Paper: Business Environment Lesson: Business Environment: An ...
Automobile Business Environment
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Transcript of Automobile Business Environment
INTRODUCTION
Contribute about 5 percent in India’s gross Domestic Product
Indian automobile industry manufactures over
11 million vehicles and export about 1.5 million each year.
The Indian industry has turn over more than USD$35.8 billion .
India is the 6th largest passenger car and commercial vehicles industry in world.
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CONTD…
The industry also provides direct and indirect employment to over 13.1 million job.
5 percent of India's industrial production
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HISTORY
The first car ran on the road in1897.
Till,1937 car were imported directly.
Earlier only two major car manufacturers, Hindustan Motor Limited(HML) and Premier Auto Limited(PAL).
These two industry producing average 33000 cars per annum.
In India auto mobile scenario changed with the entry of Maruti Udyog limited.
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Pillar to growth of Automobile
industry
The economic liberalization in 1991 and the gradual weakening of the license raj.
The automobile sector was official to FDI in1996.
In 1998 Korean auto giant Hyundai invested a hefty $614 million assembled a plant in Chennai.
By 2002 Honda, Toyota, GM, Ford and Mitsubishi set up manufacturing bases in India.
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CONTD…
Tata Motors, Maruti Suzuki and Mahindra and Mahindra expanded their domestic and international operations.
in 2002-2003 Maruti exported 32240 car, Hyundai exported 30000 cars.
According to the SIAM , passenger car exports in 2002-03 were 69973 units
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PRODUCTION
Year Total vehicles production
%Change
2011 3,926,517 10.4
2010 3,557,073 34.7
2009 2641,550 13.25
2008 2,332,328 3.35
2007 2,253,999 10.39
2006 2,019,808 19.36
2005 1,628,755 7.22
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Automobile Exports
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Type of vehicles
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
Passengervehicles
198,452 218,410 335,739 446,145 453,479
Commercial vehicles
49,537 58,994 42,673 45,009 76,297
Threewheeler
143,896 141,225 148,074 173,214 269,997
Two wheeler
619,644 819,713 1,004,174
140,058 1,539,590
Total 1011529 1238342 1530660 2064426 2339363
Research and Development
Recent R&D by Automotive Research Association of India(ARAI) focusing:
Power train
Structural Dynamics
NVH
Electronics
Material
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TATA MOTORS
Leader in commercial market and top 3 in passenger vehicles.
Market share in Commercial vehicles is 63.94% and in passenger vehicles is 16.54%.
Tata motors has operations in U.K, South Korea, Thailand and Spain.
Tata Motors acquire Jaguar land rover in 2008.
Since,1954 Tata motors produces and sales 4 million vehicles in India.
In march 2009, Tata motor produced people cars, TATA NANO
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Maruti Suzuki
Maruti Suzuki India Ltd. A subsidiary of Suzuki Motors corporation of Japan.
Market share in passenger vehicles is 46.07%.
Maruti Suzuki produces complete range of cars Maruti 800 and Alto to Swift, Waganor, SX, and SUV Grand Vitra.
Since 1983, Suzuki produces about 10 million vehicles in India and export 500,000 unit In Europe and other countries.
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HYUNDAI MOTORS LIMITED.
Hyundai Motors India Ltd. is 5th largest automobile company.
Hyundai motors is no.1 exporter of passenger car of the country.
The market share on passenger vehicles is 14.05%.
Hyundai produces 49 variants of passenger car across segment.
Hyundai Motors currently exports car to more than 110 countries across EU, Africa, Middle East Latin America and Africa.
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CHALLANGES
Achieving faster development cycles
Developing Cost-effectiveness and flexible solution
Meeting quality and safety requirement .