Presentation on Automobile Industry1

8/2/2019 Presentation on Automobile Industry1

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Presentation on

Presented by

Monika Gupta 6010020715076 Anurag Kumar 6010010832293Saurabh Jaiswal 6010020738989

THE AUTOMOBILEINDUSTRY


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Automobile Industry Michael Porter AnalysisGrowth Driver

ExportsTechnology Issue & ChallengesIndustry Outlook

Agenda


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Hero Honda is theleading player in themarket

Introduction of 4-stroke,fuel efficient.New product with variety in model.Invested continuously for

building brand.100% FDI.Low interest rate.Easy financing.

47.8

16.83

28.22

7.14

Hero Honda TVS Bajaj Others

Domestic market share of bike inMarch 2010

Mkt. Share of bike in March 2010

Source : SIAM


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Maruti with 52% of share is leadingplayer in domestic car segment

46.3

30.5

10.5

3.63.1

1.8 1.30.9

1.9MarutiHyundaiTataGMHondaFord

FiatSkoda AutoOther

Easy accessible for all.Launches new

product.Low maintenance

cost.Network has

increased.Lower interest rate.

Easy financing.100% FDI.

Mkt. share of car march 2010

Source : ACMA India


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Tata Motors with 52% of share isleading player in CV

52%30%

8% 10%

Mkt. Share of CV in March2010

Tata Motors Ashok LeylandEicher Motors Other

Source : SIAM

large Indian marketFamiliar with marketBrand loyaltyDeeper distributionCost efficiency

High fuel efficiency.Lower interest rate.New product has been

launched.Ensure durability &

volatility.


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Michael Porter Analysis

It has five force model-Threat of Entry High Licences is not required.

Bargaining powerof supplier

Low The industry being capitalintensive so switching cost is high.Rise in steel price.

Bargaining power

of consumer

Moderate Loyalty on product. Alternative

option.Inter-firm rival High Product differentiation.

Substitute product Low Railway , Airplanes


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.

CompetitionProduction of small and compact car.Increasing outsourcing, collaboration

and joint venture.Entry of foreign companies.

Price competitiveness.Increasing global trade.liberal government policy.Cost efficiency e. g. low labour cost &

raw material play a significant role incoping the competition.

Segmentation of automobile industry and sub segmentation of passenger, two wheeler and CV, so consumer has a widerange of choice.


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Improved intechnology ,design.Lower interest

rate.Easy financing.Mileage

Aggressivepricing.

0200,000

400,000600,000800,000

1,000,0001,200,000

Passenger VehiclesCommercial VehiclesThree WheelersTwo Wheelers

Source : SIAM

Trends of export

Two Wheeler boosted itsexport


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Growth DriverI. Driver Industry / Consumer trends /

Export

II. Regulation


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I. Driver Industry / Consumer

trends/Export 100% FDI.Lower interest rate.Easy financing .

JNNURM for commercial vehicles.Higher disposable income.Increase in infrastructure baseChinese government investmenthad led the growth.NATRIPS is set up for boostingexport , R&D, manufacturing etc.

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2004-05 2005-06 2006-07 2007-08 2008-09

(IN USD MILLION )

(IN USD MILLION)

Growth in revenue


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Road networks are increased.Lower penetration rate.Reduction in excise duty

Improving infrastructure due to the growth of economy.Low base effect .Innovation in technology , design & efficiency


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Issue & Challenges Decrease in profitability.Cost of production is high.Rapid changes taking place.

Rising fuel prices.Rise in raw material.Global competence.Fuel efficiency.Increasing environmental pollution.Nurturing talented manpower.Third party logistics


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II. Regulation

The Exim Policy 2001 lifted quantitativerestrictions on the import of second-hand vehicles.FDI, external commercial borrowing (ECB).

Reduction in tariffs.Implementation of BS IV normsEmission Norms, safety regulation norms .


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The GOIs constructed an AMP2016 to make India a globalautomotive hub. Automotive Mission Plan, alsoprovide a level playing field to theplayers in the sector and to lay apredictable future direction of growth to enable themanufacturers in making a moreinformed investment decision . Industry has shown continuousgrowth.The government can play animportant role in promoting &increasing the sale over the year.

Contd:

Automobile industry : Outlook

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Series1

Source : SIAMA India

Sale trends of Automobile


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Service outsourcing opportunity.

Increase in employmentopportunity.There is need for innovation & upgradation for sustaineddevelopment of these sector.

Investment of $35-40bn forcreating value chain under AMPplan.From the chart it is clear that thesale of vehicle will increase as per

expectation . Out of these two wheeler will lead.

0 5 10 15 20 25 30

Car

Cv

Three Wheelers

Two Wheelers

Car Cv Three Wheelers Two Wheelers

Series1 2.65 0.64 0.87 27.8

Series1

Potential Vehicle sale in India(2015-16)Million unit

Source SIAMA : India


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Thank You

Presentation on Automobile Industry1

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