market research report : used car market in india 2015 - sample

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Used Car Market India April 2015

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Page 1: Market Research Report : Used car market in india 2015 - Sample

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Used Car Market – India

April 2015

Page 2: Market Research Report : Used car market in india 2015 - Sample

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SAMPLE Executive Summary

Market

Competition

Used car market in India, is currently pegged at around a mn units as per sales volumes

The used car segment is a major part of the Indian automobile industry, an industry which contributes to nearly 22% of the country’s manufacturing GDP

Poised to grow at a CAGR of b-c%, the used car segment is expected to grow at a higher rate than the new car segment

The market is majorly dominated by the unorganized sector, however, organized players have been penetrating rapidly since the last five years

Preference for used cars is much influenced by price range, brand and model, type of dealers and qualitative factors like personal experience, view of family/friends and outcome of test drive

Major Players

Player 1 Player 2 Player 3

Player 4 Player 5 Player 6

Drivers & Challenges

Drivers Favorable Demography and a Healthy Economic

Outlook Growing Interest of Organized Players in the

Market Growing Automotive Industry Online Portals and Increased Internet Penetration Availability of More Advanced Cars Driving Pre-

owned Market

Challenges Impressive Offers on New Cars Posing

Threat to Used Car Market Constantly Fluctuating Fuel Prices Cumbersome Process

USED CAR MARKET IN INDIA 2015.PPT

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•Macroeconomic Indicators

•Introduction

•Market Overview

•Recent Developments

•Drivers & Challenges

•Competitive Landscape

•Direct Investment Scenario

•Strategic Recommendation

•Appendix

USED CAR MARKET IN INDIA 2015.PPT

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Macroeconomic Indicators (1/3)

INR tn

Q4 Q3 Q2 Q1

2013-14 2012-13 2011-12 2014-15

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

Nov 2013 - Dec 2013 Oct 2013 - Nov 2013 Sep 2013 - Oct 2013 Aug 2013 - Sep 2013 Jul 2013 - Aug 2013

%

USED CAR MARKET IN INDIA 2015.PPT

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•Macroeconomic Indicators

•Introduction

•Market Overview

•Recent Developments

•Drivers & Challenges

•Competitive Landscape

•Direct Investment Scenario

•Strategic Recommendation

•Appendix

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Used cars, the new business instrument of Indian auto sector has carved a niche as a potential area of growth

• India's automobile industry is considered to be one of the fastest growing sectors in the world

Globally, India holds the 6th position when it comes to auto sales

By 2020, Indian roads are expected to cruise the weight of nearly 9 mn new cars in addition to the billions of vehicles that already exists

As per recent trend based on the mindset of the average Indian population, used car market is the most promising space for auto sales in the future

The segment puts automobiles to refurbish and reuse thus contributing responsibly towards a cleaner earth

• Though sales of new cars remain sluggish, the second-hand car market is increasingly turning into a welcome source of revenue for car makers

• Prudence of having a used car division has already been realized by Volkswagen, Ford, Toyota, Hyundai, Tata, Maruti Suzuki, and even by luxury car maker Mercedes-Benz

Automobile Industry Overview – India Worldwide Car Sales in 2014*

New Car vs. Used Car Sales in India

China India

mn units

Brazil Japan USA Russia Europe

New Car Used Car

2009 2013

mn units

USED CAR MARKET IN INDIA 2015.PPT

Note: *Figures correspond to light vehicles registration from Jan to Nov, 2014, Unless otherwise mentioned all figures are for financial year Apr to Mar

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•Macroeconomic Indicators

•Introduction

•Market Overview

•Recent Developments

•Drivers & Challenges

•Competitive Landscape

•Direct Investment Scenario

•Strategic Recommendation

•Appendix

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Factors such as increasing share of organized companies in the business, people switching cars sooner,…

Used Car Market – Overview (1/2)

• Text

Used Car Market – Market Size and Growth

mn units

2014e 2013 2015e 2018e

X%

2017e 2016e

USED CAR MARKET IN INDIA 2015.PPT

Note: Market size corresponds to passenger vehicles only, Figures are for financial year Apr-Mar

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SAMPLE …lower prices in the segment and easy availability of loans are likely to boost demand for second hand cars

Used Car Market – Overview (2/2)

Segmentation Based on Qualitative Factors Segmentation Based on Price and Brand

Preference of Buyers Depending on the Type of Seller

Expected Industry Growth Based on Price Range

USED CAR MARKET IN INDIA 2015.PPT

Note: The various segmentations regarding consumer preference apart from expected industry growth correspond to a market survey conducted on used car market in the United Kingdoms

