AU T O M O B I LE I N D U S T RY I N I N D I A

M A R K E T I N G C H A L LE N G E S

PRESENTED BY:
ANKIT KUMAR
VERMA
(01216603913)
AKHLESH PRASAD
(00916603913)

Objective
Overview
companies
Economy
Analysis
Industry
Analysis
Challenges
Conclusion
References

Objective:
1. Overview
2. Top automobile companies in India
3. Sales
4. Analysis of Indian Automobile Industry
5. SWOT analysis
6. Challenges
7. Conclusion
8. References

Overview
Overview
companies
Economy
Analysis
Industry
Analysis
Challenges
Conclusion
References

Overview:
Indian automobile industry has grown leaps and bounds
since 1898, a time when a car had touched the Indian
streets for the first time.
At present it holds a promising 9th position in the entire
world with being # 1 in Two Wheelers and # 4 in
commercial vehicles.
Withstanding a growth rate of 13% per annum and an
annual production of more than 2 million units, it may not
be an exaggeration to say that this industry in the coming
years will soon touch a figure of 10 million units per year.
It is expected that the Automobile Industry in India would
be the 7th largest automobile market within the year 2016.

Companies
Overview
companies
Economy
Analysis
Industry
Analysis
Company
Analysis
Challenges
References

Top Automotive Companies

In INDIA
Leading
Companies:
Maruti Suzuki
India Limited
(MSIL)
Hyundai Motor
India Limited
(HMIL)
Tata Motors
Mahindra &
Mahindra
Limited (M&M)
Hero Motors
Limited (HML)

Sales
Overview
companies
Economy
Analysis
Industry
Analysis
Company
Analysis
Challenges
References

Sales:

5. HERO HONDA MOTORS

CEO:- Mr. Pawan Munjal
Chairman:- Mr. Brijmohan Lal Munjal
PUNCH LINE:-Desh ki Dhadkan

 CEO:- Mr. John Krafick

Chairman:-Mr. Mong Koo Chung
PUNCH LINE:- Drive Your Way

1.TATA MOTORS
CEO :- Karl J Slym
CHAIRMAN:- Mr. Cyrus P. Mistry
PUNCH LINE:- Even More Car per
Car

 CEO:- K Ayukawa
CHAIRMAN:- Mr. R.C Bhargava
PUNCH LINE:- Lighter,Faster,Better

Analysis
Overview
companies
Economy
Analysis
Industry
Analysis
Challenges

ANALYSIS OF AUTOMOBILE
INDUSTRY:
India has become a hub of domestic and exports business.
The automobile sector has been contributing its share to the
shining economic performance of India in the recent years.

Conclusion

To understand this industry for the purpose of investment

References

we need to analyze it by following four approaches:

1). Fundamental Analysis
a. Economy
b. Industry
2). Export Analysis
3). Five forces
4). Swot

Fundamental
Analysis
Overview
companies
Economy
Analysis
Industry
Analysis
Challenges

ECONOMY:
GDP and Automobile Industry:
In absolute terms, Indiais 9thin the world in terms of
nominal factory output(its $1.22 trillion)

Conclusion
References

Data source: India central statistical organization

Fundamental
Analysis
Overview
companies
Economy
Analysis
Industry
Analysis
Challenges
Conclusion
References

ECONOMY:
GDP and Automobile Industry:
The per capita Income is near about Rs38,000 reflecting
improvement in the living standards of an average Indian.

Today, automobile sector in India is one of the key sectors

of the economy in terms of the employment.
The market value of Automobile Industry is more than
US$8 bl. and Contribution in Indian GDP is near about 5%
and will be double by 2016.

Data source: Google Finance

Fundamental
Analysis
Overview
companies
Economy
Analysis
Industry
Analysis
challenges

ECONOMY:
Recession:
Global recession has hit the Indian auto industry, impact of
recession is evident now on industry as sales & growth of

Conclusion

automobile companies have declined. Passenger Vehicles

References

segment registered negative growth.

In December 2010, overall production fell by 22 % over
the same month last year.
The sales in December 2010 for passenger vehicles fell by
13.86% over December 2009.
Two Wheelers registered minor growth of 1.85 % during
April December 2010.
Although the sector was hit by economic slowdown,
overall production increased from 10.85 million vehicles in
2010-10 to 11.17 million vehicles in 2011-12.

Industry Analysis
Overview
companies
Economy
Analysis
Industry
Analysis
Challenges
Conclusion
References

Industry Analysis:
Segmentation of Automobile Industry:
The automobile industry comprises of Heavy vehicles
(trucks, buses, tempos, tractors); passenger cars; Twowheelers; Commercial Vehicles; and Three-wheelers.

