By,

Divyalakshmi
Kunal
Satheesh
Sowmya
bharathi
 Automobile –auto (Greek ) - self and mobile (Latin) moving.
•
The first automobile was built in France by Nicolas-Joseph Cugnot in 1769.
•
In 1870 Marcus was the first man to make a vehicle propelled by means of gasoline.
•
Panhard et Levassor -France. Duryea Motor Wagon Company-US.
•
It was in 1898 that the first motorcar rode down India’s roads.
•
• 1920s- cars exhibited design refinements.

• The 1940s saw features like automatic transmission, sealed-beam

headlights, and tubeless tires.

• Hindustan Motors, Premier Automobiles and Standard Motors .

• 1950s to early 1990s- license raj.

• Hindustan motors was leading till 1980s.

• “People’s car”- Maruti Udyog ltd.

• Liberalization opened the market for foreign players.

• Compounded Annual Growth Rate (CAGR) was 17 per cent over
the last five years.

• It is now the eleventh largest manufacturer of passenger cars.

• Fourth largest car market in Asia.

• 9th largest automobile industry.

• Annual production of over 2.3 million units.

• The monthly sales of passenger cars in India exceed 100,000

units.
MARKET SHARE
&
MARKET LEADER
Market Share of the automobile companies
in India.
Company 05-06 06-07 07-08 08-09*
Maruti Suzuki 42.99 39.77 40.24 38.47
Hyundai 22.80 22.21 23.05 22.27
TATA 14.38 14.95 15.10 14.35
Honda 6.30 8.09 8.58 11.12
GM 3.67 5.37 5.22 4.95
Benz 1.39 1.60 1.45 1.54
Hindustan Motors 2.54 2.57 1.83 1.43
Others 4.57 4.38 4.51 5.76

* Estimated Dec 2008

Pie Representation of Market Share
Market Share

Hindustan
Motors; 1%
Maruti Suzuki
Benz; 2% Others; 6%
Hyundai
GM; 5% TATA
Honda
Honda; 11% GM
Maruti
Suzuki; Benz
TATA; 14% 39% Hindustan Motors
Others
Hyundai;
22%
Maruti Suzuki
• Current Share Price Rs.1,546.40
• Maruti Suzuki India Limited, India’s car market leader, sold a total of
84,808 vehicles in August 2009, growing 41.6 percent in the month.
This includes exports of 14,847 units, the highest ever monthly export
in the company’s history.
• The company had sold a total of 59,908 vehicles in August 2008.
• Maruti Suzuki’s volume in the domestic segment grew by 39.3
percent during the month as compared to sales in August 2008.
• During the month the company crossed the milestone of 50,000
cumulative exports in this fiscal. A star is Maruti Suzuki’s flagship
export model. A star, which was introduced internationally in January
2009, has been leading the export numbers since introduction. The
major markets for this model in Europe include Germany, UK, France
and Netherlands.
• In the last week of August 2009, the company introduced the Estilo
with a bolder new look and the latest, 1-litre, BS-IV compliant, K-
series engine.
8 out of top 10 global companies
have India presence

They contribute 60 % of global

production
but
25 % of India Production
PRODUCTION,
SALES AND
EXPORT
 GDP, FOREIGN
TRADE AND FDI
*Estimated as on
Dec 2008
*Estimated
 Future of
INDIAN AUTO
INDUSTRY
 Future prospect of Indian
Automotive Sector 2
• Future prospect of Indian Automotive Sector is
looking bright.
• Passenger car production in India is projected to
cross three million units in 2014-15.
• Sales of passenger cars during 2008-09 to 2015-16
are expected to grow at a CAGR of around 10%.
• Export of passenger cars is anticipated to rise more
than the domestic sales during 2008-09 to2015-16.
• 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.
 Future prospect of Indian Automotive
Sector
• Nissan Motors plans to export 250,000 vehicles
manufactured in its India plant by 2011.
• Maruti Udyog has set up the second car with an
investment of Rs 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 car project.
STRENGTHS
• Automobile industry is an established and an
evergreen industry.

• India is the strongest player in the small car

segment of the global automobile market

• Indian companies are the best cost innovators

• The automotive industry has long been known for

its development and promulgation of the assembly-
line.
WEAKNESS

•Indian is lacking in proper infrastructure.

•This is slowing the pace of growth of
auto industry
•Higher rates of taxes.
•Import of auto components invites a
very high import duty.
Opportunities
Higher GDP growth

India’s huge geographic spread

Increasing Road Development, Golden Quadrilateral

Increasing disposable income with the service sector

Easier finance schemes

Growing Concept of Second Vehicle in Urban Areas

Graduating from Two wheeler to Four wheeler

Threats
• Automobile industry reported one of its worst performance
• Decline in sale of commercial vehicles by 48% & production
by 57.3%
• Sale of 2 wheelers fell by 9.2%
• Sales of passenger cars & muvs fell by 8.2%
• Global Crisis
• Companies not focusing on R & D are under great risk
• High competition from foreign players
 Political Environment
• The Industrial Policy of 1991 de-licensed the
Automobile Industry in India, but passenger car was
de-licensed in 1993.
• Weighted tax deduction of up to 150% for in-house
research and R & D activities.
• Formulation of an appropriate auto fuel policy
• Removal of Quantitative Restrictions (QRs) from
April 1, 2001 has allowed the import of vehicle,
including passenger car segment freely subject to
certain conditions notified by DGFT.
 Economic Environment
• Compounded Annual Growth Rate (CAGR) was 17 per cent over
the last five years.
• The overall automobile production went up by 3 per cent to reach
1.11-crore.

• Domestic turnover of the sector stood at Rs. 2.19-lakh crore.

• Contributes 4.4% to India’s GDP and 17.0% to the indirect tax

collection.

• Exports totalled at Rs. 31,782 crore, taking the total size of the
industry to Rs. 2.50-lakh crore during 2008-09.
Social Environment
• Economic Survey 2008-09, underlined that the industry
employs over one crore people.
• Keeping in mind the global environmental crisis many
company’s are coming out with hybrid’s, to protect the
environment.
• Doing CSR activities like opening driving schools by
Maruti Suzuki, Hero Honda has launched Blood banks,
almost all the companies involve itself into CSR’s
 Technological
With theEnvironment
entry of global companies into the
Indian market, advanced technologies ,both in
product and production processes have
developed.
With the development or evolution of alternate
fuels, hybrid cars have made entry into the
market.
Few global companies have setup their R&D
centres in India.
Major global players like audi, BMW,Hyundai etc
have setup their manufacturing units in India.
 Reference
• Ministry of Heavy Industries & Public Enterprises
(Department of Heavy Inuustries), Government of India

•
 Snippets
 Economic Survey 2008-09, underlined that the industry employs
over one crore people.
 The overall automobile production went up by 3 per cent to reach
1.11-crore.
 Domestic turnover of the sector stood at Rs. 2.19-lakh crore.
 Contributes 4.4% to India’s GDP and 17.0% to the indirect tax collection.
 Exports totalled at Rs. 31,782 crore, taking the total size of the
industry to Rs. 2.50-lakh crore during 2008-09.