Presentation On:

A N A LY S I S O F I N D I A N A U T O M O B I L E I N D U S T R Y

PRESENTED BY: Arpit Bhardwaj Jalaj Purohit MD. Tausif Anwar Ashwani Kumar Dhairya Gupta Anish Prasad Bjlay Tiwari Neha Upadhyay Neha Nisha Khushbu Soni

Objective
Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

Objective:
1. Overview 2. Aim of the Project & List of top 5 companies 3. Analysis of Indian Automobile Industry 4. Fundamental Analysis a. Economy b. Industry 5. 6. Conclusion References

Overview
Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

Overview:
Indian automobile industry has grown leaps and bounds since 1898, a time when a car had touched the Indian streets for the first time. At present it holds a promising 9th position in the entire world with being # 1 in Two Wheelers and # 4 in commercial vehicles. Withstanding a growth rate of 13% 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. It is expected that the Automobile Industry in India would be the 7th largest automobile market within the year 2016.

Objective
Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

AIM OF THE PROJECT:

The objective of this project is deeply analyzing our Indian Automobile Industry for investment purpose by monitoring the growth rate and performance on the basis of historical data.

The main objectives of the Project study are:

Detailed analysis of Automobile industry which is gearing towards international standards Analyze the impact of qualitative factors on industrys and companys prospects Application of various Technical Tools and Fundamental tools (like Financial and Non-financial statements).

Companies
Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

Top Automotive Companies In INDIA

Leading Companies:
Maruti Suzuki India Limited (MSIL) Hyundai Motor India Limited (HMIL) Tata Motors Mahindra & Mahindra Limited (M&M) Hero Motors Limited (HML)

Analysis
Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

ANALYSIS OF AUTOMOBILE INDUSTRY:

India has become a hub of domestic and exports business. The automobile sector has been contributing its share to the shining

economic performance of India in the recent years.

To understand this industry for the purpose of investment we need to analyze it by following four approaches: 1). Fundamental Analysis a. Economy b. Industry 2). Export Analysis

3). Five forces

4). Swot

Fundamental Analysis
Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

ECONOMY: GDP and Automobile Industry:

In absolute terms, India is 9th in the world in terms of nominal factory output(its $1.22 trillion)

Data source: India central statistical organization

Fundamental Analysis
Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

ECONOMY: GDP and Automobile Industry:

The per capita Income is near about Rs38,000 reflecting improvement in the living standards of an average Indian. Today, automobile sector in India is one of the key sectors of the economy in terms of the employment. The market value of Automobile Industry is more than US$8 bl. and Contribution in Indian GDP is near about 5% and will be double by 2016.

Data source: Google Finance

Fundamental Analysis
Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

ECONOMY: Recession:
Global recession has hit the Indian auto industry, impact of recession is evident now on industry as sales & growth of automobile companies have declined. Passenger Vehicles segment registered negative growth. In December 2010, overall production fell by 22 % over the same month last year.

The sales in December 2010 for passenger vehicles fell by 13.86% over
December 2009. Two Wheelers registered minor growth of 1.85 % during April December 2010. Although the sector was hit by economic slowdown, overall production increased from 10.85 million vehicles in 2009-10 to 11.17 million vehicles in 2010-11.

Industry Analysis
Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

Industry Analysis:
Segmentation of Automobile Industry: The automobile industry comprises of Heavy vehicles (trucks, buses, tempos, tractors); passenger cars; Two-wheelers; Commercial Vehicles; and Three-wheelers.

Data Source:http://www.autoindia.com/

Export Analysis

Automobile Export:
Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

1800000 1600000 1400000

1200000
1000000 800000 600000 400000 200000 0 Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers Grand Total

Five Forces
Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

Bargaining Power of Suppliers:

>The industry is comprised of powerful buyers who are generally able to dictate their terms to the suppliers.

Barriers to entry :
>Regulatory framework >The startup capital required to establish manufacturing capacity to achieve minimum efficient scale is prohibitive. Automobile Industry

Threat of substitutes:
>The threat of substitutes to the automotive industry is fairly mild. >The switching cost may be high in terms of personal time, convenience and utility.

Buyer/Customer Power :
>Buyer is having bargaining power due to low switching costs associated with selecting from among competing brands.

Rivalry among Competitors :

>Rivalry in the Indian auto sector is intense due to the entry of foreign companies in the market.
>Product being matched in a few months by the competitors

SWOT
Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

Strengths(S): Large domestic market Sustainable labor cost advantage Competitive auto component vendor base Government incentives for manufacturing plants Strong engineering skills in design etc Weaknesses(W): Low labor productivity High interest costs and high overheads make the production uncompetitive Various forms of taxes push up the cost of production Low investment in Research and Development Infrastructure bottleneck Opportunities(O): Commercial vehicles: SC ban on overloading Heavy thrust on mining and construction activity Increase in the income level Cut in excise duties Rising rural demand Threats(T): Rising input costs Rising interest rates Cut throat competition

Conclusion
Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

Conclusion:
Indian Automobile has a lot of scope for both two wheelers and four wheelers due to development in infrastructure of the country. According to Indian Statistical Organization the per capita income (Rs.38000) is increasing and national income at the rate of 14.4% which shows potential to buy vehicle in auto industry. The growth rate of Indian Automobile is so fast that by 2016 Indian Industry will be world 7 largest manufacturer in all sections. The Indian auto market is still untapped the majority of the people in country dont own a four wheeler and all the major auto companies are trying to increase their sales by several moves. By analyzing the current trend of Indian Economy and Automobile Industry we can say that there is lot of scope for growth.

REFERANCES: Books: o Auto Drive Magazine Reference Materials: o The Economic Times o RBI annual report o ASSOCHAM report o India Central Statistical Organization Websites: o http://www.googlefinance.com o http://www.autocarindia.com o http://www.wheelsunplugged.com o http://www.assocham.org o http://www.wikipedia.com o http://www.rbi.org.in Search Engines: o www.google.com o www.yahoo.com o www.bing.com

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