Nidhi Singh Bm Assignment

8/3/2019 Nidhi Singh Bm Assignment

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A survey of Indian car market

with special reference to TATA


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INDUSTRY OVERVIEW

y The Automobile industry in India is one of the fastest growingindustry.

y India's passenger car and commercial vehicle manufacturing industryis the seventh largest in the world, with an annual production of morethan 3.7 million units in 2010.

y

According to the Society of Indian Automobile Manufacturers,annual vehicle sales are projected to increase to 5 million by 2015and more than 9 million by 2020.

y The dominant products of the industry are two wheelers with amarket share of over 75% and passenger cars with a market share ofabout 16%.

yCommercial vehicles and three wheelers share about 9% of themarket between them.

y About 91% of the vehicles sold are used by households and onlyabout 9% for commercial purposes


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CAR SEGMENT OF THE INDIAN

AUTOMOBILE INDUSTRY

y A huge market for quality and stylish cars, new makes and models isclearly visible in India.

y The majority of India's car manufacturing industry is based aroundthree clusters in the south, west and north.

y The southern cluster near Chennai is the biggest with 35% of the

revenue share.y The western hub near Maharashtra is 33% of the market.

y The northern cluster is primarily Haryana with 32%.

y Chennai accounts for 60% of the country's automotive exports.

y Gurgaon and Manesar in Haryana form the northern cluster where thecountry's largest car manufacturer, Maruti Suzuki, is based.

y The Chakan corridor near Pune, Maharashtra is the western cluster withcompanies like General Motors, Volkswagen, Skoda, Mahindra andMahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and ForceMotors having assembly plants in the area.


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TATA MOTORS

Company Profile :-

y Headquarters - Mumbai.

y TML is currently headed by Ratan Tata.

y Tata Motors manufactures HCV, LCV,

Passenger cars, MUV and Military Vehicles.

y Global operations - UK, South Korea, Thailand and Spain.

y TML - world's fourth largest truck manufacturer.

worlds second largest bus manufacturer.


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y Market Share: Commercial Vehicles 63.94%, Passenger Vehicles

16.45%.

y Tata Motors Limited is Indias largest automobile company, with

consolidated revenues of USD 14 billion in 2008-09.

y It is the leader in commercial vehicles and among the top three in

passenger vehicles. Tata Motors has winning products in the

compact, midsize car and utility vehicle segments.

y The company is the world's fourth largest truck manufacturer, and

the world's second largest bus manufacturer with over 24,000

employees. Since first rolled out in 1954, Tata Motors as has

produced and sold over 4 million vehicles in India.


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COMPETITORS

Maruti Suzuki India:-

y Market Share: Passenger Vehicles 46.07%.

y Maruti Suzuki India Limited is a subsidiary company of Japanese

automobile and motorcycle manufacturer Suzuki.

y The company offers a complete range of cars from entry

level Maruti 800 and Alto, to hatchback Ritz, A-Star, Swift,Wagon-

R etc.

y It was the first company in India to mass-produce and sell more than

a million cars. It is largely credited for having brought in an

automobile revolution to India.


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Hyundai Motor India:-

y Market Share: Passenger Vehicles 14.15%.

y Hyundai is a global conglomerate company, part of the

Korean chaebol, that was founded in South Korea by one of the most

famous businessmen in Korean history: Chung Ju-yung

y Two of the best-known Hyundai divisions are Hyundai Motor

Company, the world's fourth largest automobile manufacturer by

volume as of January 2011.

y Hyundai branded vehicles are manufactured by Hyundai Motor

Company, which along with Kia comprises the Hyundai Kia

Automotive Group.


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Mahindra & Mahindra :-

y Market Share: Commercial Vehicles 10.01%, Passenger

Vehicles 6.50%, Three Wheelers 1.31%.

y Mahindra & Mahindra is mainly engaged in the Multi Utility

Vehicle and Three Wheeler segments directly.

y The companys domestic Multi Utility Vehicle sales volumes

increased by 3.3%, as against a decline of 7.4% for industryMulti Utility Vehicle sales.

y A record number of 153,653 Multi Utility Vehicles were sold

in the domestic market in 2009 compared to 148,761 MUVs in

the previous year.y Company increasing its market share to 57.2% over the

previous years market share of 51.3%.


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Market Share of Cars


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SWOT ANALYSIS

Strengthy Market leader in Automobile Industry.

y Huge employee base.

y Aggressively acquiring foreign brands to increase its global

presence.

y Produce low price car with low fuel consumption.

Weakness

y Return on Investment on TATA motors shares in low.

y

Has not got a foothold in the luxury car segment in its domesticmarket.

y Not able to meet safety standards in their vehicles.


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Opportunities

y

Advantage of their low cost car by entering into third world countries where people havelow purchasing power.

y Should focus in developing luxury cars.

y Joint ventures in other countries allow TATA motors to easily enter into new market.

Threats

y Have low cost advantage over its competitors, once the competitors find out the low cost

production methodology then there will no competitive advantage

y Major challenge for TATA motors is the rising prices of steel, Aluminum and plastic

which is heavily used in vehicle manufacturing.


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CONCLUSION

y More than 44% of the market share is captured by Maruti and

then 14% by Honda.

y The segment of small cars is captured by Maruti and then

Hyundai.

y Working people choose cars depending upon the fuel efficiency

and budget.

y Majority of the people find the service centers not adequate

depending upon the increasing numbers of cars.

y The segment of commercial cars is captured by TATA.


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THANK YOU

Nidhi Singh Bm Assignment

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