121648329-Auto

download 121648329-Auto

of 23

Transcript of 121648329-Auto

  • 7/28/2019 121648329-Auto

    1/23

    PRESENTATION

    ONAUTOMOBILE

    INDUSTRY

  • 7/28/2019 121648329-Auto

    2/23

    It begins as early as 1769.

    The automobile sector is one of the key segments ofthe economy having extensive forward and backwardlinkages with other key segments of the economy.

    It contributes about 4 per cent in India's GrossDomestic Product(GDP) and 5 per cent in India's

    industrial production. Indian Automobile sales growth rate would be 9.5 % by

    2010.

    INTRODUCTION TO AUTOMOBILESECTOR

  • 7/28/2019 121648329-Auto

    3/23

    FACTS 9th largest automobile industry .

    2nd largest two-wheeler market,

    4th largest in Heavy Trucks. 2nd largest tractor manufacturer.

    11th largest passenger car market and expected tobecome 7th largest by 2016.

    Sale of passenger cars in India is likely to grow at anaverage of 14.9% each year to touch 2.1 million mark by2010.

  • 7/28/2019 121648329-Auto

    4/23

    KEY PLAYERSMaruti TATAHyundai HondaFord GMSonalika International HMForce Toyota KirloskarM&M FiatSkoda Audi

    Mercedes Benz BMWVolkswagon Mitshubishi

  • 7/28/2019 121648329-Auto

    5/23

    AUTOMOBILE

    2

    WHEELLER

    3

    WHEELLER

    PASSENGER

    VEHICLE

    COMMERCIAL

    VEHICLE

  • 7/28/2019 121648329-Auto

    6/23

    2 WHEELER

    Market leader Hero Honda with market share 50%

  • 7/28/2019 121648329-Auto

    7/23

    3 WHEELER

    Market leader Mahindra & Mahindra with market share 42%

  • 7/28/2019 121648329-Auto

    8/23

    PASSENGER VEHICLE

    Market leader Maruti with market share 52%

  • 7/28/2019 121648329-Auto

    9/23

    COMMERCIAL VEHICLE

    Market leader Tata Motor with market share 61%

  • 7/28/2019 121648329-Auto

    10/23

    Indian auto market growthrate

    The automobile industry crossed a landmark with totalvehicle production of 10 million units.

    Car sales was 8,82,094 units against 8,20,179 units in2009-2010

    The two-wheeler market grew by 13.6 % with 70,56,317units against 62,09,765 units in 2009-10

    Commercial vehicles segment grew at 10.1 % with3,50,683 units against 3,18,430 units in 2009-10

    The domestic automobile industry sales grew 12.8% at89,10,224 units as against 78,97,629 units in 2009-10.

  • 7/28/2019 121648329-Auto

    11/23

  • 7/28/2019 121648329-Auto

    12/23

  • 7/28/2019 121648329-Auto

    13/23

    RISK 2006-2007

    0

    0.5

    1

    1.5

    2

    2.5

    3

    3.5

    apr may jun jul aug sep oct nov dec jan feb mar

    YEAR 06-07 NIFTY

    YEAR 06-07 AUTO

  • 7/28/2019 121648329-Auto

    14/23

    RISK 2007-2008

    0

    0.5

    1

    1.5

    2

    2.5

    3

    3.5

    apr may jun jul aug sep oct nov dec jan feb mar

    YEAR 07-08 NIFFTY

    YEAR 07-08 AUTO

  • 7/28/2019 121648329-Auto

    15/23

    RISK 2008-2009

    0

    1

    2

    3

    4

    5

    6

    apr may jun jul aug sep oct nov dec jan feb mar

    YEAR08-09 NIFFTY

    YEAR08-09 AUTO

  • 7/28/2019 121648329-Auto

    16/23

    R

  • 7/28/2019 121648329-Auto

    17/23

    RETURN

    -0.8

    -0.6

    -0.4

    -0.2

    0

    0.2

    0.4

    0.6

    apr may jun jul aug sep oct nov dec jan feb mar YEAR 06-07 NIFTY

    YEAR 06-07 AUTO

  • 7/28/2019 121648329-Auto

    18/23

    GDP

    Directly and indirectly it employs more than 10 millionpeople.

    The market value of Automobile Industry is more than US$8billion. and Contribution in Indian GDP is near about 4% andwill be double by 2016.

    The automobile industry in India grew at rate of 11.5 % overthe past five years, but growth rate in last year2009-10wasonly 0.7%.

    FDI inflows in Automobile Industry 2009-10 was Rs.5,212 Cran increase of 47.25% compare to 2009-10.

    In 2009, India emerged as Asia's fourth largest exporter ofautomobiles, behind Japan, South Korea and Thailand.

  • 7/28/2019 121648329-Auto

    19/23

    SWOT OFAUTOMOBILE INDUSTRYSTRENGTHS

    Large domestic market

    Sustainable labor cost advantage

    Government incentives for manufacturing plants

    Strong engineering skills in design

    Able to achieve significant gains in productivity

    WEAKNESSES

    Low labor productivity High interest costs and high overheads

    Rising cost of production

    Low investment in Research and Development

  • 7/28/2019 121648329-Auto

    20/23

    OPPORTUNITIES

    Commercial vehicles

    Heavy thrust on mining and construction activity

    Increase in the income level

    Cut in excise duties

    Rising rural demand

    THREATS

    Rising interest rates

    Cut throat competition Lack of technology for Indian Companies

  • 7/28/2019 121648329-Auto

    21/23

    FUTURE PROSPECT OF INDIANAUTOMOBILE SECTOR Automobile industry expert predicts that by 2050 every

    sixth car in the world will be for Indians.

    By 2010 India will take over Germany in sales volumesand Japan by 2012

    The Indian automobile component industry is estimatedto triple from USD 63 billion to USD 190 billion within aspan of six years by 2012.

    Industry analysts predict this industry to touch USD13000 million mark by 2010, a cumulative growth of9.5% annually.

    It is said that for every Re 1 spent, the auto sectorreturns Rs. 2.24 to the Indian economy.

  • 7/28/2019 121648329-Auto

    22/23

    CONCLUSIONIndustry across countries will have to meet challenges ofnewer technologies, alternative fuels and affordability ofautomobiles by people at large through constructivecooperation. The earlier we are able to achieve this the better

    it would be for the world performance.

  • 7/28/2019 121648329-Auto

    23/23