Auto market analysis

8/10/2019 Auto market analysis

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INDIAN AUTOMOBILE INDUSTRY


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AUTOMOBILE Industry In India

Pre 1983 1983-1993 1993-2007

Era of globalisationandevolution of India as aglobalmanufacturing hub

Closed market

Growth of market

limited by supply Outdated models Players Hindustan Motors Premier Telco

Ashok Leyland Mahindra & Mahindra

Japanisation - GOI- Suzuki joint venture to form MarutiUdyog Joint ventures withcompanies in commercialvehicles and componentsPlayers Maruti Udyog Hindustan Motors

Premier Telco Ashok Leyland Mahindra & Mahindra

Delicensing of sector in1993 Global major OEMs startassembly in India (Toyota,

GM, Ford, Honda,Hyundai) Imports allowed from

April 2001; alignment ofduty on components andparts to ASEAN levels Implementation of VAT


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Automotive Companies in IndiaMajor Multi-national companiesMajor Indian Companies


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NODAL AGENCIESARAI

Provide research & development, testing,certification and calibration support fordeveloping safe, reliable and eco-friendly

vehicles / componentsSIAM

Apex Industry body representing 44 leading

vehicle and vehicular engine manufacturers inIndia.


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Future Prospects Of IndianAutomobile Industry


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SKODA AUTO SKODA Auto is planning to make India its regional

manufacturing hub. Company plans to start to manufacturing in India from

2010 with a target of 50000 cars a year.

TATA MOTORS

TATA motors plan to manufacture 80000 units of its NANOcar in Pantnagar plant in UTTARAKHAND.

The Mother facility in SANAND, Gujrat may be fully

functional by 2010-11 with a capacity of 1.5 lakhs/year


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RENAULT RENAULT has entered into partnership with NISSAN Motors

to setup a manufacturing unit near Chennai. Project costs around $ 901.35 millions and having Capacity

of 4lakh cars /year

HONDA MOTORS Investing US $ 250 million in a new plant in Rajasthanwith capacity of 60,000 car per year

First car to rolled out in 2009


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TOYOTA KIRLOSKAR Toyota-Kirloskar motors planning to launch its own small

car in India by 2011

GENERAL MOTORS

New Capacity to manufacture small cars at its Talegaon,Maharashtra plant with 80% local input.

Brought in Spark small car in 2007


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Why India?


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The Indian Auto Components Market

Original Equipment Manufacturers(OEMs)

Replacement Parts Production andDistribution : e.g. Air filters, oil filers and

replacement lights Rubber Fabrication : tyres, hoses, belts

etc. Estimated component market size is US$

6.7 bn

The exports of auto components industryhas grown at a rate of nearly 30 per centCAGR over the last four years.


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The Indian Auto Components Market


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Composition Of Indian Auto Exports


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PEST ANALYSIS OF INDIANAUTOMOBILE INDUSTRY


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POLITICAL

Indian govt. launched AUTO POLICY for its SelfSustained growth.

Allowed Foreign Equity Investment up to 100%

Formulation of FUEL POLICY

Promotes for Vehicles propelled by AES


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ECONOMIC

Weighted Tax Deductions up to 150% for inhouse R&D activities.Reduced Interest rates for export financing.Economy has grown over 8.5% per annum forlast 5 years.Manufacturing sector has grown 8-10 % forlast few years.More than 90% CV purchase is on credit.


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SocialChanged Lifestyle of people leads to increased purchase of

Automobiles

The Average family size is 4 which makes it favorable to buy a fourwheeler.

4 th largest economy on PURCHASING PARITY INDEX

Increase in per capita income levels

Indian Customers are Highly educated and well informed and theyare price sensitive.

Preference for small and compact car

Preference for Fuel efficient cars with low maintenance


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TECHNOLOGICAL

More & more emphasis on R&D.Govt is promoting NATRIP(NationalAutomotive testing and R&D InfrastructureProject) to support the growth of Autoindustry in India.Customized solutions (Designer cars ets)canbe provided with proliferation of technology.With Entry of global brands both product andproduction process has been improved.


