129722045 project-on-automobile-industry
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129722045 project-on-automobile-industry



automotive industry

automotive industry



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129722045 project-on-automobile-industry 129722045 project-on-automobile-industry Document Transcript

  • INTRODUCTIONThe automotive industry is a term that covers a wide range of companies and organisationsinvolved in the design, development, manufacture, marketing, and selling of motorvehicles, towed vehicles, motorcycles and mopeds. It is one of the worlds mostimportant economic sectors by revenue. The automotive industry is increasingly becomingthe cynosure of the manufacturing sector across the globe. The industry has been evolvingover the years, meeting up with challenges as diverse as transitions, consolidations andrestructuring, and thereby adapting to the new market conditions.Automotive industry is the key driver of any growing economy. It plays a pivotal role incountrys rapid economic and industrial development. It caters to the requirement ofequipment for basic industries like steel, non-ferrous metals, fertilisers, refineries,petrochemicals, shipping, textiles, plastics, glass, rubber, capital equipments, logistics, paper,cement, sugar, etc. It facilitates the improvement in various infrastructure facilities likepower, rail and road transport. Due to its deep forward and backward linkages with almostevery segment of the economy, the industry has a strong and positive multiplier effect andthus propels progress of a nation. The automotive industry comprises of the automobile andthe auto component sectors. It includes passenger cars; light, medium and heavy commercialvehicles; multi-utility vehicles such as jeeps, scooters, motor-cycles, three wheelers, tractors,etc; and auto components like engine parts, drive and transmission parts, suspension andbraking parts , electrical, body and chassis parts; etc.In the last few years, the world automotive industry has changed its locational preferencesdue to various reasons. Earlier, the automotive industry was largely confined to the triad -North America, Europe and Japan; however, with the emergence of some vibrant developingeconomies, like Brazil, India and China, the global automotive industry has been consideringa different growth perspective, and has been relocating the operations. These growingdeveloping economies has been evolving as the manufacturing hub, as also the newfoundmarkets, for the global majors like Ford, General Motors, Chrysler, Toyota, Honda, Nissanand BMW, who are competing to enhance their market share in these markets. Increasinggrowth in GDP and the growing disposable income has catapulted these emerging economiesas market for automotives, while the low cost of operations and skills in design and R&Dmade them as destinations for investment and manufacturing operations.
  • AUTOMOBILE INDUSTRY IN INDIA:The Automobile Industry in India is the eleventh largest in the world with an annualproduction of approximately 2 million units. India is expected to overtake China as theworld’s fastest growing car market in terms the number of units sold and automotive industryis one of the fastest growing manufacturing sectors in India. India has become a hugeattraction for car manufactures around the world. The entry of global auto-majors into Indiahas significantly altered the automobile-manufacturing scenario in the country. The changesin design and adaptation of international technologies have enabled the Indian automotiveindustry to compete globally, and thus are also exposed to global challenges. Alongside thechallenges, the trend also presents a plethora of opportunities to Indian automotive industry,which needs to be capitalized, so as to emerge as a successful global playerIn India, Automotive is one of the largest Industries showing impressive growth over theyears and has been significantly making increasing contribution to overall industrialdevelopment in the country. Presently, India is the worlds second largest manufacturer oftwo wheelers, fifth largest manufacturer of commercial vehicles as well as largestmanufacturer of tractors. It is the fourth largest passenger car market in Asia as well as ahome to the largest motor cycle manufacturer. The Automotive Industry directly andindirectly employs million individuals in India. The Industry is valued at about us$34 billioncontributing about 3.1%of India ‘s GDP(nominal)India’s cost competitive auto componentsIndustry is the second largest in the world. The installed capacity of the Automobile sectorhas been 9,540,000 vehicles, comprising 1,590,000 four wheelers (including passenger cars)and 7,950,000 two and three wheelers. The sector has shown great advances in terms ofdevelopment, spread, absorption of newer technologies and flexibility in the wake ofchanging business scenario.The Indian Automotive Industry has made rapid strides since delicensing and opening up ofthe sector in 1991. It has witnessed the entry of several new manufacturers with the state-of-art technology, thus replacing the monopoly of few manufacturers. At present, there are 15manufacturers of passenger cars and multi-utility vehicles, 9 manufacturers of commercialvehicles, 16 of two/ three wheelers and 14 of tractor, besides 5 manufacturers of engines. Thenorms for foreign investment and import of technology have also been liberalised over the
