Download - Budget of Automobile Sector
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8/11/2019 Budget of Automobile Sector
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Group Members:
Anita raj
Nivrav thakkar
Bhushan kumar
Anjum khan
Lekha ajit garde
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The Automobile industry in Indiais one of thelarger markets in the world.
It had previously been one of the fastestgrowing globally, but is currentlyexperiencing flat or negative growth rates.
India's passenger car and commercial vehiclemanufacturing industry is the sixth largest in
the world, with an annual production of morethan 3.9 million units in 2012.
http://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Automotive_industry -
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According to recent reports, India overtookBrazil and became the sixth largest passengervehicle producer in the world(beating such oldand new auto makers as Belgium, UnitedKingdom, Italy, Canada, Mexico, Russia, Spain,France, Brazil), grew 16 to 18 percent to sellaround three million units in the course of2012 and 2013.
In 2009, India emerged as Asia's fourth largestexporter of passenger cars, behind Japan,
South Korea, and Thailand . In 2010, India beatThailand to become Asia's third largestexporter of passenger cars.
http://en.wikipedia.org/wiki/List_of_countries_by_motor_vehicle_productionhttp://en.wikipedia.org/wiki/List_of_countries_by_motor_vehicle_productionhttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/List_of_countries_by_motor_vehicle_productionhttp://en.wikipedia.org/wiki/List_of_countries_by_motor_vehicle_production -
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As of 2010, India is home to 40 millionpassenger vehicles. More than 3.7 millionautomotive vehicles were produced in India in2010 (an increase of 33.9%), making thecountry the second (after China) fastestgrowing automobile market in the world inthat year.
According to the Society of Indian AutomobileManufacturers, annual vehicle sales areprojected to increase to 4 million by 2015, no
longer 5 million as previously projected.
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THE AUTOMOBILE MARKET IS SPLIT INTO FOUR SEGMENTS:
1.TWO WHEELERS:
Mopeds
Scooters
Motorcycles
Electric two-wheelers
2.PASSENGER VEHICLES: Passenger cars
Utility Vehicles
Multi-purpose vehicles
3.COMMERCIAL VEHICLES:
Light commercial vehicles
Medium and Heavy commercial Vehicles
4.THREE WHEELERS:
Passenger carriers
Goods carriers
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0
2
4
6
810
12
14
16
18
Passenger
Vehicle
Commercial
Vehicle
Three
wheelers
Two wheelers
FY 2010
FY 2011
FY 2013
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Auto sales across categories are estimated to rise 6-8per cent in FY14.
Passenger vehicles are projected to grow 5-7 per centin FY14.
Passenger car segment is estimated to expand 3-5 percent.
SUVs are projected to increase 11-13 per cent. Commercial vehicles are forecast to rise 7-9 per cent. LCVs are estimated to grow 10-12 per cent. MCVs and HCVs are projected to increase 1-3 per cent. Three wheelers are estimated to rise 3-5 per cent in
FY14. Two-wheelers are expected to grow 6-8 per cent in
FY14.
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The Indian automotive market is one of the mostcompetitive markets with low costs, which makeit an attractive assembly base for foreignautomotive manufacturers.
India is the second fastest growing automobile
market in the world after China. Cars is the major segment in the Indian
automotive industry with a growth rate of morethan 19% annually.
The Indian car industry is witnessing a shift in
demand going from two wheelers to cars due torising availability of low cost cars and the carbeing a symbol of high prestige.
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Passenger Vehicles Industry:Two Wheeler Industry:
Three Wheeler Industry:
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BAJAJ HERO
MAHINDRA
MARUTI SUZUKI PREMIER
ROYAL ENFIELD
SWARAJ
TATA TVS
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The Role of Automobile Industry in India GDPhasbeen phenomenon. The Automobile Industry is oneof the fastest growing sectors in India.
The increase in the demand for cars, and other
vehicles, powered by the increase in the income isthe primary growth driver of the automobileindustry in India. The introduction of tailor madefinance schemes, easy repayment schemes has alsohelped the growth of the automobile sector.
India has become one of the international playersin the automobile market.
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The four wheelers include passenger cars, multi-utility vehicles, sports utility vehicles, light,medium and heavy commercial vehicles, etc
The three wheelers include mopeds, motor-cycles, scooters, and three wheelers
India ranks 2nd in the global two-wheeler market India is the 4th biggest commercial vehicle
market in the world
India ranks 11th in the international passengercar market India ranks 5th pertaining to the number of bus
and truck sold in the world It is expected that the Automobile Industry in
India would be the 7th largest automobile marketwithin the year 2016.
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The Indian Automobile industry is at present engaged inmergers and acquisitions on the international scale.
The Indian automobile industry's foreign sector worth US$515 million.
The Mahindra and Mahindra company will be establishing a
utility assembly plant in collaboration with Bramont, a localcompany at Manuas, in North Brazil
In Egypt, the Mahindra and Mahindra company has set upassembly plants in collaboration with the Bavarian Motors
The Tata Motors have entered the passenger car market in
Saudi Arabia with the launch of
Tata Indigo, Tata Indica, and Tata Indigo Marina
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The TVS Motor Company has established atwo-wheeler manufacturing unit at Karawang,
in Indonesia The Maruti Udyog Ltd has captured nearly
60% of the small car market in Indonesia The Nissan Motor facility in South Africa was
acquired by the Tata Motors to manufactureTata vehicle for European and South Africanmarket
The Jaguar and Land Rover companies ownedby the Ford Motor Company was acquired bythe Tata Motors Ltd for estimated price ofUS$ 1.5 billion
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The Indian automobile sector had carved itsniche as one of the fastest growing industrialsectors in the last few years.
Automobile industry demanded cut in excise
duty and policy stimulus. The Indian automobile industry, had faced
with declining sales in the fiscal due to highinterest rates, rising fuel costs and
commodity prices, needed a shot in the armin the coming Budget rided out of this toughsituation.
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The slowing demand had lowered industrygrowth to 4.57% in the first nine months ofthe last year fiscal. The auto sector is one ofthe most important sectors in manufacturing,formed around 6% of India's GDP.
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The Union Finance Minister PC Chidambaram,in a relief to car manufacturers, While tablingthe interim budget 2014-15 in Lok Sabha,announced that excise duty on small cars
have been slashed from 12 per cent to 8 percent, while that on medium cars and SUVshave been reduced from 24 per cent to 20per cent, and 30 per cent t0 24 per centrespectively.
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During the past six months, all automobilemanufacturers have hiked prices by aroundfour per cent, citing increased input costs.
In Union Budget last year, Chidambaram hadraised the excise duty on SUVs from 27 percent to 30 per cent.
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Passenger vehicles to increase at a CAGR of16 per cent during FY201320.
Commercial vehicles expected to register aCAGR of 16 per cent during FY201320.
Two and three wheelers projected to expandat a CAGR of 9 per cent during FY201320.