Presentation On: A N A LY S I S O F I N D I A N A U T O M O B I L E I N D U S T R Y PRESENTED BY: • Arpit Bhardwaj • Jalaj Purohit • MD. Tausif Anwar • Ashwani Kumar • Dhairya Gupta • Anish Prasad • Bjlay Tiwari • Neha Upadhyay • Neha Nisha • Khushbu Soni
Objective Overview Objective: Aim of projectEconomy Analysis 1. OverviewIndustry Analysis 2. Aim of the Project & List of top 5 companiesCompany Analysis Conclusion 3. Analysis of Indian Automobile Industry References 4. Fundamental Analysis a. Economy b. Industry 5. Conclusion 6. References
Overview Overview Overview: Aim of projectEconomy Analysis Indian automobile industry has grown leaps and bounds since 1898,Industry Analysis a time when a car had touched the Indian streets for the first time.Company Analysis At present it holds a promising 9th position in the entire world with Conclusion References 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 7th largest automobile market within the year 2016.
Objective Overview AIM OF THE PROJECT: Aim of projectEconomy Analysis The objective of this project is deeply analyzing our Indian AutomobileIndustry Analysis Industry for investment purpose by monitoring the growth rate andCompany Analysis performance on the basis of historical data. Conclusion References The main objectives of the Project study are: Detailed analysis of Automobile industry which is gearing towards international standards Analyze the impact of qualitative factors on industry’s and company’s prospects Application of various Technical Tools and Fundamental tools (like Financial and Non-financial statements).
Companies Overview Top Automotive Companies In Aim of projectEconomy Analysis INDIAIndustry Analysis Leading Companies:Company Analysis Conclusion Maruti Suzuki India References Limited (MSIL) Hyundai Motor India Limited (HMIL) Tata Motors Mahindra & Mahindra Limited (M&M) Hero Motors Limited (HML)
Analysis Overview ANALYSIS OF AUTOMOBILE INDUSTRY: Aim of project India has become a hub of domestic and exports business. TheEconomy AnalysisIndustry Analysis automobile sector has been contributing its share to the shiningCompany Analysis economic performance of India in the recent years. Conclusion To understand this industry for the purpose of investment we need to References analyze it by following four approaches: 1). Fundamental Analysis a. Economy b. Industry 2). Export Analysis 3). Five forces 4). Swot
Fundamental Analysis Overview ECONOMY: Aim of project GDP and Automobile Industry:Economy Analysis In absolute terms, India is 9th in the world in terms of nominalIndustry Analysis factory output(its $1.22 trillion)Company Analysis Conclusion References Data source: India central statistical organization
Fundamental Analysis Overview ECONOMY: Aim of project GDP and Automobile Industry:Economy Analysis The per capita Income is near about Rs38,000 reflectingIndustry Analysis improvement in the living standards of an average Indian.Company Analysis Today, automobile sector in India is one of the key sectors of the Conclusion economy in terms of the employment. References The market value of Automobile Industry is more than US$8 bl. and Contribution in Indian GDP is near about 5% and will be double by 2016. Data source: Google Finance
Fundamental Analysis Overview ECONOMY: Aim of project Recession:Economy Analysis Global recession has hit the Indian auto industry, impact of recession isIndustry Analysis evident now on industry as sales & growth of automobile companies haveCompany Analysis declined. Passenger Vehicles segment registered negative growth. Conclusion References In December 2010, overall production fell by 22 % over the same month last year. The sales in December 2010 for passenger vehicles fell by 13.86% over December 2009. Two Wheelers registered minor growth of 1.85 % during April – December 2010. Although the sector was hit by economic slowdown, overall production increased from 10.85 million vehicles in 2009-10 to 11.17 million vehicles in 2010-11.
Industry Analysis Overview Industry Analysis: Aim of project Segmentation of Automobile Industry:Economy Analysis The automobile industry comprises of Heavy vehicles (trucks, buses,Industry Analysis tempos, tractors); passenger cars; Two-wheelers; Commercial Vehicles;Company Analysis Conclusion and Three-wheelers. References Data Source:http://www.autoindia.com/
Export Analysis Automobile Export: Overview Aim of project 1800000Economy Analysis 1600000Industry AnalysisCompany Analysis 1400000 Conclusion 1200000 References 1000000 Passenger Vehicles Commercial Vehicles 800000 Three Wheelers 600000 Two Wheelers 400000 Grand Total 200000 0
Five Forces Overview Bargaining Power of Suppliers: Aim of project >The industry is comprised of powerful buyers who are generally able toEconomy Analysis dictate their terms to the suppliers.Industry AnalysisCompany Analysis Barriers to entry : Threat of substitutes: Conclusion >The threat of substitutes to >Regulatory framework References the automotive industry is >The startup capital required fairly mild. to establish manufacturing capacity to achieve minimum >The switching cost may be efficient scale is prohibitive. high in terms of personal time, convenience and utility. Automobile Industry Rivalry among Competitors : Buyer/Customer Power : >Rivalry in the Indian auto sector is >Buyer is having bargaining power due intense due to the entry of foreign to low switching costs associated with companies in the market. selecting from among competing brands. >Product being matched in a few months by the competitors
SWOT Strengths(S): Large domestic market Overview Sustainable labor cost advantage Aim of project Competitive auto component vendor baseEconomy Analysis Government incentives for manufacturing plantsIndustry Analysis Strong engineering skills in design etcCompany Analysis Weaknesses(W): Conclusion Low labor productivity References High interest costs and high overheads make the production uncompetitive Various forms of taxes push up the cost of production Low investment in Research and Development Infrastructure bottleneck Opportunities(O): Commercial vehicles: SC ban on overloading Heavy thrust on mining and construction activity Increase in the income level Cut in excise duties Rising rural demand Threats(T): Rising input costs Rising interest rates Cut throat competition
Conclusion Overview Conclusion: Aim of projectEconomy Analysis Indian Automobile has a lot of scope for both two wheelers and fourIndustry Analysis wheelers due to development in infrastructure of the country.Company Analysis According to Indian Statistical Organization the per capita income Conclusion (Rs.38000) is increasing and national income at the rate of 14.4% References which shows potential to buy vehicle in auto industry. The growth rate of Indian Automobile is so fast that by 2016 Indian Industry will be world 7 largest manufacturer in all sections. The Indian auto market is still untapped the majority of the people in country don’t own a four wheeler and all the major auto companies are trying to increase their sales by several moves. By analyzing the current trend of Indian Economy and Automobile Industry we can say that there is lot of scope for growth.
REFERANCES: Books: Any Queries?o Auto Drive Magazine Reference Materials:o The Economic Timeso RBI annual reporto ASSOCHAM reporto India Central Statistical Organization Websites:o http://www.googlefinance.como http://www.autocarindia.como http://www.wheelsunplugged.como http://www.assocham.orgo http://www.wikipedia.como http://www.rbi.org.in Search Engines:o www.google.como www.yahoo.como www.bing.com