Automotive Sector MBA ISM

8/4/2019 Automotive Sector MBA ISM

1/59

AUTOMOTIVE SECTOR

University Of Petroleum and EnergyStudies

SUBMITTED TO SUBMITTED BY

DR.ASHISH MANOHARURKUDE

ISHA GUPTAAMAN AGARWALALOK PARMAR

MBA (ISM)2011-2013


2/59

The design of the Cugnot Steam Trolley(1769)

History of the automobile begins as early as 1769, with thecreation of steam-powered automobiles capable of humantransport In 1806.The first cars powered by internal combustion engines running

on fuel gas appeared, which led to the introduction in 1885 of

the ubiquitous modern gasoline or petrol-fueled internalcombustion engine.

AUTOMOBILE HISTORY IN BRIEF


3/59

INDIA : An Introduction

Population : 1.21 billion 307.007 million

States : 28 50(+ 7 Union Territories) (+14 dependent

reaps)

Geographical Area : 3.3 mn sq km 9.6 mn sq kms

GDP : $1.377 Trillion $14.119Trillion

INDIA USA


4/59

Why India

The economy of India is emerging. Thefollowing table show the ranking of Indiain the past four years.


5/59

AUTOMOBILE SECTORThe automotive sector is one of the key segments of theeconomy having extensive forward and backward linkages withother key segments of the economy.It contributes about 4 per cent in India's Gross DomesticProduct (GDP) and 5 per cent in India's industrial production.This sector has generated about 4.5 lakh of direct employment and about one crore of indirect employment.The Detroit branch of Boston Consulting Group predicts that, by2014, one-third of world demand will be in thefour BRIC markets (Brazil, Russia, India and China).


6/59


7/59

India manufactures over 17.5 million vehicles (including 2wheeled and 4 wheeled) and exports about 2.33 million every year.India holds huge potential in the automobile sector including theautomobile component sector owing to its technological, cost andmanpower advantage.India has a well developed, globally competitive Auto AncillaryIndustry and established automobile testing and R&D centers.India enjoys natural advantage and is among the lowest cost producers of steel in the world.India's largest car manufacturing industry hub is based in andaround Chennai, also known as the " Detroit of India " with theIndia operations of Ford, Hyundai, Renault and Nissanheadquartered in the city and BMW having an assembly plant onthe outskirts.

AUTOMOBILE SECTOR


8/59

Landmark of Indian automobileindustry

1897 First Person to own a car in India - Mr Foster ofM/s Crompton Greaves Company , Mumbai

1901 First Indian to own a car in India - Jamsetji Tata 1905 First Woman to drive a car in India - Mrs. Suzanne RDTata 1905 Fiat Motors

1911 First Taxi in India1924 Formation of traffic police 1928 Chevrolet Motors1942 Hindustan Motors 1944 Premier Automobiles Limited

