Auto Mobile Industry Presentation

8/9/2019 Auto Mobile Industry Presentation

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Presentation

OnAUTOMOBILE SECTOR OF ECONOMY

Presenter's

PRADEEP SAHU (18)

AMIT MAITHIL (19)

HARSHITA JAIN (20)SALIL SHRIVASTAVA (23)

TUSHAR PHOPILI (40)

SUNIL PATIDAR (41)

SHAILESH PATEL (51)

POOJA GUPTA (53)

APOORVA KHARE (56)

KAMAL SEHWANI (59)


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Introduction It begins as early as 1769.

The automobile sector is one of the key segments of the economy having

extensive forward and backward linkages with other key segments of the

economy.

Indian Automobile sales growth rate would be 9.5 % by 2010.

It contributes about 4 per cent in India's Gross Domestic Product (GDP) and 5

per cent in India's industrial production.

India has a well developed, globally competitive Auto Ancillary Industry and

established automobile testing and R&D centers.

India enjoys natural advantage and is among the lowest cost producers of steel

in the world.


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KEY PLAYERS


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IN INDIA 9th largest automobile industry.

2nd largest two-wheeler market.

4th largest in Heavy Trucks.

2nd

largest tractor manufacturer.

Annual production of over 2.3 million units.

Monthly sales of passenger cars in India 100,000 units.

11th largest passenger car market and expected to become 7th largestby 2016.

Sale of passenger cars in India at an average of 14.9% each year totouch 2.1 million marks by 2010.


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CURRENT SITUATION OF AUTOMOBILE

SECTOR

Economic slowdown affected automobile industry

Overall automobile production went up by 3 per cent to reach 1.11-crore.

Exports increased by over 23 per cent to over 15-lakh.

The domestic turnover of the sector stood at Rs. 2.19-lakh crore.

Exports totaled at Rs. 31,782 crore, taking the total size of the industry

to Rs. 2.50-lakh crore during 2008-09.


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GLOBALIZATION IN AUTOMOBILE

SECTOR In 2008, Hyundai Motors alone exported 240,000 cars made in India.

Nissan Motors plans to export 250,000 vehicles manufactured in itsIndia plant by 2011.

Foreign auto assembly plants in India General Motors, Ford, Hyundai,

Honda, Suzuki, Nissan Motors, Toyota, Volkswagen, Audi, Skoda,BMW, Fiat and Mercedes Benz.

India has overtaken China in global auto exports of compact cars for2009.

In 2007, India was ranked as the 12th fastest growing market in theworld.

Presently, India is the 2nd largest two wheeler market in the world and 4th

largest commercial vehicle market worldwide.


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Continue

India is the 11th largest market in the passenger car segment globallywhich is expected to become the 7th largest market by 2016.

Tata is all set to take its world trucks to South Africa.

Mahindra & Mahindra is taking its Scorpio to US.

Tata is developing an European version of its ultra low cost car Nano.


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ADVANTAGES OF AUTOMOBILE SECTOR

The fluctuating price of oil in the world market has helped in the sale ofthese new vehicles as well as compact cars.

People who once owned SUVs have also replaced these vehicles withthose that have smaller engines.

Annual contribution to the economic growth by 4% to the GDP andaccounting for about 5% of the total industrial output.

Continuous investment in research & development has resulted inincreased productivity

They contribute 60 % of global production but 25 % of India Production

Automotive industry is that it has generated new jobs.

The cost of labor is cheaper and there is a market for those vehicles inthose countries.


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FUTURE PROSPECT OF INDIAN

AUTOMOBILE SECTOR Automobile industry expert predicts that by 2050 every sixth car

in the world will be for Indians.

By 2010 India will take over Germany in sales volumes and

Japan by 2012.

The Indian automobile component industry is estimated to triple

from USD 63 billion to USD 190 billion span of six years by 2012.

Industry analysts predict this industry to touch USD 13000 millionmark by 2010, a cumulative growth of 9.5% annually.

It is said that for every Re 1 spent, the auto sector returns Rs.

2.24 to the Indian economy.


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HOW ECONOMY LOOK AHEAD Automobile sector in India has good domestic and outer market to cater.

With the increase in the population in India there will be huge demand ofpassenger cars in future..

It is forecasted that between the years 2008 till 2015 theCAGR(Compound Annual Growth Rate) of Indian automobile will

grow around 10%.

Huge demand of Indian automobile in other developing country in theworld. So there is good market outside India also.

With the increase in the competition in the automobile sector, majorplayers are going to setup their R&D centers in India.

Enter of the global players like Audi, BMW etc. it is a positive sign forIndian automobile industry.


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CONCLUSION The Indian automobile sector is one of the key segments of the economy

having extensive forward and backward linkages with other key segments of

the economy.

The forward linkage refers to its customer base, employment it provide andbackward linkage refers to its supplier to the industry.

According to Ministry of Heavy Industries & Public Enterprise (Government

of India) automobile industry contributes about 4% in Indias GDP. Thesesectors provide 4.5 lack of employment to the people of India.

Due to rise in inflation there is a rise in the price of the vehicles by 3% to 4%because the price of the raw material has gone up.

Inflation affected the production and sale of vehicles low rate of margins ofdealers & financer.

Due to rise in the fuel prices which can affect the growth of automobilesector. The rise in the price of this thee fuel will create serious problem infuture.


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SUGGESTION

The government should make reduction in the fuel prices or they shouldgive subsidiary.

To reduce the production cost the automobile maker firms can cut thejobs.

With the entry of global competitors in the Indian automobile industry ithas result in advanced technologies in the production and productionprocess which has resulted in reducing the cost of production.

With the development of alternative fuels like electricity, bio-fuel etc. ithas result in the evolution of new kind of car called hybrid cars. This willhelp to neutralize the effect of high fuel price.

Government should also take initiatives regarding tax rebate that canresult in the reduction in the price on the vehicles.

India holds huge potential in the automobile sector including theautomobile component sector owing to its technological, cost andmanpower advantage.


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THANKS

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Auto Mobile Industry Presentation