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8/14/2019 Automobile Industry Final 1
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hailed as the industry ofindustries
- PETER
AutomobileIndustry
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Key facts
11th largest passenger car market in the
world and is expected to become the 7th
largest by 2016
4th largest car market in Asia
The first automobile in India was rolled in
1897 in Bombay.First Indian to own a car in India was
Jamshedji Tata
First woman to drive a car in India was
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History
Craft production (1890s) to mass production (1910s) to leanproduction techniques (1970s).
1940 - Automotive industry emerged in India
1953 to 1970 - Growth was relatively slow in the due to
nationalization and the License Raj
1970 - Tractors, CV and scooters.
1980s Major JVs happened
Weakening of the license raj, a number of Indian and multi-
national car companies launched operations.
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Growth & PerformancePre 1983 1983-1993 1993-2008
Closed Market
Growth Limited by
supply
Outdated models
Suzuki, Japan and
GOI JV to form
Maruthi Udyog
De licencing of the
sector in 1993.
OEMs in India.
Imports allowed
Easy auto finances
Implementation of
VAT
Hindustan Motors
Premier
Maruthi Udyog
Hindustan Motors
Premier
Telco
Entry of Global
players
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Total Auto Industry
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Automobile Industry andEconomics
5% - Auto Industry
FDI Inflows
2007-08 2008-09
Rs 2462 Cr Rs 5212 Cr
47.25% increase compare to
2007-08
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ForeignExchange
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Exports
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PLC
GrowthPV-
12%
Growth
rate
>GDP
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Demand Drivers
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SWOT
StrengthLarge domestic
market
Sustainable labor
cost advantageCompetitive auto
componentvendor base
Governmentincentives formanufacturingplants
Strong
Weakness
Low labor
productivityHigh interest costs
and highoverheads make
the productionuncompetitive
Various forms oftaxes push up the
cost of productionLow investment in
Research andDevelopment
Infrastructure
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Opportunity
Commercial
vehicles: SC ban
on overloading
Heavy thrust onmining and
construction
activity
Increase in the
income level
Threat
Rising input costs
Rising interest
rates
Cut throat
competition
http://images.google.com.sg/imgres?imgurl=http://www.globalmotors.net/wp-content/uploads/2008/12/tatajlr-logo.jpg&imgrefurl=http://www.globalmotors.net/tag/jaguar/&usg=__AGc50yi7GXomXnK4rqSFR2bZd70=&h=310&w=560&sz=36&hl=en&start=6&tbnid=r2sPSMluZekNpM:&tbnh=74&tbnw=133&prev=/images%3Fq%3Dtata%2Bmotors%2Blogo%26gbv%3D2%26hl%3Den%26sa%3DX8/14/2019 Automobile Industry Final 1
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Key Players
8Com
paniesCon
tribute
s
60%o
fGlob
al
Produc
tion,
India
25%
http://images.google.com.sg/imgres?imgurl=http://www.gaadi.com/admin/user_images/largephoto/maruti_suzuki_logo_801795508.jpg&imgrefurl=http://blog.gaadi.com/blog-795-Maruti_Suzuki_net_profit_up_25_per_cent&usg=__aB5Hk2GCHfAvpFg2l30qlABy7cw=&h=360&w=300&sz=32&hl=en&start=10&tbnid=MDPA3-GJDx4feM:&tbnh=121&tbnw=101&prev=/images%3Fq%3Dmaruthi%2Bsuzuki%252Blogo%26gbv%3D2%26hl%3Denhttp://images.google.com.sg/imgres?imgurl=http://www.globalmotors.net/wp-content/uploads/2008/12/tatajlr-logo.jpg&imgrefurl=http://www.globalmotors.net/tag/jaguar/&usg=__AGc50yi7GXomXnK4rqSFR2bZd70=&h=310&w=560&sz=36&hl=en&start=6&tbnid=r2sPSMluZekNpM:&tbnh=74&tbnw=133&prev=/images%3Fq%3Dtata%2Bmotors%2Blogo%26gbv%3D2%26hl%3Den%26sa%3DXhttp://images.google.com.sg/imgres?imgurl=http://www.cartype.com/pics/2809/small/mahindra_logo_1.jpg&imgrefurl=http://www.cartype.com/pages/1450/mahindra&usg=__z17WH5ieWpLlOIHMuI2nzLW2b-4=&h=243&w=500&sz=51&hl=en&start=1&tbnid=YJ75M4OsY8N4wM:&tbnh=63&tbnw=130&prev=/images%3Fq%3DMahindra%2Band%2Bmahindra%252Blogo%26gbv%3D2%26hl%3Den8/14/2019 Automobile Industry Final 1
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Market Share
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Auto Policies
In 2002, the Indian government formulated an autopolicy
Automatic approval for foreign equity investment up
to 100%
Weighted tax deduction of up to 150% for in-house
research and R & D activities.
JVs (major share) Invest $50 million
Budget 2009- Excise duty reduction
Alternative fuels Tax free
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Future
GM expansion plan at talegaon - $210
million .
Ford - $500 million ( 1500 jobs )
Volkswagen -- 135 million Euros ( 1500
jobs )
Honda and Toyota will be investing 3000
crores over the next decade for India .
With the development or evolution of
alternate fuels h brid cars have made
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Conclusion
Automobile Industry experts predict that by2050 every 6th car in the world will be forIndians.
By 2010 India will take over Germany insales volumes and Japan by2012.
By 2010, India is expected to witness overRs 30000 crore of investment.
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Thank
You
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