1945 Tata Motors 1947 Mahindra & Mahindra Limited 1948 Ashok Motors1948 Standard Motors1974 Sipani Motors

1981 Maruti Suzuki
http://en.wikipedia.org/wiki/Crompton_Greaves%20/%20Crompton%20Greaveshttp://en.wikipedia.org/wiki/Jamsetji_Tata%20/%20Jamsetji%20Tatahttp://en.wikipedia.org/w/index.php?title=Suzanne_RD_Tata&action=edit&redlink=1%20/%20Suzanne%20RD%20Tata%20(page%20does%20not%20exist)http://en.wikipedia.org/w/index.php?title=Suzanne_RD_Tata&action=edit&redlink=1%20/%20Suzanne%20RD%20Tata%20(page%20does%20not%20exist)http://en.wikipedia.org/wiki/Fiat%20/%20Fiathttp://en.wikipedia.org/wiki/Taxicab%20/%20Taxicabhttp://en.wikipedia.org/wiki/Highway_patrol%20/%20Highway%20patrolhttp://en.wikipedia.org/wiki/Chevrolet%20/%20Chevrolethttp://en.wikipedia.org/wiki/Hindustan_Motors%20/%20Hindustan%20Motorshttp://en.wikipedia.org/wiki/Premier_Automobiles_Limited%20/%20Premier%20Automobiles%20Limitedhttp://en.wikipedia.org/wiki/Tata_Motors%20/%20Tata%20Motorshttp://en.wikipedia.org/wiki/Mahindra_&_Mahindra_Limited%20/%20Mahindra%20&%20Mahindra%20Limitedhttp://en.wikipedia.org/wiki/Ashok_Leyland%20/%20Ashok%20Leylandhttp://en.wikipedia.org/wiki/Standard_(Indian_automobile)%20/%20Standard%20(Indian%20automobile)http://en.wikipedia.org/w/index.php?title=Sipani_Automobiles&action=edit&redlink=1%20/%20Sipani%20Automobiles%20(page%20does%20not%20exist)http://en.wikipedia.org/wiki/Maruti_Suzuki%20/%20Maruti%20Suzukihttp://en.wikipedia.org/wiki/Maruti_Suzuki%20/%20Maruti%20Suzukihttp://en.wikipedia.org/wiki/Maruti_Suzuki%20/%20Maruti%20Suzukihttp://en.wikipedia.org/wiki/Maruti_Suzuki%20/%20Maruti%20Suzukihttp://en.wikipedia.org/w/index.php?title=Sipani_Automobiles&action=edit&redlink=1%20/%20Sipani%20Automobiles%20(page%20does%20not%20exist)http://en.wikipedia.org/w/index.php?title=Sipani_Automobiles&action=edit&redlink=1%20/%20Sipani%20Automobiles%20(page%20does%20not%20exist)http://en.wikipedia.org/w/index.php?title=Sipani_Automobiles&action=edit&redlink=1%20/%20Sipani%20Automobiles%20(page%20does%20not%20exist)http://en.wikipedia.org/wiki/Standard_(Indian_automobile)%20/%20Standard%20(Indian%20automobile)http://en.wikipedia.org/wiki/Standard_(Indian_automobile)%20/%20Standard%20(Indian%20automobile)http://en.wikipedia.org/wiki/Ashok_Leyland%20/%20Ashok%20Leylandhttp://en.wikipedia.org/wiki/Mahindra_&_Mahindra_Limited%20/%20Mahindra%20&%20Mahindra%20Limitedhttp://en.wikipedia.org/wiki/Tata_Motors%20/%20Tata%20Motorshttp://en.wikipedia.org/wiki/Premier_Automobiles_Limited%20/%20Premier%20Automobiles%20Limitedhttp://en.wikipedia.org/wiki/Hindustan_Motors%20/%20Hindustan%20Motorshttp://en.wikipedia.org/wiki/Chevrolet%20/%20Chevrolethttp://en.wikipedia.org/wiki/Highway_patrol%20/%20Highway%20patrolhttp://en.wikipedia.org/wiki/Taxicab%20/%20Taxicabhttp://en.wikipedia.org/wiki/Fiat%20/%20Fiathttp://en.wikipedia.org/w/index.php?title=Suzanne_RD_Tata&action=edit&redlink=1%20/%20Suzanne%20RD%20Tata%20(page%20does%20not%20exist)http://en.wikipedia.org/w/index.php?title=Suzanne_RD_Tata&action=edit&redlink=1%20/%20Suzanne%20RD%20Tata%20(page%20does%20not%20exist)http://en.wikipedia.org/wiki/Jamsetji_Tata%20/%20Jamsetji%20Tatahttp://en.wikipedia.org/wiki/Jamsetji_Tata%20/%20Jamsetji%20Tatahttp://en.wikipedia.org/wiki/Jamsetji_Tata%20/%20Jamsetji%20Tatahttp://en.wikipedia.org/wiki/Crompton_Greaves%20/%20Crompton%20Greaves


