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Tavneet Kaur Nikita Ajwani Nikitha Tiny Nikita Mutreja Naina Narula B.Com.(H)- III- B


We hereby declare that the work presented in this Project entitled SWOT ANALYSIS OFAUTOMOBILE INDUSTRY submitted to Ms. Preeti Singh is an authentic record of our original work. It is further to state that this work is not submitted any where else for any examination.

Naina Narula (090132) Nikita Awani (090664) Nikita Mutreja (090668) Nikitha Tiny (090263) Tavneet Kaur (090752)

Indian automobile industry has grown leaps and bounds since 1898, a time when a car had touched the Indian streets for the first time. The automobile industry, one of the core sectors, has undergone metamorphosis with the advent of new business and manufacturing practices in the light of liberalization and globalization. The sector seems to be optimistic of posting strong sales in the couple of years in the view of a reasonable surge in demand. The Indian automobile market is gearing towards international standards to meet the needs of the global automobile giants and become a global hub. At present it holds a promising tenth position in the entire world with being # 1 in Two Wheelers and # 4 in commercial vehicles. Withstanding a growth rate of 18% per annum and an annual production of more than 2 million units, it may not be an exaggeration to say that this industry in the coming years will soon touch a figure of 10 million units per year. The automobile industry in India the ninth largest in the world with an annual production of over 2.3million units in 2008 is expected to become one of the major global automotive industries in the coming years. It contributes about 4 per cent in India's Gross Domestic Product (GDP) and 5 per cent in India's industrial production. Indian Automobile sales growth rate has been 9.5 % in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster near Chennai is the biggest with 35% of the revenue share. The western hub near Maharashtra is 33% of the market. The northern cluster is primarily Haryana with 32%. Chennai, is also referred to as the "Detroit of India" with the India operations of Ford ,Hyundai, Renault and Nissan headquartered in the city and BMW having an assembly plant on the outskirts. Chennai accounts for 60% of the country's automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car manufacturer, Maruti Suzuki, is based. The Chakan corridor near Pune, Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Motors, Mercedes, Land Rover, Fiat and Force Motors having assembly plants in the area. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster. Another emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and further planned for Tata Nano at Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up in Gujarat. Kolkata with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country.

The Indian Automobile Industry manufactures over 11 million vehicles and exports about 1.5 million each year.


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 to become 7th largest by 2016. Sale of passenger cars in India is likely to grow at an average of 14.9% each year to touch 2.1 million mark by 2010.


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. Bajaj Auto Limited: Established in the year 1945, Bajaj Autos started off as a trading company. It was responsible for marketing two-wheelers 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, fuel-efficient 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, Baleno and the like. 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. Presently, the company has a market share of 6.4 % in the luxury car section and 31.2% in the manufacturing segment of multi-utility cars. Brand name, adaptability to Indian roads, and fuel-efficiency are the key factors that have led to the growth and development of the Indian automobile industry. Moreover, liberalization of government norms and policies for foreign investment, technology and easy loans have added to the advancement of this industrial sector. 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. Ashok Leyland : Founded in 1955, Ashok Leyland is a wholly owned subsidiary company of Hinduja Group. The company is into the manufacturing of trucks, buses and diesel engines. It also delivers special application vehicles such as fire fighters for international airports and a range of modern army vehicles. Yamaha Motor India : Yamaha Motors delivers a range of automobile products, a few of them being motorcycles, scooters, electro-hybrid bicycles, boats, fishing boats, outboard motors, racing karts, golf cars, multi-purpose engines, generators. The company also undertakes import and sales of various types of products, development of tourist businesses and management of leisure, recreational facilities and related services. Toyota Kirloskar Motor Private Limited : Toyota Kirloskar Motor Private Limited (TKM) is one of biggest vehicle manufacturers, with Toyota Motor Corporation holding equity of 89% and Kirloskar Group holding 11%.

