Objective of the study<br /><ul><li>To know that what external factors affects the automobile industry and upto what extent.
To identify the degree of influence of the five most influential factors for the industry.
To identify most suitable strategy after this analysis.</li></li></ul><li>Industry overview<br /><ul><li>Indian automobile industry has grown leaps and bounds since 1898, a time when a car had touched the Indian streets for the first time.
At present it holds a promising sixth position in the entire world with being # 1 in Two Wheelers and # 4 in commercial vehicles.
Withstanding a growth rate of 13% per annum and an annual production of more than 2 million units, it may not be an exaggeration to say that this industry in the coming years will soon touch a figure of 10 million units per year.
It is expected that the Automobile Industry in India would be the 2nd largest automobile market within the year 2015.</li></li></ul><li>Categories of Automobile Industry<br />AUTOMOBILE<br />2 WHEELER<br />3 WHEELER<br />PASSENGER VEHICLE<br />COMMERCIAL VEHICLE<br />
Impact of union budget 2010-11 on auto sector<br /><ul><li>The auto sector has seen significant rise in sales and the 22% rise in sales for April-December 2009 period over the previous year.
The partial roll back of stimulus measures is anticipated very much and so, the rise in excise duty from 8 to 10% across board
The hike in excise duty on petrol and diesel may weigh negative on the auto industry as such. But the rise in disposable income for the consumer is expected to more than compensate for the above negative factors as the demand for passenger vehicles and two wheelers rises.
Neutral for stocks like Ashok Leyland, Mahindra & Mahindra.
Positive for stocks like Hero Honda, Bajaj, Maruti.</li></li></ul><li>Porter’s five forces analysis<br />
Maruti suzuki india ltd.<br />Maruti Suzuki India Limited is a publicly listed automaker in India. <br />It was the first company in India to mass-produce and sell more than a million cars. <br />It is the market leader in India and on 17 September 2007, Maruti Udyog was renamed Maruti Suzuki India Limited.<br />
swot analysis of maruti suzuki<br />STRENGTHS<br />Established distribution and after-sales networks <br />Understanding of the Indian market and ability to liaison with the government<br />Ability to design products with differentiating features<br />Brand Image<br />Large product line <br />WEAKNESSES<br /> Foreign competitors with deep pockets<br /> Heavy Import tariffs<br />
OPPORTUNITY<br /> Increased purchasing power of Indian middleclass category<br />Govt. subsidies<br />Foreign collaboration<br />THREATS<br />Threats from Chinese manufacturers<br />Indian as well as foreign competitors<br />
conclusion<br />They should come up with small cars like of Nano’s segment.<br />Repositioning of that model as a second car and beginners car.<br />Increased IT-enabled Automobile support systems like GPS,ABS,ASR and Safety systems.<br /> Alternate fuel (Bio fuel, electricity) and environment friendly green engines (Bharat emission norms).<br />They have to meet challenges of newer technologies, alternative fuels and affordability of automobiles by consumers.<br />