9/59

1994 Rover Company 1994 Mercedes-Benz 1994 General Motors India - Opel brand launch1995 Ford Motor Company 1995 Honda Siel Cars India 1995 REVA Electric Car Company 1995 Daewoo Motors 1996 Hyundai Motor Company 1997 Toyota Kirloskar Motors1997 Fiat Motors (Re-Entry)1998 San Motors

1998 Mitsubishi Motors 2001 koda Auto 2003 General Motors India - Chevrolet brand launch2005 BMW 2007 Audi 2009 Land Rover and Jaguar
http://en.wikipedia.org/wiki/Rover_Company%20/%20Rover%20Companyhttp://en.wikipedia.org/wiki/Mercedes-Benz%20/%20Mercedes-Benzhttp://en.wikipedia.org/wiki/General_Motors_India%20/%20General%20Motors%20Indiahttp://en.wikipedia.org/wiki/Opel%20/%20Opelhttp://en.wikipedia.org/wiki/Ford_Motor_Company%20/%20Ford%20Motor%20Companyhttp://en.wikipedia.org/wiki/Honda_Siel_Cars_India%20/%20Honda%20Siel%20Cars%20Indiahttp://en.wikipedia.org/wiki/REVA_Electric_Car_Company%20/%20REVA%20Electric%20Car%20Companyhttp://en.wikipedia.org/wiki/Daewoo_Motors%20/%20Daewoo%20Motorshttp://en.wikipedia.org/wiki/Hyundai_Motor_Company%20/%20Hyundai%20Motor%20Companyhttp://en.wikipedia.org/wiki/Toyota_Kirloskar%20/%20Toyota%20Kirloskarhttp://en.wikipedia.org/wiki/Fiat%20/%20Fiathttp://en.wikipedia.org/wiki/Mitsubishi_Motors%20/%20Mitsubishi%20Motorshttp://en.wikipedia.org/wiki/%C5%A0koda_Auto%20/%20%C5%A0koda%20Autohttp://en.wikipedia.org/wiki/%C5%A0koda_Auto%20/%20%C5%A0koda%20Autohttp://en.wikipedia.org/wiki/General_Motors_India%20/%20General%20Motors%20Indiahttp://en.wikipedia.org/wiki/Chevrolet%20/%20Chevrolethttp://en.wikipedia.org/wiki/BMW%20/%20BMWhttp://en.wikipedia.org/wiki/Audi%20/%20Audihttp://en.wikipedia.org/wiki/Land_Rover%20/%20Land%20Roverhttp://en.wikipedia.org/wiki/Jaguar_Cars%20/%20Jaguar%20Carshttp://en.wikipedia.org/wiki/Jaguar_Cars%20/%20Jaguar%20Carshttp://en.wikipedia.org/wiki/Land_Rover%20/%20Land%20Roverhttp://en.wikipedia.org/wiki/Audi%20/%20Audihttp://en.wikipedia.org/wiki/BMW%20/%20BMWhttp://en.wikipedia.org/wiki/Chevrolet%20/%20Chevrolethttp://en.wikipedia.org/wiki/General_Motors_India%20/%20General%20Motors%20Indiahttp://en.wikipedia.org/wiki/%C5%A0koda_Auto%20/%20%C5%A0koda%20Autohttp://en.wikipedia.org/wiki/%C5%A0koda_Auto%20/%20%C5%A0koda%20Autohttp://en.wikipedia.org/wiki/%C5%A0koda_Auto%20/%20%C5%A0koda%20Autohttp://en.wikipedia.org/wiki/Mitsubishi_Motors%20/%20Mitsubishi%20Motorshttp://en.wikipedia.org/wiki/Fiat%20/%20Fiathttp://en.wikipedia.org/wiki/Toyota_Kirloskar%20/%20Toyota%20Kirloskarhttp://en.wikipedia.org/wiki/Toyota_Kirloskar%20/%20Toyota%20Kirloskarhttp://en.wikipedia.org/wiki/Hyundai_Motor_Company%20/%20Hyundai%20Motor%20Companyhttp://en.wikipedia.org/wiki/Daewoo_Motors%20/%20Daewoo%20Motorshttp://en.wikipedia.org/wiki/REVA_Electric_Car_Company%20/%20REVA%20Electric%20Car%20Companyhttp://en.wikipedia.org/wiki/Honda_Siel_Cars_India%20/%20Honda%20Siel%20Cars%20Indiahttp://en.wikipedia.org/wiki/Honda_Siel_Cars_India%20/%20Honda%20Siel%20Cars%20Indiahttp://en.wikipedia.org/wiki/Honda_Siel_Cars_India%20/%20Honda%20Siel%20Cars%20Indiahttp://en.wikipedia.org/wiki/Honda_Siel_Cars_India%20/%20Honda%20Siel%20Cars%20Indiahttp://en.wikipedia.org/wiki/Ford_Motor_Company%20/%20Ford%20Motor%20Companyhttp://en.wikipedia.org/wiki/Opel%20/%20Opelhttp://en.wikipedia.org/wiki/General_Motors_India%20/%20General%20Motors%20Indiahttp://en.wikipedia.org/wiki/Mercedes-Benz%20/%20Mercedes-Benzhttp://en.wikipedia.org/wiki/Mercedes-Benz%20/%20Mercedes-Benzhttp://en.wikipedia.org/wiki/Mercedes-Benz%20/%20Mercedes-Benzhttp://en.wikipedia.org/wiki/Rover_Company%20/%20Rover%20Company


