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Automobile Industry Analysis

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  • AUTOMOBILE INDUSTRYPresented ByGroup 1

  • HISTORYThe first car ran on India's roads in 1897Embryonic automotive industry emerged inIndiain the 1940s.Mahindra & Mahindra underlicensefrom Willys branched out into the manufacture oflight commercial vehicles(LCVs) and agriculturaltractors

  • EVOLUTIONThe Independence marked the evolution of Indian automotive industryThe growth was relatively slow due tonationalisationand thelicense rajwhich hampered the Indian private sectorMaruti Udyog Japanese & Indian venture firmed the sector

  • PILLARS TO INDUSTRIAL GROWTH The economicliberalisationin 1991 and the gradual weakening of the license rajTata Motors,Maruti SuzukiandMahindra and Mahindra, expanded their domestic and international operationsThe Indian government chose Suzukifor its joint-venture to manufacturesmall carsBajaj , Hero Honda , TVS etc emerged as leading two wheeler and three wheeler producers with Hero Honda as largest shareholder

  • EXPORTS AND DATAIn the year 2009, India rose to be the fourth largest exporter of automobiles following Japan, South Korea and ThailandMonthly sales of passenger cars in India exceeded 100,000 units and has since grown rapidly to a record monthly high of 182,992 units in October 2009Predictions made by Ernst and Young have estimated that the Indian passenger car market will have a growth rate of about 12 percent per annum over the next five years to reach the production of 3.75 million units by the year 2014

  • CURRENT STATUSThe automobile sector of India is the seventh largest in the worldThe country is the largest manufacturer of motorcycles and the fifth largest producer of commercial vehiclesMany foreign brands are setting up roots in Indian soilIndia overtook China by emerging as the fourth largest exporter of cars in Asia.

  • MARKET SIZE OF AUTOMOBILE INDUSTRYGrown at a spectacular rate on an average of 17% for last few yearsAttained a turnover of USD $35.8 billionHas provided direct and indirect employment to 13.1 million peopleThe projected size in 2016 of the Indian automotive industry varies between $122 billion and $159 billion including USD 35 billion in exports

  • MAJOR PLAYERS IN INDIAMarutiAudiBMWChevroletFiatSkodaTataVolvo

    HondaHyundaiMahindraMercedesMitsubishiNissan MotorsToyota Volkswagen

  • MARKET SHARESTata Motors - Commercial Vehicles 63.94%, Passenger Vehicles 16.45%

    Maruti Suzuki 46.0 %

    Hyundyi Motors 14.15 %

    Mahindra & Mahindra - Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three Wheelers 1.31%

    Ashok Leyland - 22 %

  • MAJOR CHALLENGESRising oil pricesHuman resourceRise in disposable IncomeHighways not up to the markLimited number of component suppliersFall short in product developmentCustomer Relationship management

  • IMPACT OF GLOBAL CRISISGlobal vehicle production fell by 3.7% from 2007 to 2008NAFTA and South America were most badly hitEmployment conditions affected by international trade in motor vehicles and automotive components and parts, flows and stocks of foreign direct investments.Difficulty in obtaining loans for car purchase

  • Value chains were in a dire statePlants were shuttered temporarilyHuge debt loads, high fixed-capital costs, high labor costs, and immense pension and health care commitments to retirees added to the immediacy of the damage.The high cost and growing longevity of motor vehicles prompted buyers to postpone purchases

  • LATEST TRENDSRemote keyless entryDrive by WireElectronic suspensionAdaptive cruise controlTire pressure monitoringNavigation systemsAutomotive digital electrical systems and onboardnetworks

  • CMOS logic gatePLDs reduce engineering devlopement timeDriver assistance applicationsRear seat entertainment systemsHigh definition control systems

  • LEADING PLAYERS IN THE INDUSTRY

  • MARUTI SUZUKILeader in car marketMarket share of 39.12 per cent in overall passenger vehicle marketProduction of 1.5 million cars every yearNet sales rose 21.3 per cent to Rs 426, 125 million in (US$ 6.83 billion) FY13 and Net profit up by 40.6 per cent to Rs 23,921 million (US$ 383.48 million) in FY13Its car offering starts from the entry level Alto, to hatchbacks like A-Star, Wagon R, Swift, sedans like SX4, Dzire, Ciaz, MUVs and SUVs like Ertiga, Grand Vitara and C Segment vehicle Omni.

  • HYUNDAIIndia's largest car exporterIndia's 2nd largest car manufacturerDebuted in India with Hyundai SantroMore than 1000 service points across IndiaState-of-the-art manufacturing plant in IndiaIt currently sells ten car models spanning segments Hatchbacks Santro, i10, i20, Sedans Verna, Elantra, Sonata and Santa Fe in the SUV segment.

  • THANK YOU