General Motors India Private Limited : It is an interesting thing to note that there is a 50:50 partnership between General Motors and SAIC. According to sources, General Motors India Private Limited is the fifth largest automobile company in India after Maruti Suzuki, Hyundai, Tata Motors and Mahindra.This company has launched vehicle manufacturing plants in Halol, Gujarat and Talegaon Dabhade, Maharastra. The company has its headquarter in Gurgaon and Halol. TVS Motors : A significant name in the two wheeler industry is TVS Motors. The first two seater moped of India was manufactured by this company. The company has always worked for innovation in the arena of motor cycle. India's first 140cc motor cycle, Suzuki Shaolin,was developed by TVS Suzuki. Another remarkable success of the company is TVS Scooty. It ranks third among the largest manufacturers of two-wheelers in India. Fiat India Automobiles Limited : Fiat India Automobiles Limited is a 50-50 JV between Fiat Group Automobiles S.p.A. of Italy and Tata Motors of India. It is the ninth largest car maker in India by sales. Honda Motor Company Limited : Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than 14 million internal combustion engines each year. Honda surpassed Nissan in 2001 to become the second-largest Japanese automobile manufacturer. As of August 2008, Honda surpassed Chrysler as the fourth largest automobile manufacturer in the United States. Honda is the sixth largest automobile manufacturer in the world. Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also manufactures garden equipment, marine engines, personal watercraft and power generators, amongst others. Hero Motocorp: Hero Motocorp Ltd. formerly Hero Honda is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108. In 2010, When Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity.


The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.

Automobile Production
Type of Vehicle 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Passenger Vehicles






Commercial Vehicles 353,703





Three Wheelers






Two Wheelers












The Auto Industry in India registered a production growth of 20.28 percent for April 2011 over same period last year. The industry produced 1,626,675 vehicles in April 2011 as against 1,352,354 in April 2010.

According to figures released by the Society of Indian Automobile Manufacturers (SIAM), the overall growth in domestic sales in the month of April 2011 was 22.80 percent over same period last year.

Passenger Vehicles segment grew at 14.00 percent during April 2011 over same month last year. Passenger Cars grew by 13.18 percent, Utility Vehicles grew by 6.25 percent and Vans grew by 37.39 percent in April 2011 as compared to same month last year. The overall Commercial Vehicles segment registered growth of 8.22 percent in April 2011 as compared to the same month last year. While Medium & Heavy Commercial Vehicles (M&HCVs) registered only a marginal growth rate of 0.70 percent, Light Commercial Vehicles grew at 14.43 percent. Three Wheelers sales recorded a growth rate of only 1.94 percent in April 2011.Passenger Carriers shown negative growth at (-2.11) percent in April 2011 and Goods Carriers registered growth of 16.62 percent in April 2011. Two Wheelers registered a healthy growth of 26.44 percent in April 2011. Mopeds, Motorcycles and Scooters grew by 15.68 percent, 23.39 percent and 48.06 percent respectively in April 2011. In the month of April 2011 overall automobile exports registered a growth rate of 29.62 percent. Passenger Vehicles registered growth at 12.66 percent in the month. Commercial Vehicles, Three Wheelers and Two Wheelers segments recorded growth of 36.01 percent, 36.95 percent and 32.77 percent respectively in April 2011. Light commercial vehicles growth was 19.4 % at 1,43,247 units against 1,19,924 units in 2010


The calendar year 2010 was great for the Indian auto industry and it did bring in many surprises from the day one of 2010. The Indian car sales were at its best boosting the morale of many car manufacturers. The year 2010 did bring in lot of hope in the auto Industry after a rough late 2008 and early 2009.

