1. 1. AUTOMOBILE INDUSTRY ININDIA Prabhjot Singh Raghu Monga Robin Kumar Sandeepika Sharma
2. 2. EVOLUTION IN INDIA
3. 3. AUTO INDUSTRY The year 1898 saw the first car rolling out, on the streetsof Mumbai. A land of Premier Padminis, Ambassadors, scooters,temps, trucks and autos galore, India had not seen muchof choice in vehicles. Since then Indian auto industry has witnessed a lot ofchange.
4. 4. PROTECTIONISM EARLY 1980s The manufacturing of automobiles especially cars was subject to strict licensing, restrictive tariff structure and limited avenues for expansion. The foreign technology collaboration came with the inception of Maruti Udyog in collaboration with Suzuki of Japan in the passenger car segment. Indian roads saw the launch of Maruti 800. It was still not very easy to own a car, first was affordability and next was a long waiting period.
5. 5. LIBERALISATION 1990s With liberalization, some more Japanese manufacturersentered the two-wheeler and the commercial vehiclesegment in a collaborative arrangement. This period characterized joint ventures in India and themarket started opening up. Automobile Industry was delicensed in July 1991 withthe announcement of the New Industrial Policy. The passenger car industry was, however, delicensed in1993.
6. 6. The era of controls and protection came to an end. Decrease in customs and excise duties meant that a vehicles started getting affordable. The entry of foreign banks with attractive auto finance schemes helped garner a huge base of middle class population. However the market was still ruled by the sellers.
7. 7. GLOBALISATION 2000s A Core Group on Automotive Research and Development(CAR) was established in 2003 for encouraging R&Dactivities. Indian economy also witnessed rapid industrialization.Factories needed transport both for goods and for theiremployees. Pushed the demand for efficient logistics and that in turnincreased the number of commercial vehicles.
8. 8. MARKET SIZE
9. 9. GROSS TURNOVER YEAR (IN USD MILLION)2004-200520,8962005-200627,0112006-200734,2852007-200836,6122008-200938,238Source: Society ofIndian AutomobileManufacturers(SIAM)
10. 10. RECENT FACTS & FIGURES In 2010-11, the overall domestic passenger car sales rose by 29.73 per cent to 19,82,702 units from 15,28,337 units in the previous fiscal. Hyundai Motor India also saw its market share declining to 18.10 per cent in FY 2011 from 20.61 per cent in the previous year. Tata Motors too lost its market share during the said period, falling to 12.92 per cent with sales of 2,56,202 units. General Motors India (GMI) and Honda Siel cars India (HSCI) also lost their market share last fiscal. While GMIs share fell to 4.40 per cent from 4.62 per cent,
11. 11. MAJOR PLAYERS IN THE INDUSTRYMahindra Hyundai Motor India & Mahindra Limited Maruti SuzukiAshok LeylandIndia Ltd
12. 12. OTHER PLAYERS IN THEINDUSTRYTATA Motors The Bajaj Group Hero Group Ford India
13. 13. GLOBAL PLAYERS IN INDIA Audi Honda Mercedes Ferrari Nissan BMW
14. 14. MARKET SHARE OF MAJOR PLAYERS
15. 15. MARKET SHARE Maruti Suzuki India: Passenger Vehicles 46.07% Hyundai Motor India: Passenger Vehicles 14.15% Mahindra & Mahindra: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three Wheelers 1.31% Ashok Leyland: Commercial Vehicles 22%
16. 16. MARKET SHARE OF DIFFERENTVEHICLES IN THE INDIAN AUTOMOBILE INDUSTRY Passenger Vehicles : 15.86% Commercial Vehicles : 4.32% Three Wheelers : 3.58% Two Wheelers : 76.23%
17. 17. CHALLENGES Rising oil price Chinese Competition Human resources Environmental Issue Nurturing Talented Low R&D OrientationManpower Rising cost of raw Fuel Technologymaterials Increasing rates of Too much competitioninterest
18. 18. IMPACT OF GLOBAL CRISIS ONINDUSTRY The automotive industry crisis of 20082010 was apart of a global financial downturn The crisis affected European and Asian automobilemanufacturers, but primarily felt in the Americanautomobile manufacturing industry Citing falling production numbers, the State Bank ofIndia reduced interest rates on automotive loans inFebruary 2009 Manufacturer hopes the low cost will encouragecustomers to purchase the vehicle despite theongoing credit crisis
19. 19. RECENT TRENDS Unlike in the past, the Indian Government has gone through a total role reversal by becoming the enabler rather than the controller. In the recent past it has started providing better infrastructure, conducive atmosphere to attract investments and implementing growth oriented economic policies.
20. 20. Competition: Immense pressure has grown on the Indian companies. A lot of joint ventures have taken place, some others have invested heavily on R&D.
21. 21. Customer: Armed with higher buying power and an ever increasing expectation from products and services, the customer is undoubtedly the king and has propelled a fierce competition among the major players in the market.
22. 22. Safety Norms: cars as well as two-wheelershave met the most stringent international normsof pollution. Euro II vehicles have become the norm of theday all over India. Unfortunately, in the Indiancontext, safety in motor vehicles is a relativelyneglected area. Bad roads coupled with the absence of adequatesafety features in the vehicles such as airbag andcrumple zone needs immediate attention. But awareness is on the increase and the use ofseat belts while driving has been mademandatory.
23. 23. Bikes: Keeping apace with the global trends the two-wheeler segment has witnessed tremendous growth both qualitatively and quantitatively. Bikes with higher engine capacities have done commendably well on the Indian roads. Bike styling and fuel efficiency has also seen major developments
24. 24. THANK YOU