AUTOMOBILE

INDUSTRIES
Presented by: Group 1
Manu Panday
Rahul Sharma
Rakesh Kumar
Pankaj Kumar
Nitesh Kumar
Vivek Chauhan
 INTRODUCTION TO
AUTOMOBILE SECTOR
 The first car rolled out on the streets of Mumbai in 1898.

 The automobile sector is one of the 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.
 In 2009, India emerged as Asia's fourth largest exporter
of automobiles.
INTRODUCTION TO AUTOMOBILE
SECTOR

 Automobile Industry was delicensed in July 1991

with the announcement of the New Industrial Policy.

 100% Foreign Direct Investment (FDI) is

permissible.
 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.
 AUTOMOBILE

2 3 PASSENGE COMMERC
WHEELL WHEELL R IAL
ER ER VEHICLE VEHICLE
2 WHEELER

 Market leader Hero Honda with market share 46%

Indian 2-Wheeler Market

Motorcycle 46% 30% 13% 4% 1% 2% <1% - <1%

- 15% 28% - 2% 46% 9% <1% -

- - 82% - - - 8% 10% -

India is now the second largest two-

wheeler market in the world
HERO HONDA

 Current Share Price Rs.1,785.30.

 Total sales for Q4 stands at  11,86,536 units, growth of

18.9 per cent

 Total unit sales in current fiscal year are 46,00,130

of two-wheelers i.e growth of 23.6 per cent over last
year.
BAJAJ
 Current Share Price Rs.1490.55.

 The company has sold the 2,306,724 nos. from

April 2010 till November 2010.

 The Company has five models to sell i.e Ninja,

Discover, Platina, Pulsur and Avenger.

 Market share in motorcycles fell marginally from

33.5% in 2008-09 to 32.7% in 2009-10.
TVS MOTORS
 Current Share Price Rs.71.15.
 The total number of two wheelers sold by the Company
from April 2010 till November stood upto 1,3,41,106 units.
 The company has got 27% increases in sales in
November 2010.
 Scooter sales increased by 44% with sales of 36,233
units in the current month in comparison with 25,115 units
registered in November 2009.
 The motorcycles continues to grow at 40%.
 Export sales of the company stood at 14,341 units in
November 2010 against 14,008 units registered in
November 2009.

 
 3 WHEELER

 Market leader BAJAJ with market share 68%

 40% of the three-wheelers are used as goods
transport purpose. Piaggio holds 40% of the market
share. Among the passenger transport.
INDIAN 3-WHEELER MARKET

Sub Segments
Scooters
India

60%
68% 24% 2% 1% 3% 3%
Passenger

40%
23% 40% 12% 13% 7% 6%
Goods

India is the largest three-wheeler

market in the world
PASSENGER VEHICLE

• Market leader Maruti with market share 45% and has

complete monopoly in multi purpose vehicles.
 KEY PLAYERS
 
 INDIAN PASSENGER VEHICLE
MARKET

Passenger
Cars 45% 17% 19% - 1% 5% 2% 2% 2% 1% - <1% <1%

Utility
Vehicles 2% 18% 1% 42% 21% 1% 10% 1% <1% - 4% - <1%
Multi
Purpose 100% - - - - - - - - - - - <1%
Vehicles

4th largest Passenger Vehicle

Market in Asia
MARUTI SUZUKI
 Current Share Price Rs.1,413.25.

 The company has 14 models of car available for sale

 Sold a total of 1,12,554 vehicles in November 2010,

growing at 41.6% in the month. This includes the exports of
10,051 units.

 Maruti Suzuki’s volume in the domestic A2 segment grew

by 32.2 %. In the A3 segment the sales volume grew by
27.2 % during the month as compared to sales in
November 2009.

 The company has reached the milestone of 68,543

cumulative exports in this fiscal.
  
TATA PASSENGER VEHICLES 
 Current Share Price Rs.1,247.60
 Passenger Vehicles
 The Tata Motors has launched a new passenger vehicle
called Winger Platinum with a capacity of 7 Passengers
in December 2010.
 The company is the world’s fourth largest truck
manufacturer and second largest in bus manufacturing.
 Export in foreign countries like Europe, South Asia, South
America etc.
 The total sales (including exports) reaches to 16,365 nos.
in the domestic market in November 2010 i.e lowered by
28% 22,671 compared to November last year.
 Cumulative sales and distribution offtake of passenger
vehicles increases by 30% as compare to last fiscal year.
COMMERCIAL VEHICLE

• Market leader Tata Motor with market share 61%

• Tata Motors is also the world's fifth largest medium &
heavy commercial vehicle manufacturer.
 INDIAN COMMERCIAL VEHICLE
MARKET

