Automobiles Sector

Passenger Vehicles

[Author name] Industrial Awareness

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Executive Summary
The report provides and overview of the automobile industry by analyzing the development
of industry throughout history, the growth potential, the key domestic and international players and
their market share, the segmentation of the industry, the key growth drivers, the impact of external
factors such as government regulations, union budget and technological changes, etc. The report also
deep dives into some of the major players of the industry in the Indian economy.
The automobile industry forms a significant part of the GDP at 2.3%. The sector is divided
into segments like passenger vehicle, commercial vehicle, three-wheelers and two-wheelers. Major
domestic players include Maruti Suzuki, Tata Motors, Mahindra & Mahindra and international
players include Honda, Toyota, Ford, Fiat, Renault, etc. Some of the key growth drivers of the
industry include GDP growth rate, Credit Growth, Regulatory Framework, Material Costs Volatility,
Inflation, Crude Oil Prices, etc. The automobile sector was advancing well in the past few years but
was hit by a slowdown with falling sales volume since September 2018. The major reasons for this
being NBFC crisis leading to a liquidity crunch and slowing down the economy.
Mahindra & Mahindra a major player in this sector which already has arms in various other
sectors like aerospace, real estate, information technology etc. commands a significant market share
of 8.08% segment. It is also a leader in the utility vehicle segment and pioneers in the electric vehicle
segment. Some of its popular product offerings include Mahindra Bolero, Mahindra Xylo, Mahindra
Scorpio, etc. Some important M&A of the company include REVA Electric Car Company, South
Korea's SsangYong Motor Company, etc. Tata Motors a global leader in automobiles is known for its
diverse portfolio includes an extensive range of cars, sports utility vehicles, trucks, buses and defense
vehicles. Major product of the company include Tata Indica , Tata Winger, Tata Nano, Tata Xenon,
etc. Some important M&A of the company include Jaguar and Land Rover. Maruti Suzuki hold 53%
of the market share which makes it the market leader in the sector. It offers a variety of products in
various price and style ranging from Dzire, Ciaz, Baleno, Brezza, Ertiga, Omni, etc. Some major
M&A include Suzuki Motor Corp. and Suzuki Powertrain India Limited (SPIL).

The report also look into the impact of government policies and regulations through the
history of industry in India. The changing paradigm shift in the industry and current state of
liberalization and regulation in the country and its impact on the industry. The report also discusses
the impact of technological disruptions and interventions on the industry by discussing the impact of
introduction of Industry 4.0, Electric Vehicles, Smart Fuel Injection, Connected Vehicles, Automated
Driving, Blockchain Technology and 3-D Printing.

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Table of Contents
Sector Overview ............................................................................................4
Key Drivers in the Sector .................................................................................................. 5
Sector Performance & Outlook ......................................................................................... 5
Government Regulations................................................................................................... 7
Major Players ................................................................................................8
Mahindra & Mahindra ...................................................................................................... 8
Introduction ........................................................................................................................................................ 8
History ................................................................................................................................................................ 8
Products .............................................................................................................................................................. 8
Competition ........................................................................................................................................................ 9
Annual Report .................................................................................................................................................... 9
Mergers & Acquisitions ................................................................................................................................... 10
TATA Motors.................................................................................................................. 11
Company .......................................................................................................................................................... 11
Overview .......................................................................................................................................................... 11
Products ............................................................................................................................................................ 11
Financials ......................................................................................................................................................... 12
Mergers & Acquisitions ................................................................................................................................... 12
Maruti Suzuki .................................................................................................................. 13
History .............................................................................................................................................................. 13
Overview & Products ....................................................................................................................................... 13
Competition ...................................................................................................................................................... 14
Manufacturing .................................................................................................................................................. 14
Financials ......................................................................................................................................................... 15

Macroeconomic Profile ...............................................................................16

Government regulations & Policy changes..................................................................... 16
Impact of Union budget on the automobile sector .......................................................... 17

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Emerging New Technologies ......................................................................18

Basic Structural Change .................................................................................................. 18
Change in the Features & Connectivity .......................................................................... 18
Impact on Supply Chain & Manufacturing Change ....................................................... 19
References ....................................................................................................20

