Group members

Consulting Club

Initial Years Manufacturing was licensed

Early to mid 90s Sellers market and long waiting periods Delicensing in 1993 Removal of capacity restrictions Decrease in customs & excise

High Customs duty on import

Steep excise duties & sales tax

Mid 90s Early 2000s

Buyers market Increase in Indigenization Easy Auto finance Manufactures diversifying into related activities: finance lease, fleet management, insurance and used car market

2 Major players: Premier Automobiles Ltd & Hindustan Motors

1980s

Auto finance boom- more Entry of MUL, better product, players (foreign banks & with government support non banking companies, better schemes. Sellers Market Long Waiting Periods

AUTOMOBILE

2 WHEELER

3 WHEELER

PASSENGER VEHICLE

COMMERCIAL VEHICLE

I.C.V.

M.C.V.

H.C.V.

MOTORCYCLE

SCOOTERS

SCOOTERETTES

MOPEDS

AUTOMOBILE SECTOR
The automotive sector is one of the keysegments of the economy having extensiveforward and backward linkages with otherkey segments of the economy. It contributes about 4 per cent in India'sGross Domestic Product (GDP) and 5 percent in India's industrial production. This sector has generated about 4.5 lakhof direct employment and about one crore of indirect employement

India holds huge potential in theautomobile sector including theautomobile component sector owing toits technological, cost and manpoweradvantage. India has a well developed, globallycompetitive Auto Ancillary Industry andestablished automobile testing and R&Dcenters. India enjoys natural advantage and isamong the lowest cost producers of steel in the world.

Landmark of Indian automobile industry

1897- First Person to own a car in India -MrFoster of M/sCrompton Greaves Company, Mumbai 1901- First Indian to own a car in India - JamsetjiTata 1905 -First Woman to drive a car in India -Mrs.Suzanne RD Tata 1905-FiatMotors 1911- FirstTaxiin India 1924- Formation of traffic police 1928-ChevroletMotors

1942-Hindustan Motors
1944-Premier Automobiles Limited 1945-Tata Motors 1947-Mahindra & Mahindra Limited

 1981-Maruti Suzuki 1994-Mercedes Benz 1996-Hyundai Motor Company

1997-Toyota KirloskarMotors
1997-FiatMotors (Re-Entry) 1998- San Motors 1998-Mitsubishi Motors 2003-General Motors India-Chevroletbrand launch 2005-BMW 2007-Audi 2009-Land Rover & Jaguar

The automobile industry in India

9th largest automobile industry .

2nd largest two-wheeler market,

11th largest Passenger Cars producers.

4th largest in Heavy Trucks.

2nd largest tractor manufacturer. Annual production of over 2.3 million. The monthly sales of Passenger cars in India exceeds 100000 units

Production of automobiles
10

Domestic Sales of automobiles

CAGR 15.4%
8.5 6.3 4.8 5.3
million numbers

CAGR 14.2%
10 8 6 4 2 0 2000-01 2001-02 2002-03 2003-04 2004-05 4.6 5.2 5.9 6.8 7.9

million numbers

8 6 4 2 0

7.2

2000-01 2001-02 2002-03 2003-04 2004-05

Exports of automobiles

Domestic Sales have been growing strongly

million numbers

Exports have nearly tripled in the last 5 years Largest three wheeler market in the world 4th largest passenger vehicle in Asia 4th largest tractor in the market 5th largest commercial vehicle market in the world

0.7 0.6 0.5 0.4 0.3 0.2 0.1 0

CAGR 39%
0.48 0.31 0.17 0.18

0.63

2000-01 2001-02 2002-03 2003-04 2004-05

CVs Three Growth Rates of different segments Wheeler

4 year CAGR
25 20 15 10 5 0
Commercial Vehicles Passenger Vehicles Two wheelers Three wheelers total Automobiles
23.5 14.3 11.3 14 14.2

3.9%

4.03%

13.44%

78.63%

Two Wheeler

Segments

The industry has not experienced much change in its structure over the last 6 years Two- wheelers form the major share of domestic sales Passenger vehicles lead the exports market(57.4%) 2 wheelers form the bulk of exports as well, but are losing share to Passenger vehicles The growth in the two wheeler market is driven by the motorcycle market and is expected to grow at 14-15 % YOY

Others, 5.73
Others, 5.8% Yamaha, 3.8% TVS Motors, 17.7% Hero Honda, 39.8% Bajaj Auto, 24.4% Honda Motors, 8.5%

Honda, 5.33 Tata Motors, 17.19 Maruti, 50.37

Hyundai, 19.17

Two wheeler
Commercial vehicles Passenger vehicle Two Wheeler Three Wheeler

Passenger vehicle

TATA Motors, Ashok Leyland, Swaraj Mazda,Mahindra & Mahindra ,Force motors, Eicher Motors TATA Motors, Maruti Udyog, Honda Motors, Toyata, Skoda, Mahindra & Mahindra, Daimler Chrysler, Hindustan Motors Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, Yamaha , Kinetic Motors Bajaj Auto, Piaggio India

Domestic Market Share for 2009-10 Passenger Vehicles

15.86
4.32 3.58

Commercial Vehicles
Three Wheelers

Two Wheelers 76.23

Manufacturing Hub for Vehicles

Hyundai - Export Base for Small Cars

Skoda - Hub for exports of Cars to neighbouring countries

Ford exporting CKDs of Ikon to South Africa & other countries Mitsubishi & Yamaha - Hub for 125 cc Motorcycles Maruti Suzuki- Exports cars to EU HMSI - Hub for Two Wheelers Exports

Commercial Vehicle Market

Thank You