3. How did it started?
• The automobile as we know it was not invented inThe automobile as we know it was not invented in
a single day by a single inventor -it evolveda single day by a single inventor -it evolved
gradually over a period of time. Before thegradually over a period of time. Before the
invention of the motor engine, some ran on steam,invention of the motor engine, some ran on steam,
and such machines were slow and heavy. The firstand such machines were slow and heavy. The first
motor cars that were petrol driven were producedmotor cars that were petrol driven were produced
during the 1880's by German engineer Karl Benz.during the 1880's by German engineer Karl Benz.
• In the 1930'scars were hand made by skilledIn the 1930'scars were hand made by skilled
craftsmen and cost more than 1,000 pounds, acraftsmen and cost more than 1,000 pounds, a
huge sum of money. It was Henry ford whohuge sum of money. It was Henry ford who
introduced the moving assembly line, in whichintroduced the moving assembly line, in which
workers add parts to the cars as they passedworkers add parts to the cars as they passed
along. This made it possible to manufacture carsalong. This made it possible to manufacture cars
quickly and cheaply, and made cars affordable forquickly and cheaply, and made cars affordable for
ordinary people.ordinary people.
4. How did he make enoughHow did he make enough
• By 1918, half of all cars in America were Model
• To meet the growing demand for the Model T,
the company opened a large factory at
Highland Park, Michigan, in 1910.
• Here, Henry Ford combined precision
manufacturing, standardized and
interchangeable parts, a division of labor, and,
in 1913, a continuous moving assembly line.
5. The Model T
6. What’s an Industry?
1. Systematic labor especially for some
useful purpose or the creation of something
2. A department or branch of a craft, art,
business, or manufacture; especially : one
that employs a large personnel and capital
especially in manufacturing.
3. a distinct group of productive or profit-
7. Automobile Industry?
• It involves systematic labor to
– • It employs a very large personal and
has a large capital. Capital is seen in this
instance as other assets, be it money or
goods, which can be added to the long-
term net worth of a company.
– •The automobile industry involves a lot
of enterprises- such as glass, steel, and
8. T h e n a n d N o w
9. Investment in various sectors
1 2 %
2 6 %
1 5 %
4 7 %
In d ir e c t M a te r ia ls
M a c h in a r y S p a r e s
T o o ls
P o w e r , F u e l & W a te r
10. Segmentation of Automobile
• The automobile industry comprises of
Heavy vehicles (trucks, buses,
tempos, tractors); passenger cars; Two-
wheelers; Commercial Vehicles; and
11. Automotive Companies in India
Major Indian companiesMajor Indian companies Major multi-national companiesMajor multi-national companies
Large domestic market
Sustainable labor cost advantage
Competitive auto component vendor base
Government incentives for manufacturing plants
Strong engineering skills in design etc
Low labor productivity
High interest costs and high overheads make the
Various forms of taxes push up the cost of
Low investment in Research and Development
Rising input costs
Rising interest rates
Cut throat competition