comprehensive project- i
TRANSCRIPT
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COMPREHENSIVE PROJECTCOMPREHENSIVE PROJECT-- II
ONONAUTOMOBILE INDUSTRYAUTOMOBILE INDUSTRY
(FOUR WHEELERS)(FOUR WHEELERS)Presented by:
Anand Agrawal (09M03)
Jitesh Dodhia (09F60)
Parth Dave (09M67)
Shilpi Agarwal (09F39)
Presented to:
G.H. Patel P.G Institute of Business Management
Sardar Patel University
Vallabh Vidyanagar
11th December 2010
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INTRODUCTIONINTRODUCTION
Presented by: Shilpi Agarwal (09F39)
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Automobile IndustryAutomobile Industry
y The well-developed Indian automotive industry.
y Automobile Industry was delicensed in July 1991.
y The passenger car was however delicensed in 1993.
y
100 per cent Foreign Direct Investment (FDI) ispermissible____yr.
y Turnover of Rs. 2, 20,600 crores yr.
y Direct and indirect employment to 13.1 million people.
y
Contribution to GDP has risen from 2.77 per cent in1992-93 to 4.14 per cent in 2008-09.
y Contribution of 17 per cent to the kitty of indirect taxes
of the Government yr.
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Automobile IndustryAutomobile Industry (contd..)(contd..)
y India is the worlds
second largest manufacturer of two wheelers,
fifth largest manufacturer of commercial vehicles,
largest number of tractors manufacturer, the 9th largest car manufacturer in world.
The automotive sector in India is growing at around 18
per cent per annum.
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GROWTH AND EVOLUTIONGROWTH AND EVOLUTION
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ProductProduct PProfilerofile
y According to the policies of Society of Indian Automobile Manufacturers
(SIAM) which was revised on June 2002, the classification of segments is done
as per the length of the vehicle in the passenger car segment.
y According to this classification, cars are segmented as
A1 - Mini - Upto 3400mm (M800, Nano),
A2 - Compact - 3401 to 4000mm (Alto, Wagon R, Zen,I10,A-star),
A3 - Midsize - 4001 to 4500mm (City, Sx4, Dzire, Logan,Verna ),
A4 - Executive - 4501 to 4700mm (Corolla, Civic, C class, Octavia),
A5 - Premium - 4701 to 5000mm (Camry, E class, Accord, Laura),
A6 - Luxury - Above 5000mm (S class, 5 series),
B1 - Van (Omni, Versa, Magic),
B2 - MUV/MPV (Innova, Tavera, Sumo)
SUV (CRV, Vitara)
The scope of our study is to focus on the Passenger Cars (A2- Compact).
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FINANCIAL ANALYSISFINANCIAL ANALYSIS
Presented by: Jitesh Dodhia (09F)
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DEMAND ANALYSISDEMAND ANALYSIS
Presented by: Anand Agrawal (09M03)
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Demand DeterminantsDemand Determinants
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LifecycleLifecycle Growth StageGrowth StageGross turnover of the Automobile Industry
Impact of Global recession
Domestic Market Share
16 percent of share and second number in
industry
Automobile Production Trends
Achieved 28 percent growth which one is the
highest ever growth in last decade
AutomobileDomestic Sales
Achieved 26 percent growth which one is thehighest ever growth in last decade
Automobile SegmentsGrowth
Passenger cars will grow by 24.5 percent in 2010-
11, which is second highest growing segment after
motorcycles.
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INDUSTRY ANALYSISINDUSTRY ANALYSIS
Presented by: Anand Agrawal (09M03)
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PESTELPESTEL
y Political
Government Stabilityx Since Last decade each government has completed its tenure
Tax Structurex Well defined Tax structure but state taxes dont have
uniformity
Foreign Trade Regulation
Social
Technological
y Environmental
y Legal
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FIVEFORCES MODELFIVEFORCES MODEL
y Threat of new entrants
Economies ofScale
Product Differences
GovernmentPolicy
Capital Requirements
y Supplier Power
Supplier Information
Supplier Switching Costs
Brand Identity
y Buyer Power
Product Differences
Buyer Information
Buyer Switching Costs Brand Identity
Buyer Profits
y Threat ofSubstitutes
y
Share of public transportation,from nearly 40 percent in 1994 to
30 percent today
y Industry Rivalry
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SWOTSWOT
y Strength Low Labour Cost
x SkilledWorkers Rank 1st inworld
x Qualified Engineers- Rank
second in world High growth rate of
industry
y Weakness Low labor productivity
Defect rates high 10 timesthan worlds average
Low Investment in R & D
Not reached critical mass
Poor infrastructure
y Opportunity Exports
Increasing DisposableIncome
Huge Middleclass
Change in lifestyle
Newer technologiesx Fuel Efficiency
x Safety devices
x Less emission
y Threats Fuel Prices
Global Recession
Tax policy
Steel Prices
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MARKET ANALYSISMARKET ANALYSIS
Presented by: Parth Dave (09M67)
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MARKETING ANALYSISMARKETING ANALYSIS
y PRODUCT
Classification of
passenger cars
x Minix Compact
x Mid Size
x Executive
x Premium
x Luxury
x SUV/MUV
y PRICE
Perceived Value
Pricing
Price Range offeredRs. 3lakh to 6lakh
Offerings
x Cash Discount
x Warranty Period
x Insurance cover
x Loan Facility
x Festival Discounts
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FUTURISTIC SCENARIOFUTURISTIC SCENARIO
y Indias real GDP in 2010-11 is expected tobe 8.2% compared to 2.7% of the World.
y Estimated production of Passenger vehicles
in 2015 would be 51 lakhs & upto 97 lakhsin 2020.
y Market share of passenger vehicles inautomobile industry will reach to 20% by
2020 which was 15% in 2009.y Passenger Vehicle segment will grow by
12%-13% while CV(goods) will have agrowth of 19%-20% in the year 2010-11.
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CONCLUSIONCONCLUSION
y Following points indicate the reason why IndianAutomobile Industry should be promoted:
Higher turnover.
Rising profitability of automobile manufacturers.
Expected rise in per capita disposable income.
Employment opportunities.
Immense scope for R&D and technological
upgradation. Increasing contribution in GDP.
y With the improvement in low cost production, design
innovation and advanced engineering India is
becoming a manufacturing hub for automobiles.
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THANK YOU