AUTOMOBILE AUTOMOBILE INDUSTRYINDUSTRY

Presented ByPresented By

Group 1Group 1

HISTORYHISTORY

• The first car ran on India's roads in 1897The first car ran on India's roads in 1897

• Embryonic automotive industry emerged in India in Embryonic automotive industry emerged in India in

the 1940s.the 1940s.

• Mahindra & Mahindra under license from Willys Mahindra & Mahindra under license from Willys

branched out into the manufacture of light branched out into the manufacture of light

commercial vehicles (LCVs) and agricultural tractorscommercial vehicles (LCVs) and agricultural tractors

EVOLUTIONEVOLUTION

• The Independence marked the evolution of The Independence marked the evolution of

Indian automotive industryIndian automotive industry

• The growth was relatively slow due The growth was relatively slow due

to nationalisation and the licenseto nationalisation and the license raj which raj which

hampered the Indian private sectorhampered the Indian private sector

• Maruti Udyog – Japanese & Indian venture Maruti Udyog – Japanese & Indian venture

firmed the sectorfirmed the sector

PILLARS TO INDUSTRIAL PILLARS TO INDUSTRIAL GROWTH GROWTH

• The economic liberalisation in 1991 and the The economic liberalisation in 1991 and the

gradual weakening of the license rajgradual weakening of the license raj

• Tata Motors, Maruti Suzuki and Mahindra and Tata Motors, Maruti Suzuki and Mahindra and

Mahindra, expanded their domestic and Mahindra, expanded their domestic and

international operationsinternational operations

• The Indian government chose Suzuki for its joint-The Indian government chose Suzuki for its joint-

venture to manufacture small carsventure to manufacture small cars

• Bajaj , Hero Honda , TVS etc emerged as leading Bajaj , Hero Honda , TVS etc emerged as leading

two wheeler and three wheeler producers with two wheeler and three wheeler producers with

Hero Honda as largest shareholder Hero Honda as largest shareholder

EXPORTS AND DATAEXPORTS AND DATA

• In the year 2009, India rose to be the fourth largest In the year 2009, India rose to be the fourth largest

exporter of automobiles following Japan, South exporter of automobiles following Japan, South

Korea and ThailandKorea and Thailand

• Monthly sales of passenger cars in India exceeded Monthly sales of passenger cars in India exceeded

100,000 units100,000 units and has since grown rapidly to a and has since grown rapidly to a

record monthly high of 182,992 units in October record monthly high of 182,992 units in October

20092009

• Predictions made by Ernst and Young have Predictions made by Ernst and Young have

estimated that the Indian passenger car market will estimated that the Indian passenger car market will

have a growth rate of about 12 percent per annum have a growth rate of about 12 percent per annum

over the next five years to reach the production of over the next five years to reach the production of

3.75 million units by the year 20143.75 million units by the year 2014

CURRENT STATUSCURRENT STATUS

• The automobile sector of India is the The automobile sector of India is the

seventh largest in the worldseventh largest in the world

• The country is the largest manufacturer of The country is the largest manufacturer of

motorcycles and the fifth largest producer motorcycles and the fifth largest producer

of commercial vehiclesof commercial vehicles

• Many foreign brands are setting up roots in Many foreign brands are setting up roots in

Indian soilIndian soil

• India overtook China by emerging as the India overtook China by emerging as the

fourth largest exporter of cars in Asia.fourth largest exporter of cars in Asia.

MARKET SIZE OF AUTOMOBILE MARKET SIZE OF AUTOMOBILE INDUSTRYINDUSTRY

• Grown at a spectacular rate on an average of 17% for last few years

• Attained a turnover of USD $35.8 billion• Has provided direct and indirect employment to 13.1

million people• The projected size in 2016 of the Indian automotive

industry varies between $122 billion and $159 billion including USD 35 billion in exports

MAJOR PLAYERS IN INDIA• MarutiMaruti• AudiAudi• BMWBMW• ChevroletChevrolet• FiatFiat• SkodaSkoda• TataTata• VolvoVolvo

• Honda• Hyundai• Mahindra• Mercedes• Mitsubishi• Nissan Motors• Toyota • Volkswagen