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Sector Overview
The automobile industry/sector forms a significant 2.3% of the GDP of India. The industry is cyclical
in nature, along with festive season playing a massive role in its sales growth. Overall domestic
automobiles sales increased at 6.71 percent CAGR between FY13-19 with 26.27 million vehicles
getting sold in FY19 Indian automotive industry (including component manufacturing) is expected to
reach Rs 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026
Passenger Vehicle sales form 13% of the total domestic market share of the automobile industry. In
the past, Passenger vehicles market has been dominated by Maruti Suzuki, Hyundai, Tata Motors and
Mahindra. Smaller holders of market share include Honda, Toyota, Ford, Fiat, Renault, etc.
According to April 2019 sales figures, Maruti Suzuki is the market leader with 53.5% market share,
followed by Hyundai (17.1%), M&M (8.1%), Tata Motors (5.1%), Honda (4.6%) and Toyota (3.8%).

Two-wheeler segment forms the highest

share of the automobile industry, while
Passenger Vehicles and Commercial vehicles
form 13% and 4% of the market share
respectively.

According to April 2019 sales, Maruti remains on top of the market,

while M&M and Hyundai are the market runner ups.

Key Drivers in the Sector

The industry is driven and to a substantial degree impacted by the following:
● Regulatory Framework (BS-VI compliance,
● GDP growth rate/per capita GDP
Road safety norms, etc.)
(unfavorable - likely to improve by 2022)
● Material Costs Volatility
● Interest Rates

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(unfavorable - likely to improve) (Favorable)

● Credit Growth ● Inflation
(unfavorable - likely to improve) (Favorable)
● Cost of Ownership (including Maintenance, Fuel ● Crude Oil Prices
and insurance cost) (Uncertain)
(unfavorable - likely to remain unfavorable in FY
2020)

Sector Performance & Outlook

Key Highlights
● Liquidity crunch due to NBFC crisis triggered a fall in sales volume
● Fall in consumer demand, high-interest rates and low GDP growth contributing to a continued slowdown in FY
2019-21
● Lookout for GST reduction, credit growth and liquidity infusion. Festive season to offer a slight respite.
● EV and CNG segment are likely to drive long-term growth. BS-VI compliance from April 2020.
● Shared Mobility, high cost of ownership and fuel prices still a looming threat.
● Industry slowdown to continue for the next two quarters. Prospects of demand pick up in the fourth quarter.
● Export to newer markets like Africa, likely to keep up the revenue levels.
● The slowdown in the sector might continue with lack of government impetus. Investor confidence is likely to be
affected by both Global & domestic issues.
● Strong potential for penetration still remains, with per capita vehicle availability lower than most developed and
developing countries.

The automobile sector had been advancing well in the past few years, growing at a CAGR 6%
between FY13-19. However, the sector has been hit by a slowdown, with sales volumes falling since
September 2018. The slowdown is the result of a multitude of factors; however, it has been triggered
by the NBFC crisis leading to a liquidity crunch, slowing down the economy. In India, NBFCs have
in recent years helped fund nearly 55-60% of commercial vehicles both new and used, 30% of
passenger cars and nearly 65% of the two-wheelers in the country. Thus, the collapse of IL&FS
slashed available liquidity in the market and subsequent fall in demand for vehicles. Other sets of
reasons that compounded the problem and continue to remain monitorable factors include:
demonetization, low consumer sentiment, slower GDP growth rate, high-interest rates, GST,
increased cost of ownership and spread of shared mobility concept. The passenger vehicle sales grew
by only 2.7% over the FY18-19, as compared to 7.9% in FY17-18. The slowdown impact deepens