  • years for manufacture of vehicles. At present, 100% foreign direct investment (FDI) ispermissible under the automatic route in this sector, including passenger car segment. Theimport of technology for technology upgradation on royalty payment of 5% without anyduration limit and lump sum payment of USD 2 million is also allowed under automatic routein this sector. The Indian automotive industry has already attained a turnover of Rs. 1,65,000crore (34 billion USD) and has provided direct and indirect employment to 1.31 crore peoplein the country.The growth of Indian middle class, with increasing purchasing power, along with strongmacro-economic fundamentals has attracted the major auto manufacturers to Indian market.The market linked exchange rate, well established financial market, stable policy governancework and availability of trained manpower have also shifted new capacities and flow ofcapital to the auto industry of India. All these have not only enhanced competition in autocompanies and resulted in multiple choices for Indian consumers at competitive costs, buthave also ensured a remarkable improvement in the industrys productivity, which is one ofthe highest in Indian manufacturing sector.The Department of Heavy Industry, under the Ministry of Heavy Industries and PublicEnterprises, is the main agency in India for promoting the growth and development of theautomotive industry. The department assists the industry in achievement of its expansionplans through policy initiatives, suitable interventions for restructuring of tariffs and trade,promotion of technological collaboration and up-gradation as well as research anddevelopment. The department is also concerned with the development of the heavyengineering industry, machine tools industry, heavy electrical industry, industrial machinery,etc.In order to accelerate and sustain advancements in the auto sector, the department hasundertaken several policy measures and incentives. The most important being theannouncement of the Auto Policy of 2002, which aims to establish a globally competitiveautomotive industry in India and double its contribution to the economy by 2010. Anothermilestone in this field has been the launching of the National Automotive Testing and R&D Infrastructure Project (NATRIP) which aims to create core global competencies inautomotive sector and facilitate its integration with the world economy. It seeks to developstate-of -the- art testing, validation and R& D infrastructure in the country with a view tosupport the growth and development effort of the automotive industry to reach international
  • levels. The announcement of Automotive Mission Plan for the period of 2006-2016 is amajor step taken to make India a global automotive hub. The Mission Plan aims to makeIndia emerge as the destination of choice in the world for design and manufacture ofautomobiles and auto components, with output reaching a level of US$ 145 billion(accounting for more than 10% of the GDP) and providing additional employment to 25million people by 2016.All such initiatives indicate that the Indian automotive industry has been emerging as asunrise sector of the economy. It is not only meeting the growing domestic demands, but alsogradually increasing its penetration in the international markets. It has been continuouslyrestructuring itself and absorbing newer technologies in order to align itself to the globaldevelopments and realize its potentialities. Endowed with several advantages like low costand high skill manpower; globally competitive auto-ancillary industry; established testing andR & D centres; production of steel at lowest cost; etc., the industry provide immenseinvestment opportunities. This has instilled confidence in auto manufacturers to faceinternational competition as well as improve quality standards of vehicles with safety normsin the wake of rapidly increasing traffic. Various policy incentives including time boundimplementation of Automotive Mission Plan together with establishment of world classtesting, homologation and certification facilities would ensure Indian automotive industry adistinct edge amongst the newly emerging automotive destinations of the world.^
  • IN KERALAThe automobile segment has witnessed a decade of robust growth in Kerala. Theyears that followed the dawn of the new century saw the introduction of a host of newmodels which were well received by the customers. There is a steady rise in thenumber of trendy cars moving around the streets, regardless of the inadequacies inthe road infrastructure.The replacement cycle of cars has undergone a change . The emerging concept in theautomobile consumer market gets reflected in his observation. People prefer tochange the cars more often than earlier.A large number of customers, who have been replacing their cars after about fiveyears of use, are now opting for a new car after three years on an average, The trendgiven rise to demand for new models with advanced features. “There is a high level ofdisposable income among the prospective buyers”, he says.There has been high growth in the multi-purpose vehicle (MPVs) segment. The 7-10-seater MPVs sold by the company is much in demand and it is growing around 30-35per cent annually, he says. The increased demand is partly because of the exposure tothe vehicle worldwide. Many Keralites working abroad have come across theperformance of the vehicle in the Middle East and Far East.Luxury cars have made an impressive entry into Kerala in recent years. Volkswagen,an internationally recognised manufacturer in the luxury car segment, opened ashowroom in Kochi two years ago. About 1,000 cars have been sold through EVMMotors, the distributor in Kochi, since then. The company has opened two moreshowrooms in Kerala, but Kochi continues to take the lead in sales. Recession has notaffected the Volkswagen sales in Kerala, says Gishul Bose, sales manager.The company sells several models, with a price range of Rs.9.35 lakh to Rs.61.4 lakh.On an average, about 100 cars are sold in Kochi annually, registering a growth rate of40-50 per cent in annual sales, according to him.The story is similar in the case of other brands such as Maruti, Hyundai, Ford, Tata,Chevrolet, BMW, Audi and Volvo. In fact, Kairali Ford, the regional distributors ofFord cars, organised a function in the city to celebrate the sale of 1,000 {+t} {+h} carof the Figo model. The company sold 688 cars in April this year and set anotherrecord of 72 deliveries on a single day. The sales figures of Maruti have been zoomingand the manufacturer has been introducing grand new models at frequent intervals.The latest in the series is the Alto K10, a modified version of the popular Alto.
