Automobile

Slide 1

AUTOMOBILE INDUSTRY IN INDIA MARKETING CHALLENGES

PRESENTED BY:

ANKIT KUMAR VERMA (01216603913)AKHLESH PRASAD (00916603913)

Objective1. Overview2. Top automobile companies in India3. Sales4. Analysis of Indian Automobile Industry 5. SWOT analysis6. Challenges7. Conclusion8. References Objective:

Economy AnalysisIndustry AnalysisChallengesConclusionReferencescompaniesOverview

Sales

Sales:

Economy AnalysisIndustry AnalysisCompany AnalysisChallengesReferencescompaniesOverview

5. HERO HONDA MOTORSCEO:- Mr. Pawan MunjalChairman:- Mr. Brijmohan Lal MunjalPUNCH LINE:-Desh ki Dhadkan

CEO:- Mr. John KrafickChairman:-Mr. Mong Koo ChungPUNCH LINE:- Drive Your Way

1.TATA MOTORSCEO :- Karl J SlymCHAIRMAN:- Mr. Cyrus P. MistryPUNCH LINE:- Even More Car per Car

GDP and Automobile Industry:In absolute terms, Indiais 9thin the world in terms of nominal factory output(its $1.22 trillion)

Fundamental AnalysisECONOMY:

Data source: India central statistical organizationEconomy AnalysisIndustry AnalysisChallengesConclusionReferencescompaniesOverview

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 AnalysisIndustry Analysis:


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 dont 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 AnalysisIndustry AnalysisChallengesConclusionReferencescompaniesOverviewConclusion:

REFERANCES: Books: Auto Drive Magazine Reference Materials:The Economic TimesRBI annual report Websites:http://www.googlefinance.comhttp://www.autocarindia.comhttp://www.assocham.orghttp://www.wikipedia.com Search Engines:www.google.com THANK YOU Any Queries?

Companies

Economy AnalysisIndustry AnalysisCompany AnalysisChallengesReferencescompaniesOverview

Top Automotive Companies In INDIA

Leading Companies:

Maruti Suzuki India Limited (MSIL)Hyundai Motor India Limited (HMIL)Tata MotorsMahindra & Mahindra Limited (M&M)Hero Motors Limited (HML)

OverviewIndian 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:


Export Analysis

Automobile Export:


Five Forces


SWOT

Strengths(S):Large domestic marketIncrease in exports levelLow cost cheap laborGovernment 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)Heavy thrust on mining and construction activityIncrease in the income levelRising living standardsCut in excise dutiesRising rural demand

Threats(T):Rising input costsRising interest ratesCut throat competitionEconomy AnalysisIndustry AnalysischallengesConclusionReferencescompaniesOverview

Challenges

Challenges for the Indian automobile industry

1) As we move into the new millennium, the Indian Automobile Industry faces some tremendous opportunities and also great challenges. The growth in automobile sales has been impressive for the past ten years since liberalization began.

2) However, with liberalization, the Indian customer has been presented with a wide range of choices in automobiles, to suit every requirement and budget. The market has turned into a buyers market where the customer is being wooed by the manufacturers and the dealers with a range of freebies unheard of before in India.

3) Competition has meant that manufacturers' margins have been squeezed severely and they are all under pressure to cut costs to be profitable and competitive.

4)The challenge before the industry is to figure out the strategy for survival and growth. It is clear from the picture painted above that the industry will have to increase volumes in each segment to achieve lower cost of manufacture.


Challenges

Economy AnalysisIndustry AnalysischallengesConclusionReferencescompaniesOverview5) One way to achieve this will be to go for exports in a big way. Maruti is already exporting vehicles, as are Mahindra, Telco, Daimler Chrysler and more recently Daewoo. The overseas markets will have to be exploited more aggressively, but this will mean the companies will have to invest more in Research and Development of new models with better features.

6) The second opportunity is to become contract manufacturers for overseas companies. A number of Japanese and Korean companies have been following this strategy very successfully. Hindustan Motors is said to be considering this option.

7) The third opportunity is to overcome the vulnerability of the automobile market to oil prices by designing vehicles, which can offer lower fuel consumption. Recent reports suggest the government is exploring the possibility of introducing Gasohol, which is a mixture of Petrol and Alcohol.

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