PROJECT: Advanced Statistics

SECTION: 2
GROUP NUMBER: 10
SECTOR: Automotive
COMPANY: Mahindra & Mahindra

ACKNOWLEDGEMENT
We would like to express our gratitude to
all those who gave us the possibility to
complete this project. Also the faculty
members have helped us a lot. Their
help, suggestions and encouragement

helped us a lot in research. Also the

group colleagues have supported and
shown interest.

INDEX

Introduction of Automobile Sector

Scope of Automobile Sector
Growth of Automobile Sector
Major Players In The Automobile Sector

Introduction of Mahindra & Mahindra

Scope And Growth Of Mahindra & Mahindra
Statistical & Graphical Comparative Analysis
Conclusions/Suggestions
Bibliography
INTRODUCTION ON AUTOMOTIVE
SECTOR:
The automotive industry is a term that covers a wide
range of companies and organizations involved in the
design, development, manufacture, marketing, and selling
of motor vehicles, towed vehicles, motorcycles and
mopeds. It is one of the world's most important economic
sectors by revenue.
The term automotive industry usually does not include
industries dedicated to the maintenance of automobiles
following delivery to the end-user, such as repair shops
and motor fuel filling stations.
The automobiles sector is divided into four segments
two-wheelers , passenger vehicles , commercial vehicles

(light and medium-heavy vehicles), and three wheelers

(passenger carriers and good carriers).

SCOPE AND GROWTH OF THE SECTOR:

The industry is one of the key drivers of economic growth
of the nation. Since the delicensing of the sector in 1991
and the subsequent opening up of 100 percent FDI
through automatic route, Indian automobile sector has
come a long way. Today, almost every global auto major
has set up facilities in the country.
The world standings for the Indian automobile sector, as
per the Confederation of Indian Industry, are as follows:

Largest three-wheeler market

Second largest two-wheeler market

Tenth largest passenger car market

Fourth largest tractor market

Fifth largest commercial vehicle market

Fifth largest bus and truck segment

The auto sector reported a robust growth rate of 26

percent in the last two years (2010-2012).. The
Government recognizes the impact of the sector on the
nations economy, and consequently, the Automotive
Mission Plan 2016 launched by it seeks to grow the
industry to a size of US $145bn by 2016 and make it
contribute 10 percent to the nations GDP.

Factors that will drive growth in the sector :

1. Rising incomes among Indian population will lead to
increased affordability, increasing domestic demand for
vehicles, especially in the small car segment.
2. Fuel economy and demand for greater fuel efficiency is
a major factor that affects consumer purchase decision
that will bring leading companies across two-wheeler and
four-wheeler segment to focus on delivering performanceoriented products.
3. Product innovation and market segmentation will
channelize growth. Vehicles based on alternative fuels

will be an area of interest for both consumers and auto

makers.
4. Focus on establishing India as auto-manufacturing hub
is reigning in policy support in form of Governments
technology modernization fund.
5. Industry will seek to augment sales by tapping into
rural markets, youth, women and luxury segments.

MAJOR PLAYERS IN AUTOMOBILE

SECTOR
The top players in the Indian automobile industry have
played a key role in the growth and development of the
automobile industry in India. Companies like Bajaj Auto,
Hindustan Motors and TVS Motors, with their ever
expansive car dealing networks, promotional, convenient
customer care services, have marked India among the
leading automobile Industries.

