Business Environmental and Social Sustainability

Group Presentation on
Auto Industry in India

Presentation by GROUP 1:
Aakriti Mishra – PGFA 1901
Ankush Birla – PGFA 1910
Gaurav Khatri – PGFA 1918
Monal Dey – PGFA 1928
Surbhi Sabharwal – PGFA 1957
 OVERVIEW

• The Indian auto industry became the 4th largest in the world.

• The Two Wheelers segment dominates the market in terms of volume owing to a growing middle class and a young
population. Moreover, the growing interest of the companies in exploring the rural markets further aided the growth of the
sector.

Growing Demand  Rise in income and young population may result in strong growth.

 India is expected to become a leader in shared mobility by 2030,

providing opportunities for electric vehicles.
Opportunities
 Shifting focus towards electric vehicles can also provide opportunities
ADVANTAGE in this sector.
INDIA  FDI inflows in automobile sector stood at US $20.85 billion between
Rising Investment April 2000 – December 2018
 India has significant cost advantage that attracts investment in this
sector

Policy Support  The government is aims to develop India as global manufacturing centre. It has
also came up with reforms like GST to boost the growth in this sector.
 No. of Automobile produced(in mn) No. of Automobile sold(in mn)
Market Size 35
30
29.07 30.92 30
24.97 26.27
23.36 24.02 25.33 25 20.47 21.36
19.72
25 20.65 21.65 18.42
20 17.79
20
15
15
10
10
5 5
0 0
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

• Sales increasing 9.5 per cent year-on-year to 4.02 million units (excluding two wheelers) in 2017. India was the 7th largest
manufacturer of commercial vehicles in 2018.

• In FY19, year-on-year growth in domestic sales among all the categories was recorded in commercial vehicles at 17.55 per
cent followed by 10.27 per cent year-on-year growth in the sales of three-wheelers.

• Premium motorbike sales in India crossed one million units in FY18.

Sales of electric two-wheelers are estimated to have crossed 55,000 vehicles in 2017-18.
 Leaders

• There are many automobile companies in India. But some of them are ruling the market since its inception such as Maruti
Suzuki, Tata Motors Ltd, Mahindra & Mahindra, etc. Now every company is launching new models to keep pace with the
changing needs of customers.

• The automobile industry is supported by various factors such as availability of skilled labour at low cost, robust R&D centers
and low cost steel production. The industry also provides great opportunities for investment and direct and indirect
employment to skilled and unskilled labour.

• Indian automotive industry (including component manufacturing) is expected to reach Rs 16.16-18.18 trillion (US$ 251.4-
282.8 billion) by 2026. Two-wheelers are expected to grow 9 per cent in 2018.
 Sustainability

• The major challenge faced by the Industry today is Sustainability i.e. avoidance of the depletion of natural resources in order
to maintain an ecological balance.

• Companies have faced different challenges in seeking to combine the best economic
performance with increased social and environmental responsibility. Monitoring
sustainability is essential for decision-making and management of activities that
comprise an organization’s system processes

• To increasing organizational effectiveness and improving competitiveness,

customer service and profitability, it is also very important that industry
should focus on the development of sustainability.
 Sustainability Practices in the Industry

DECLINIG

• Single Vehicle Ownership • SUSTAINABILITY

• Significant Mobility • Innovation and
Investment Flexibility
GROWING

 An increased pollution level in urban India has increased the focus on auto industry. The National Green Tribunal has recently
introduced stringent limitations on old vehicle's remaining on roads since vehicular pollution is seen as one of the primary
causes of high pollution levels.

 Big players in the industry are also working on lowering the carbon intensity produced from vehicles, introducing propulsion
systems, producing more fuel efficient vehicles and indulging more into Social Corporate Responsibility.

 Few manufacturers will able to survive with pure product-related sales stream, forcing the to find innovative ways to secure
sustainability in the country and fulfil future mobility requirements.
 Roadmap of Sustainability
• Automotive manufacturers and suppliers are collaborating in efforts to improve the environmental performance of their
organizations in India.

Risk
Identification,
mitigation and
Forecast for Management Insights info
Production Consumer of
Planning Sustainability tomorrow
Practices that
currently Industry Access to
Guidance to
follows Industry
Environmental
Compliance Brain Trust
Updating on
Technological
Innovation

• Environmental Sustainability is the ability to maintain rates of renewable resource harvest, pollution creation, and
nonrenewable resource depletion that can be continued indefinitely. To achieve this, the auto industry must band together.