10/59

THE AUTO INDUSTRY IN INDIA


11/59

9 th largest automobile industry .2nd largest two-wheeler market.7 th largest Passenger Cars producers.According to recent reports, India is set to overtake Brazil to

become the sixth largest passenger vehicle producer in theworld4 th largest in Heavy Trucks.2nd largest tractor manufacturer.In 2009, India emerged as Asia's fourth largest exporterof passenger cars. The monthly sales of passenger cars in India exceed 100,000units.

THE AUTO INDUSTRY IN INDIA


12/59


13/59

AUTO SECTOR THIS YEAR India is home to 40 million passenger vehicles and more than 3.7

million automotive vehicles were produced in India in 2010 (anincrease of 33.9%), making the country the second fastest growingautomobile market in the world.India's passenger car and commercial vehicle manufacturingindustry is the seventh largest in the world, with an annual

production of more than 3.7 million units in 2010.Tata Motors is leading the commercial vehicle segment with amarket share of about 64%.Maruti Suzuki is leading the passenger vehicle segment with amarket share of 46%.Hyundai Motor India and Mahindra and Mahindra are focusingexpanding their footprint in the overseas market.Hero Honda Motors is occupying over 41% and sharing 26%of thetwo wheeler market in India with Bajaj Auto.

Bajaj Auto in itself is occupying about 58% of the three wheelermarket.


14/59

GOVERNMENT SUPPORT:

The Industrial Policy of 1991 de-licensed theAutomobile Industry in India, but passenger carwas de-licensed in 1993.This took the Indian automobile production from5.3 Million Units in 2001-02 to 10.8 Million Unitsin 2007-08. The other reasons attracting globalauto manufacturers to India are the countryslarge middle class population, growing earningpower, strong technological capability and

availability of trained manpower at competitiveprices. These are the major findings of our newreport, Indian Automobile Sector - ABooming Market.