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every month, as sales volume fall in all segments of the sector. July sales volume were recorded as
the slowest growth level in almost 19 years. Even the top players in the sector are cutting down
production levels, with the rise in unemployment all across the value chain. The fall in sales levels is
indicative of an economy-wide slowdown, with industry representatives seeking government
intervention in addressing the slowdown. Recent rate cuts by RBI and infusion of credit into the
system is projected to have a little upside for the sector, as industry demands a cut in GST rates from
28% to 18%, to give a push to the demand.
Export demand for the vehicles has also
slowed down, with respect to major export
destinations such as Mexico, Sri Lanka,
UK, Italy, and Indonesia as a result of a fall
in their GDP growth and stringent import
policies. However, newer demand
destinations have opened up like USA,
Saudi Arabia, Chile and Algeria along with
the revival of the African market for the top
players.
In FY20, the demand is expected to remain muted, with growth of ~2-4% in the domestic market. An
improved buying sentiment might be seen with more new launches rather than facelifts and the
buying of BS-IV compliant vehicles as compared to the expensive BS-VI compliant vehicles from
April 2020. An increase in Cost of Ownership, volatility in fuel costs and pre-buying of BS-VI
compliant vehicles might hinder growth. FY21 is expected to see a marginal rise in the consumer
demand with higher GDP growth, government support, tax rebates and muted inflation. The sector is
expected to grow at about ~3-5% in FY21.

Opportunity for the sector opens up in its adoption for Electric Vehicles under the government’s
support along with Mobility Mission 2026. Quicker adoption to EVs along with BS-VI compliant
vehicles might lend an edge to the first mover. Under the government's mission for the adoption of
Electric Vehicles, strong infrastructure is being developed to support the adoption of EVs in the
Indian market. Government orders of fleets of EVs are the first stage of this process, which will soon
be supplemented by charging infrastructure to support the new segment. Export opportunities to
newer markets is also a factor that keeps the industry revenues stable, with newer destination and
increased volume growth in African markets.

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Player’s Profile
Mahindra & Mahindra
Introduction
Mahindra & Mahindra Limited is an Indian multinational automobile manufacturing corporation
headquartered in Mumbai, Maharashtra, India. It is a part of the $24 billion Indian conglomerates
which has arms in various other sectors like aerospace, real estate, information technology etc. It was
established in the year 1945 as Muhammad & Mahindra and later renamed as Mahindra and
Mahindra. It is one of the largest vehicle manufacturers by production in India commanding a
significant market share of 8.08% and a segment leader in the utility vehicle segment. The company
is one of the pioneers in the electric vehicle segment with its offerings like Mahindra E2o and E2o
plus. Also, it is the largest manufacturer of tractors in the world by volume.
● Founded: 02nd October 1945.
● Founders: JC Mahindra, KC Mahindra, MG Muhammad.
● CEO: Anand Mahindra.
● MD: Pawan Goenka.
● Market Share in Passenger Vehicle: 8.08%.
● Current Assets: ₹163,391 crore ($24 billion)
● Revenue: ₹105,806 crore
● Net Income: ₹6,016 crore

History
Mahindra & Mahindra was founded as a steel trading company on October 2, 1945 in Ludhiana as
Mahindra & Mohammed by brothers Kailash Chandra Mahindra and Jagdish Chandra Mahindra
along with Malik Ghulam Muhammad. However, after India gained independence and divided into
three parts, Muhammad emigrated to West Pakistan. Thereafter, the company changed its name to
Mahindra & Mahindra in 1948. The company started diversified its operation as a manufacturer of
multi-purpose utility vehicle. It manufactured completely knocked down units of Willy's Jeep in the
year 1949. The company expanded its business in the automobile segment and started manufacturing
light commercial vehicles and agricultural tractors and has diversified into other segments from
energy to real estate.

Products
The company specializes in the manufacture of utility vehicles and has positioned its product in the
utility vehicle segment positioned at different price points. The company is known for making the
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most rugged and toughest vehicles and follows a similar pattern of unconventionally naming their
products with an ‘O’ in the end. M&M enjoys a big share 48% in the utility vehicle market share and
is the number two CV player in India. The entire range of product is positioned at ultra-premium,
premium, mid and entry level.
● Mahindra XUV500
● Mahindra TUV300
● Mahindra KUV100
● Mahindra Alturas G4
● Mahindra Marazzo
● Mahindra Thar
● Mahindra Bolero
● Mahindra Nuvo Sport
● Mahindra Xylo
● Mahindra Scorpio

Competition
The competition in the automobile sector in the domestic market is very high with more than fifteen
national and international players. The company enjoyed a significant share of the SUV market
however, with the changing times it has attracted a number of players to the SUV market and faces
stiff competition in the SUV market. M&M has lost its share to Renault (Duster) and Ford Motor
Company (EcoSport) and Toyota Kirloskar (Innova). The company has lost its crown of highest
market share in the UV segment to Maruti Suzuki Brezza.

