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EVOLUTION OF AUTOMOTIVE INDUSTRY IN INDIA
First phase Second phase Third phase Fourth phase
• 1940’s-first embryonic
automotive industry to
emerge in the pre-
independent India
• 1953-efforts to supply
the automotive industry
with components
• 1950-1970 –annual
growth stagnated -3.5%-
automotive industry did
not kick start
• 1970-automotive
industry began to
witness a relatively
fast growth
• 1970-1980-
Government
interventions by
introducing several
licensing, which in turn
increased the demand
for cars (phase were
growth scenario was
changed)
• 1980-1985-major
change sighted –
Japanese
manufacturer in
India
• Joint venture
scenario with
European and US
firms
• 1985-1990-the
industry marked the
entry of Maruti
Udyog- start of
growing exports
• 1988-2006-
economic reforms
• registered the
triumph of
liberalization
• 1990-1995, Hero
Honda emerged as
major operator of
motorcycle market
• Maruti udyog-
leading passenger
car maker
• 1995-2000, leading
international car
makers entered the
Indian market
Continue…..
• The automotive industry was growing till 2012 – after that there was a great
decline in the industry adding to the overall decline in the growth of the economy
• Report of 2014 –
• Car sales in the country declined by 12.5% in December 2012, the steepest fall in the last four
months—due to high interest rates, rising fuel prices and overall slowdown in economic growth
• Sector variables - new model launches, vehicle price and inter-segment competition, road
connectivity and more, also affect growth
• Market convergence, regionalization and globalization
• Increasingly diversified client aggregate behaviour pattern
• Improved pressure for advanced and adaptability in manufacturing development
• Excess duty was imposed on vehicles in the previous budget
• Lack of technological growth in automotive industry
• Most industries stick on to their old models and released their new models very late
• Tata Motors recorded sales of 569,677 vehicles, a decline of 30.2% over FY 2012-13
• the Company's market share decreasing to 16.6% from 22.1%
• The Company exported 49,922 vehicles, lower by 2.0%, as compared to FY 2012-13
commercial vehicle passenger vehicle
• The Company sold 3,77,909 Commercial
Vehicles (CV), a decline of 29.5% from FY 2012-13
• Representing market leadership share of 54.1 %
in the domestic CV market
Some of the highlights for the year were
• A series of products were launched in this
segment to augment the portfolio of product offerings
and increase market share
• Other activities to stimulate market sentiments –
the pioneering T1 Prima Truck Racing
Championship
• Through this they could market share by 1.6% to
stand at 54.9
• The domestic passenger car industry was
affected –weak sentiments
• Overall growth in the domestic passenger
vehicle industry was negative by 4.7% in FY
2013-14
• Sections affected – passenger vehicle by selling
38.1% lower and utility vehicles and vans by
selling 39.5 % and 33.3% lower than previous
year.
• Company's sales suffered because of new
launches by competitive segment
• various initiatives were taken to improve its
performances such as product refreshes/launch
programmes
Continued….
Exports Jaguar Land Rover
• Export sales of the Company de-grew by
2% to 49,922 vehicles comprising 43,083
units of CVs and 6,839 units of PVs.
• Internal conflict, political unrest and
regulatory changes in South Asia
• Successful year of continued growth in all
markets with overall volumes up by 16%
• Wholesale volumes were 79,307 units for
Jaguar and 350,554 units for Land Rover,
reflecting growth of 37% and 11.6%
respectively
Initiatives:
• Entered new markets like Australia and
Indonesia also prepared to enter Malaysia
• Introducing a host of new products on
existing and new platforms in existing and
new markets
Initiative :
• After-sales customer engagement
initiatives -out by setting up Service
Clinics in various cities.
• More than 10 major Jaguar and Land
Rover product actions in India
• Launch of new aluminium Range Rover
Sport
China – higher market
share -
• Brand management : to improve the capability to distinguish its item from the
competitors
• Client relationship management : aids a business become pay attention on
client needs and desires
• Research and development : focus on R & D ,lead to improvement in
technology
• Focussing on rural marketing : by providing discounts , freebies etc.,
• Vendor management : ultimately to reduce cost
• Old model to be withdrawn and new model to be released
• Providing finance options for customers and increase in price by 1% can be
implemented for all the major companies are planning on a price hike
Government initiative 2014-2015:
• The Government of India has allowed 100 per cent FDI in the automotive
industry through automatic route
• special focus on exports of small cars, multi-utility vehicles (MUVs), two and
three-wheelers and auto components, the automotive sector's contribution to
the GDP
• For small cars, motorcycle, scooters -duty has been reduced from 12 per cent
to 8 per cent.
• For commercial vehicles and SUVs -duty has been reduced from 30 per cent to
24 per cent.
