2. HISTORY
◦ In 1897, the first car ran on an Indian road.
◦ An embryonic automobile industry emerged in India in the 1940s.
◦ Hindustan Motors was launched in 1942.
◦ The Indian Automotive industry has emerged as a ‘Sunrise
Sector’ in the Indian Economy.
◦ India is emerging as one of the world’s fastest growing passenger
car markets and 2nd
largest two wheeler manufacturer.
3. FACTS
◦ The auto industry currently contributes 18% to the country's
total excise revenue.
◦ Auto industry generates employment of 13 persons for each
truck, 6 persons for each car and four persons for each three
wheeler and one person for two-wheelers.
◦ Auto industry contributes 25% to the total manufacturing
GDP.
◦ According to Automotive Mission Plan 2006-16 auto industry
turnover was to reach $145 billion by 2016 but it is expected
to be just over US$110 billion, a shortfall of about 25%.
Source: Economictimes.indiatimes.com/auto/industry
4. 0.4 million
units(1982)
0.4 million
units(1982)
0.6 million units(1992)0.6 million units(1992)
11 million units(2007)11 million units(2007)
21.5 million
units(FY14)
21.5 million
units(FY14)
24 million units(FY16)24 million units(FY16)
Before 1982Before 1982
1983-19921983-1992
1993-20071993-2007
2008 onwards2008 onwards
Source: ibef.org
6. Capacity
addition
Launch Of new
models
Marketing &
Advertisement
Marketing &
Advertisement
Catering Indian
needs
• Considering low cost of Production.
• Companies are eying India as an outsourcing hub.
• Considering low cost of Production.
• Companies are eying India as an outsourcing hub.
• India boasts a large population of middle class.
• Most of the firms adapted themselves to cater to this
class.
• India boasts a large population of middle class.
• Most of the firms adapted themselves to cater to this
class.
• Firm focusing on selling out a chunk of profits on
advertisement.
• Making Customers brand conscious.
• Firm focusing on selling out a chunk of profits on
advertisement.
• Making Customers brand conscious.
• In 2015-16, few of the newly launched cars were
Volkswagen Ameo, Mahindra e- Verito, Rolls-Royce…
• In 2015-16, few of the newly launched cars were
Volkswagen Ameo, Mahindra e- Verito, Rolls-Royce…
9. New Product Launches.
Alternative Fuels
New Financing options.
Improving Product Development capabilities.
Source: ibef.org
10. Strengths
◦ Evolving industry.
◦ Continuous product innovation & technological advancement.
◦ Growth shifting to Asian markets.
◦ Increasing demand of VFM vehicles.
◦ Increase in demand of luxury commercial vehicles.
◦ Manufacturing facilities in Asian nations to control cost.
Weakness
◦ Cars recalled.
◦ Bargaining power of consumers.
◦ Growth rate of Automobile industry.
11. Opportunities
◦ Introducing fuel-efficient vehicles.
◦ Introducing fuel-efficient vehicles.
◦ Changing lifestyle & customer groups.
◦ Market expansion.
◦ OEM priorities.
Threats
◦ Intense Competition.
◦ High fixed cost and investment in R & D.
◦ Sluggish Economy.
◦ Volatility in the fuel Prices.