  • The automobile segment continues to prosper with the banks providing loans at thedoorsteps of the consumers. The trend is set to grow. The sky, and not the road,seems to be the limit for automobiles in Kochi.Maruti leads the packMaruti cars, which created a revolution on the Indian roads, have a strong presencein kerala.Despite the presence of most of the prominent players in the internationalautomobile industry in Kerala, customers continue to choose the brand in largenumbers. Kochi remains one of the top 10 cities in India for Maruti Suzuki IndiaLimited.Even those models having a waiting period are receiving good bookings, according toP.D. Sebastian, chief general manager of Indus Motors, one of the prominent dealersof Maruti cars.The automobile industry has registered rapid growth during the past decade. Theincreasing competition is clearly visible in Kochi. The introduction of new models,24x7 service facility and modernisation of showrooms are part of the growth story.The distributor has increased its presence to over 80 selling points and 34 servicestations across the State. It sold 30,000 cars last year, of which 13,000 were incentral Kerala, with its hub in Kochi. About 3,800 vehicles were sold by thedistributor during the Onam season this year. Popular Automobiles, anotherdistributor, has also registered improved sales. The figures speak volumes of theimpact the brand has on customers in Kochi.
  • PROFILEA.M Motors Private Limited is an authorised dealer for Maruti Udyog Ltd, for Markreting ,Sales, Spares, Maruti genuine accesories, and service of Maruti range of vehicles.A.M. MOTORS began operations in the year 2000 as the authorized dealership for sales andservice of Maruti cars. Apart from sales and service of Maruti cars, A.M. MOTORS alsofacilitates exchange of used-cars and sale of Maruti-certified used-cars through their TRUEVALUE division.A.M MOTORS offers a wide range of value-added products to its customers to provide acomplete solution to their needs. These include Insurance, Maruti Finance, Maruti GenuineAccessories and Extended Warranty.A.M MOTORS is operates in three districts of Calicut, Malappuram and Palakkad and hastwenty branches at Perintalmanna, Manjeri, Tirur, Chemmad, Valanchery, Nilambur,Vengara, Kottakkal, Kondotty, Ponnani, Changaramkulam, Calicut City, Feroke Chungam,Kuttyadi, Thamarassery, Pattambi, Ottapalam, Mannarkad and Cherpalchery.The workshops of A.M. MOTORS are equipped with state-of-the art servicing and collision-repair equipment. A team of dedicated technicians trained at Maruti Suzuki India Limited areavailable to provide after-sales service of international standards.A.M. MOTORS has been adjudged by Maruti Suzuki as a PLATINUM dealer, featuringamong the elite group in the country recognized for the highest levels of quality. Showedsustained improvement in Balanced Score Card performance year on year rising fromBronze-band in 2005-06, to Silver-band in 2006-07, to Gold-Band twice in 2007-08 & 2008-09. Became a PLATINUM dealer for stellar performance in 2009-10. Repeated theperformance in 2010-11 by emerging as PLATINUM PLUS dealerA.M. HONDA is a sister concern. It began operations in 2004. A.M. HONDA is theauthorized dealership for Honda Motorcycles & Scooters (India) Limited.A.M. HONDA islocated at Angadipuram and has branches in Tirur, Kondotty and Manjeri. A.M.
  • HONDA emerged as the all-India runner up for overall excellence in 2010-11 and wasawarded for the same in the All India Dealer Conference held at Bangkok in March 2011.VISCO LUBES is authorized distributor of SERVO brand lubricants of Indian OilCorporation (IOC). VISCO LUBES distributes SERVO brand of lubricants to the retailoutlets of IOC, automobile dealerships and bazaar shops. VISCO LUBES began operations inMalappuram in the year 2002 and expanded to Calicut and Wayanad districts in the year2007.A.M. Petroleum is the retail outlet of Indian Oil Corporation.Malabar Espat and Sun Ferromelt Industries at Kanhangad are the steel plants owned by AMgroup.A.M. Group have also forayed into hospitality business (Meadows Residency at Ooty).