Sales Performance: June 2011

The country's largest car-maker Maruti Suzuki India (MSI) reported an 8.8% decline in total sales to 80,298 units in June from 88,091 units in the same month last year. It also reported a 3.8% decline in sales in the domestic market to 70,020 units from 72,812 units in June 2010. Exports also declined by 32.7% to 10,278 units from 15,279 units in the year-ago period. Tata Motors reported a marginal 0.7% decline in total sales in June 2011 to 66,358 units from 66,824 in the same month last year. The firm's total

passenger vehicles sales in the domestic market stood at 21,993 units in June, a fall of 20.92% from 27,811 units in June 2010. Toyota Kirloskar Motor reported 94.72% jump in its sales at 12,034 units during June'11. The company had sold 6,180 units in the corresponding month last year. During the month the company sold 5,002 units of mid sized sedan Etios, 737 units of its latest small car Liva, 629 units of premium sedan Corolla Altis, 4,665 units of multi- purpose vehicle Innova, 990 units of SUV Fortuner, 9 units of luxury sedan Camry and 2 units of hybrid car Prius. Volkswagen India reported 166% increase in sales during June at 5,397 units as against 2,032 units in the same month last year. The compact car Polo and the sedan Vento continue to be the backbone for the brand with a total of 5,136 units sold in June 2011. Car maker Honda Siel Cars India (HSCI) reported sales for June at 3,455 units, a decline of 24.81% over the same period last year. The company had sold 4,595 units in the corresponding month last year. The June sales comprised 2,802 units of its flagship sedan City, 361 units of hatchback Jazz, 175 units of premium sedan Civic, 103 units of luxury sedan Accord and 14 units of its sports utility vehicle CR-V. Auto-maker M&M reported 29.11 per cent jump in its total sales in June, 2011 at 35,584 units.The company had sold 27,562 units in the corresponding month of 2010. Total sales of passenger vehicles, including Scorpio, Xylo, Bolero and Verito, stood at 16,053 units as against sales of 13,316 units in June 2010, up 20.55 per cent. Sales of the Verito sedan went up by over twofold to 1,510 units during the month from 563 units in the same month a year ago. Ford India reported 8.44% jump in its sales for June at 9,145 units, mainly on the back of its small car Figo's numbers. The company had sold 8,433 units in the same month last year. During the month, the company delivered the 1,00,000th Figo since its launch 15 months ago. Skoda Auto India today reported a 69 per cent increase in sales to 2,611 units in June this year, as against 1,639 units in the same month last year. The country's largest two-wheeler maker Hero Honda reported 20.12% jump in its sales for June at 5,12,244 units, over the same month last year. The company had sold 4,26,454 units in the corresponding month last year. For the April-June period of this fiscal, the company saw its highest-ever quarterly sales at 15,29,577 units compared to 12,34,039 units in the same period last financial year, up 23.95%. Chennai-based TVS Motor company reported a 14% increase in total sales to 182,456 units in June, 2011, as against 1,59,688 units in the same month last

year. Total two-wheeler sales grew by 14% to 178,633 units in June 2011, in comparison to 156,685 units in June 2010. During the month, total motorcycle sales grew by 5% to 69,859 units from 66,452 units in the same month last year. Scooter sales grew by 21% to 44,281 units in June 2011, from 36,742 units in June 2010. Domestic two-wheeler sales of the company grew by 11%, with sales of 155,296 units in June 2011, as against 1,39,905 units in June 2010. Two-wheeler maker India Yamaha Motor reported 29.98% increase in its total sales in June at 36,595 units. The company had sold 28,155 units in the same month last year. In the domestic market, the company's sales stood at 27,263 units as against 21,157 units in the same month last year, up 28.86%.

Car sales start 2012 with modest growth

Car sales entered the new year on a cautious note as high interest rates and petrol prices continued to suppress demand and incremental volumes flowed in from newyear discounts.

Market leader Maruti Suzuki, that had witnessed a decline in year-on-year volumes over the last few months, managed to enter 2012 on a positive note, albeit near flat. The companys January sales grew 0.6% at 1.01 lakh units. The company said good volumes in the rural markets as well as healthy institutional sales helped it stay in the positive territory. Crippling strikes at the companys Manesar plant last year as well as high interest rates and petrol prices have badly hit the companys core compact car customers. However, others like General Motors and Ford slipped into negative territory as sales fell year-on-year. For GM, that has added a diesel version to its small car Beat, the decline was a steep 17% at 8,241 units. For Ford that will launch the Eco Sport SUV in the coming months the fall was 9% at 9,137 units against 10,026 units in January last year. Parts constraint continued to impact Hondas car operations and the nonavailability of its cars depressed the companys sales by 72%.

