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Indian Automobile Industry's economic and industrial anlysis.
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A N A LY S I S O F I N D I A N A U T O M O B I L E I N D U S T R Y
Presentation On:
PRESENTED BY:• Arpit Bhardwaj• Jalaj Purohit• MD. Tausif Anwar• Ashwani Kumar• Dhairya Gupta• Anish Prasad• Bjlay Tiwari• Neha Upadhyay• Neha Nisha• Khushbu Soni
Objective
1. Overview
2. Aim of the Project & List of top 5 companies
3. Analysis of Indian Automobile Industry
4. Fundamental Analysis
a. Economy
b. Industry
5. Conclusion
6. References
Objective:
Economy Analysis
Industry Analysis
Company Analysis
Conclusion
References
Aim of project
Overview
Overview
Indian automobile industry has grown leaps and bounds since 1898,
a time when a car had touched the Indian streets for the first time.
At present it holds a promising 9th position in the entire world with
being # 1 in Two Wheelers and # 4 in commercial vehicles.
Withstanding a growth rate of 13% per annum and an annual
production of more than 2 million units, it may not be an exaggeration
to say that this industry in the coming years will soon touch a figure of
10 million units per year.
It is expected that the Automobile Industry in India would be the 7th
largest automobile market within the year 2016.
Overview:
Economy Analysis
Industry Analysis
Company Analysis
Conclusion
References
Aim of project
Overview
The objective of this project is deeply analyzing our Indian Automobile
Industry for investment purpose by monitoring the growth rate and
performance on the basis of historical data.
The main objectives of the Project study are:
Detailed analysis of Automobile industry which is gearing towards
international standards
Analyze the impact of qualitative factors on industry’s and
company’s prospects
Application of various Technical Tools and Fundamental tools (like
Financial and Non-financial statements).
Objective
AIM OF THE PROJECT:
Economy Analysis
Industry Analysis
Company Analysis
Conclusion
References
Aim of project
Overview
Companies
Economy Analysis
Industry Analysis
Company Analysis
Conclusion
References
Aim of project
Overview Top Automotive Companies In INDIA
Leading Companies:
Maruti Suzuki India Limited (MSIL)
Hyundai Motor India Limited (HMIL)
Tata Motors Mahindra &
Mahindra Limited (M&M)
Hero Motors Limited (HML)
India has become a hub of domestic and exports business. The
automobile sector has been contributing its share to the shining
economic performance of India in the recent years.
To understand this industry for the purpose of investment we need to
analyze it by following four approaches:
1). Fundamental Analysis
a. Economy
b. Industry
2). Export Analysis
3). Five forces
4). Swot
Analysis
ANALYSIS OF AUTOMOBILE INDUSTRY:
Economy Analysis
Industry Analysis
Company Analysis
Conclusion
References
Aim of project
Overview
GDP and Automobile Industry:In absolute terms, India is 9th in the world in terms of nominal factory output(its $1.22 trillion)
Fundamental Analysis
ECONOMY:
Data source: India central statistical organization
Economy Analysis
Industry Analysis
Company Analysis
Conclusion
References
Aim of project
Overview
GDP and Automobile Industry:The per capita Income is near about Rs38,000 reflecting improvement in the living standards of an average Indian. Today, automobile sector in India is one of the key sectors of the economy in terms of the employment.
The market value of Automobile Industry is more than US$8 bl. and Contribution in Indian GDP is near about 5% and will be double by 2016.
Fundamental Analysis
ECONOMY:
Data source: Google Finance
Economy Analysis
Industry Analysis
Company Analysis
Conclusion
References
Aim of project
Overview
Recession:
Global recession has hit the Indian auto industry, impact of recession is
evident now on industry as sales & growth of automobile companies have
declined. Passenger Vehicles segment registered negative growth.
In December 2010, overall production fell by 22 % over the same month
last year.
The sales in December 2010 for passenger vehicles fell by 13.86% over
December 2009.
Two Wheelers registered minor growth of 1.85 % during April –
December 2010.
Although the sector was hit by economic slowdown, overall production
increased from 10.85 million vehicles in 2009-10 to 11.17 million vehicles
in 2010-11.
Fundamental Analysis
ECONOMY:
Economy Analysis
Industry Analysis
Company Analysis
Conclusion
References
Aim of project
Overview
Segmentation of Automobile Industry:
The automobile industry comprises of Heavy vehicles (trucks, buses,
tempos, tractors); passenger cars; Two-wheelers; Commercial Vehicles;
and Three-wheelers.
Industry Analysis
Industry Analysis:
Data Source:http://www.autoindia.com/
Economy Analysis
Industry Analysis
Company Analysis
Conclusion
References
Aim of project
Overview
Export Analysis
Automobile Export:
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
Passenger VehiclesCommercial VehiclesThree WheelersTwo WheelersGrand Total
Economy Analysis
Industry Analysis
Company Analysis
Conclusion
References
Aim of project
Overview
Five Forces
Automobile Industry
Rivalry among Competitors :>Rivalry in the Indian auto sector is intense due to the entry of foreign companies in the market.>Product being matched in a few months by the competitors
Threat of substitutes:>The threat of substitutes to the automotive industry is fairly mild. >The switching cost may be high in terms of personal time, convenience and utility.
Bargaining Power of Suppliers:>The industry is comprised of powerful buyers who are generally able to dictate their terms to the suppliers.
Barriers to entry :>Regulatory framework>The startup capital required to establish manufacturing capacity to achieve minimum efficient scale is prohibitive.
Buyer/Customer Power :>Buyer is having bargaining power due to low switching costs associated with selecting from among competing brands.
Economy Analysis
Industry Analysis
Company Analysis
Conclusion
References
Aim of project
Overview
SWOT Strengths(S):Large domestic marketSustainable labor cost advantageCompetitive auto component vendor baseGovernment incentives for manufacturing plantsStrong engineering skills in design etc
Weaknesses(W):Low labor productivityHigh interest costs and high overheads make the production uncompetitiveVarious forms of taxes push up the cost of productionLow investment in Research and DevelopmentInfrastructure bottleneck
Opportunities(O):Commercial vehicles: SC ban on overloadingHeavy thrust on mining and construction activityIncrease in the income levelCut in excise dutiesRising rural demand
Threats(T):Rising input costsRising interest ratesCut throat competition
Economy Analysis
Industry Analysis
Company Analysis
Conclusion
References
Aim of project
Overview
Conclusion
Indian Automobile has a lot of scope for both two wheelers and four wheelers due to development in infrastructure of the country.
According to Indian Statistical Organization the per capita income (Rs.38000) is increasing and national income at the rate of 14.4% which shows potential to buy vehicle in auto industry. The growth rate of Indian Automobile is so fast that by 2016 Indian Industry will be world 7 largest manufacturer in all sections.
The Indian auto market is still untapped the majority of the people in country don’t own a four wheeler and all the major auto companies are trying to increase their sales by several moves.
By analyzing the current trend of Indian Economy and Automobile Industry we can say that there is lot of scope for growth.
Economy Analysis
Industry Analysis
Company Analysis
Conclusion
References
Aim of project
Overview Conclusion:
REFERANCES: Books: o Auto Drive Magazine Reference Materials:o The Economic Timeso RBI annual reporto ASSOCHAM reporto India Central Statistical Organization Websites:o http://www.googlefinance.como http://www.autocarindia.como http://www.wheelsunplugged.com o http://www.assocham.orgo http://www.wikipedia.como http://www.rbi.org.in Search Engines:o www.google.com o www.yahoo.como www.bing.com
THANK
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