market research report : used car market in india 2015 - sample
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Used Car Market – India
April 2015
2
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
3
•Macroeconomic Indicators
•Introduction
•Market Overview
•Recent Developments
•Drivers & Challenges
•Competitive Landscape
•Direct Investment Scenario
•Strategic Recommendation
•Appendix
USED CAR MARKET IN INDIA 2015.PPT
4
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
5
•Macroeconomic Indicators
•Introduction
•Market Overview
•Recent Developments
•Drivers & Challenges
•Competitive Landscape
•Direct Investment Scenario
•Strategic Recommendation
•Appendix
USED CAR MARKET IN INDIA 2015.PPT
6
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
7
•Macroeconomic Indicators
•Introduction
•Market Overview
•Recent Developments
•Drivers & Challenges
•Competitive Landscape
•Direct Investment Scenario
•Strategic Recommendation
•Appendix
USED CAR MARKET IN INDIA 2015.PPT
8
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
9
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
10
•Macroeconomic Indicators
•Introduction
•Market Overview
•Recent Developments
•Drivers & Challenges
•Competitive Landscape
•Direct Investment Scenario
•Strategic Recommendation
•Appendix
USED CAR MARKET IN INDIA 2015.PPT
11
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
12
•Macroeconomic Indicators
•Introduction
•Market Overview
•Recent Developments
•Drivers & Challenges
•Competitive Landscape
•Direct Investment Scenario
•Strategic Recommendation
•Appendix
USED CAR MARKET IN INDIA 2015.PPT
13
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
14
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
15
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
16
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
18
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
19
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
20
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
21
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
23
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
24
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
25
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
29
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
30
•Macroeconomic Indicators
•Introduction
•Market Overview
•Recent Developments
•Drivers & Challenges
•Competitive Landscape
•Direct Investment Scenario
•Strategic Recommendation
•Appendix
USED CAR MARKET IN INDIA 2015.PPT
31
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
33
•Macroeconomic Indicators
•Introduction
•Market Overview
•Recent Developments
•Drivers & Challenges
•Competitive Landscape
•Direct Investment Scenario
•Strategic Recommendation
•Appendix
USED CAR MARKET IN INDIA 2015.PPT
34
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