Annual Report
The analysis is based upon the released annual report for the FY 2018-19.
● The operating income rose by 13.7% on a year-on-year (YoY) basis for the FY 2018-19.
● During the fiscal year, the company's operating profit increased by 15.0% YoY.
● The company's current liabilities increased by 19.5% during FY19 stood at Rs 587 billion.
● Cash flow from operating activities (CFO) during FY19 was negative and stood at Rs -43
billion YoY.
● Cash flow from investing activities (CFI) during FY19 was negative and stood at Rs -72
billion. However, it was an improvement of 31.1% on a YoY basis.
● Similarly, Cash flow from financial activities (CFF) during FY19 stood at Rs 132 billion. It
was an improvement of 109% on a YoY basis.

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Mergers and Acquisitions

● M&M gained a controlling stake in the REVA Electric Car Company in the year 2010 by
acquiring a stake of 55.2%.
● M&M acquired South Korea's SsangYong Motor Company in 2011 by acquiring a stake of
70%.
● In October 2014, M&M acquired a 51% controlling stake in Italian 2-wheeler manufacturer
Peugeot Motorcycles.
● In December 2015, M&M bought a 76.06% stake in Italian car designer Pininfarina SpA, for
€25.3 million.
● In January 2017, M&M acquired a 75.1 equity stake in Hisarlar a Turkish farm equipment
company as an entry to turkey market.

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TATA Motors
-Connecting Aspirations

Company
Tata Motors Group (Tata Motors) is a $45 billion organization. It is a leading global automobile
manufacturing company. Its diverse portfolio includes an extensive range of cars, sports utility
vehicles, trucks, buses and defense vehicles. Tata Motors is India’s largest and the only original
equipment manufacturer (OEM) offering extensive range of integrated, smart and e-mobility
solutions.

Overview
With over 8.5 million Tata branded vehicles plying globally, Tata Motors is among the select
companies in the world to offer an extensive portfolio to its consumers. They have expanded their
international footprint through exports since 1961. In passenger vehicles, the company has a strong
presence in the hatchback and the sedan segment, going up to SUVs and MUVs. In commercial
vehicles, Tata Motors offers a wide spectrum of vehicles that are customized for local conditions and
meet the highest standards for quality, safety, environment norms and user comfort. Today, the Tata
Motors group is present in over 175 countries, with a worldwide network comprising over 6,600
touch points. Tata Motors has R&D centers in UK, Italy, India and South Korea. With vast global
experience, the company brings deep understanding of customer expectations from diverse markets,
and is well positioned to cater to ever changing automotive norms and consumer trends across the
globe.

Products
● Cars and sports utility vehicles
● Trucks and Buses
● Defence

The below mentioned brands are the prominent products under the Tata Motors product portfolio.

1. Tata Sumo 2. Tata Safari

3. Tata Indica 4. Tata Indica Vista

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5. Tata Indigo 6. Tata Manza

7. Tata Indigo Marina 8. Tata Winger

9. Tata Magic 10. Tata Nano

11. Tata Xenon XT 12. Tata Aria

Financials
FINANCIALS MAR’19 MAR’18 MAR’17 MAR’16 MAR’15
Revenue 3,019,384 2,915,505 2,696,925 2,730,456 2,631,590
Profit/Loss 62,042 122,507 190,074 250,655 287,252
before tax
Basic EPS (Rs -4.4 22.9 19.8 38.4 43.6
Equity Share 6,792 6,792 6,792 6,792 6,438
Dividend (Rs -1,104 -960 -1,212 -1,739 -7,204
Crore)
PAT Margin -9.6 2.3 2.2 4.1 5.3
PAT Growth -49.36 -35.55 -24.17 -12.74

Mergers and Acquisition

Jaguar Land Rover has been acquired BY TATA MOTORS at a cost of US$ 2.3 billion on a cash free,
debt-free basis. The purchase consideration includes the ownership by Jaguar and Land Rover or
perpetual royalty-free licences of all necessary Intellectual Property Rights, manufacturing plants, two
advanced design centres in the UK, and worldwide network of National Sales Companies.

