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The first automobile was invented by Nicolas Joseph Cugnot in the year 1769.
The automotive industry began in the year 1860s.
Germany was the first country to produce automobile in the year 1888.
In the terms of production united states lead the automobile industry for many
decades.
In 1929, the world had 32,028,500 automobiles in use, and the U.S. automobile
industry produced over 90% of them.
After 1945, U.S. produced about 75% of the world’s auto production.
In 1980, U.S. was overtaken by Japan and became world leader.
Japan held this rank until 2009 , when China took the spot.
In the year 2012, China manufactured 19.3 million units which was almost
double the amount of automobiles manufactured by U.S.
Inventor Date Type/Description Country
Nicolas-Joseph Cugnot 1769 STEAM / Built the first self propelled road vehicle France
(1725-1804) (military tractor) for the French army: three
wheeled, 2.5 mph.
Karl Friedrich Benz (1844-1929) 1885/86 GASOLINE / Automobile powered by an Germany Patent DRP No.
internal combustion engine: three wheeled, 37435
four cycle, engine and chassis form a single
unit.
Gottlieb Wilhelm Daimler 1886 GASOLINE / First four wheeled, four-stroke Germany
(1834-1900) and Wilhelm engine- known as the “Cannstatt-Daimler.”
Maybach (1846-1929)
George Baldwin Selden 1876/95 GASOLINE / Combined internal combustion United States
(1846-1922) engine with a carriage: patent no: 549,160
(1895). Never manufactured — Selden
collected royalties.
Charles Edgar Duryea 1893 GASOLINE / First successful gas powered car: United States
(1862-1938) and his brother Frank 4hp, two-stroke motor. The Duryea brothers set
(1870-1967) up first American car manufacturing company.
INDIAN AUTOMOBILE INDUSTRY AND MARKET
In the year 2020, India was the fifth-largest auto market, with 3.49
million units sold.
India is the 4th largest passenger vehicle producer in the world.
The industry currently manufactures 26 million vehicles including
passenger vehicles, commercial vehicles, three wheelers and two
wheelers, of which 4.7 million are exported.
In April-March 2020, overall automobile exports registered a growth of
2.95%.
India holds a strong position in the international heavy vehicle arena
as it is the largest tractor manufacturer, second largest bus
manufacturer and third largest heavy trucks manufacturer in the world.
India ranks 2nd in the global two wheeler market.
India ranks 11th in the international passenger car market.
SWOT ANALYSIS
FOR COMPANIES IN THE AUTOMOBILE INDUSTRY
STRENGTH
▪ Evolving industry
▪ Constant production & technological advancement
▪ Manufacturing facilities in Asian nations to control cost.
WEAKNESS
▪ Bargaining power of consumers
▪ Government regulations
▪ High employee turnover
OPPORTUNITIES
▪ Fuel efficient vehicles
▪ Changing lifestyle & customer groups
▪ Market expansion
THREATS
▪ Rising competition
▪ Sluggish economy
▪ Volatility in fuel prices
ROLE OF AUTOMOBILE INDUSTRY IN INDIA’S GDP
The Automotive sector in India is valued at $93 billion currently and is
growing at a steady pace.
The automotive industry contributes a whopping 49% of India’s
manufacturing GDP.
The Automotive Sector contributes 7.3% of India’s total Gross Domestic
% contribution in GDP
Product (GDP). Year
2015 5.7
2016 5.8
2017 5.9
2018 6.7
2019 7.1
2020 7.35
2021 7.86
2022 8.35
2023 8.69
2024 9.12
2025 9.59
2026 9.99
COMPANIES PROFILE
Mahindra & Mahindra should look after its over dependency upon Indian
market as more than 60 % of its revenue comes from Indian market. this
geographic dependency can affect the business in case of high inflation or
economic slowdown.
Nissan motors must work towards its product recall issue as they have to
recalled many of their products due some sort of manufacturing errors,
product recalls affect the brand image and moreover it cost people trust on
the brand.
Nissan slipped 10 places in the Brand Finance report. This slip in the brand
value accounted to $300 million. This is a huge problem for them. Nissan must
work towards uplifting its brand value in the market.
VEVC of Volvo and Eicher must work toward their brand image as its declining
due to products recall, Volvo has had to recall many products in the recent
past which creates a dent on the brand image of Volvo.