Introduction History Attractiveness Current growth Export Industry investment Segment know how Market advantage About sales Policies Key players Area of concern suggestion

The industry has grown at a CAGR of 14% p.a. over the last five years.

Eleventh largest in the world. Largest two wheeler and three wheeler market. Second largest tractor manufacturer. Fifth largest commercial vehicle manufacturer. Forth largest car market in the Asia. Hyderabad is going to come up with first

automobile mall.

The actual horseless carriage was introduced in 1893 by Charles & Frank Duryea.

First car rolled out on the street of Mumbai in 1898.

First luxury automobile was introduced by Rolls-Royce in 1909.

The year 1957 brought high-performance cars such as Mercedes-Benz.

The liberalization of 1991 opened the flood gates of competition & growth.

•Large and growing domestic demand

•Export Potential

•Proven product Development capabilities

•High quality standards

•Stable economic policies

•Competitive manufacturing cost

Crossed a landmark with total vehicle production of 10 million units.

Two wheeler sales grew by 11.42% Cars sales grew by 22.01% Utility vehicles sales by13.21% Multi purpose vehicles sales by 25.20% Commercial vehicles segment grew by

33.28% Estimated market size by 2012 Us $17

bn.

Two wheelers are mostly exported from India.

Market registered a growth of 22.30%during 2007-08.

Passenger vehicle export grew by 13.05%.

Commercial vehicle export increased by 22.58%.

Three wheeler export grew by 87.17%.

Two wheeler export grew by 20.65%.

.

Strengths:- Cost competitiveness in terms of labor and raw material. Established manufacturing base. Economics of scale due to domestic market. Potential to harness global brand image of the parent company. Global hub policy for small car like Hyundai, Suzuki, etc.

Weaknesses:- Perception about quality. Infrastructure bottlenecks.

Opportunities:-• Huge export markets such as Europe, America,

Africa, and others for Indian cars.

Threats:-• China, Malaysia, Thailand, etc. • Many other countries also have strategies for

export promotion.

Continuous cost reduction. Improved technologies. Joint venture with foreign companies. Supply chain management. Improve infrastructure. Improve EXIM Regulation.

Hero Honda contributes 50% in motor cycle. TVS makes 82% of the moped in country. Honda holds 46% in scooter. Among three wheeler Bajaj is the leader by

making 68% of total. Maruti Suzuki has 52% share in cars. In utility vehicles Mahindra holds 42%

share. In commercial vehicles Tata motors has

60% share.Tata motors is also world’s fifth largest medium & heavy commercial vehicle manufacturer

Fast paced urbanization to rise from 28% to 40% by 2020.

Middle class expanding by 30-40 million every year.

Growing population. Upward migration of household income. Deduction in excise duty.

COMPANY NAMECOMPANY NAME 2006-2006-0707

2007-082007-08 GROWTGROWTHH

Maruti SuzukiMaruti Suzuki 675059675059 764842764842 13.3%13.3%Mahindra & Mahindra & mahindramahindra

177965177965 231355231355 30%30%

Skoda motorsSkoda motors 1244412444 1418714187 14.1%14.1%General motorsGeneral motors 3885738857 6654366543 71%71%Hero HondaHero Honda 333675333675

6637037037037000

11%11%

Invest in India

Excellent Source for IT based Engineering Solutions - for Product &

Process Integration

Scaling Costs

Optimising Resources

Twin Indian Advantages…

By 2010, India is expected to witness over Rs. 30,000 crore of investment.

Maruti udyog has set up the second car plant with an investment of Rs.6500 crore

Hundai will bring in more than Rs.3800 crore in India.

Tata moters will be investing Rs.2000 crore & ford about rs. 350 crore.

Ashok leyland has announced over Rs. 1000 crore of investment.

POLICIES RELATING TO THE POLICIES RELATING TO THE SECTOR : AUTO POLICY SECTOR : AUTO POLICY

• Policy for promoting integrated, phased, enduring and self sustained growth.

•Allows automatic approval for foreign equity investment.

•Lays emphasis on R&D activities

•Formulation of an appropriate auto fuel policy

•Confirms the government’s intention on harmonizing the regulatory standards with the rest of the world

The largest player in the Indian industry. Plans to launch new and exciting products in the Indian markets, including the ‘100,000’ car

Suzuki’s JV in India and the largest passenger car manufacturer in India.

The third largest passenger car manufacturer in India and one of the largest exporters of vehicles. Has established India as one of its manufacturing bases in the world. Is planning to invest heavily to boost exports from India.

Has vision of capturing 10 % share of the Indian passenger car market by 2010

One of the leading players in the Indian premium cars segment

One of the leading players in the Indian premium cars segment. Plans to enter the small car segment by re-launching the Matiz

One of the largest players in the UV / MUV segment

The 2nd largest CV manufacturer in India

Other global players who are in India / have plans for India include -Volvo, Daimler Chrysler, BMW and Nissan Motors

One of the leading players in the Indian premium cars segment

The largest 2 wheeler manufacturer in the world

The 2nd largest 2- wheeler manufacturer in India and the largest 3 wheeler manufacturer. Has plans for establishing a manufacturingfacility in Indonesia

The third largest 2 wheeler manufacturer in India. Has plans for establishing a manufacturing facility in Indonesia

Has recently entered the Indian market through its direct Subsidiary (in addition to its JV – Hero Honda)

Has recently entered the Indian market through its direct subsidiary

SEGMENT COMPANIES Cars/SUVs

Maruti Suzuki, Honda, Toyato, Skoda, General Motors, Tata, Ford, Hyundai, Daimler, Fiat, Chrysler.

Two-wheelers

Tvs, Yamaha, HeroHonda, kinetic, LML, Bajaj

CVs Tata, Swaraj Majda, Ashok Leyland, M&M, Eicher,Volvo, Mitsubishi.

Tractors Escorts,New Holland,M&M, L&t, Punjab Tractors.

GLOBAL PLAYERS IN INDIA

Unstructured & uncontrolled growth of cities & towns.

High cost of fuel. Pollution problem. Responsibility towards environment. Lack of world-class infrastructure. Parking problem in big cities. Increasing competition from the

Railway & waterway.

Produce vehicles that would support the usage of the alternative fuel.

Increase vehicle fuel economy for a given fuel type.

Development of hybrid technology. Safe driving. Environment friendly vehicles. Provide better infrastructure in &

between cities.

THE HINDU (SURVEY OF INDIAN INDUSTRY 2007)

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