Long term agreements have been entered into for supply of engines, stampings and other components
to Jaguar Land Rover. Other areas of transition support from Ford include IT, accounting and access
to test facilities. The two companies will continue to cooperate in areas such as design and
development through sharing of platforms and joint development of hybrid technologies and
powertrain engineering.

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Maruti Suzuki
-Way of Life

History
Maruti Suzuki India limited is one of the leading players in Indian automobile sector. The
Government of India had founded Maruti Udyog Limited in 1981 which a year later in 1982 got
merged with Suzuki, a Japanese automobile company (car and motorcycles) which at present owns
56.21% of the company. The automobile manufacturer holds according to latest data, about 53% of
the market share which makes it the market leader in the sector. The strong brand presence it
commands and appeal to the Indian audience majorly the middle class of Urban and semi urban
regions of India especially for the value of money propositions, mileage returns, and quality
performance of the cars is expected to keep it as the top player in the market. It is headquartered at
New Delhi.

Overview & Products

Apart from manufacturing passenger cars, it is also involved in sale as well as purchase of
automobile spare parts and motor vehicles, car financing and fleet management. It offers a variety of
products in various price and style ranging from Dzire, Ciaz, Baleno, Brezza, Ertiga, Omni, Swift,
Alto, Alto K10, WagonR, Celerio up to 16 different models in India with price ranging from the
lowest at 2.93 lakh for the Alto 800 model to 11.46 lakh for XL6 ,its most expensive variant model. It
also offers several services which tends to provide value addition and added benefits to its customers.
Maruti Insurance launched in 2002 provides vehicle insurance and has currently generated over 73.61
lacs policies with over 6 million customers. Maruti True Value service places the market price of
used vehicles of the same company and facilitates in buying and selling among customers with
service to more than 1190 outlets all over India. Maruti even has its own service for teaching driving
as Maruti Driving schools which claims to provide world class technologies like that of simulators,
premium courseware and comprehensive curriculum as a responsibility to deliver highly trained
drivers. Maruti Finance is a service or financial program aimed at giving its customers the most
competitive rates of interest claiming it to be 0.25-0.5% lower than rates in markets. It has partnered
with the major banks of India like Axis bank, ICICI bank, IndusInd Bank, HDFC Bank, SBI, PNB,
Union Bank and some NBFCs too for this service. Other service offerings include Maruti Genuine
Parts and Maruti Accessories.

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Competition
The closest competitors that Maruti Suzuki faces are Hyundai Motor India with around 16.2% market
share and Mahindra and Mahindra (M&M) with 7.3% market share and Tata Motors with 7% market
share. Even in growth rates in year 2017-18 saw 8.05% growth with Maruti Suzuki with 4.3% as the
growth percentage of Hyundai Motors that stands as the nearest competitor.

RANK OEM CY2018 CY2017 %Growth

1 Maruti Suzuki India 1731450 16,02,522 8.05

2 Hyundai Motor India 550002 5,27,319 4.30

3 Mahindra & Mahindra 249301 2,42,386 2.85

4 Tata Motors 237217 1,91,107 24.13

Manufacturing
Maruti Suzuki has majorly three facilities for manufacturing in India located at Gurgaon, Manesar
and Gujarat. The combined capacity results in production of 178533 units of cars last year (which has
slowed down to 133625 due to the ongoing slowdown in the automobile sector as a whole).The
current plant capacity at Gujarat is that of 25000 units production which is planned to be expanded to
75000 units annually, the Manesar plant and Gurgaon plants together produces around 15.5 lakhs
annually with over 600 acres and 300 acres area.

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Financials

Financials Mar’19 Mar’18 Mar’17 Mar’16

Revenue from
83,026.50 78,104.80 66,909.40 56,441.20
Operations [Net]

Profit/Loss
10,465.60 11,003.40 9,960.30 7,443.70
Before Tax

Basic EPS (Rs.) 248.3 255.62 243.32 177.58

Equity Share
Dividend (Rs. 2,416.60 2,265.60 1,057.30 755.2
Cr)

PAT Margin 9.03% 9.89% 10.99% 9.50%

PAT Growth -2.86% 5.06% 37.02% 44.54%

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Macroeconomic Profile
Government Regulations and Policy Changes:
Policies for Protection of the Domestic Market (1947 to 1965):
Post-Independence in 1947 the government wanted to fix the economic disturbance in the country. It
made policies to protect the automobile industry from foreign intervention under the Industrial Policy
Resolution (1948) and also set up the Tariff Commission. Tariffs on import of fully built vehicles
were increased and allowing only those manufacturers to sell who intended to set up manufacturing
units in the country eventually.

