The Indian automobile industry manufactures over 11 million vehicles per year, exporting about 1.5 million. Two wheelers have over 75% market share, while passenger cars have 16%. Commercial vehicles and three wheelers split the remaining 9% of the market. Tata Motors leads commercial vehicles with 64% share, while Maruti Suzuki leads passenger vehicles with 46% share. Hero MotoCorp has over 41% of the two wheeler market. GST implementation reduced cascading taxes and simplified compliance for the industry.

1. AUTO MOBILE INDUSTRY
INDIA

2. OVERVIEW
• The Indian automobile industry manufactures over 11 million vehicles and
exports about 1.5 million each year
• The dominant products of the industry are two wheelers with a market
share of over 75% and passenger cars with a market share of 16%
• Commercial vehicles and three wheelers share about 9% of the market
share between them about 91% of the vehicles sold are used by households
and only about 9% for commercial purpose

3. History
• In 1897, the first car ran on an Indian road.Through the 1930s, cars were
imports only, and in small numbers. An embryonic
automotive industry emerged in India in the 1940s. Hindustan Motors was
launched in 1942, long-time competitor Premier in 1944, building Chrysler,
Dodge, and Fiat products respectively.

4. Leading players
• Tata motor is the leading the commercial vehicles segment with a share of
about 64%
• Maruti Suzuki is leading the passengers vehicles segment with a share of
46%
• Hero moto crop is occupying over 41% and sharing 26% of the two wheeler
market in India
• Bajaj auto in itself is occupying about 58% of the three wheelers market

6. Demand factors affecting automobile
• Higher the price of automobiles, lower the demand would be.
• Availability of finance option makes it affordable for consumers who don’t
have enough money in hand and hence increases demand.
• Better the presence and quality of public transport, lower will be the demand
for private vehicles.
• Demand for petrol and automobiles move together. Hence higher the price of
petrol, lower will be the demand for automobiles.
• If income distribution among the population favours the rich class,
automobiles will be more in demand.

7. Supply factors affecting automobile
• Higher the price of automobiles, higher will be the supply.
• Higher cost of inputs (rubber, steel, labour, machinery etc) would lead to decline in
production of automobiles.
• Technological advancement would make production more profitable and hence
would favour production.
• Taxes Change in government policies which are pro automobile industry like
reduction in road tax, reduction in custom duty over import of raw materials
needed for manufacturing cars etc would increase supply of automobiles in the
market.

8. Average age of Indians
• India has more than 50% of its population below the age of 25 and more
than 65% below the age of 35
• It is expected that in 2020 the average age Indian will be 29 ,compared to 37
for china and 48 for japan

10. TOP STOCKS INCLUDED IN NIFTY AUTO
• Bharat forge ,
• Bosch,
• Eicher motors,
• Maruti Suzuki,
• Tata motors,
• TVS , and many more

11. MAKE IN INDIA

12. Make in India
• The industry has attracted Foreign Direct Investment (FDI) worth US$ 17.40
billion during the period April 2000 to June 2017
• . Major markets in Latin America and Africa continued to reel under high
inflation and currency devaluation thereby impacting demand for vehicles
exported from India.
Category 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
PassengerVehicles 5,08,783 5,59,414 5,96,142 6,21,341 6,53,053 7,58,830
CommercialVehicles 92,258 80,027 77,050 86,939 1,03,124 1,08,271
Three Wheelers 3,61,753 3,03,088 3,53,392 4,07,600 4,04,441 2,71,894
Two Wheelers 19,75,111 19,56,378 20,84,000 24,57,466 24,82,876 23,39,273
GrandTotal 29,37,905 28,98,907 31,10,584 35,73,346 36,43,494 34,78,268

13. INFLATION
Automobile industry

14. How Inflation AffectsThe Car Industry
• As the cost of for manufactures rises invariably means that these costs have
to be covered and it is usually the consumer who’s paying for it through
increased prices. As a result the cost of car finance also goes up.

15. Causes for inflation
• New safety regulations inflicted on the car industry are contributing to
inflation increase and pushing up rates of car finance.
• New emission limits increase costs even further so in response these are
passed on to consumers.
• In previous occasions of high inflation car manufacturers have tried to deal
with the problem by extending bill payment plans from 24 months to 36
months.

16. Goods And ServicesTax

17. Positive Effects Of GST
• No differentiation of tax cost for the consumer when procuring the vehicles
from another state. This will reduce incidences of tax evasion which occur
due to consumers buying vehicles from states other than where they reside.
• multiple levels of taxation, elaborate tax compliance obligations, and
cascading taxes will be a thing of the past. A simplified and fully-automated
tax mechanism ensures better compliance.
• Reduce the cost of manufacturing due to the subsuming of different taxes
levied in the past. Since the taxes will be charged on supply, and
consumption state, rather than the origin state,

18. NEWS