Automobile industry


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Presentation by students of Chitkara Business School..

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  • Thanks for sharing this informative post. India is the second fastest growing automobile market in the world after China. The Indian automobile Industry is currently growing at a remarkable pace of around 18 % per annum.
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Automobile industry

  1. 1. Presentation on Automobile Industry Group 3 Chitkara Business School Jimmy Narang Sriparnika Madhav Sood Prerna Sanotra Sahil Sharma
  2. 2. Automobile Industry Power Stroke from 1897 and so on…….
  3. 3. History <ul><li>The first car ran on India's roads in 1897 </li></ul><ul><li>Embryonic automotive industry emerged in India in the 1940s. </li></ul><ul><li>Mahindra & Mahindra under license from Willys branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors </li></ul>
  4. 4. Evolution <ul><li>The Independence marked the evolution of Indian automotive industry </li></ul><ul><li>The growth was relatively slow due to nationalisation and the license raj which hampered the Indian private sector </li></ul><ul><li>Maruti Udyog – Japanese & Indian venture firmed the sector </li></ul>
  5. 5. Pillars to Industrial Growth <ul><li>The economic liberalisation in 1991 and the gradual weakening of the license raj </li></ul><ul><li>Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations </li></ul><ul><li>The Indian government chose Suzuki for its joint-venture to manufacture small cars </li></ul><ul><li>Bajaj , Hero Honda , TVS etc emerged as leading two wheeler and three wheeler producers with Hero Honda as largest shareholder </li></ul>
  6. 6. Exports and Data <ul><li>In the year 2009, India rose to be the fourth largest exporter of automobiles following Japan, South Korea and Thailand </li></ul><ul><li>Monthly sales of passenger cars in India exceeded 100,000 units and has since grown rapidly to a record monthly high of 182,992 units in October 2009 </li></ul><ul><li>Predictions made by Ernst and Young have estimated that the Indian passenger car market will have a growth rate of about 12 percent per annum over the next five years to reach the production of 3.75 million units by the year 2014 </li></ul>
  7. 7. Current Status <ul><li>The automobile sector of India is the seventh largest in the world </li></ul><ul><li>The country is the largest manufacturer of motorcycles and the fifth largest producer of commercial vehicles </li></ul><ul><li>Many foreign brands are setting up roots in Indian soil </li></ul><ul><li>India overtook China by emerging as the fourth largest exporter of cars in Asia. </li></ul><ul><li>Recently AutoExpo-11 was a huge success and marked a milestone in Indian Automotive Sector </li></ul>
  8. 8. Market Size Of Automobile Industry <ul><ul><li>Grown at a spectacular rate on an average of 17% for last few years </li></ul></ul><ul><ul><li>Attained a turnover of USD $35.8 billion </li></ul></ul><ul><ul><li>Has provided direct and indirect employment to 13.1 million people </li></ul></ul><ul><ul><li>The projected size in 2016 of the Indian automotive industry varies between $122 billion and $159 billion including USD 35 billion in exports </li></ul></ul>
  9. 9. Major players in India <ul><ul><li>Audi </li></ul></ul><ul><ul><li>BMW </li></ul></ul><ul><ul><li>Chevrolet </li></ul></ul><ul><ul><li>Fiat </li></ul></ul><ul><ul><li>Force </li></ul></ul><ul><ul><li>Ford </li></ul></ul><ul><ul><li>General </li></ul></ul><ul><ul><li>Hindustan </li></ul></ul><ul><ul><li>Honda </li></ul></ul><ul><ul><li>Hyundai </li></ul></ul><ul><ul><li>Lamborgini </li></ul></ul><ul><ul><li>Maruti </li></ul></ul><ul><ul><li>Mahindra </li></ul></ul><ul><ul><li>Mercedes </li></ul></ul><ul><ul><li>Mitsubishi </li></ul></ul><ul><ul><li>Nissan Motors </li></ul></ul>