Auto industry body Society of Indian Automobile Manufacturers (Siam) revised its sales forecast for 2011-12 downwards for the third time this fiscal to 0-2% against 16-18% it predicted at the beginning of the year due to the weak sentiment in the market.


There are various sectors that contribute to India's GDP. Some of the major sectors are Automobile Industry, Steel Industry, Real Estate Industry, Tourism Industry, Energy Sector, Textile Industry, Airlines Industry, Medical Industry, Biotechnology Industry, Electronics and Hardware and the power industry.

The automotive industry remains one of the highest revenue-earning industries in India and contributed over 5% to Indias GDP in 2009, providing direct and indirect employment to more than 13 million people. The market outlook for the industry remains promising, especially in the small car segment. The Indian automobile market is currently dominated by the two-wheeler segment but with an expanding middle class population, growing earning power and industrial development, the demand for passenger cars and commercial vehicles will increase exponentially. At present time, Indian automobile industry is making a major contribution in increasing the country's GDP by 9% every year. New heights has been scaled by the industry in the year 2010. In January 2010, total automobile sales in the domestic market reached 1114157 units, the figures shows an increment of 44.9% compared to the sales units of 7,68,698 of same period last year. Even for the month of AprilOctober after a gap of 11 years, total automobile sales in India stood at 1,120,081 Units. Annually, the Indian automobile industry is growing at an average rate of 30% and marking itself as one of the fastest growing industries in India. According to the

reports of Society of Indian Automobile Manufacturers, annual car sales are estimated to reach 5 million vehicles by 2015 and more than 9 million by 2020.


The automobile industry remains one of the highest revenue-earning industries in India and contributed over 5% to Indias GDP in 2009, providing direct and indirect employment to more than 13 million people. The market outlook for the industry remains promising, especially in the small car segment. The Indian automobile market is currently dominated by the two-wheeler segment but with an expanding middle class population, growing earning power and industrial development, the demand for passenger cars and commercial vehicles will increase exponentially. In addition to increased domestic demand, there is also likely to be increased investment by global auto manufacturers to India due to its strong technological capability and availability of trained manpower at competitive prices. Currently, the foreign auto companies with assembly plants in India include, General Motors, Ford, Hyundai, Honda, Suzuki, Nissan Motors, Toyota, Volkswagen, Audi, koda, BMW, Fiat and Mercedes Benz. With the introduction of the Tata Nano, the cheapest car in the world at USD 2200, and FDI from Suzuki Motor Corp, Hyundai Motor Co, and Nissan Motor Co to make India their manufacturing hub for small cars, India has made huge inroads in the compact car segment. Automobile industry expert predicts that by 2050 every sixth car in the world will be for Indians. By 2012 India will take over Germany in sales volumes and Japan by 2013 The Indian automobile component industry is estimated to triple from USD 63 billion to USD 190 billion within a span of six years by 2012. Industry analysts predict this industry to touch USD 13000 million mark by 2010, a cumulative growth of 9.5% annually. It is said that for every Re 1 spent, the auto sector returns Rs. 2.24 to the Indian economy. All in all, this bodes very well for the industry outlook over the forthcoming years. As a result, the job opportunities in this sector are going to remain huge, especially for trained professionals involved in key production areas. Foreign firms looking to capitalize on the local talent are likely to offer attractive remuneration and provide accelerated growth prospects for ambitious individuals, and local firms hoping to grow their footprints are also likely to step-up their hiring and upward movement of staff.


STRENGTHS 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 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.


Hero Motocorp Ltd. (BSE: 500182, NSE: HEROMOTOCO) formerly Hero Honda is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108. In 2010, When Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity.

During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it - Shut it - Forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (19842010) has come from the Japanese counterpart Honda.



