STUDY OF THE INDUSTRY

Historical Background

In the india there are 100 people per vehicle, while this figure is 82 in china. It is expected that
india automobile industry will achieve mass motorization status by 2014.

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile
Industry of India has come a long way. During its early stages the auto industry was overlooked
by the then Government and the policies were also not favorable. The liberalization policy and
various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian
Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18
% per annum, has become a hot destination for global auto players like Volvo, General Motors
and Ford. A well developed transportation system plays a key role in the development of an
economy, and India is no exception to it. With the growth of transportation system the
Automotive Industry of India is also growing at rapid speed, occupying an important place on the
'canvas' of Indian economy. Today Indian automotive industry is fully capable of producing
various kinds of vehicles and can be divided into 03 broad categories : Cars, two-wheelers and
heavy vehicles.

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The first automobile in India rolled in 1897 in Bombay.
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India is being recognized as potential emerging auto market.
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Foreign players are adding to their investments in Indian auto industry.
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Within two-wheelers, motorcycles contribute 80% of the segment size.

Unlike the USA, the indian passenger vehicle market is dominated by cars (79%)

India is the largest three wheelers market in the world

India is the largest two wheelers Manufacturer in the world

India is the second largest tractor manufacturer in the world

India is the fifth largest commercial vehicle manufacturer in the world

India is the fourth largest car market in Asia recently crossed the 1 million mark.
40% of the three-wheelers are used as goods transport purpose. Piaggio hold 40% of the
market share. Among the passenger transport. Bajaj is the leader by market 68% os the three-
wheelers. Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share
in passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles
Mahindra holds 42% share. In commercial vehicle, Tata Motors dominates the market with more
than 60% share.

B) Current Scenario

The growth of the Indian middle class along with the growth of the economy over the past few
years has attracted global auto majors to the Indian market. Moreover, India provides trained
manpower at competitive costs making India a favored global manufacturing hub. The
attractiveness of the Indian markets on one hand and the stagnation of the auto sector in
markets such as Europe, US and Japan on the other have resulted in shifting of new capacities
and flow of capital to the Indian automobile industry. According to the International Yearbook
of Industrial Statistics 2008 released by United Nations Industrial Development Organization
(UNIDO), India ranks 12th in the list of the world’s top 15 automakers.

CONTENTS
Chapter -1 , Introduction to Company

1. Nature of Business
2. Type & ownership Pattern
3. Organization Structure
4. Production Lay out
5. Organization Policies.

Chapter – 2. Industrial Analysis

1. Industry Overview – Growth rate of industry, contribution to GDP

2. Current Issues From newspaper, journal – for company and industry
3. Key competition
4. Environment scanning – Political, Economic, Social-Cultural, technological, and legal .

Chapter – 3. Marketing Strategies.

1. Product of Company
2. 4Ps ( Product, Price, Place, Promotion )
3. STP ( Segmentation, Targeting, Positioning )
4. Distribution Channels
 5. Promotion Strategies.

Chapter – 4. Finance Analysis

1. Source of Finance
2. Ratio Analysis – Any 5
3. Net Profit from annual report analysis

Chapter – 5. Conclusion