15/59

KEY PLAYERS


16/59

Two Wheeler Launched in 2011

Honda CBR250R Hero Honda Karizma R

Hero Honda CBZ X-Treme Yamaha SZ


17/59

Indian 2-Wheeler Market

Motorcycle 50% 30% 13% 4% 1% 2%


18/59

Hyundai Verna RBHyundai Elantra

Hyundai Passenger Vehicle Market

Hyundai i40


19/59

Launched In 2011

2011 Toyota Land Cruiser 2011 Ford Fiesta

2011 Volkswagen Jetta


20/59

Indian Passenger Vehicle Market

Passenger

Cars52% 17% 19% - 1% 5% 2% 2% 2% 1% -


21/59

PRODUCTION, SALES

AND EXPORT


22/59

PRODUCTION


23/59

PRODUCTION


24/59

SALES


25/59

EXPORTS


26/59

FUTURE OF

INDIAN AUTO INDUSTRY


27/59

Future prospect of Indian Automotive Sector

Nissan Motors plans to export 250,000 vehiclesmanufactured in its India plant by 2011.

General Motors announced its plans to export about 50,000cars manufactured in India by 2011. By 2010, India isexpected to witness over Rs 30,000 crore of investment.Maruti Udyog has set up the second car with an investment ofRs 6,500 crore.Hyundai will bring in more than Rs 3,800 crore to India.Tata Motors will be investing Rs 2,000 crore in its small carproject.General Motors will be investing Rs 100 crore and Ford aboutRs 350 crore.Ashok Leyland and Tata Motors have each announced overRs 1,000 crore of investment.
http://en.wikipedia.org/wiki/General_Motors%20/%20General%20Motorshttp://www.surfindia.com/automobile/maruti-udyog-ltd.htmlhttp://www.surfindia.com/automobile/hyundai-motor.htmlhttp://www.surfindia.com/automobile/tata-motors-ltd.htmlhttp://www.surfindia.com/automobile/general-motors.htmlhttp://www.surfindia.com/automobile/general-motors.htmlhttp://www.surfindia.com/automobile/tata-motors-ltd.htmlhttp://www.surfindia.com/automobile/hyundai-motor.htmlhttp://www.surfindia.com/automobile/maruti-udyog-ltd.htmlhttp://www.surfindia.com/automobile/maruti-udyog-ltd.htmlhttp://www.surfindia.com/automobile/maruti-udyog-ltd.htmlhttp://en.wikipedia.org/wiki/General_Motors%20/%20General%20Motors


28/59

Future prospect of Indian Automotive Sector

Future prospect of Indian Automotive Sector islooking bright.Passenger car production in India is projected tocross three million units in 2014-15.Sales of passenger cars during 2008-09 to 2015-16 are expected to grow at a CAGR of around10%.Export of passenger cars is anticipated to rise morethan the domestic sales during 2008-09 to2015-16.Motorcycle sales will perform positively in future,exceeding 10 Million units by 2012-13.Value of auto component exports is likely to attain

a double digit figure in 2012-13.Turnover of the Indian auto component industry is

forecasted to surpass US$ 50 Billion in 2014-15.


29/59

Technological Environment With the entry of global companies into the Indianmarket, advanced technologies ,both in productand production processes have developed.With the development or evolution of alternatefuels, hybrid cars have made entry into the market.Few global companies have setup their R&Dcenters in India.Major global players like Audi, BMW, Hyundai etchave setup their manufacturing units in India.Government initiatives regarding tax rebates hasled to global players setting up their R&D centers inIndia.Govt. initiatives in establishing NATRIP networkacross the country will further lead to enhancingR&D and technological advancements.


30/59

Impact of Global Recession on


31/59

Impact of Global Recession onIndian Car Industry

India is one of the few countries where car saleshave been increasing in the course of theworldwide economic downturn.Passenger car sales rose 31% to 115,067 unitsin July from 87,901 units a year ago.The effect of inflation has taken the rise in theprice rate of the cars by 3-4% which in turnsuffices the need to meet the rise in price of theraw materials to build a car.The effect of inflation has affected not only theproduction and sales of Indian cars but also hassignificantly affected the car dealer, officials andcar financers. Research and observations haveled to the conclusion that in the year 2008, thecar market and the car industry is expected towitness 8-9% fall

S h P bl i h


32/59

Some other Problems with Automobile Sector

Effect of Rising Fuel Prices on Car Sales.

