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SMALL CARS IN THE

INDIAN INDUSTRY

PROJECT ON FINANCIALACCOUNTING

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1) Saifuddin A Kalyanwala 78

2) Rahul Mishra 88

3) Kavita Prakash 98

4) Trupthi Shetty 108

5) Hridya Warrier 118

GROUP MEMBERS

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ORIGIN

The Indian Automobile Industry is the

7th

largest in the world. In 2009,India emerged as Asias 4th

largest exporter of automobiles.

By 2050, the country is expected to

top the world in car volumes.

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Moving from roti, kapda aurmakaan to roti, kapda, makaanaur gaadi clearly says the Indian

passenger car story.

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The Indian Automobile Industry has

grown by leaps and bounds since

1898, when a car had touched Indian

streets for the 1st time.

Maruti Suzuki entered the market in

1983 when scooters were in keen

demand and motorcycles were rare.

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RANKWISE LARGEST

AUTOMOBILE MANUFACTURERS Tata Motors Maruti Suzuki Hyundai Mahindra GM Chevrolet Honda Toyota

Ford Fiat|Fiat Motors koda

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As the saying goes, all good things come

in small packages, so is it with cars in

India.

Majority of car buyers are from the middleincome group.

The small car market constitutes almost

72% of the Indian passenger car industry.

The reason for such stupendous success ofsmall cars in India is its growing middle

class.

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The Growth Opportunities of

Small Cars

The streets are packed with traffic during

almost every hour of the day.

The roads in India are now occupied by

these little machines. Improvement in living standards of the

improvement in Living standards of the

Middle Class.

As well as there is Finance availability-about 67%

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72%

18%

3%

1% 6%

A1 & A2

A3

A4

A5

A6

Here A1 & A2 represents Small Cars in 2008-2009

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Low Penetration

Value Growth

Demographic Advantage Economic Growth

Rural Market

Fuel economy

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3.5

9.5

16

0

2

4

6

8

10

12

14

16

18

2007-08 2008-09 2009-10

Penetration(%)

Financial Year Growth in

India of Small Cars

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IMPACT OF SMALL CARS Owning a car Small cars fulfilled a long

cherished dreams of middle class.

India second largest manufacturer of

small car in world

Positive Impact on Insurance industry

Negative impact on Environment Road

Congestion, Air pollution, Fuel

Consumption

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Positive Impact of the Budget on the Indian AutomotiveIndustry (India), 2008-2009

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ADVANTAGES OF SMALL CAR

CONSUMERS Affordable Fuel efficient

Convenience Easy maintenance Reliability

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MAJOR CHALLENGES:

Poor Infrastructure Value Seekers

Psychology of consumers Safety Consumes space

Cost

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Good Things Come In SmallPackages and so is with cars in

India

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THANK YOU