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•Macroeconomic Indicators

•Introduction

•Market Overview

•Recent Developments

•Drivers & Challenges

•Competitive Landscape

•Direct Investment Scenario

•Strategic Recommendation

•Appendix

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Investment in Automotive Sector

FDI Regime – Automotive Industry

Total FDI Equity Inflows over the Years - Overall FDI in Automotive Sector

2012 2011 2010

INR bn

2013 2009

INR bn

2014 (Apr-Jul) 2014 2013

Top 8 sectors Attracting FDI in India (2014)

Construction Development

Service Sector Telecommunication Computer Hardware

and Software

Drugs and Pharmacueticals

Automotive Industry

Chemicals (Other than Fertilizers)

Power

INR bn

USED CAR MARKET IN INDIA 2015.PPT

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•Macroeconomic Indicators

•Introduction

•Market Overview

•Recent Developments

•Drivers & Challenges

•Competitive Landscape

•Direct Investment Scenario

•Strategic Recommendation

•Appendix

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Drivers & Challenges

Drivers

Favorable Demography and a Healthy Economic Outlook

Growing Interest of Organized Players in the Market

Growing Automotive Industry

Online Portals and Increased Internet Penetration

Availability of More Advanced Cars

Challenges

Impressive Offers on New Cars Posing Threat to Used Car Market

Constantly Fluctuating Fuel Prices

Cumbersome Process Repelling Customers

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Strong growth of new cars is expected to generate a consistent demand for them, thus necessitating…

• Text

Growing Automotive Industry (1/2) Impact

Domestic Automotive Sales

2008

Y%

2014 2013 2012 2011 2010 2009

mn units

USED CAR MARKET IN INDIA 2015.PPT

Note: Automotive sales figures is for all car segments

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SAMPLE …a market for the re-use and refurbishment of the old stock at a constant rate

Growing Automotive Industry (2/2)

Growing Automotive Industry Turnover

INR tn

C%

2016e 2013

Two and Three Wheelers

Rising Passenger Vehicle Production Commercial Vehicles*

‘000 units B%

2014 2013 2012 2011 2010 2009

2013 2012 2011 2010 2009

D%

2014

‘000 units

‘000 units

A%

2014 2013 2012 2011 2010 2009

Note:*Commercial vehicles include small, light, medium and heavy commercial vehicles

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Launch of new cars at low prices and unlimited choice in the same affecting the demand for used cars

Impressive Offers on New Cars Posing Threat to Used Car Market Impact

• Text

New Launches On Sale Date Price (INR mn) Genre

Nissan Datsun Go Hatchbacks

Honda New Jazz Hatchbacks

Chevrolet Beat Facelift Hatchbacks

Maruti New Celerio Hatchbacks

Tata Indica Vista Facelift Hatchbacks

Hyundai New i20 Hatchbacks

Tata Manza Facelift Saloons

Fiat Linea Facelift Saloons

Hyundai compact saloon Saloons

Renault Duster Facelift SUV

Datsun Go+ MPV

Honda Mobilio MPV

Note: The list is not exhaustive, SUV: Sport Utility Vehicle, MUV: Multi Utility Vehicle)

USED CAR MARKET IN INDIA 2015.PPT

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•Macroeconomic Indicators

•Introduction

•Market Overview

•Recent Developments

•Drivers & Challenges

•Competitive Landscape

•Direct Investment Scenario

•Strategic Recommendation

•Appendix

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Porter’s Five Forces Analysis

Competitive Rivalry • Text

Bargaining Power of Suppliers

• Text

Bargaining Power of Buyers

• Text

Threat of Substitutes

• Text

Threat of New Entrants

• Text

Impact

Impact

Impact

Impact

Impact

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Key Ratios of Top 3 Companies – Operational Basis (FY 2014) (1/3)

Competitive Benchmarking (2/5)

%

Player 3 Player 2 Player 1

Net Margin Operating Margin Gross Margin

• Text

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Category Products/Services

Sectors (EPC)

Name Designation

Head Office

Public: Domestic Company – Player 1 (1/5)

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Particulars

y-o-y change (2014-13)

2014 2013 2012 2011

Profitability Ratios

Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Financial Snapshot Key Ratios

Financial Summary

• The company earned a net profit of INR - mn in FY 2014, as compared to net profit of INR - mn in FY 2013

