1. AUTOMOBILE INDUSTRY ININDIA Prabhjot Singh Raghu Monga Robin
Kumar Sandeepika Sharma
2. EVOLUTION IN INDIA
3. AUTO INDUSTRY The year 1898 saw the first car rolling out,
on the streetsof Mumbai. A land of Premier Padminis, Ambassadors,
scooters,temps, trucks and autos galore, India had not seen muchof
choice in vehicles. Since then Indian auto industry has witnessed a
lot ofchange.
4. PROTECTIONISM EARLY 1980s The manufacturing of automobiles
especially cars was subject to strict licensing, restrictive tariff
structure and limited avenues for expansion. The foreign technology
collaboration came with the inception of Maruti Udyog in
collaboration with Suzuki of Japan in the passenger car segment.
Indian roads saw the launch of Maruti 800. It was still not very
easy to own a car, first was affordability and next was a long
waiting period.
5. LIBERALISATION 1990s With liberalization, some more Japanese
manufacturersentered the two-wheeler and the commercial
vehiclesegment in a collaborative arrangement. This period
characterized joint ventures in India and themarket started opening
up. Automobile Industry was delicensed in July 1991 withthe
announcement of the New Industrial Policy. The passenger car
industry was, however, delicensed in1993.
6. The era of controls and protection came to an end. Decrease
in customs and excise duties meant that a vehicles started getting
affordable. The entry of foreign banks with attractive auto finance
schemes helped garner a huge base of middle class population.
However the market was still ruled by the sellers.
7. GLOBALISATION 2000s A Core Group on Automotive Research and
Development(CAR) was established in 2003 for encouraging
R&Dactivities. Indian economy also witnessed rapid
industrialization.Factories needed transport both for goods and for
theiremployees. Pushed the demand for efficient logistics and that
in turnincreased the number of commercial vehicles.
8. MARKET SIZE
9. GROSS TURNOVER YEAR (IN USD
MILLION)2004-200520,8962005-200627,0112006-200734,2852007-200836,6122008-200938,238Source:
Society ofIndian AutomobileManufacturers(SIAM)
10. RECENT FACTS & FIGURES In 2010-11, the overall domestic
passenger car sales rose by 29.73 per cent to 19,82,702 units from
15,28,337 units in the previous fiscal. Hyundai Motor India also
saw its market share declining to 18.10 per cent in FY 2011 from
20.61 per cent in the previous year. Tata Motors too lost its
market share during the said period, falling to 12.92 per cent with
sales of 2,56,202 units. General Motors India (GMI) and Honda Siel
cars India (HSCI) also lost their market share last fiscal. While
GMIs share fell to 4.40 per cent from 4.62 per cent,
11. MAJOR PLAYERS IN THE INDUSTRYMahindra Hyundai Motor India
& Mahindra Limited Maruti SuzukiAshok LeylandIndia Ltd
12. OTHER PLAYERS IN THEINDUSTRYTATA Motors The Bajaj Group
Hero Group Ford India
13. GLOBAL PLAYERS IN INDIA Audi Honda Mercedes Ferrari Nissan
BMW
16. MARKET SHARE OF DIFFERENTVEHICLES IN THE INDIAN AUTOMOBILE
INDUSTRY Passenger Vehicles : 15.86% Commercial Vehicles : 4.32%
Three Wheelers : 3.58% Two Wheelers : 76.23%
17. CHALLENGES Rising oil price Chinese Competition Human
resources Environmental Issue Nurturing Talented Low R&D
OrientationManpower Rising cost of raw Fuel Technologymaterials
Increasing rates of Too much competitioninterest
18. IMPACT OF GLOBAL CRISIS ONINDUSTRY The automotive industry
crisis of 20082010 was apart of a global financial downturn The
crisis affected European and Asian automobilemanufacturers, but
primarily felt in the Americanautomobile manufacturing industry
Citing falling production numbers, the State Bank ofIndia reduced
interest rates on automotive loans inFebruary 2009 Manufacturer
hopes the low cost will encouragecustomers to purchase the vehicle
despite theongoing credit crisis
19. RECENT TRENDS Unlike in the past, the Indian Government has
gone through a total role reversal by becoming the enabler rather
than the controller. In the recent past it has started providing
better infrastructure, conducive atmosphere to attract investments
and implementing growth oriented economic policies.
20. Competition: Immense pressure has grown on the Indian
companies. A lot of joint ventures have taken place, some others
have invested heavily on R&D.
21. Customer: Armed with higher buying power and an ever
increasing expectation from products and services, the customer is
undoubtedly the king and has propelled a fierce competition among
the major players in the market.
22. Safety Norms: cars as well as two-wheelershave met the most
stringent international normsof pollution. Euro II vehicles have
become the norm of theday all over India. Unfortunately, in the
Indiancontext, safety in motor vehicles is a relativelyneglected
area. Bad roads coupled with the absence of adequatesafety features
in the vehicles such as airbag andcrumple zone needs immediate
attention. But awareness is on the increase and the use ofseat
belts while driving has been mademandatory.
23. Bikes: Keeping apace with the global trends the two-wheeler
segment has witnessed tremendous growth both qualitatively and
quantitatively. Bikes with higher engine capacities have done
commendably well on the Indian roads. Bike styling and fuel
efficiency has also seen major developments