Top players in Indian Automobile industry

Some of the important companies and their details

include:
Hindustan Motors:
One of the oldest car manufacturing companies in India, it
has produced cars like Ambassador and Contessa. Having
collaborated with foreign companies like Mitsubishi, and
General Motors Corporation of USA, it has made an
irrefutable mark in the manufacturing cars like the Lancer.
Apart from this, the company has impressive
manufacturing statistics in the field of passenger Cars,
utility vehicles, and earthmoving equipment.
Mahindra and Mahindra:
Established in the year 1945, this company has given a
cutting-edge dimension to the Indian automobile industry.
It began as a general-purpose utility vehicle
manufacturing unit and expanded its business to
automative, tractor, MSL and inter trade. Presently, the
largest company in the private sector, this company boasts
of an advanced technological infrastructure and
manpower.
Bajaj Auto Limited:

Established in the year 1945, Bajaj Autos started off as a

trading company. It was responsible for marketing twowheelers from Italy in India. Presently, one of the front
runners in market capitalization, Bajaj Autos attained its
license to produce two wheelers in the year 1959. With
the help of technical collaboration from Piaggio of Italy,
the company now boasts of being the top five automobile
companies when it comes to annual turnover.

As the company's contract with Piaggio expired in the

year 1971, it became the sole manufacturer of two and
three wheelers under the 'bajaj' tag. Its manufacturing hub
in Maharashtra has an annual production of 1.35 million.
Maruti Udyog Limited:
The first ever Indian company to manufacture low cost
cars, in collaboration with Suzuki of Japan, Maruti is
considered to be the largest automobile company in India.
The company is known for producing high quality, fuelefficient cars with Japanese technology, but adaptive to
Indian roads. The company has attained the annual
production mark of 3,20,000, which is a trend setter for

any Indian company. Among the cars it has manufactured

are the Maruti 800, Zen, Maruti Omni, Wagon R.
Tata Motors:
India's biggest manufacturer of commercial vehicles, the
company boasts of an annual turnover of Rs 101.3 billion.
It is counted among the top ten vehicle manufacturing
companies of the world in 5-15 tonnes segment. Among
its chief productions are light commercial vehicles,
commercial vehicles, multi-utility vehicles, and passenger
cars.
TELCO has launched numerous car brands in
collaboration with foreign companies like Cummins
Engine Company, USA, Daimler Benz A.G.and Holset
Engineering Company, U.K. Using technology that not
only cuts out on the pollution but also the cost, the
company has manufactured vehicles like Tata Safari, Tata
Sierra, Tata Estate, and Tata Mobile.

MAHINDRA & MAHINDRA

INTRODUCTION
Founded in 1945 as a steel trading company, they have
entered automotive manufacturing in 1947 to bring the
iconic Willys Jeep onto Indian roads. Over the years,
theyve diversified into many new businesses in order to
better meet the needs of the customers. they follow a
unique business model of creating empowered companies
that enjoy the best of entrepreneurial independence and
Group-wide synergies. This principle has led their growth
into a US $15.9 billion multinational group with more than
155,000 employees in over 100 countries across the globe.
Today, their operations span 18 key industries that form
the foundation of every modern economy.

GROWTH
Mahindra and an independent India began their
rise together. In 1945, two enterprising brothers named
J.C. Mahindra and K.C. Mahindra joined forces with
Ghulam Mohammed and started Mahindra &
Mohammed as a steel company in Mumbai. Two years
later, India won its independence, Ghulam Mohammed
left the company to become Pakistans first finance
minister, and the Mahindra brothers ignited the company's
enduring growth with their decision to manufacture
Willys jeeps in Mumbai. The companys new name Mahindra & Mahindra.
Early pioneers of globalization, the brothers collaborated
with a wide range of international companies and before
long, Mahindras reach extended to steel, tractors,
telecom, and more. Today, it is the 10th largest private

sector company in India, which is into manufacturing of

tractors and light commercial vehicles along with other
general utility vehicles.
With increased scope of work, company's business is
divided into four divisions viz. automotive, tractor, inter
trade and MSL. These divisions handle steel, trading and
manufacturing of ash handling plants and traveling water
screens. The company area exceeds over 5,00,000 square
meters and over 17,000 technical and non - technical
personnels are employed there.
Now, after 65 years, Mahindra has grown from a humble
local outfit to a US $15.9 billion corporation employing
more than 155,000 people around the world. It has 49
sales offices that are supported by a network of over 780
dealers across the country. This network is connected to
the Company's sales departments by an extensive IT
infrastructure.