MARKET SHARES

• Tata Motors - Commercial Vehicles 63.94%, Passenger Tata Motors - Commercial Vehicles 63.94%, Passenger Vehicles 16.45%Vehicles 16.45%

• Maruti Suzuki – 46.0 %Maruti Suzuki – 46.0 %

• Hyundyi Motors – 14.15 %Hyundyi Motors – 14.15 %

• Mahindra & Mahindra - Commercial Vehicles 10.01%, Mahindra & Mahindra - Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three Wheelers 1.31%Passenger Vehicles 6.50%, Three Wheelers 1.31%

• Ashok Leyland - 22 % Ashok Leyland - 22 %

MAJOR CHALLENGESMAJOR CHALLENGES

• Rising oil pricesRising oil prices

• Human resourceHuman resource

• Rise in disposable IncomeRise in disposable Income

• Highways not up to the markHighways not up to the mark

• Limited number of component suppliersLimited number of component suppliers

• Fall short in product developmentFall short in product development

• Customer Relationship managementCustomer Relationship management

IMPACT OF GLOBAL CRISISIMPACT OF GLOBAL CRISIS

• Global vehicle production fell by 3.7% from 2007 to Global vehicle production fell by 3.7% from 2007 to

20082008

• NAFTA and South America were most badly hitNAFTA and South America were most badly hit

• Employment conditions affected by international Employment conditions affected by international

trade in motor vehicles and automotive components trade in motor vehicles and automotive components

and parts, flows and stocks of foreign direct and parts, flows and stocks of foreign direct

investments.investments.

• Difficulty in obtaining loans for car purchaseDifficulty in obtaining loans for car purchase

• Value chains were in a dire stateValue chains were in a dire state

• Plants were shuttered temporarilyPlants were shuttered temporarily

• Huge debt loads, high fixed-capital costs, high labor Huge debt loads, high fixed-capital costs, high labor

costs, and immense pension and health care costs, and immense pension and health care

commitments to retirees added to the immediacy of commitments to retirees added to the immediacy of

the damage.the damage.

• The high cost and growing longevity of motor The high cost and growing longevity of motor

vehicles prompted buyers to postpone purchasesvehicles prompted buyers to postpone purchases

LATEST TRENDSLATEST TRENDS

• Remote keyless entryRemote keyless entry

• Drive by WireDrive by Wire

• Electronic suspensionElectronic suspension

• Adaptive cruise controlAdaptive cruise control

• Tire pressure monitoringTire pressure monitoring

• Navigation systemsNavigation systems

• Automotive digital electrical systems and Automotive digital electrical systems and

onboard networks onboard networks

• CMOS logic gateCMOS logic gate

• PLDs reduce engineering devlopement timePLDs reduce engineering devlopement time

• Driver assistance applicationsDriver assistance applications

• Rear seat entertainment systemsRear seat entertainment systems

• High definition control systemsHigh definition control systems

LEADING PLAYERS LEADING PLAYERS IN THE INDUSTRYIN THE INDUSTRY

MARUTI SUZUKIMARUTI SUZUKI

• Leader in car market

• Market share of 39.12 per cent in overall passenger vehicle market

• Production of 1.5 million cars every year

• Net sales rose 21.3 per cent to Rs 426, 125 million in (US$ 6.83 billion) FY13 and Net profit up by 40.6 per cent to Rs 23,921 million (US$ 383.48 million) in FY13

•  Its car offering starts from the entry level Alto, to hatchbacks like A-Star, Wagon R, Swift, sedans like SX4, Dzire, Ciaz, MUVs and SUVs like Ertiga, Grand Vitara and ‘C’ Segment vehicle Omni.

HYUNDAIHYUNDAI

• India's largest car exporter

• India's 2nd largest car manufacturer

• Debuted in India with Hyundai Santro

• More than 1000 service points across India

• State-of-the-art manufacturing plant in India

• It currently sells ten car models spanning segments – Hatchbacks – Santro, i10, i20, Sedans – Verna, Elantra, Sonata and Santa Fe in the SUV segment. 

THANK YOUTHANK YOU