Medium &
Heavy CV - 61% 24% - 8% - 3% - <1% <1%
Trucks

Buses – L, M
& HCV 40% 30% 7% 5% 10% 6% 1% 1% -
Light & Small
Comm Veh – 59% <1% 32% 4% 3% 3% <1% - -
Trucks

TATA Motors dominates over 60% of the Indian

Commercial Vehicle Market. It is also the World’s
fifth largest Medium & Heavy commercial vehicle
manufacturer.
TATA
 Commercial Vehicles 

 The company’s sales of commercial vehicles in 35,079

nos. a 19% growth compared to 29,408 nos vehicles
sold in November last year.
 LCV sales were 20,376 nos., a growth of 21% over
November last year.
 M&HCV sales stood at 14,703 nos., a growth of 18%
over November last year.
 Cumulative sales of commercial vehicles in the
domestic market for the fiscal were 2,73,650 nos., a
growth of 23% over last year.
 Cumulative LCV sales were 1,56,407 nos., a growth of
15% over last year, while M&HCV sales stood at
1,17,243 nos., lower by 37% over last year.
 ASHOK LEYLAND
 Current Share Price Rs.70.50.
 As compared to the last year sale the company has got 9.6%
growth.
 The total sales (including exports) in current fiscal year till
November 2010 is 56,858 i.e 77% growth over last year.
 The company has increased its domestic selling that reaches to
50,212 nos. i.e a growth of 75.79% over last fiscal year
 The Company has bagged an order for 1,000 buses from the
People’s Leasing Company in Sri Lanka, worth around US $ 26
million,
 the Company’s market share grew marginally and the Company
retained its number one position in this segment.
 The Company has registered a 156% increase in turnover to Rs.
2,347.98 crores (Rs. 918.07 crores) in the quarter ended June 30,
2010.

MAHINDRA & MAHINDRA
 Current Share Price Rs.777.65.

 Incorporated on 2nd October 1945 by two brothers Mr. J

C Mahindra & Mr. K C Mahindra.

 Converted into public limited company in 1955.

 Started with manufacturing General Utility Vehicles.

 Also started manufacturing Tractors and LCV(Light

Commercial Vehicles)
SEGMENTATION OF
AUTOMOBILE INDUSTRY
 Following is the segmentation that how much each sector comprises
of whole Indian Automobile Industry.
INDIAN AUTOMOBILE INDUSTRY
GROWTH

 Gaining from Government stimulus packages, more

demands and lower interest rates on automobile loans the
Indian automobile industry witnessed a phenomenal growth
of 26.41 per cent in the year 2009.
 According to Society of Indian Automobile Manufacturers
SIAM, the total automobile sales in the domestic market was
reported 1114157 units in January 2010 , increasing by
44.9%.
 The data for car sales beats the previous best of 133000
sales recorded in November 2009.
Indian Automobile Industry Growth

 The year 2009 actually turned out to be one of the best

years in the history of the automobile industry in India.

 If the trend continues the same way then Indian will soon
become the second fastest growing automobile market in
the world only after China.

 Passenger Cars grew by 24.75 percent, Utility Vehicles

grew by 21.95 percent and Multi Purpose Vehicles grew
by 37.05 percent during April-January 2010.
 The overall Commercial Vehicles segment registered
positive growth at 30.39 percent during April-January
2010.
DOMESTIC MARKET SHARE
FOR 2009 - 2010
DOMESTIC SALES
 Passenger Cars grew by 24.75 percent, Utility
Vehicles grew by 21.95 percent and Multi Purpose
Vehicles grew by 37.05 percent during April-
January 2010.
 The overall Commercial Vehicles segment
registered positive growth at 30.39 percent during
April-January 2010.
SWOT OF
AUTOMOBILE INDUSTRY
STRENGTHS
• Large domestic market
• Sustainable labor cost advantage
• Government incentives for manufacturing plants
• Strong engineering skills in design.

WEAKNESSES
• High interest costs and high overheads
• Rising cost of production
OPPORTUNITIES
• Commercial vehicles
• 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
 FUTURE PROSPECT OF INDIAN
AUTOMOBILE SECTOR
 Automobile industry expert predicts that by 2050 every
sixth car in the world will be for Indians.
 By 2012 India will take over Japan in sales volumes.

 The government spending on infrastructure in roads and

airports and higher GDP growth in the future will benefit
the auto sector.
 FUTURE PROSPECT OF INDIAN
AUTOMOBILE SECTOR
 By 2050, the country is expected to top the world in
car volumes with approximately 611 million vehicles
on the nation's roads.

 It is said that for every Re 1 spent, the auto sector

returns Rs. 2.24 to the Indian economy.
THANK YOU