SCOPE
1.Mahindra and Mahindra, India's top utility vehicle
maker, will launch its much-awaited global sports utility
vehicle, now christened XUV500, in India and South
Africa by December.
The company, which sells SUVs such as Bolero, Xylo and
Scorpio, will position the new vehicle above Scorpio,
aiming to create a new SUV segment with the vehicle.

M&M intends to position the product in the premium

segment and has set up a separate assembly line at its
Chakan plant near Pune. The company, however, did not
divulge the investment on product development and the
capacity it has created for the product.
Also, M&M plans to launch vehicles of its Korean
subsidiary, Ssangyong, going ahead, which will be again
high-end SUVs. According to company, XUV500 is also
the country's first indigenously developed monocoque
SUV with the first transverse engine offering
2. Mahindra and Mahindra (M&M) Limited, the country's
leading utility vehicle maker, has revealed intentions to
invest a whopping amount of Rs. 4,950 crore ($ 900
million) on building six new engines and three model
platforms. As per a top company official, M&M has
decided to collaborate with its South Korean subdivision
SsangYong Motor Corp. for the project, which will be
completed over a period of four years.
3. M&M has also set aside another sum of Rs. 200 to 250
crore to develop products for its Indian commercial
vehicle subsidiaries over the next three years. Hence,
Mahindra Navistar Engines Private Ltd. (MNEPL) and
Mahindra Navistar Automotives Ltd. (MNAL) will
benefit from their parent company's proposed investment.
Interestingly, M&M has also decided to take complete

control over MNEPL and MNAL by purchasing stake of

Navistar Group in both the joint ventures.
Mahindra & Mahindra, Indias largest maker of sports
utility vehicles, is planning to set up its small car plant in
Andhra Pradesh. The plant, which was expected to start
production in the second week of January, is billed as the
worlds largest tractor manufacturing plant. The Rs 300
crore plant will manufacture 300 vehicles a day. Mahindra
& Mahindra, which manufactures everything from
scooters to tractors to heavy trucks, is planning to enter
the cluttered small car market. According to reports, the
car major plans to launch a 1000cc small car with a target
price tag of Rs 2.5-3.5lakh.
Mahindra & Mahindras upcoming line up is leaded by
Mahindra Mahindra Reva E20. The company is also
going to launch Verito CS in 2013. This Sedan will
compete with Maruti Suzuki Dzire CS and the upcoming
Honda Amaze.

COMPARATIVE ANALYSIS:

YEAR PROFIT(IN ANNUAL

CRORES) INFLATION
RATE
2003
2004
2005
2006

146
349
513
857

3.4
5.4
6.4
4.4

2007
2008
2009
2010
2011
2012

1068
1103
868
2088
2662
2879

5.3
4.7
12.44
10.2
9.4
11.7

YEAR SENSEX SHARE

PRICE OF
M&M
LTD
2003
2004
2005
2006
2007
2008

3383.85
5872.48
6626.49
9422.49
13827.7
20325.20

25.35
116.68
127.50
320
379.90
349

2009
2010
2011
2012
2013

9720.55
17475.4
20621.6
15534.6
19513.4

206
550
701
678
901

CONCLUSIONS:
The automotive industry in India is one of the larger
markets in the world and had previously been one of the
fastest growing globally, but is now seeing flat or negative
growth rates. India's passenger car and commercial
vehicle manufacturing industry is the sixth largest in the
world, with an annual production of more than 3.9 million
units in 2011. According to recent reports, India overtook
Brazil and became the sixth largest passenger vehicle
producer in the world. In 2009, India emerged as Asia's
fourth largest exporter of passenger cars, behind Japan,

South Korea, and Thailand. In 2010, India beat Thailand

to become Asia's third largest exporter of passenger cars.

BIBLIOGRAPHY:
www.bseindia.com
www.nseindia.com
www.moneycontrol.com
www.mahindra.com
www.automobileindia.com