The cars today are run on petrol, diesel andgas. The price hike of all the three has led to aserious problem. The hike in petrol went by5% whereas the price of diesel went up by3%. The rise in the price of the fuel hasdepreciated the sales of cars by 8%.


33/59

Steps taken by government toovercome recession

Vehicle makers cut prices following agovernment reduction in value-addedtax last December, part of a stimuluspackage to help the sector, and thecentral bank has made a series of ratecuts to spur the economy.


34/59

Steps taken by A leadingcompany to overcome rescission

TATA Motors is shedding up to 3,000temporary jobs at its Pune factory,weeks after its decision to cut production and dismiss a similarnumber of temporary workers at itsJamshedpur plant. The latest cuts couldtake the overall layoffs to around 6,000workers.


35/59

UNEMPLOYMENTDuring the recent recession, the unemployment rate soared to a peak of 10.1% inOctober 2009. Since that time, real GDP growth has not been sufficient to bring downunemployment and it stubbornly has remained just below 10%. In addition,

job creation has been slow and has fallen well short of the 250,000 or more gains permonth that are expected to characterize the early stages of a recovery.While the unemployment rate did recently fall to 9.4% in December 2010, this drop appears to reflect a shrinkinglabor supply, as job searchers give up and exit the market, rather than a true improvementin economic conditions.

Most recently, in December 2010, 103,000 nonfarm payroll and 113,000 private sectorpayroll jobs were created. Besides falling short of gains needed to fuel a recovery, these gains were much less than consensus projections of 160,000 and 180,000, respectively.

Interest Rates


36/59

Interest Rates

During the tightening of credit terms during therecession, average nominalinterest rates rose to 8.4% and 10.0% for new and used car financing,respectively. They subsequentlyfell to near record lows and remain around 4

% for new and 8% for used car financing.Despite expansionary monetary policy, interest rates for new and used

vehicles havebarely moved.Given the slack in the economy which is unlikely to markedly decrease in 2011,it is also unlikely monetary policy will tighten or interest rates rise substantially in 2011. As a result, we do not expect interest rate shocks to noticeably affect projected auto sales in 2011.


37/59

THE MAJOR PLAYERS OF AUTOMOBILE SECTOR


38/59

TATACurrent Share Price Rs. 764.90 .

Tata Motors is a dual-listed company traded on both the Bombay Stock Exchange,as well as on the New York Stock Exchange.Nano the world's cheapest car.

In 2008, Tata Motors acquired British Jaguar Land Rover (JLR), which includes theDaimler and Lanchester brand names.In 2010, Tata Motors acquired 80% stake in Italy-based design and engineering

company Trilix for a consideration of 1.85 million. The acquisition is in line with thecompanys objective to enhance its styling/design capabilities to global standards. Tata Motors' total sales (including exports) of Tata commercial and passengervehicles in August 2011 were 64,078 vehicles, lower by 3% over August 2010. Thecompany's domestic sales of Tata commercial and passenger vehicles for August2011 were 59,874 nos., lower by 2% over 60,797 nos. sold in August last year.

Exports The company's sales from exports at 4,204 vehicles in August 2011 are lower by18% compared to 5,157 vehicles in August last year. The cumulative sales fromexports for the fiscal at 24,861 nos. are higher by 15% over 21,641 nos. in the sameperiod last year.
http://en.wikipedia.org/wiki/Jaguar_Land_Roverhttp://en.wikipedia.org/wiki/Jaguar_Land_Rover


39/59

MARUTI SUZUKICurrent Share Price Rs. 1,103.05Car market leader Maruti Suzuki India Limited sold a total of 91,442vehicles in August 2011. This includes 14,356 units for export. Thecompany had sold a total of 104,791 vehicles in August 2010.The disruption in production at Company's Manesar plant in end

August adversely impacted the sales numbers during the month. TheSwift, SX4 and A-star are being manufactured at the Manesar plant.Kizashi was launched in February 2011 .Net income2,288.6 crore (US$510.36 million)(2010-2011). The company had sold a total of 59,908 vehicles in August 2008.

