AUTOMOBILE SECTOR IN INDIA

INTRODUCTION
‡ Indian automobile industry has grown leaps and bounds since 1898, a time when car touched the Indian streets for the first time. ‡ At present it holds a promising tenth position in the entire world with being No. 1 in Two wheelers and No. 4 in commercial vehicles.

‡ The Automobile Industry in India is the 7th largest in the world with an annual production of over 2.6 million units in 2009. ‡ In 2009, India emerged as Asia¶s 4th largest exporter of automobiles behind Japan, South Korea and Thailand. ‡ By 2050, the country is expected to top the world in car volumes with approximately 611milion vehicles on the nation¶s road.

AUTOMOBILE SECTOR
‡ The automotive sector is one of the key segments of the economy having extensive forward and back word linkages with other key segments of the economy. ‡ It contributes about 4% in India¶s GDP and 5% in India¶s industrial production. ‡ This sector has generated about 4.5 Lack of direct employment and about 1 crore of indirect employment. 

India holds huge potential in the automobile sector including the automobile component sector owing to its technological, cost and manpower advantage.

‡ India has a well developed, globally competitive Auto Ancillary Industry and established automobile testing and R&D centers. 
India enjoys natural advantage and is among the lowest cost producers of steel in the world

SEGMENTATION

2 WHEELER

COMMERCIAL VEHICLE

AUTOM OBILE

3 WHEELER

PASENGER VEHICLE

SEGMENTATION OF AUTOMOBILE INDUSTRY
Sales
3.95% 15.96% 3.60% Passenger Vehicles Commercial Vehicles three Wheelers 76.49% Two Wheelers

Why INDIA
‡ The economy of India is emerging. The following table show the ranking of India in the past four years.

Rank 1 2 3 4 5 6 7

2008 China India Thailand Vietnam USA Russia Korea

2007 China Thailand India Vietnam USA Russia Indonesia

2006 China Thailand USA Vietnam India Indonesia Korea

2005 China Thailand USA Indonesia Vietnam India korea

The Automotive Industry in India FACTS 
    

9th largest automobile industry . 2nd largest two-wheeler market, 4th largest in Heavy Trucks. 2nd largest tractor manufacturer. Annual production of over 2.3 million units. The monthly sales of passenger cars in India exceed 100,000 units.

MAJOR PLAYERS IN INDIA
BMW Volkswagen Mitsubishi Hindustan Motors

Mercedes Mahindra Maruti Hyundai Honda

General Motors Chevrolet Daewoo Motors Fiat

Toyota Tata

Skoda Nissan Motor

Ford

MARKET SHARE IN AUTOMOBILE INDUSTRY
Sales
5.33% 17.19% 50.37% Maruti Hyundai TATA Motors 19.17% Honda Others 5.73%

Production trend
‡ Installed capacity of this sector has been growing at a compound annual rate of over 16% since 2003-2004. ‡ Automobile industry grew by 14.83% in April 2008February2009. ‡ Cumulative growth rate of some important segments in April 2007-December 2008 was:

Production trend
‡ Passenger vehicles: 22.91% ‡ Passenger cars: 24.76% ‡ Utility vehicles: 12.69% ‡ Multi purpose vehicles: 28.385% ‡ Commercial vehicle: 36.12% ‡ Medium and heavy commercial vehicles: 36.74% ‡ Light commercial vehicles: 35.25%

FUTURE PROSPECT OF INDIAN AUTOMOBILE SECTOR
‡ Automobile industry expert predicts that by 2050 every 6th car in the world will be from India. ‡ By 2010 India will take over Germany in sales volume and Japan by 2012. ‡ The Indian automobile component industry is estimated to triple from USD 63 billion to USD 190 billion within a span of six years by 2012. ‡ Industry analysts predict this industry to touch USD 13000 million mark by 2010, a cumulative growth of 9.5% annually. ‡ It is said that for every `1 spent, the auto sector returns ` 2.24 to the Indian economy.

Future Prospect of Indian Automobile Sector
‡ Nissan motors plans to export 2,50,000 vehicles manufactured in its India plant by 2011 ‡ General motors announced its plans to export about 50,000 cars manufactured in India by 2011. By the end of 2010, India is expected to witness over `30,000 crore of investment. ‡ Maruti Udyog has set up the second car with an investment of `6,500 crore

SWOT ANALYSIS
STRENGTH Automobile industry is an established and an evergreen industry India is the strongest player in the small car segment of the global automobile market Indian companies are the best cost innovator THREATS High competition from foreign players Lack of technology for Indian companies Companies not focusing on R&D are under great risk WEAKNESS India is lacking in proper infrastructure This is slowing the pace of growth of auto industry Companies are not improving after sales services OPPORTUNITY Commercial vehicles: SC ban on overloading Rising income level of consumers Excise duty cut from 40% in 2001 to 6% in 2008

THANKYOU

PRESENTED BY:

KARTIKEY SINGH MBA(G) SEC ± B 2010-2012

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