In December 2010, the Board of Directors of the Hero Honda Group decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. The Hero Group bought buy out the 26% stake of the Honda in JV Hero Honda. Under the joint venture Hero Group could not export to international markets (except Sri Lanka) and the termination would mean that Hero Group can now export. Since the beginning, the Hero Group relied on their Japanese partner Honda for the technology in their bikes. So there were concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone. The increasing cost of royalty and technology (R&T) and the growing presence and market share of Honda Motorcycle & Scooter India (HMSI), a 100% subsidiary of Honda, are the two suspected causes for the split.

Ability to understand customers needs and wants Recognized and established brand name Effective advertising capability its after sales service Technology Maintenance cost is low Resell value is high

Companys name is synonymous with fuel-efficient bikes and connectivity

R&D is not close to the Hero manufacturing plant Hero is vulnerable in the joint venture because Honda Motor Company has so much power Brand name of Hero itself has no influence in the automobile industry. Hero is very much dependent on Honda

Global expansion Expansion of target market (include women) Become Indias leader in the scooter market Financial help easily available Relatively low rate of interest and the discount of prices offered by the dealers and manufacturers lead to the increasing demand for two-wheeler vehicles Variants can be launched to increase the market share Large market for the high performance segment which is increasing with the upliftment of the lifestyle of people

Honda Motorcycles and Scooters India can take away market share and cause joint venture to go sour. Bajaj Motors is a strong competitor. FDI announced in Automobiles is 100%. Petrol price increases. Pollution norms. Aluminum and steel price increases. The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million two-wheelers by 2016-17. This in conjunction with new countries where they can now market their two-wheelers following the disengagement from Honda, Hero MotoCorp hopes to achieve 10 per cent of their revenues from international markets, and they expected to launch sales in Nigeria by end-2011 or early-2012. In addition, to cope with the new demand over the coming half decade, the company was going to build their fourth factory in South India and their fifth factory in Western India.


Maruti Suzuki is India and Nepal's number one leading automobile manufacturer and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog on 17 September 2007, Maruti Udyog was renamed Maruti Suzuki India Limited. It is listed on the Bombay Stock Exchange and National Stock Exchange in India. Maruti Suzuki India Limited is a subsidiary company of Japanese automaker Suzuki Motor Corporation. It had a market share of 44.9% of the Indian passenger car market as of March 2011. Maruti Suzuki offers a complete range of cars from entry level Maruti 800 and Alto, to hatchback Ritz, A-Star, Swift, WagonR, Estillo and sedans DZire, SX4, in the 'C' segment Maruti Eeco and Sports Utility vehicle Grand Vitara. The company has crossed the milestone of becoming the first Indian company in March 1994, by manufacturing in totality one million vehicles. With its early mover advantage in Indian market; Maruti retains a dominant Market share despite increasing competition The company exports more than 50,000 cars annually and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts.

The Group's principal activity is to manufacture, purchase and sale of Motor Vehicles and Spare parts. The other activities of the Group comprises of facilitation of Pre-Owned Car Sales, Fleet Management and Car Financing. The Group also provides services like framing of customized car policies, economical leasing of cars, maintenance management, registration and insurance management, emergency assistance and accident management. The product range includes ten basic models with more than 50 variants. The Group has operations in over 100 cities with more than 150 outlets and also exports cars to other countries.

Vision: Visions of any company are those values on which company works. As the MUL is started by Governmental initiatives it tends to be more consumer oriented and hence cost effective, but on the other hand Suzukis participation ensures not only need of the profit, but of the need of maximum profit. Hence MUL declared its Vision asThe Leader in the Indian Automobile Industry, Creating Customer Delight1 and Shareholder's Wealth2; eventually become a pride of India Customer Delight1 is making sure that performance, after sales service and customer support are best and beyond expectation. Shareholders wealth2 is the prime concern for running business smoothly.MUL knows this and understands customer is king, he can change the fortune of any company, hence goes companys brand line: COUNT ON US! Mission: Mission is the statement of an organizations purpose, what it want to accomplish in the larger environment and its goals which are specific, realistic and motivating. Missions are described over visions and visions demand certain objectives. The main objectives/Missions of MUL are: - Modernization of the Indian Automobile Industry. - Developing cars faster and selling them for less. - Production of fuel-efficient vehicles to conserve scarce resources. - Production of large number of motor vehicles which was necessary for economic growth. - Market Penetration, Market Development Similarly Product Development and Diversification. - Partner relationship management, Value chain, Value delivery network .