On February, 24, 2010, Maruti Suzuki India, announced recalling of 100,000 A-Star hatchbacks to fix a fuel leakage problem. the companywill replace the gaskets for all 100,000 A-Star cars


40/59

HONDA Current Share Rs. 2,215.10Honda has been the world's largest motorcycle manufacturer since 1959, as wellas the world's largest manufacturer of internal combustion engines measured byvolume, producing more than 14 million internal combustion engines each year.

Honda surpassed Nissan in 2001 to become the second-largest Japaneseautomobile manufacturer.

As of August 2008, Honda surpassed Chrysler as the fourth largest automobilemanufacturer in the United States. Honda is the sixth largest automobilemanufacturer in the world.

Honda Siel Cars India (HSCI) registered an impressive growth of 25% in August 2011. The company reported a robust 6,907 units in sales for the month of August 2011 as against 5,518 units in August 2010 making it the highest ever for themonth.

This remarkable growth in sales is fuelled by the sales of Honda City. Thecompany sold 5,819 units of the Honda City in August 2011 registering 35%growth from the 4,251 units sold in August 2010.

American Honda Motor Co., Inc., posted August sales of 82,321 vehicles, adecrease of 27.2 percent, based on the daily selling rate*, American Honda year-to-date sales reached 770,265, down 6.0 percent versus last year. Althoughproduction limitations caused by the March 11 earthquake in Japan continue toimprove, reduced vehicle supplies adversely affected August sales results.


41/59

HYUNDAICurrent share price $ 28.63Two of the best-known Hyundai divisions are Hyundai MotorCompany, the world's fourth largest automobile manufacturer byvolume as of January 2011, and Hyundai Heavy Industries, theworld's largest shipbuilder.

In August, trend continue with over 58.500 units moved during themonth, a 9 percent increase over the same period last year. The pictureis even rosier when compared month over month, with a 21 percent increase from August 2010 till now.After its July 2007 launch, the i30 went on to increase its sales inEurope every year, attracting 115,000 buyers in 2010 the highest-ever annual sales figure for an individual Hyundai model in Europe and achieving total sales of more than 350,000 units up to mid-2011.


42/59

FORD Current share rate $10.09

Ford is the second largest automaker in the U.S. and the fifth-largestin the world based on annual vehicle sales in 2010.In 2008, Ford produced 5.532 million automobiles. Ford Motor Companys August sales totalled 175,220, up 11 percent

versus a year ago driven by 16 percent higher Ford brand salesand 25 percent higher sales for Lincoln.Ford Motor Credit Company reported net income of $383 million inthe second quarter of 2011, a decrease of $173 million from a yearearlier.For full-year 2011, Ford Credit continues to expect to be solidlyprofitable but at a lower level than in 2010

PRODUCTSAutomobilesAutomotive parts


43/59

VOLKSWAGEN

Current share price 95.45Volkswagen has announced that between January and August 2011,3.34 million vehicles were delivered to customers, a rise of 12.1 percent compared to August 2010.

During August 2011, 389,500 vehicles were delivered, 9.5 per cent overAugust 2010's 335,800.The most successful vehicle was the Volkswagen Jetta. In SouthAmerica, 511,800 vehicles were delivered, an increase of 6.7 per cent compared to 2010's 479,800.Diesel vehicle sales up 37% in August 2011; VW Jetta TDI remains ontop


44/59

CHEVROLETCurrent share price $21.76Chevrolet Sales India Private Limited is a division of GeneralMotors India Private Limited which in turn is a subsidiaryof General Motors of the United States.It is the 5th largest car maker in India after MarutiSuzuki, Hyundai, Tata and Mahindra.In the year 2010 (January to December), Chevrolet Sales IndiaPrivate Limited sold 110,804 vehicles against 69,579 vehiclessold during the year 2009 (January to December) and reporteda increase of 59% in sales . In North America, Chevrolet sells and produces a wide varietyof automobiles, from subcompact cars to medium-dutycommercial trucks, whereas in Europe, the brand name is usedon automobiles produced in Korea by General Motors.


