (2004-05) , total turnover of this sector was estimated to

exceed Rs. 1,65,000 crore.

This sector has generated about 4.5 lakh of direct

employment and about one crore of indirect employment.


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AUTOMOBILE EXPORT

CATEGORY 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007(TIL

L SEPT.)

PASSENGER

CAR

23 50 71 126 161 170 98

MULTI

UTILITY

VEHICLES

4 3 1 3 6 806 3

COMMERCIA

L VEHICLES

14 12 12 17 30 77 23

TWO

WHEELER

111 104 180 265 367 513 332

THREE

WHEELERS

16 15 43 68 67 77 62

TOTAL 168 185 307 479 620 806 519

GROWTH IN 20.24 9.74 65.35 55.98 31.25 28.03 27.43


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CURRENT TRENDS

Contribution in Indian GDP is near about 9% and will be

double by 2016.

In India FDI up to 100 percent, has been permitted under

automatic route to this sector, which has led to a turnover

of USD 12 billion in the Indian auto industry and USD 3

billion in the auto parts industry.

FDI inflows in Automobile Industry (2008-09 )was Rs.5,212

Cr , an increase of 47.25% compare to 2007-08, while in

(April-May ) 2009 it was around Rs.497 Cr.


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TOP TEN PLAYERS

Maruti Suzuki India Limited

Hyundai Motor India Limited

Tata Motors

Mahindra & Mahindra Limited

Hero Honda Motors Limited

Bajaj Auto

General Motors India Private Limited

Honda Siel Cars India Limited

Toyota Kirloskar Motor Private Limited

Hindustan Motors


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COMPANY ANALYSIS

MARUTI SUZUKI

Established in February 1981 (Maruti Udyog Limited).

Collaborated with Suzuki of Japan in 1983 to produce the firstaffordable, fuel efficient, high quality car for the average Indian.

Manufacturing facilities are located at two facilities Gurgaon andManesar south ofDelhi.

R C Bhargava Chairman / Chair Person.

Amal Ganguli Director.

Shinzo Nakanishi Managing Director & CEO.
http://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Delhihttp://connect.in.com/r-c-bhargava/profile-499901.htmlhttp://connect.in.com/amal-ganguli/profile-490463.htmlhttp://connect.in.com/shinzo-nakanishi/profile-483.htmlhttp://connect.in.com/shinzo-nakanishi/profile-483.htmlhttp://connect.in.com/shinzo-nakanishi/profile-483.htmlhttp://connect.in.com/shinzo-nakanishi/profile-483.htmlhttp://connect.in.com/amal-ganguli/profile-490463.htmlhttp://connect.in.com/amal-ganguli/profile-490463.htmlhttp://connect.in.com/amal-ganguli/profile-490463.htmlhttp://connect.in.com/r-c-bhargava/profile-499901.htmlhttp://connect.in.com/r-c-bhargava/profile-499901.htmlhttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Gurgaon


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TATA MOTORS LTD.

Established in 1945.

In the luxury car segment, the company has a market share of 6.4%,

while in the case of multi-utility vehicles, its market share is 31.2%.

Company's manufacturing base in India is spread across

Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar

Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka).

Tata Motors has operations in the UK, South Korea, Thailand and

Spain.

Mr. Ratan N. Tata (Chairman)


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HERO HONDA MOTORS LTD.

The company is a joint venture between India's Hero Group and HondaMotor Company, Japan that began in 1984.

Over 55 per cent share in domestic motorcycle market in (2008-2009).

Manufacturing facilities are based at Gurgaon and Dharuhera in the state ofHaryana and Haridwar, in the hill state of Uttrakhand.

Mr. Brijmohan Lall Munjal - Chairman & Whole-time Director

Mr. Pawan Munjal - Managing Director & C.E.O.

Mr. Toshiaki Nakagawa - Joint Managing Director
http://www.herohonda.com/co_board_directors.htmhttp://www.herohonda.com/co_board_directors.htmhttp://www.herohonda.com/co_board_directors.htmhttp://www.herohonda.com/co_board_directors.htmhttp://www.herohonda.com/co_board_directors.htmhttp://www.herohonda.com/co_board_directors.htmhttp://www.herohonda.com/co_board_directors.htmhttp://www.herohonda.com/co_board_directors.htmhttp://www.herohonda.com/co_board_directors.htmhttp://www.herohonda.com/co_board_directors.htmhttp://www.herohonda.com/co_board_directors.htmhttp://www.herohonda.com/co_board_directors.htmhttp://www.herohonda.com/co_board_directors.htmhttp://www.herohonda.com/co_board_directors.htmhttp://www.herohonda.com/co_board_directors.htm


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FUTURE TRENDS

Car and SUV sales to double from 2.2 million units in 2009

over 5 million units in 2015 and of 10 million by 2020.

CAGR between 2009 and 2020 is likely to be 14% comparedwith Chinas 6%, other emerging markets 6% .

Passenger vehicle sales to hit around 6 million units by 2014 or2015.

Exports are estimated to jump from $3.8 billion in 2009 tonearly $30 billion by 2020.

Automotive Mission Plan (AMP) (20062016) - to double thecontribution of automobile industry in the countrys GDP and

produce 25 million more jobs for people by 2016.


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sectorial analysis ppt

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