Professional Documents
Culture Documents
Globalization of Indian Automobile Industry
Globalization of Indian Automobile Industry
Automobile Industry
a
c
Introduction
×
3 e à
is
t e sevent largest in t e world. world.
ve icles and exports of about 1.5
million.. In 2010
million 2010,, India emerged as
Asia's
Asia 's fourt largest exporter of
automobiles, be ind JapanJapan,, Sout
orea and 3 ailand.
ailand.
0
Classification of Automobile
Industry
1. 3wo w eelers
2. 3 ree W eelers
3. Passenger Ve icles
4. Commercial Ve icles
ÿ
Growt of Automobile Industry
-
3 is was t e pre-
pre-1980 era w ere t e manufacturing of
automobiles was subject to strict licensing, restrictive
tariff structure.
å
In t e early 1990s, wit liberalization, some more
Japanese manufacturers entered t e Indian market.
Automobile Industry was delicensed in July 1991.
arly 2000 owever saw globalization of Indian auto
industry. Several policy c anges were introduced wit
focus on boosting t e auto exports. Foreign
manufactures started looking at India for sourcing auto
components.
ü
à
Mise in Per Capita Income
Growt in Moad Infrastructure
Hig GDP-
GDP-Hig er GDP means more
purc asing power
Urbanization
Finance Sc emes
©
ey Players
A
Growt C art of Indian Industry
·
3wo W eelers
Motorcycles segment dominates wit an
80%
80 % market s are. are. Apart from t e
motorcycles t at are traditionally used by
men, t e Scooters (60cc 60cc upwards) ave
also contributed towards a spurt in two
two--
w eeler sales..
sales.. 3 en t ere are mopeds
t at are not ing but a sop isticated
motorized cycle.
cycle. And now a days scooties
for girls are t ere .
3 ree w eelers
c
Four W eelers
3 e four w eeler segment comprises of
t e passenger ve icles and utility
ve icles.3 e passenger cars segment as
t e largest s are of 78%. Main key
players in t e market are Maruti Udyog
Ltd. 3ata Motors Ltd., Hyundai, 3oyota,
Honda, Ford and GM.
cc
Competition from new companies
c×
Commercial Ve icles
3 ere are about nine manufacturers of
commercial ve icles in India. ic er Motors Ltd
Ltd,,
3ata Motors Limited,
Limited, As ok Leyland
Leyland,, Ma indra
and Ma indra Limited and Volvo Motors.
Motors.
3ata Motors as s are of 62%, As ok Leyland
Ltd. wit a total market s are of 15%, M & M
Ltd. wit a total market s are of 11%, ic er
Motors Ltd. wit a total s are of 6%, and
ot ers.
c0
FDI in Automobile Sector
cÿ
Merger & Acquisitions
c
India stands among t e Global
industry
Indiaƞs dano (t e worldƞs c eapest car) and
ot er small cars are forcing t e world to go back
to t eir drawing boards
boards.. Indiaƞs Meva (electric
car) is very popular abroad as its environment
friendly.. Spark, t e compact car from General
friendly
Motors, will now come in an electric version,
t anks to a tie-
tie-up wit Bangaloreƞs Meva lectric
Car Co.
Co. Indian auto industry is all set to grow
strong and become a visible and stronger power
in t e Global auto industry.
industry.
c©
Future Prospective of Indian
Automobile sector
c
Steps taken by Government to
overcome Mecession
Ve icle makers cut prices following a
government reduction in value-
value-added tax
last December.
A uge package of funds to elp t e
sector, and t e central bank as made a
series of rate cuts to spur t e
economy.
×
SWO3 AdALYSIS
` 1.Automobile industry is an
establis ed and an evergreen industry.
2. India is t e strongest player in t e small
car segment of t e global
`
` 1.Companies are not
improving after sale services.
2. Lack of Proper Infrastructure. 3 is is
slowing t e pace of growt of auto
industry
×c
-- àà-
àà- 3 e automotive
ecosystem is in t e midst of
significant c ange, wit increasing
c allenges in Consumer demands,
tec nology dev., and globalization.
`
` Hig Competition, Lack
of 3ec nology and Global crisis a.nd
companies not focusing on M & D
××
3 e Future
×0
Conclusion
Indian Industry is in a good developed position
just because of Globalisation. Indian companies
adopt foreign tec nologies and made t eir own
tec nologies also and elp Indian Industry to
grow superbly.3 e industry expects t e growt
in t e automotive sector to continue. It is also
believed t at global automakers will continue to
allocate a rising proportion of t eir foreign direct
investment into India. If all going well t en
Indian Industry will be at top in future.
×ÿ
3
×