Contemporary technology. Japanese Management practices (that had captured Japan over USA to the status of top Auto manufacturing country in the world) Has a great dealership chain in the market Early mover advantages. Recruitment is done in very tedious manner ensuring talent and best professionals, Working culture, after sale services , distribution, diversification, R&D Established distribution and after-sales networks Understanding of the Indian market and ability to liaison with the government Ability to design products with differentiating features Brand Image Low maintenance cost of vehicle as spare parts are readily available

Still depends upon SUZUKI COPORATION, Japan For tech. support, 10% components are manufactured outside India. Though MUL has launched luxury cars as well its still considered as poor mans brand. Diversification is not supported with all India presence of Manufacturing Units. Bureaucracy, Technological disadvantages, Decades of isolation, inertia and subservience to the whims of government bureaucrats have made MUL unaccustomed to international standards or keen competition. Inexperience with foreign workforce Heavy Import tariffs Labour Union Issues, Diseconomies to scale, No online presence. Lesser diesel models in the market compare to others Global image is not that Big

First company to roll out suitably designed cars before 2008 as per Govt.s Proposal of new ethanol (renewable) mixed fuel. Other companies lack economy of scale, so market is still open. Importing new technology is controlled by Govt. so there is plenty of untapped market and with increase in Income scale, Demand is rising Increased purchasing power of Indian middleclass category Govt. subsidies Tax benefits Great opportunities to go global with success of Swift and SX4 all over Introduction of more diesel models. The diesel car segment is growing Opportunity to grow bigger by entering into bigger car markets Already a market leader so great opportunity to be the king of market in every stage of industry Acquisitions, Innovation, Online, Product and services expansion, Takeovers, Targeting Higher Middle Class requirements


Numbers of new Technology driven players and manufactures are in market. Government .reducing support and cutting down the Gas supply quota. (TOI, New Delhi, 11th June, 07). Threats from Chinese manufacturers Indian as well as foreign competitors Cheaper technology External changes (government, politics, taxes, etc) Lower cost competitors or imports Price wars Product substitution Increase in fuel prices Rs. 1 lakh Rs. 1.5 lakh NANO by Tata Motors & Many other companies are planning to come up with a car price as low as the one by Tata Motors or even lower)


Mahindra & Mahindra Limited (M&M) is an Indian diversified company. Mahindra & Mahindra Incorporated on 2nd October 1945 by two brothers Mr. J C Mahindra & Mr. K C Mahindra. Converted into public limited company in 1955. It started with manufacturing General Utility Vehicles. Also started manufacturing Tractors and LCV (Light Commercial Vehicles). It is engaged in various businesses such as automotive, farm equipment, IT services, financial services, steel trading and processing, infrastructure, hospitality, logistics, after-market, two wheelers, and investment. The company manufactures and markets utility vehicles, light commercial vehicles, agricultural tractors, implements, and industrial engines. It operates in 17 key industries. M&Ms operations span across 79 countries through out the world. The company operates through over 100 subsidiaries, associate companies, and joint ventures spread across India and overseas markets mainly in the UAE, the UK, China, the US, Germany, and Singapore. M&M is headquartered in Mumbai, India.

Very high Brand recall in Tractors Market and continuous innovation. Mahindra group give employment to over 110,000 employees. Excellent branding and advertising, and low after sales service cost.

Sturdy SUVs good for Indian roads and off-road terrain. Strong Research & Development.

High dependence on Rural Market. Mahindras partnership with Renault did not live up to international quality standards through their brand Logan. Competitions.

Developing hybrid cars and fuel efficient cars for the future. Tapping emerging markets across the world and building a global brand. Fast growing automobile market. Growing in the market through electric car Reva (controlling stake) and entry into two-wheeler segments.