45/59

BAJAJ

Current Share Price Rs.1573.35. Bajaj Auto is a major Indian vehicle manufacturer startedby Jamnalal Bajaj from Rajasthan in the 1930s.The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at1,946. In 2006-07, overall two-wheelers sales was 8.47 million, but in 2007-08 the sale fell by 4.8% to 8.07 million.exports increased by 20.8% to Rs.20.48 billion.Bajaj Autos market share in motorcycles fell marginally from 33.5% in2006-07 to 32.7% in 2007-08.


46/59

Hero Honda

Current Share Price Rs. 2209.25.The 2006 Forbes 200 Most Respected companies list has HeroHonda Motors ranked at 108.In 2010, When Honda decided to move out of the joint venture, HeroGroup bought the shares held by Honda. Subsequently, in August2011 the company was renamed Hero MotoCorp with a newcorporate identity.

During the fiscal year 2008-09, the company sold 3.7 million bikes, agrowth of 12% over last year. In the same year, the company had amarket share of 57% in the Indian market. The annual sales of the Company grew at 0.01 per cent during 2007-08. The sales in 2007-08 was 3,337,142 units, while compared to3,336,756 units during the year 2006-07.


47/59

TVS MOTORS

Current Share Price Rs. 59.60TVS Motor Company is the third largest two-wheeler manufacturer inIndia .

It is India's only two-wheeler company to have won the Deming Prizeawarded for commitment to quality control, received in 2002.

The total number of two wheelers sold by the Company during the year2007-08 was 1.28 million units, registering a fall of 16% over theprevious year.


48/59

Vision 2020


49/59


50/59


51/59


52/59

SWOT Analysis

StrengthsAutomobile industry is an established and an evergreen industry.

India is the strongest player in the small car segment of the globalautomobile market

Indian companies are the best cost innovators

The automotive industry has long been known for its development andpromulgation of the assembly-line.


53/59

STRENGTHS

Some of the greatest developments in the automotive supplychain lie in the development of Just-In-Time (JIT) inventorymethods.

Through the use of advanced technologies, assembly linemanufacturing, and JIT inventory management, the automotiveindustry has been able to achieve significant gains inproductivity.


54/59

WEAKNESS

Indian is lacking in proper infrastructure.

This is slowing the pace of growth of auto industry

Companies are not improving after sale services


55/59

Opportunities

The automotive ecosystem is in the midst of significant change,with increasing challenges in consumer demands, technologydevelopment, and globalization.While demand for incumbent technologies will remain strong,alternative power trains could capture more than 20 percent of the global market by 2020, depending upon boundaryconditions such as fuel taxation and emissions regulation set bygovernments as well as oil price development.storage is in the heart of the next generation of efforts for fueleconomy.More realistic scenario will emerge for technologies using

Hydrogen as automotive fuel.Intelligent use of NCES (Non conventional energy sources) forpowering Public Transport.


56/59

Threats

Global Crisis

Companies not focusing on R & D are under great risk

High competition from foreign players

Lack of technology for Indian companies

Utt h l i N tti t f d i t f th j t ti


57/59

Uttaranchal is Now getting transformed into one of the major automotivehubs as we can see some of the major automotive producers have alreadyinvested here.


58/59

Reference

WIKIPEDIA
http://automobileindia.com/


59/59

THANK YOU

Automotive Sector MBA ISM

Documents

Transcript of Automotive Sector MBA ISM