• Duty has also been reduced from 27 per cent to 24 per cent for large-segment
cars, and from 24 per cent to 20 per cent for mid-segment cars.
Thank you …..

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Automotive industry in india

  • 1.
  • 2. EVOLUTION OF AUTOMOTIVE INDUSTRY IN INDIA First phase Second phase Third phase Fourth phase • 1940’s-first embryonic automotive industry to emerge in the pre- independent India • 1953-efforts to supply the automotive industry with components • 1950-1970 –annual growth stagnated -3.5%- automotive industry did not kick start • 1970-automotive industry began to witness a relatively fast growth • 1970-1980- Government interventions by introducing several licensing, which in turn increased the demand for cars (phase were growth scenario was changed) • 1980-1985-major change sighted – Japanese manufacturer in India • Joint venture scenario with European and US firms • 1985-1990-the industry marked the entry of Maruti Udyog- start of growing exports • 1988-2006- economic reforms • registered the triumph of liberalization • 1990-1995, Hero Honda emerged as major operator of motorcycle market • Maruti udyog- leading passenger car maker • 1995-2000, leading international car makers entered the Indian market
  • 3.
  • 4. Continue….. • The automotive industry was growing till 2012 – after that there was a great decline in the industry adding to the overall decline in the growth of the economy • Report of 2014 –
  • 5. • Car sales in the country declined by 12.5% in December 2012, the steepest fall in the last four months—due to high interest rates, rising fuel prices and overall slowdown in economic growth • Sector variables - new model launches, vehicle price and inter-segment competition, road connectivity and more, also affect growth • Market convergence, regionalization and globalization • Increasingly diversified client aggregate behaviour pattern • Improved pressure for advanced and adaptability in manufacturing development • Excess duty was imposed on vehicles in the previous budget • Lack of technological growth in automotive industry • Most industries stick on to their old models and released their new models very late
  • 6. • Tata Motors recorded sales of 569,677 vehicles, a decline of 30.2% over FY 2012-13 • the Company's market share decreasing to 16.6% from 22.1% • The Company exported 49,922 vehicles, lower by 2.0%, as compared to FY 2012-13 commercial vehicle passenger vehicle • The Company sold 3,77,909 Commercial Vehicles (CV), a decline of 29.5% from FY 2012-13 • Representing market leadership share of 54.1 % in the domestic CV market Some of the highlights for the year were • A series of products were launched in this segment to augment the portfolio of product offerings and increase market share • Other activities to stimulate market sentiments – the pioneering T1 Prima Truck Racing Championship • Through this they could market share by 1.6% to stand at 54.9 • The domestic passenger car industry was affected –weak sentiments • Overall growth in the domestic passenger vehicle industry was negative by 4.7% in FY 2013-14 • Sections affected – passenger vehicle by selling 38.1% lower and utility vehicles and vans by selling 39.5 % and 33.3% lower than previous year. • Company's sales suffered because of new launches by competitive segment • various initiatives were taken to improve its performances such as product refreshes/launch programmes
  • 7. Continued…. Exports Jaguar Land Rover • Export sales of the Company de-grew by 2% to 49,922 vehicles comprising 43,083 units of CVs and 6,839 units of PVs. • Internal conflict, political unrest and regulatory changes in South Asia • Successful year of continued growth in all markets with overall volumes up by 16% • Wholesale volumes were 79,307 units for Jaguar and 350,554 units for Land Rover, reflecting growth of 37% and 11.6% respectively Initiatives: • Entered new markets like Australia and Indonesia also prepared to enter Malaysia • Introducing a host of new products on existing and new platforms in existing and new markets Initiative : • After-sales customer engagement initiatives -out by setting up Service Clinics in various cities. • More than 10 major Jaguar and Land Rover product actions in India • Launch of new aluminium Range Rover Sport China – higher market share -
  • 8. • Brand management : to improve the capability to distinguish its item from the competitors • Client relationship management : aids a business become pay attention on client needs and desires • Research and development : focus on R & D ,lead to improvement in technology • Focussing on rural marketing : by providing discounts , freebies etc., • Vendor management : ultimately to reduce cost • Old model to be withdrawn and new model to be released • Providing finance options for customers and increase in price by 1% can be implemented for all the major companies are planning on a price hike
  • 9. Government initiative 2014-2015: • The Government of India has allowed 100 per cent FDI in the automotive industry through automatic route • special focus on exports of small cars, multi-utility vehicles (MUVs), two and three-wheelers and auto components, the automotive sector's contribution to the GDP • For small cars, motorcycle, scooters -duty has been reduced from 12 per cent to 8 per cent. • For commercial vehicles and SUVs -duty has been reduced from 30 per cent to 24 per cent. • Duty has also been reduced from 27 per cent to 24 per cent for large-segment cars, and from 24 per cent to 20 per cent for mid-segment cars.