auto mobile industry in india

7/31/2019 Auto Mobile Industry in India

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Auto Mobile Industry In India


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Overview of Industry

Automobile Industry includes all of the following:

i. Passenger Vehicles: Scooters, Motorcycles, Cars,SUV, MUV.

ii. Commercial Vehicles: Buses, LCVs, MCVs andHCVs.

iii. Other Vehicles: Tractors, Trailers, Threewheelers.


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Overview of Industry

Indian Auto Mobile Industry is 6th largest in the world, with anannual production of more than 4.7 million units in 2010.

As of 2010, India was home to 40 million passenger vehicles.

Estimated turnover of Indian Automobile industry was $ 40Billion in 2010, it was estimated to reached $ 150 Bn by 2016.

Accounts for about 22% of manufacturing sector.

Employment: 600000+ direct + 12.5 mn indirect

Accounts for about 5% of Indian GDP.

Auto-Mobile industry exported 2,339,333 vehicles in 2010-11.

Among the emerging markets, India continues to have one ofthe lowest car density, estimated at 13 cars per 1,000 peoplecompared to other markets such as China (45), Brazil (160), andIndonesia (42).


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Sales of Various Types of Vehicles

Two Wheelers 76%

Passenger Vehicles 16%

Commercial Vehicles 8%


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Two-Wheeler Market

Motorcycles 76%

Scooters 18%

Mopeds 6%


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Current Trends in Two-Wheelers

The Indian two-wheeler industry has recorded sales volume of 13.4

million units in 2011-12, a growth of 14% over the previous year.

Here increasing fuel prices has helped in increasing sales, because

people tend to buy less cars and more two-wheelers.

Theres also a trend shifting towards scooters, scooter sales has

grown by more than 25% in 2011-12.

Companies are also trying to woo young-women from urban or

rural by launching gender specific products and by having top

bollywood female actors in their adds.


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Major Players in Two-Wheeler Industry

Hero Moto Corp.

Bajaj Auto Ltd.

Honda Scooters and Motorcycles India Limited Suzuki Motorcycle India Pvt Ltd.

India Yamaha Motor Pvt Ltd.

Royal Enfield Motorcycles Ltd.


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Passenger Car Market

Small Car Market Share(Including Entry Level and

Premium) 58%

Other Cars (SUV, MUV)

42%


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Current Trends in Car Market

In 2010-11, passenger car market total sales was 2.5 million vehicles.

India was one of the few markets globally to buck the recessionary trend andrecord a strong 25.6% volume growth in FY10.

Growth momentum continues with first eleven months of FY11 registering agrowth of 29.8%.

Strong economic growth, rising disposable income levels, favorabledemographics, easy financing environment and relatively low car penetrationhave been the prominent growth drivers for the industry.

Small Car market was particularly booming with every national andinternational player wanted to have some chunk of this growing market.

With deregulation of Petrol, theres a big gap in prices of Petrol and Diesel. Socustomers are mostly tend to buy a diesel car than a petrol car.

But now due to global recession, high inflation, interest rates and increasingcrude oil prices have put a break on this booming market, and sales werestagnant in most part of FY12.


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Major Players in Passenger Car

Industry

Maruti Suzuki Pvt Ltd.

Tata Motors

General Motors India Ford India Ltd.

Hyundai Motor India Ltd.

Mahindra and Mahindra Honda Motor Co Ltd.


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Commercial Vehicle Segment

Sales

M&HCV's 48%

LCV 52%


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Current Trend in Commercial Vehicles

Commercial Vehicle Industry had posted a very robustgrowth over last two fiscal years FY10 and FY11, withannual increase of about 30%.

But in FY12 growth in commercial vehicle industryslowed down. During Apr-Nov 2011, the domesticindustry posted a growth of 20.0% on YoY basis.

There is a boom in LCVs, with 29.3% growth, butdemand is sluggish for MCVs and HCVs with only 9.4%increase in demand.


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Major Players in Commercial-Vehicle

Industry

Tata Motors

Eicher Motor

Mahindra and Mahindra Swaraj Mazda Ltd

Ford Tractors

Sonalika Tractors


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Mergers and Acquisitions

Hindustan Motors Ltd. has been acquired by AmerInvestments (Delhi) Ltd on 19th-Jun-2012.

Suzuki Power train India Ltd. has been acquired byMaruti Suzuki Ltd on 12th-Jun-2012.

Hero Investments Pvt. Ltd. has been acquired by HeroMotoCorp Ltd on 04th-Jun-2012.

S M L Isuzu Ltd acquired by Antique stock broking Ltd. on19th-Apr-2012.


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THANKS

Group-4, Section-C


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Reference

ICRA

SIAM

Economic Times

auto mobile industry in india

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