Académique Documents
Professionnel Documents
Culture Documents
INDUSTRY
Presented
By,
Akshay
Adisha
Arathi
Aftab
Meaning
The automotive industry is a wide
range of companies and
organizations involved in the design,
development, manufacturing,
marketing, and selling of motor
vehicles
Introduction
The term automotive was created from Greek autos (self), and Latin motive (of
motion) to represent any form of self-powered vehicle.
The automotive industry began in the 1890s with hundreds of manufacturers that
pioneered the horseless carriage.
In 1929 before the Great Depression, the world had 32,028,500 automobiles in use,
and the U.S. automobile industry produced over 90% of them. At that time the U.S.
had one car per 4.87 persons.
After World War II, the U.S. produced about 75 percent of world's auto production.
In 1980, the U.S. was overtaken by Japan and became world's leader again in 1994.
In 2006, Japan narrowly passed the U.S. in production and held this rank until
2009, when China took the top spot with 13.8 million units. With 19.3 million units
manufactured in 2012, China almost doubled the U.S. production, with 10.3 million
units, while Japan was in third place with 9.9 million units.
From 1970 (140 models) over 1998 (260 models) to 2012 (684 models), the
number of automobile models in the U.S. has grown exponentially.
In 2014-15, the Indian automobile industry produced 23.37 million vehicles.
Automobile Industry GDP contribution is almost 10 % as of 2016 Budget ( 2013GDP 7%)
Objectives
Modernization of the Indian
Automobile Industry
Production of fuel-efficient vehicles
to conserve scarce resources.
Production of large number of motor
vehicles which is necessary for the
economic growth.
Economy
India is the 2nd largest motorcycle and 4th largest commercial vehicle
manufacturer in World
The total turnover of the Indian automotive component industry estimated at USD
35 billion in 2013-14, Auto ancillary exports fetched USD 10.2 billion.
The automobile is a primary mode of transportation for many developed
economies.
The Detroit branch of Boston Consulting Group predicted that by 2014, one-third of
world demand will be in the four BRIC markets (Brazil, Russia, India and China).
Meanwhile, in the developed countries, the automotive industry has slowed down.
It is also expected that this trend will continue, especially as the younger
generations of people (in highly urbanized countries) no longer want to own a car
anymore, and prefer other modes of transport.
Other potentially powerful automotive markets are Iran and Indonesia. Emerging
auto markets already buy more cars than established markets.
According to a J.D. Power study, emerging markets accounted for 51 percent of the
global light-vehicle sales in 2010. The study, performed in 2010 expected this trend
to accelerate. However, more recent reports (2012) confirmed the opposite;
namely that the automotive industry was slowing down even in BRIC countries
Automotive Parts
Manufacturers
Regulatory Bodies
Ministry of Road Transport and Highways (MORT&H)
Motor Vehicles are governed by the Motor Vehicles
Act,1988 and Central Motor Vehicles Act 1989
Other regulatory bodies associated with industry
are:
-Bureau of Indian Standards
-Automotive Research Association of India(ARAI)
-Automotive Component Manufacturers
Association(ACMA)
-Central Institute of Road Transport(CIRT)
PESTEL ( Contd.)
MARKET STRUCTURE
What is oligopoly market?
Market structure is featured by a few firms
Strategic Interaction Reaction to competitors pricing and market strategies
Product can be homogeneous or differentiated
Considerable barrier to entry for new firms
Profit maximization conditions
Ability to set price
Market Segmentation
Segmentation has mostly been done on product types or price ranges.
The following four segments based on price and type of car have been identified:
Off-road or utility vehicles e.g., Maruti Gypsy, Mahindra Armada, Tata Sumo.
Economy segment, comprising cars priced at less than $ 13,333, e.g., Ambassador, Premier
Padmini, Maruti 800.
Luxury segment, comprising cars in the $ 13,333 to $ 33,333 price bracket, e.g., Maruti Zen,
Premier 118NE, Contessa, Maruti Esteem, Tata Sierra, Peugeot 309, Opel Astra, Cielo, Ford
Escort, VW Golf, Mitsubishi Lancer, Rover Montego.
Super-luxury segment, comprising cars priced at higher than $ 33,333, e.g., Mercedes-Benz,
BMW, Audi.
Positioning
The companies have developed image-based positioning strategies for their brands. Some of
them are :
Hindustan Motors (HM) - enduring, sturdy
General Motors Opel (GM) - German engineering
Daewoo - Family car
Honda - superior after sale service
Peugeot - sound-free diesel engine
Ford Esteem - smooth drive
The U.S. Department of Justice considers a market with a result of less than 1,000 to be a
competitive marketplace; a result of 1,000-1,800 to be a moderately concentrated marketplace;
and a result of 1,800 or greater to be a highly concentrated marketplace. As a general
rule, mergers that increase the HHI by more than 100 points in concentrated markets
raise antitrust concerns.
MARKET
SHARE-2005
CARS
MARKET
SHARE(%)
(MARKET
SHARE)^2
Suzuki
21.35
455.82
Honda
14.25
203.06
Kawasaki
11.39
129.73
Bmw
7.38
54.46
Harley
3.69
13.61
Ktm
3.43
11.76
Triumph
2.89
8.35
Ducati
2.84
8.06
Gas gas
2.79
7.78
Yamaha
22.66
513.47
Others
7.33
53.72
HHI
100
1459.82
MARKET
SHARE-2010
CARS
MARKET
SHARE(
%)
(MARKET
SHARE)^
2
Maruti
Suzuki
45.4
2061.16
Hyundai
14
196
Tata
Motors
12.3
151.29
Mahindra
6.8
46.24
General
motors
3.9
15.21
Toyota
3.1
9.61
Honda
2.7
7.29
Ford
3.9
15.21
Volkswag
en
2.5
6.25
Others
5.5
30.25
HHI
100
2538.51
Market share-2013
CARS
MARKET
SHARE
( %)
(MARKET
SHARE)^2
Maruti
47.26
2233.5
Hyundai
16.34
266.99
Mahindra
8.50
72.25
Honda
7.40
54.76
Tata
6.01
36.12
Toyota
5.14
26.42
Ford
2.61
6.81
Chevrolet
1.67
2.78
Renault
1.50
2.25
Volkswagon
1.25
1.56
Nissan
0.86
0.74
Datsun
0.65
0.42
Skoda
0.56
0.31
Fiat
0.26
0.067
HM mitsibushi
0.00
0.00
HHI
100
2704.9
2015
Total
189725
HHI
2160.39
0
234.396
65.124
62.884
32.947
GLOBAL SCENARIO
Around three-fourths of the global production is being carried out in top 10 producing
countries, in 2007. Of these, Japan, USA and China, cumulatively constitute over 40% of global
production.
India ranks 8th in the production of commercial vehicles and is ahead of countries like Brazil,
Germany, France and Turkey.
Addressing the Challenge of Volatility in Fuel Prices. One of the major challenges of the world
automotive industry is the volatile oil prices.
The year 2008 witnessed crude oil prices breaching the US $ 140 mark per barrel, and
thereafter slipped below US $ 40, in the later part of the year.
The volatility in oil prices does not directly affect the growth in automotive industry; however,
volatility in oil prices is one of the influential factors in automobile demand.
Automobile industries in
the world
Conclusion
Despite economic slowdown, the Indian automobile sector has shown
high growth. The passenger vehicle market, which constitutes around
80% of automobile sales, has immense growth potential as
passenger car stock stood at around 11 per 1,000 people in 2008.
Anticipating the future market potential, the production of passenger
vehicle is forecasted to grow at a CAGR of around 10% from 2009-10
to 2012-13.