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Prabhjot Singh

Raghu Monga

Robin Kumar

Sandeepika Sharma

AUTOMOBILE INDUSTRY IN

INDIA


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EVOLUTION IN INDIA


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AUTO INDUSTRY

The year 1898 saw the first car rolling out, on the streets

of Mumbai.

A land of Premier Padminis, Ambassadors, scooters,temps, trucks and autos galore, India had not seen much

of choice in vehicles.

Since then Indian auto industry has witnessed a lot ofchange.


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PROTECTIONISM EARLY

1980s The manufacturing of automobiles especially cars was

subject to strict licensing, restrictive tariff structure and

limited avenues for expansion.

The foreign technology collaboration came with theinception of Maruti Udyog in collaboration with Suzuki of

Japan in the passenger car segment.

Indian roads saw the launch of Maruti 800.

It was still not very easy to own a car, first was

affordability and next was a long waiting period.


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LIBERALISATION 1990s

With liberalization, some more Japanese manufacturers

entered the two-wheeler and the commercial vehicle

segment in a collaborative arrangement.

This period characterized joint ventures in India and the

market started opening up.

Automobile Industry was delicensed in July 1991 withthe announcement of the New Industrial Policy.

The passenger car industry was, however, delicensed in

1993.


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The era of controls and protection came to anend.

Decrease in customs and excise duties meantthat a vehicles started getting affordable.

The entry of foreign banks with attractive auto

finance schemes helped garner a huge base ofmiddle class population.

However the market was still ruled by the sellers.


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GLOBALISATION 2000s

A Core Group on Automotive Research and Development

(CAR) was established in 2003 for encouraging R&D

activities.

Indian economy also witnessed rapid industrialization.

Factories needed transport both for goods and for their

employees.

Pushed the demand for efficient logistics and that in turn

increased the number of commercial vehicles.


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MARKET SIZE


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GROSS TURNOVERYEAR (IN USD MILLION)

2004-2005 20,896

2005-2006 27,011

2006-2007 34,285

2007-2008 36,6122008-2009 38,238

Source: Society of

Indian Automobile

Manufacturers

(SIAM)


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RECENT FACTS & FIGURES In 2010-11, the overall domestic passenger car sales

rose by 29.73 per cent to 19,82,702 units from15,28,337 units in the previous fiscal.

Hyundai Motor India also saw its market sharedeclining to 18.10 per cent in FY 2011 from 20.61 percent in the previous year.

Tata Motors too lost its market share during the said

period, falling to 12.92 per cent with sales of 2,56,202units.

General Motors India (GMI) and Honda Siel cars India

(HSCI) also lost their market share last fiscal. WhileGMI's share fell to 4.40 per cent from 4.62 per cent,


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MAJOR PLAYERS IN THE

INDUSTRY

Mahindra

&

MahindraLimited

Maruti Suzuki

India Ltd

Hyundai Motor India

Ashok Leyland


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OTHER PLAYERS IN THE

INDUSTRY

TATA Motors

Hero Group

The Bajaj Group

Ford India


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GLOBAL PLAYERS IN INDIA

Audi

Honda

Mercedes

Ferrari Nissan

BMW


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MARKET SHARE OF MAJOR

PLAYERS


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MARKET SHARE

Maruti Suzuki India:Passenger Vehicles46.07%

Hyundai Motor India:Passenger Vehicles

14.15%

Mahindra & Mahindra: Commercial Vehicles

10.01%, Passenger Vehicles 6.50%, ThreeWheelers 1.31%

Ashok Leyland:Commercial Vehicles 22%


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VEHICLES IN THE INDIAN AUTOMOBILE

INDUSTRY

Passenger Vehicles : 15.86%

Commercial Vehicles : 4.32%

Three Wheelers : 3.58%

Two Wheelers : 76.23%


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CHALLENGES Rising oil price

Human resources

Nurturing TalentedManpower

Fuel Technology

Increasing rates ofinterest

Chinese Competition

Environmental Issue

Low R&D Orientation

Rising cost of rawmaterials

Too much competition


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IMPACT OF GLOBAL CRISIS ON

INDUSTRY The automotive industry crisis of 2008

2010was a

part of a global financial downturn

The crisis affected European and Asian automobile

manufacturers, but primarily felt in the Americanautomobile manufacturing industry

Citing falling production numbers, the State Bank ofIndia reduced interest rates on automotive loans in

February 2009

Manufacturer hopes the low cost will encouragecustomers to purchase the vehicle despite the

ongoing credit crisis


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RECENT TRENDS

Unlike in the past, the Indian Government hasgone through a total role reversal by becoming

the enabler rather than the controller.

In the recent past it has started providing better

infrastructure, conducive atmosphere to attract

investments and implementing growth oriented

economic policies.


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Competition: Immense pressure has grown onthe Indian companies. A lot of joint ventures have

taken place, some others have invested heavily

on R&D.


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Customer:Armed with higher buying power andan ever increasing expectation from products and

services, the customer is undoubtedly the king

and has propelled a fierce competition among the

major players in the market.


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Safety Norms: cars as well as two-wheelershave met the most stringent international norms

of pollution.

Euro II vehicles have become the norm of the

day all over India. Unfortunately, in the Indiancontext, safety in motor vehicles is a relatively

neglected area.

Bad roads coupled with the absence of adequate

safety features in the vehicles such as airbag and

crumple zone needs immediate attention.

But awareness is on the increase and the use of

seat belts while driving has been mademandator .


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Bikes: Keeping apace with the global trends thetwo-wheeler segment has witnessed tremendous

growth both qualitatively and quantitatively. Bikes

with higher engine capacities have done

commendably well on the Indian roads. Bikestyling and fuel efficiency has also seen major

developments


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THANK YOU

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