INTRODUCTION TO AUTOMOBILE SECTOR

It begins as early as 1769. The automobile sector is one of the key segments of the economy having extensive forward and backward linkages with other key segments of the economy. 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 would be 23 % by 2010.

FACTS

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.

KEY PLAYERS
Maruti Hyundai Ford Sonalika International Force M&M Skoda Mercedes Benz Volkswagon TATA Honda GM HM Toyota Kirloskar Fiat Audi BMW Mitshubishi

AUTOMOBILE

2 WHEELLE R

3 WHEELLE R

PASSENG ER VEHICLE

COMMERCI AL VEHICLE

2 WHEELER

Market leader Hero Honda with market share 50%

3 WHEELER

Market leader Mahindra & Mahindra with market share 42%

PASSENGER VEHICLE

Market leader Maruti with market share 52%

COMMERCIAL VEHICLE

Market leader Tata Motor with market share 61%

SEGMENTATION OF AUTOMOBILE INDUSTRY

Following is the segmentation that how much each sector comprises of whole Indian Automobile Industry.

SWOT OF AUTOMOBILE INDUSTRY

STRENGTHS Large domestic market Sustainable labor cost advantage Government incentives for manufacturing plants WEAKNESSES 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

MARUTI UDYOG LIMITED(leader)

Maruti Suzuki India Limited is a publicly listed automaker in India. It was the first company in India to mass-produce and sell more than a million cars. It is the market leader in India and on 17 September 2007, Maruti Udyog was renamed Maruti Suzuki India Limited. The company headquarter is in Gurgaon,Haryana.s Established in December 1983, Maruti Suzuki India Ltd. has ushered a revolution in the Indian car industry.

Product life cycle

Introduction stage:- A-Star, Swift Dezire Growth Stage:- Swift, Zen Estilo Maturity Stage:- Alto, Wagno-R Decline Stage:- Baleno, Esteem

BCG Matrix
Star - Swift, Zen StrategyInvest,integrate, takeover

?-Sx 4, A- Star
Strategy- harvest , Divest

Cash cow= Maruti 800 Alto, Wagno-r Strategy- maintain market domain, leadership

dogs=- omni, baleno Strategyharvest,divest, liquidate

SWOT
STRENGTHS

Established distribution and after-sales networks Understanding of the Indian market and ability to liaison with the government

WEAKNESSES

Lack of experience with the foreign market Inexperience with foreign workforce Heavy Import tariffs

SWOT CONTINUED.
OPPORTUNITY Increased purchasing power of Indian middleclass category Govt. subsidies Tax benefits Foreign collaboration THREATS Threats from Chinese manufacturers Indian as well as foreign competitors

Followers
Bajaj auto is one of the oldest and the second largest two wheeler manufacturer in India. It also has to protect its market share from the impending onslaught of low price small cars such as Tata Nano.

Positioning of Bajaj Auto

Bajaj Auto is the flagship company of the Bajaj Group of Companies. Bajaj Auto Limited (BAL) is currently India's second largest two wheeler and three wheeler manufacturer. The core competency of Bajaj Auto Ltd is its technology and innovation.

CONCLUSION
Industry across countries will have to meet challenges of newer technologies, alternative fuels and affordability of automobiles by people at large through constructive cooperation. The earlier we are able to achieve this the better it would be for the world performance.