Synopsis of Minor Project 2014 on

INDIAN AUTOMOBILE INDUSTRY:PROBLEMS AND PROSPECTS

I. Indian automobile industry

The fastest growing globally The automotive industry in India is one of the larger markets in the world. It had previously been one of, but is currently experiencing flat or negative growth rates.  According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil), grew 16 to 18 percent to sell around three million units in the course of 2011 and 2012 with an .  In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars.

 More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second (after China) fastest growing automobile market in the world in that year. The passenger vehicles production in India touched 3.23 million units in 2012–13 and is expected to reach 10 million units by 2020–21. The industry is estimated to grow at a CAGR of 13 per cent during 2012–2021. In addition, the industry recorded exports worth US$ 9.3 billion in 2012–13 and is projected to touch US$ 30 billion by 2020–21, according to data from Automotive Component Manufacturers’ Association (ACMA).

The cumulative foreign direct investment (FDI) inflows into the Indian automobile industry during April 2000 to October 2013 was recorded at US$ 9,079 million, amounting to 4 per cent of the total FDI inflows (in terms of US$), as per data published by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce, Government of India.

The Indian Automobile Industry is manufacturing over 11 million vehicles and exporting about 1.5 million every year. The dominant products of the industry are 2 wheelers with the market share of about 75% and passenger cars with around 16%. Commercial vehicles and 3 wheelers about 9% of the market between them. About 91% of the vehicles sold are used for households and only 9% for commercial purposes. The industry has maintained a turnover of more than USD35 billion and provide direct and indirect employment to over 13 million people

India is also expected to emerge as a centre for producing compact superbikes as Indian customers progress to the next level of biking. Several global and Indian bike makers plan to utilize India's mass-production base of 16 million two-wheelers to roll out sports bikes in the 250 cc capacity.

The supply chain of this industry in India is very similar to the supply chain of the automotive industry in Europe and America. This may present its own set of opportunities and threats. The order of the industry rises from the bottom of the supply chain.

More so, the demand for premium sports utility vehicles (SUVs) will continue to grow. The market size of premium SUVs was estimated to be around 25,000 units annually in India.

II. . Rationale Of Study

Normally each individual has its own interests and many people have their interest in automobile industry, its prospects etc. They always wanted to know which car or bike is launching and what are its features and all. More or Less India is the most emerging market of Automobiles in the world. And in order to know more about this to get in deep knowledge about the various aspects of the industry. I am making a Minor Project on The Indian Automobile Industry.

III. Project Objectives To understand the challenges faced by the automobile companies in India; their sales and

distribution network and the supply chain. To find out their Process and Performance

To understand the reasons that why India is becoming the most emerging market in the world, knowing about the technologies used by different companies.

To understand political, demographical and economical problems faced by the companies.

To understand the competitive nature of the companies.

IV. Research Methodology

Exploratory research will be used to collect the data along with primary data would be collected through essential personal contact with the different level executives of the automobile company and distribution of questionnaire and Secondary data were collected from books, websites, & journals.