• The company reported total income of INR - mn in FY 2014, registering an increase of -% over FY 2013

• The company earned an operating margin of -% in FY 2014, an increase of - percentage points over FY 2013

• The company reported debt to equity ratio of - in FY 2014, registering an increase of -% over FY 2013

Key Financial Performance Indicators

Indicators Value (13/01/2015)

Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR)

PE Ratio (Absolute)

Improved Decline

Total Income Net Profit/Loss

2012 2011 2014 2013

INR mn INR mn

Public: Domestic Company – Player 1 (2/5)

Note : This company has had a fiscal year change on Dec-31, 2011

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Key Business Segments Key Geographic Segments

Business Highlights (1/2)

Description News

Overview • Text

%

2014 2013 2012 2011

Public: Domestic Company – Player 1 (3/5)

%

2014 2013 2012 2011

Overseas India

USED CAR MARKET IN INDIA 2015.PPT

Farm Equipment

Information Technology Services

Others

Automotive

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SAMPLE Business Highlights (2/2)

Public: Domestic Company – Player 1 (4/5)

Description News

Automotive • Text

Other Business Spheres • Text

Acquisitions and Achievements

• Text

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE

• Text • Text

• Text

• Text

T O

W S

Public: Domestic Company – Player 1 – SWOT Analysis (5/5)

USED CAR MARKET IN INDIA 2015.PPT

Note : LCV: Light Commercial Vehicles; HCV: Heavy Commercial Vehicles

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SAMPLE Private: Foreign Company – Player 2 (1/5)

Products and Services

Company Information Offices and Centres – India

Head Office

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Category Products/Services

Sectors (EPC)

Key People

Name Designation

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Ownership Structure

Name No. of Shares held

Total

Ownership structure corresponds to Date of AGM: 30/09/2014

Shareholders of the Company

100% 100.0%

Foreign Holdings

Private: Foreign Company – Player 2 (2/5)

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Particulars

y-o-y change (2014-13

2014 2013 2012 2011

Profitability Ratios Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Financial Snapshot Key Ratios

Improved Decline

Financial Summary

• The company incurred a net loss of INR - mn in FY 2014, as

compared to net loss of INR - mn in FY 2013

• The company reported total income of INR - mn in FY 2014,

registering an increase of -% over FY 2013

• The company earned an operating margin of -% in FY 2014, an

increase of - percentage points over FY 2013

• The company reported debt to equity ratio of - in FY 2014, an

increase of -% over FY 2013

Total Income Net Profit/Loss

2011

INR mn

2012 2013 2014

INR mn

Private: Foreign Company – Player 2 (3/5)

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Business Highlights

Description News

Overview • Text

Services • Text

Private: Foreign Company – Player 2 (4/5)

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE

• Text • Text

• Text • Text

T O

W S

Private: Foreign Company – Player 2 – SWOT Analysis (5/5)

USED CAR MARKET IN INDIA 2015.PPT

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•Macroeconomic Indicators

•Introduction

•Market Overview

•Recent Developments

•Drivers & Challenges

•Competitive Landscape

•Direct Investment Scenario

•Strategic Recommendation

•Appendix

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Direct Investments – Player 1

Total Investments – Sector-wise CD Investments – Geography-wise

Telecommunications Service

Consumer Staples

Energy

Materials

Information Technology

Financials

Industrials

Consumer Discretionary

CD Investments – Segment-wise

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

100

Latin America and Caribbean

United States and Canada

Africa/ Middle East

Europe

Asia/Pacific

Retailing

Media

Automobile and Components

Consumer Services

Investment Snapshot

• Text

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Company Specifics (1/2)

Company Strategic Alliance Primary Industry

Player 1

Player 2

Player 3

Recently Disclosed Industry Specific Strategic Alliances within the Last Two Years

USED CAR MARKET IN INDIA 2015.PPT

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•Macroeconomic Indicators

•Introduction

•Market Overview

•Recent Developments

•Drivers & Challenges

•Competitive Landscape

•Direct Investment Scenario

•Strategic Recommendation

•Appendix

USED CAR MARKET IN INDIA 2015.PPT

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SAMPLE Strategic Recommendation (3/4)

Consumer Insights

Certified Pre-Owned (CPO) Non-certified Pre-Owned Private Party

Overall

Condition

Inspection

Warranty

Financing

USED CAR MARKET IN INDIA 2015.PPT

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USED CAR MARKET IN INDIA 2015.PPT