Automobile Industry of Indi (3)

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Automobile Industry of India


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History

Automobile industry emerged in India in the 1940s.

The growth was relatively slow in the 1950s and 1960s.

After 1970, the automotive industry started to grow.

In 1991 the Indian economy was Liberalized.

After liberalization in 1991, a number of Indian andmulti-national car companies launched operations.

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Automobile Industry Of India

The 9th largest Industry in the world.

Production over 2.3 million in year 2008.

2nd largest two-wheeler market in the world .

The Industry is also contributing 17% to Indirect taxes.

4th largest commercial vehicle market in the world.

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11th largest passenger car market in the world.

Largest tractor and three-wheeler vehicle market.

The monthly sales of passenger cars in India exceed

100,000 units.

The contribution of automobile Industry to GDP is

5% in the year 2006-07.

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The OEM industry is highly competitive

Global OEM

General Motors

Toyota

Ford

Hyundai Maruti Suzuki

Honda

Skoda

Volvo

Mercedes

Indian OEM

Tata Motors

Mahindra & Mahindra

Bajaj Auto

TVS motors Hero Honda

Bajaj Tempo

Ashok Leyland

Maruti Udyog Ltd.

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6.28

7.24

8.47

9.74

11.09

10.83

11.18

0 2 4 6 8 10 12

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

Automobile Production

million units

Indian automobile industry crossed a historic landmark of

10 million vehicles in 2008-09

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Domestic Market Share for 2008-09

76.49%

15.95%

3.95% 3.6%

Maket Share

Two Wheelers

Passenger Vehicles

Commercial Vehicles

Three Wheelers

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Two Wheeler Industry is Dominated by Motorcycles

6.217.05

7.86

7.25

0

1

23

4

5

6

78

9

2005 2006 2007 2008

Million units

Segment-wise analysis of two-wheeler market

Segment Description Share in

2001-02

Share in

2007-08

A1 Scooter with engine

capacity less than 75 cc

5% 0.5%

A2 Scooter with EC 75 125

cc

5% 13%

A3 Scooter with EC 125-250

cc

12% 1%

B2 Motorcycle with EC 75-

125 cc

62% 58%

B3 Motorcycle with EC 125-250 cc

5% 21%

B4 Motorcycle with EC

above 250cc

1% .5%

C1 Mopeds 10% 6%

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Domestic Two Wheeler Industry Sales


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Growth of Passenger Vehicle Segment

Passenger vehicles segment registered growth with 0.13 per

cent growth during 2008-09 over 2007-08.

Passenger cars and Multi purpose vehicles grew by 1.31 per

cent and 5.69 per cent respectively.

However, sales of utility vehicles fell by (-) 7.94 per cent.

The sales in March 2009 for passenger vehicles declined at (-)

1.15 per cent over March 2008.

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Commercial Vehicle industry is dominated by

Indian players

Commercial Vehicle Industry in 2008-09

Overall sales decline by (-) 21.69 %.

M&HCVs declined by (-) 33.16%.

Light commercial vehicles ( LCVs)

recorded de-growth at (-) 7.10

percent

Market Shares of Key Players in 2006-07

67%

12%

15%

4% 2% Tata Motors

Ltd

Ashok Leyland

Ltd

M&M Ltd

Eicher Motors

LtdOthers

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Three Wheeler Industry

Three Wheeler Industry in 2008-09

Three-wheelers sales registered adecline of (-) 4.13 per cent in 2008-09.

While passenger carriers grew by14.36 per cent during 2008-09,

Carriers declined at (-) 37.52 percent.

In March 2009, three-wheelers salesgrew by 11.40 per cent over samemonth last year.

Break-up of Industry by segment (2008)

36%

64%

Passenger Carrier Goods Carrier

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The Three wheeler market is dominated by Bajaj Auto

Major Key Players

Bajaj Auto

Piaggio Vehicles

Mahindra & Mahindra

Atul Auto Ltd

Force Motors

Market Share of Key players 2007-08

42%

41%

9%8%

Bajaj Auto Piaggio Vehicles

M&M Others

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Automobile Domestic Sales Trend

16

5,941,535

6,810,537

7,897,629

8,906,428

10,128,9889,654,435 9,723,391

0

2000000

4000000

6000000

8000000

10000000

12000000

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Sales


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Auto Component Sector

Exports & Imports

7,93711,198

13,184

14,132

16,750

9,504

12,115

15,974

20,998

28,160

0

5,000

10,000

15,000

20,000

25,000

30,000

Exports

Imports

In Rs. Crores

DIRECTION OF EXPORTS (2008-09)

44%

22%

15%

7%

7%4% 1%

Exports

Europe

North America

Asia

Africa

Middle East

South America

Oceania

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Automotive industry crisis of 20082009

The automotive industry crisis of 20082009 was a part of a globalfinancial downturn.

Crises affected European and Asian automobile manufacturers, but it wasprimarily felt in the American automobile manufacturing industry.

Rise in fuel price linked to energy crisis 2003-08 also discouraged thepurchases of SUVs and Pick-up Trucks.

In India, the State Bank of India reduced interest rates on automotive

loans in February 2009.

Tata Motors conducted a widespread marketing campaign heralding thedebut of the Tata Nano.

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Auto Policy 2002

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Indian

Auto Policy

2002

100% Foreign

Direct Investment

Promote a Globally

Automotive Industry

Investment

Incentives By the

Government

Weighted Tax

Deduction Up to

150% for R&D


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Documents

Automobile Industry of Indi (3)