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PRESENTATION

ONAUTOMOBILE

INDUSTRY

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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

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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.

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

Mercedes Benz BMWVolkswagon Mitshubishi

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AUTOMOBILE

2

WHEELLER

3

WHEELLER

PASSENGER

VEHICLE

COMMERCIAL

VEHICLE

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2 WHEELER

Market leader Hero Honda with market share 50%

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3 WHEELER

Market leader Mahindra & Mahindra with market share 42%

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PASSENGER VEHICLE

Market leader Maruti with market share 52%

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COMMERCIAL VEHICLE

Market leader Tata Motor with market share 61%

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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.

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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

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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

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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

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R

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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

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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.

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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

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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

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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.

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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.

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