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SWOT ANALYSIS OF INDIANAUTOMOBILE INDUSTRY


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STRENGTHS

Automobile industry is established andEvergreen industry.

India is the strongest player in small car segment

Indian Companies are best cost innovators

Assembly line manufacturing, and JIT inventory management,the automotive industry has been able to achieve significantgains in productivity.

Exceptional human resource base


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WEAKNESS

India lack proper infrastructural facilities

Poor after sales service

the automotive industry lags behind other

sectors such as IT and financial services inmanagement training, reward

and retention.


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OpportunitiesSmall cars is a future

Green cars

Auto financing

Royalty through Patents


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THREATS

Global Crisis

Companies not focusing on R & D are undergreat risk

High competition from foreign players

Lack of technology for Indian companies

I Of Gl b l R i


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Due to liquidity crunch buyersstayed away

Mahindra & Mahindrarecorded a fall of about 40%,Tata Motors showed 12%decline in the car sales.

resulted into less production

Job Cuts

Impact Of Global Recession


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INDIAN SUCCESS STORIES


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TATA INDICA


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Scorpio Success Story


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Indias First Indigenously Developed SUV

It Was Designed To Target Urban Market To Fulfill TheDemand Of Passenger Car As Well As SUV Fans AndHaving Comfort And Elegance

The UVs Design Fall Between Passenger Car And SUVCalled Car Plus


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Why the project launched ?

From the year 1992company faced

tremendous competition specially fromTelco.

The sale from 1994 to 1997 wasTata Sumo- 100000 units and M&M UV-26321 units

M&Ms vehicles are more suitable forrough terrain than on urban road, worksagainst it

Took benefit of the small size UV marketwhich is 15% of total vehicle marketcompared to Asian average (40%)

D l t f S i


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Development of ScorpioMade survey and collect customer preferenceand perception for designee and feature .Introduction of Quality FunctionDevelopment(QFD) Process.Created a benchmark according to world class

SUVsa) Big sizeb)Latest technology

c)Affordable Priced)Have thrill and passion in drivinge)Have Luxuryf)International vehicles defined image


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It Was Launched With Three Models.1000 Units Were Booked Within The Launch OfFirst Week.In 2003 Companies Income Rose By 22%.

Breaking The Tradition Of UV, Scorpio Is BeingUsed Primarily As Personal Vehicle.Survey In 2004 Shows That Scorpio Buyers Were

Satisfied.It Extensively Tested, so It Has No Run TimeDefect After Launching In Market.

Launching Scorpio


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Conclusion

Thus Scorpio has proved as a Milestone forM&M and the Indian Automobile Industry. Ithas given a unique place To M&M in Indianmarket because ,It was innovated with HighQuality, Reliability, Flexibility, Style, DrivingComfort etc.

In short it offered a customized product.hence, again Operations components: Time,quality & technology made A Success story.

CAREER OPTIONS AFTER MBA


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CAREER OPTIONS AFTER MBAIN

AUTOMOBILE SECTOR


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CHENNAI IS CALLED AS DETROIT OF INDIA


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Opportunities for All

Stream Designations OfferedHR HR Manager, Personnel Manager,

Compensation Analyst.

Marketing Sales Manager, MarketingManager, Product manager

Operations Production Manager, PurchaseManager, Inventory Manager

Finance Financial Analyst, Risk Manager.


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Interested in & around Mumbai?MUMBAI: MAHINDRA AND MHINDRA.

PUNE: TATA MOTORS, TELCO, FORCE

MOTORS,LUCAS TVS, MAHINDRA &MAHINDRA,VOLKSWAGON, GM,DAIMLER CHRYSLER,FIAT INDIA,BAJAJ AUTO,EICHER,KINETIC, BAJAJ TEMPO,HERO HONDA MOTORSLTD,PIAGGIO,PREMIER Ltd,Besides This Many Auto ComponentIndustries in Pune.


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Auto market analysis

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