  10. 10. Cont. <ul><ul><li>Porshe </li></ul></ul><ul><ul><li>Reva </li></ul></ul><ul><ul><li>Rolls – Royce </li></ul></ul><ul><ul><li>San Motors </li></ul></ul><ul><ul><li>Skoda </li></ul></ul><ul><ul><li>Tata </li></ul></ul><ul><ul><li>Toyota </li></ul></ul><ul><ul><li>Volvo </li></ul></ul><ul><ul><li>Volkswagen </li></ul></ul>
  11. 11. Market Shares <ul><ul><li>Tata Motors - Commercial Vehicles 63.94%, Passenger Vehicles 16.45% </li></ul></ul><ul><ul><li>Maruti Suzuki – 46.0 % </li></ul></ul><ul><ul><li>Hyundyi Motors – 14.15 % </li></ul></ul><ul><ul><li>Mahindra & Mahindra - Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three Wheelers 1.31% </li></ul></ul><ul><ul><li>Ashok Leyland - 22 % </li></ul></ul>
  12. 12. Major Challenges <ul><li>Rising oil prices </li></ul><ul><li>Human resource </li></ul><ul><li>Rise in disposable Income </li></ul><ul><li>Highways not up to the mark </li></ul><ul><li>Limited number of component suppliers </li></ul><ul><li>Fall short in product development </li></ul><ul><li>Customer Relationship management </li></ul>
  13. 13. Global Players <ul><li>GM </li></ul><ul><li>Toyota </li></ul><ul><li>Ford </li></ul><ul><li>Hyundai </li></ul><ul><li>Maruti Suzuki </li></ul><ul><li>Honda </li></ul><ul><li>Skoda </li></ul><ul><li>Volvo </li></ul><ul><li>Suzuki Motorcycle </li></ul>
  14. 14. And <ul><li>Mercedes Benz </li></ul><ul><li>BMW </li></ul><ul><li>Volkswagen </li></ul>
  15. 15. Impact of Global Crisis <ul><li>Global vehicle production fell by 3.7% from 2007 to 2008 </li></ul><ul><li>NAFTA and South America were most badly hit </li></ul><ul><li>Employment conditions affected by international trade in motor vehicles and automotive components and parts, flows and stocks of foreign direct investments. </li></ul><ul><li>Difficulty in obtaining loans for car purchase </li></ul>
  16. 16. <ul><li>Value chains were in a dire state </li></ul><ul><li>Plants were shuttered temporarily </li></ul><ul><li>Huge debt loads, high fixed-capital costs, high labor costs, and immense pension and health care commitments to retirees added to the immediacy of the damage. </li></ul><ul><li>The high cost and growing longevity of motor vehicles prompted buyers to postpone purchases </li></ul>
  17. 17. Latest Trends <ul><li>Remote keyless entry </li></ul><ul><li>Drive by Wire </li></ul><ul><li>Electronic suspension </li></ul><ul><li>Adaptive cruise control </li></ul><ul><li>Tire pressure monitoring </li></ul><ul><li>Navigation systems </li></ul><ul><li>Automotive digital electrical systems and onboard networks </li></ul>
  18. 18. Cont <ul><li>CMOS logic gate </li></ul><ul><li>PLDs reduce engineering devlopement time </li></ul><ul><li>Driver assistance applications </li></ul><ul><li>Rear seat entertainment systems </li></ul><ul><li>High definition control systems </li></ul>
  19. 19. Top Executives in the industry
  20. 20. Michael Perschke, Head, Audi India <ul><li>Was general manager </li></ul><ul><li>for Mercedes-Benz </li></ul><ul><li>(1997 – 2000) </li></ul><ul><li>Joined Volkswagen in </li></ul><ul><li>2004 and has worked </li></ul><ul><li>in Audi AG from 2008 </li></ul><ul><li>onwards </li></ul><ul><li>Incharge of its </li></ul><ul><li>European service </li></ul><ul><li>network project </li></ul>
  21. 21. Shinzo Nakanishi, MD & CEO, Maruti Suzuki India Ltd <ul><li>Has been the company's </li></ul><ul><li>non-executive chairman </li></ul><ul><li>since 2002 </li></ul><ul><li>Boosted the company's </li></ul><ul><li>compact car lineup with </li></ul><ul><li>the introduction of MSIL's </li></ul><ul><li>world strategic models – </li></ul><ul><li>the A-star, Ritz, Swift, etc </li></ul><ul><li>Initiated work on Maruti's </li></ul><ul><li>hybrid vehicles </li></ul>
  22. 22. Mr. Han Woo Park CEO & MD ( Hyundai Motors India Ltd) <ul><li>Joined in 1982 in finance department with cost auditing and financial operations </li></ul><ul><li>Joined Hyundai Motor India Limited in 2003 as the Chief Financial Officer </li></ul><ul><li>has a vast experience and understanding of Hyundai Motor India Ltd and the Indian culture and has successfully led his team for the last 7 years </li></ul>Business Administration University of Dankook South Korea