Increasing Regulatory Control & Growth of Non-luxury Vehicles

(1966 to 1979):
The government imposed stricter norms in the form of MRTP (Monopolies & Restrictive Trade
Practices Act) wherein any company with more than 200 million in fixed asset or market share of
one-fourth or more was recognized as MRTP. By enacting Foreign Exchange Regulation Act
(FERA) the import of raw material, technology etc. was regulated. The government also encouraged
the growth of non-luxury segment such the CV, UV, 2-wheelers and 3-wheelers.

Limited Liberalization and Foreign Collaborations (1980 to 1990):

The government tried to improve the growth of automobile sector by liberalizing MRTP/FERA
regulations and allowing foreign collaborations. The sector saw new joint venture with foreign
collaborators which helped bring in Japanese best practices to the Indian industry and also reduction
in import regulations helped manufacturers upgrade their technologies. However, the liberalization
was limited because the government declared automobile industry as an industry requiring special
regulation on the grounds of raw material shortage, high pollution and infrastructure constraints.

Progressively Liberalized Environment (1991 onward):

In 1990-91, India was going through severe economic crises which enforced the country to change its
economic policies to a large extent this led to formulation of new economic policies. Passenger car
segment was delicensed, FDI of up to 51% was approved, Auto Policy in 2002 adoption of Euro I,
Euro II and Euro III standards and increase in domestic R&D efforts which led to the launch of

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India’s first indigenously developed car ‘Indica’ by Tata Motors in 1999. The entry of foreign players
improved the competition which in turn improved cost-effectiveness, technological-competence and
put the automobile industry on fast-track.

Current Government Regulations:

Increased push towards Electric Vehicles likely add another revenue segment for companies. Strict
BS VI compliance from April 2020 will initiate liquidation of BS IV stock along with higher prices
for BS VI compliant vehicles. Stringent safety norms along with mandatory installation of safety
measures like airbags, ABS, vehicle engine monitor, etc. will affect cost margins and reduce
differentiation factor across variants. Auto industry representatives are strongly pushing for
implementation of scrappage policy. The implementation is most likely to impact car buyers and
increase car buying by at least a million units every year’s reduction from 28% to 18% is also sought
to improve consumer sentiments. Credit infusion through improvement in NBFC sector along with
recapitalization of public sector banks to drive credit growth are likely to provide impetus to buying
of PVs.

Impact of Union Budget on the Automobile Sector:

The proposed GST for EVs is five per cent from 12 per cent which will help boost its sales as
currently it is more expensive and this change could make the EVs more cost-effective. Moreover,
the customs duty on parts of electric vehicles has been exempted. The Budget has proposed certain
incentives for auto loans for the promotion of electric cars in the country. The finance minister
proposal to purchase of loans from NBFC by the bank for one year. The proposal is also to cover loss
of up to 10 per cent. In the next five years, 1,25,000 km of rural roads are proposed to be upgraded
with investment of over Rs 80,000 crore which could benefit commercial vehicles and also passenger
vehicles to a certain degree. Customs duty has been increased from 25 per cent to 30 per cent this
will affect the cost of manufacturing as raw materials will become expensive. The fuel prices see an
increase of Rs 2 per litre - Re 1 for increased excise duty and Re 1 for road and infrastructure cess
this could again affect the industry in a negative way. The automotive industry attracts 28 per cent
GST, although, gets 0-22 per cent compensation. The GST stays unchanged.