Entry of Competent Foreign & Domestic Players in Tractors Market. Government policies for the automobile sector across the world. Intense competition from global automobile brands. Substitute modes of public transport like buses, metro trains etc. Ever increasing fuel prices.

Domestic Sales Volumes Will Rise but Growth Could Come

The 2010 calendar year was great for the Indian automobile industry, and sales of vehicles continued an upward journey in 2011. However, the industry may not be able to copy the growth rates registered in the last two years. In the first half of 2010, the industry witnessed a steep 32% average monthly sales growth, which came down to 25% in the latter half. In addition, the year-on-year growth in sales was higher during the latter half of 2011 as compared to the growth in the first half of the year. Along with the high base effect of 2010, the awaited firm up of interest rates could also bring about the reduction in growth rates this year.

Exports Increase in 2011

Almost 65% of total automobile exports from India are two-wheelers, and as a result, performance of this segment has a major influence on overall auto export volumes. And after experiencing over 30% jump in exports in 2010, the industry registered moderate growths in two-wheeler exports in 2011. Nonetheless, a competitive and aggressive approach from the original equipment manufacturers vehicle categories (commercial vehicles, passenger vehicles and two & three wheelers) helped bring an increase in overall export of vehicles from the Indian market in 2011. Additionally, there are many companies that want to make India their export hub, thereby increasing the chances of increasing exports.

Healthy Economic Growth to Uplift Sales

Healthy growth of the economy would drive the automobile sales in the domestic market. The chief growth drivers of the automobile industry in the Indian market would be stable economic environment, healthy IIP growth, favourable liquidity and availability of finance. Other things that would positively affect the Indian automobile industry include road network development activities, strong growth in construction activities and the expected healthy performance of the industrial sector. When it comes to personal transport vehicles, increase in disposable income and a strong line up of upcoming new launches is expected to boost demand and sales. The passenger vehicle industry (cars + utility vehicles) is witnessed launch of as many as 30 new models/variants in 2011. Much in with 2010, 2011 also saw a lot of action in the small car segment. Sales of luxury cars is also going to grow at a fast pace. Sports utility vehicles (SUV), which have a relatively smaller market share in the Indian passenger vehicle market is also going to grow up tremendously as manufacturers have lined up 10 new model launches for the coming year. Indian car manufacturers are also doubling up their efforts to push their passenger vehicles into the rural and semi-urban markets, which would greatly enhance sales.

Profit margins to improve marginally

The Indian automobile is expected to record growth in revenues supported by in the domestic as well as export market. Nevertheless, as the commodity prices are expected to remain constant, the pressure on margins would increase largely. Besides, the entry of several other OEMs that have lined up elaborate investment plans is also going to benefit the industry in the domestic market. The new car launches that have been lined up for this year are going to increase expenditure on advertising and promotional activities. But that is no cause for the buyers as these companies are likely to transfer only a small part of the cost burden by increasing the car prices.

Strategies that manufacturers are likely to adopt are: Commercial vehicles

New model launches Product innovation would take prime importance to create new market segments Launch new cars for the international market Easy car finance options for potential customers Competitive pricing

Passenger vehicles

New models/variants launch Greater importance to rural and semi-urban markets Dealership network expansion Used cars business expansion Localization to cut down costs

At present time, Indian automobile industry is making a major contribution in increasing the country's GDP by 9% every year. New heights has been scaled by the industry in the year 2010. In January 2010, total automobile sales in the domestic market reached 1114157 units, the figures shows an increment of 44.9% compared to the sales units of 7,68,698 of same period last year. Even for the month of April-October after a gap of 11 years, total automobile sales in India stood at 1,120,081 Units. Annually, the Indian automobile industry is growing at an average rate of 30% and marking itself as one of the fastest growing industries in India. According to the reports of Society of Indian Automobile Manufacturers, annual car sales are estimated to reach 5 million vehicles by 2015 and more than 9 million by 2020 To believe New York Times reports, several automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki have expanded their manufacturing facilities owing to India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars.