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History of Indian Automobile. Market Overview Government regulations & policy India Advantage
and business opportunities
y What is Auto mobile industry? y Importance of Automobile industry? y What is role of Auto mobile industry on
y First phase(mid 1980)-protection. y Third Phase(early 2000)-Globalization. .History y Indian Automotive industry can be classified into three main phases. y Second phase(post1991)-liberalization.
Volvo S80 etc... y Luxury cars Eg-Audi R8. .. y Sedan Eg-Ambassador..Tata Safari etc. y Sports Utility Vehicle(SUV) Eg-Mahindra Scorpio.Tata Indigo etc .SEGMENTS y Hatchback Eg-Tata indica. Maruthi zen etc...
Sports Utility Vehicle(SUV)- .
Market Overview .
2nd largest two wheeler market in the world 4th largest commercial vehicle market in the world 11th largest passengerth in the world and is car expected to be the 7 largest market by 2016 y key contributor to the Indian economy .a over the last 5 years.Profile: Indian Automotive Industry Growth rate.CAGR of 14% p.
05 0.Vehicle sales in India in 2005 .35 1.14 0 Cars 2 CVs 4 Two wheelers 6 Three Wheelers 8 .36 7.06 ( in mil) 0.
.Auto components industry has also grown at a rapid pace .. Size of Component Industry (US$ mn) 10000 8700 6730 5430 3849 3965 4470 FY00 FY01 FY02 FY03 FY04 FY05 FY 06 grown at -17% CAGR .
Players: Indian auto industry GM Toyota Ford Hyundai Maruti Suzuki Honda Skoda Volvo Mercedes Global OEM Indian Auto Indust ry Indian OEM Tata Motors Mahindra & Mahindra Bajaj Auto TVS Motors Hero Honda Bajaj Tempo Ashok Leyland Delphi Visteon Bosch Denso Valeo Thyssen Krupp Global Suppli ers Engineer ing & Develop ment Compan ies Indian Suppli ers Bharat Forge Sundram Fasteners Rane Group Shriram Pistons RICO Auto Sono Koyo Steering .
Chennai Bangalore-Hosur (South) and DelhiGurgaon-Faridabad (North) .MumbaiPune-Nasik-Aurangabad (West).Automotive clusters in India Delhi-Gurgaon-NoidaGhaziabad Ludhiana Haridwar North / Central Ashok Leyland Eicher Force Motors Hero Honda Hindustan Motors Honda Honda SIEL ICML Kinetic LML Majestic Maruti Suzuki Piaggio Yamaha Swaraj Mazda Tata Motors South Ashok Leyland Ford Hindustan Motors Hyundai Mahindra & Mahindra Tatra Toyota Kirloskar TVS Motors Volvo Enfield Greaves Pitampur Jamshedpur Rajkot-Halol Kolkata West Ashok Leyland Atul Auto Bajaj Auto Daimler Chrysler FIAT Force Motors GM Greaves Kinetic M&M Premier Skoda Tata Motors Mumbai-Pune-Nasik Aurangabad Hyderabad East Hindustan Motors Tata Motors Chennai Bangalore Hosur Major automotive clusters .
India has the potential to become the global outsourcing hub Vehicle Exports from India 600000 60 500000 400000 50 40 % Units Export of auto components (USD million ) 1.800 300000 30 25% 200000 100000 20 1400 1020 456 10 0 CV Cars Exports (2005-06) 2 Wheelers 3 Wheelers 0 625 578 760 FY00 FY01 FY02 FY03 FY04 FY05 FY06 Growth rate ( 4 year CAGR) Indian vehicle exports .40 % over the last few ear component exports -25 % per annum. .Exports are rising .
Growth drivers for the Indian automotive industry Governme nt Policies Overall economic growth Lower duties & taxes Contemporar y products Shorter life cycle New product launches Indian utomotive Industr Increasing consumer demand Growth in Income levels Easier financing Export Competitiveness Reduced cost to consumer India emerging as a manufacturing hub Cost Competitiveness .
15 bn Components Exports USD 20 .40 bn b 2015 ¡ .25 bn 0 5 10 $ Billion 15 20 25 Expected Exports growth.Growth potential of the Indian automotive industry Projected size of uto Components industr .2015 Domestic Components USD 13 .USD 33.
87 27.06 ( in mn) 0.Potential Vehicle sales in India in 2015 .159 bn by 2016. total investments required-USD 35 .a to reach around USD 120 .8 2015-16 0.64 2.40 bn .65 0 Cars CVs 10 Two wheelers 20 Three Wheelers 30 Expected to grow at 13% p.
Government regulations and policy .
Policies relating to the sector: In 2002 auto polic allows automatic approval for foreign equit investment upto 100% lays emphasis on R & D activities Weighted tax deduction of upto 150% for in-house research and R & D activities .
Trends in future regulations Safety and Emission related Regulation Road Map Targets Industry challenges to development Better vehicles: safer and more environment friendly 2004 2005 200 6 Approach Harmonization with ECE standards Homologation and Certification testing agencies and centres 2007 200 8 2009 2010 Crash requirements aligned with EU Mandatory Airbags Bharat Stage IV in Metros and Bharat Stage III in rest of the country .
Pune (Maharashtra) Proving ground at Indore (MP) Tractor testing facility at Rae Bareilly (UP) Hill Driving Training Centre at Silchar (Assam) New complete proving ground at INDORE New test & homologation center near CHENNAI . Chennai (Tamil Nadu).State-of-the-art test facilities will support the growth of the auto industry NATRIP National Automotive Testing and R&D centres Testing centres at Manesar (Haryana).
India Advantage and business opportunities .
has positioned India as one of the leading low cost manufacturing sources Capabilities to develop complete vehicles and systems More than 125 Fortune 500 (including large auto companies) have R&D centres in India Indian Auto Industr Companies can leverage India s acknowledged leadership in the IT industry Stable economic policies Continuity in reforms and policies India targets to emerge as the manufacturing hub for small cars .Attractiveness of the Indian automotive industry Large and growing domestic demand Demand growth expected to be around 10 % CAGR making India one of the fastest growing markets Proven product Development capabilities Export Potential Increased outsourcing has led to a large potential to export components and vehicles to other markets High qualit standards 12 Indian component manufacturers have won the Deming Prize for quality Most leading component manufacturers are QS and ISO certified Competitive manufacturing cost Implementation of VAT.
100 % FDI through automatic route allowed in this sector JVs with local firms .40 bn various forms 100 % subsidiary .Opportunities in the Indian automotive sector Domestic Opportunities Participate in domestic growth opportunities Indian Automotive Sector Global outsourcing Opportunities Exports of vehicles Exports of components Engineering and Design Services Investment potential -USD 35 .
Tata Nano Tata Nano was finally launched in Mumbai on 23rd March.2009. .
Key players in the Indian auto industry .Passenger Cars and CVs The largest player in the Indian industry. Is planning to invest heavily to boost exports from India Has vision of capturing 10 % share of the Indian passenger car market by 2010 One of the leading players in the Indian premium cars segment One of the leading players in the Indian premium cars segment .000 car Suzuki s JV in India and the largest passenger car manufacturer in India The third largest passenger car manufacturer in India and one of the largest exporters of vehicles. Plans to launch new and exciting products in the Indian markets. Has established India as one of its manufacturing bases in the world. including the 100.
Passenger Cars and CVs One of the leading players in the Indian premium cars segment.Key players in the Indian auto industry . Plans to enter the small car segment by re-launching the Matiz One of the largest players in the UV / MUV segment The 2nd largest CV manufacturer in India .
Has plans for establishing a manufacturing facility in Indonesia Has recently entered the Indian market through its direct subsidiary ( in addition to its JV Hero Honda) Has recently entered the Indian market through its direct subsidiary .wheeler manufacturer in India and the largest 3 wheeler manufacturer.Two wheelers The largest 2 wheeler manufacturer in the world The 2nd largest 2.Key players in the Indian auto industry . Has plans for establishing a manufacturing facility in Indonesia The third largest 2 wheeler manufacturer in India.
SWOT ANALYSISStrenghtsy Availability of human Resource y Raw material y Growing markets y Availability of latest technology(R&D) .
Weaknessy Lack of trained manpower y Interest on international brand Opportunitiesy India source base for global auto majors y Rapid Growth .
Threatsy Raise of fuel prices y Raise of raw material prices y Lack of availability of customer finance .
PEST Analysisy Change of policies y global warming y Employment to rural people y Nurturing Manpower .
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