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Emerging New Technologies

The Automotive Industry has come a long way since its inception and is presently confronting what
could be its greatest transformation. With the advent of so-called Industrial Revolution 4.0 which
digitally enabled merging of social, industry and technological forces has given rise to a whole new
world of opportunities. Depending on how this transformation occurs it may give a new direction to
the transportation sector as a whole in terms of its future prospects. Here are a few emerging
technologies in the sector broadly classified

Basic Structural Change

 Emergence of Electric Vehicles: There has been a gradual increase in the number of Electric
vehicles on the street and the growth rate is rapidly increasing. With the increase in the
pollution more stringent norms have come into place all over the world and the manufacturers
have a tough time adopting to it every time a new regulation comes out. A better viable
alternative is to focus on the emerging EV Market as a future direction rather than revamping
the petrol and Diesel Vehicles. Leading players like Volkswagen, General Motors, and
Daimler AG have already entered this lucrative market. The Industry has come a long way
forward in terms of EV from its starting conceptual models in late 19th century and it will
continue to grow so with a breakneck speed. While there is a long way to go until they
become a ubiquitous presence, it certainly shows the trend the industry is headed to.
 Smart Fuel Injection: With the Improvement on technology, more efficient Fuel Injection
methods have increased the efficiency of the ride. Especially with real time monitoring and
innovation like MPFI , CDI etc. have been implemented in all automobiles. And more
methods are emerging with increasing accuracy in the monitoring.

Change in the Features and Connectivity

 Connected Vehicles: A lot of smart technologies making their way into automobiles.
Connected vehicles, using real time monitoring will have the ability to share details about the
driving conditions, and data such as sudden braking, speed, weather, and more. This is just
the beginning of what we can refer to as Vehicle to Vehicle Communication (V2V) – a
technology similar to Wi-Fi which may find its applications in predictive maintenance too. It
may slowly become the norm of the future.
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 Automated Driving: It is a fabled technology that we see in movies but it will no longer
remain a myth for a long time, we are moving closer towards it. Especially Google has
already taken steps forward in this domain. With the help of Big Data analysis and real time
and predictive monitoring we may achieve this feature in vehicles soon. It can change the
scenario of transportation if it manages to achieve this feature.

Impact on Supply chain and Manufacturing

 Blockchain Technology: The automotive industry has had a lot of challenges over the last
few decades and one among these challenges is the increasing number of fake part sellers.
Blockchain is a potential solution that is being explored to examine them first. Eradicating the
fake parts from the market can enhance transparency and result in very efficient pricing
strategies. This technology can create an accurate, trusted protocol for the increasing
important supply chain. Blockchain is an evolving automotive trend that is getting a lot of
attention in the tech space and is giving rise to a lot of expectations.
1. 3-D Printing: 3D printing is the technology that has been slowly making its way into almost
every aspect of life and the automotive industry is no exception to this invasion. Presently,
cars are being devised to endure 3-5 crashes and last for around 7-10 years. However, 3D
printing can help in developing a vehicle on a solid chassis with its exterior body devised for
single crash and replace just the outer body cost efficiently while retaining the chassis. This
concept could bring about a revolutionary change in accident repairs. Making it highly cost-
effective to develop things, 3D printing is all set to challenge the basic approach to car
designing.

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References
1. Crisil Research - Automobile (Cars & Utility Vehicles)-
https://www.crisilresearch.com/#/industry/carutilveh
2. Automotive - Car Manufacturing Report -
https://advantage.marketline.com/Analysis/ViewasPDF/india-car-manufacturing-82508
3. SIAM Website - http://www.siamindia.com/
4. https://www.marutisuzuki.com/corporate/investors/company-reports
5. https://www.mahindra.com/investors/reports-and-filings
6. https://www.investopedia.com/
7. https://www.tatamotors.com
8. https://www.motilaloswal.com/site/rreports/637038749847289655.pdf
9. https://www.mckinsey.com/~/media/mckinsey/industries/high%20tech/our%20insights/disrup
tive%20trends%20that%20will%20transform%20the%20auto%20industry/auto%202030%20
report%20jan%202016.ashx
10. https://www.mahindra.com/
11. https://www.business-standard.com/article/companies/carmakers-hit-the-slow-lane-in-fy19-
market-share-gains-remained-elusive-119041001392_1.html
12. https://auto.economictimes.indiatimes.com/news/industry/complete-india-auto-sales-analysis-
2018-cv-sales-crosses-a-million-mark/67549073
13. https://www.economywatch.com/indian-automobile-industry/government-policies.html
14. https://auto.economictimes.indiatimes.com/news/industry/union-budget-2019-top-hits-and-
misses-for-the-auto-industry/70091577
15. https://www.quest-global.com/top-five-emerging-trends-transforming-automotive-industry/

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