Overview

Automobile Export:

Export
Analysis

companies
Economy
Analysis
Industry
Analysis
Challenges
Conclusion
References

Passenger
Vehicles
Commercial
Vehicles
Three Wheelers
Two Wheelers
Grand Total

Five Forces
Bargaining
Suppliers:

Overview
companies
Economy
Analysis
Industry
Analysis
Challenges
Conclusion
References

Power

of

>The industry is comprised

of powerful buyers who are
generally able to dictate
their terms to the suppliers.

Barriers to entry:
>Regulatory
framework
>The startup capital
required to establish
manufacturing
capacity to achieve
minimum
efficient
scale is prohibitive.

Buyer/Customer
Power:

>Buyer is having bargaining

power due to low switching
costs associated with
selecting from among
competing brands.

Automobile
Industry

Threat
substitutes:

of

>The
threat
of
substitutes to the
automotive industry
is fairly mild.
>The switching cost
may
be
high
in
terms of personal
time,
convenience
and utility.

Rivalry
Competitors:

among

>Rivalry in the Indian auto

sector is intense due to the
entry of foreign companies in
the market.
>Product being matched in a
few
months
by
the

SWOT
Overview
companies
Economy
Analysis
Industry
Analysis
challenges
Conclusion
References

Strengths(S):
Large domestic market
Increase in exports level
Low cost cheap labor
Government incentives for manufacturing plants
Strong engineering skills in design etc
Weaknesses(W):
Low labor productivity
High interest costs and high overheads make the production
uncompetitive
Various forms of taxes push up the cost of production
Low investment in Research and Development
Infrastructure bottleneck
Opportunities(O)
Heavy thrust on mining and construction activity
Increase in the income level
Rising living standards
Cut in excise duties
Rising rural demand
Threats(T):
Rising input costs
Rising interest rates

Challenges
Overview
companies
Economy
Analysis
Industry
Analysis
Challenges
Conclusion
References

Challenges for the Indian automobile

industry
1) As we move into the new millennium, the Indian
Automobile Industry faces some tremendous
opportunities and also great challenges. The growth in
automobile sales has been impressive for the past ten
years since liberalization began.
2) However, with liberalization, the Indian customer has
been presented with a wide range of choices in
automobiles, to suit every requirement and budget. The
market has turned into a buyers market where the
customer is being wooed by the manufacturers and the
dealers with a range of freebies unheard of before in
India.
3) Competition has meant that manufacturers' margins
have been squeezed severely and they are all under
pressure to cut costs to be profitable and competitive.

Challenges
Overview
companies
Economy
Analysis
Industry
Analysis
challenges
Conclusion
References

5) One way to achieve this will be to go for exports in a

big way. Maruti is already exporting vehicles, as are
Mahindra, Telco, Daimler Chrysler and more recently
Daewoo. The overseas markets will have to be exploited
more aggressively, but this will mean the companies will
have to invest more in Research and Development of
new models with better features.
6) The second opportunity is to become contract
manufacturers for overseas companies. A number of
Japanese and Korean companies have been following this
strategy very successfully. Hindustan Motors is said to be
considering this option.
7) The third opportunity is to overcome the vulnerability
of the automobile market to oil prices by designing
vehicles, which can offer lower fuel consumption. Recent
reports suggest the government is exploring the
possibility of introducing Gasohol, which is a mixture of
Petrol and Alcohol.

Conclusion
Overview
companies
Economy
Analysis
Industry
Analysis
Challenges
Conclusion
References

Conclusion:
Indian Automobile has a lot of scope for both two
wheelers and four wheelers due to development in
infrastructure of the country.
According to Indian Statistical Organization the per capita
income (Rs.38000) is increasing and national income at
the rate of 14.4% which shows potential to buy vehicle in
auto industry. The growth rate of Indian Automobile is so
fast that by 2016 Indian Industry will be world 7 largest
manufacturer in all sections.
The Indian auto market is still untapped the majority of
the people in country dont own a four wheeler and all
the major auto companies are trying to increase their
sales by several moves.
By analyzing the current trend of Indian Economy and
Automobile Industry we can say that there is lot of scope
for growth.

REFERANCES:
Books:
o Auto Drive Magazine
Reference Materials:
o The Economic Times
o RBI annual report
Websites:
o http://www.googlefinance.com
o http://www.autocarindia.com
o http://www.assocham.org
o http://www.wikipedia.com
Search Engines:
o www.google.com

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