Indian Automobile Industry

Today the automobile sector in India contributes 5% to the nation’s GDP, making
it a prominent player in the economy. It will contribute around 19% of the Tax collection
for financial year 2009-10. Following have been the features of Auto industry in the past
financial year.

OBJECTIVE OF THIS STUDY

This study is done in keeping following objectives in view:
To find out the present status of the automobile industries
in India.
To study the market research of the automobile industries.
To study the distribution and marketing strategy adopt by
automobile industries.
To enhance our analytical skills in the field of practical
application of Marketing.

SWOT Analysis
A scan of the internal and external environment is an important part of the strategic
planning process. Environmental factors internal to the firm usually can be classified as
strengths (S) or weaknesses (W), and those external to the firm can be classified as
opportunities (O) or threats (T). Such an analysis of the strategic environment is referred
to as a SWOT analysis. SWOT analysis of the Indian automobile sector gives the
following points:

Strengths:
• Large domestic market • Sustainable labor cost advantage • Competitive auto
component vendor base • Government incentives for manufacturing plants • Strong
engineering skills in design etc
Weaknesses:
• 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:
• 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 :
• Rising input costs • Rising interest rates • Cut throat competition
AN ALYSIS OF INDIAN AUTOMOBILE INDUSTRY

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Strengths • Large domestic market • Sustainable labor cost advantage • Competitive auto
component vendor base • Government incentives for manufacturing plants • Strong
engineering skills in design etc Weaknesses • 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 • 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 • Rising input costs • Rising interest rates • Cut throat
competition