2. Profile of the Automotive
Industr y
Profile of the Automotive Industry Size of
around USD 34 billion in 2006 The industry
has grown at a CAGR of 14% p.a over the
last 5 years, with total sales of vehicles
reaching around 9 million vehicles in 2005-
06 The Indian auto industry has the
potential to emerge as one of the largest in
the world. Presently, India is 2nd largest
two wheeler market in the world 4th largest
commercial vehicle market in the world
11th largest passenger car in the world and
Technology driven growth
3. Player s in the Auto industr y
Players in the Auto industry GM Toyota
Ford Hyundai Maruti Suzuki Honda Skoda
Volvo Mercedes Tata Motors Mahindra &
Mahindra Bajaj Auto TVS Motors Hero
Honda Bajaj Tempo Ashok Leyland The
auto industry is highly competitive with a
number of global and domestic auto
companies present in the country.
Technology driven growth
4. Cur r ent Scenario
Current Scenario 5th largest commercial
vehicle manufacturer in the world 4th
largest car market in Asia - crossed the 1
million mark Unlike the USA, the Indian
passenger vehicle market is dominated by
cars (79%) India became the fastest
growing car market in the world in 2004,
growth rate of 20% India is the second-
biggest market for small cars after Japan.
Technology driven growth
5. Passenger Vehicle Cluster s in
India
Passenger Vehicle Clusters in India
Mumbai-Pune-Nasik Aurangabad Pithampur
Rajkot-Halol Chennai-Bangalore-Hosur
Hyderabad Jamshedpur Kolkata Delhi-
Gurgaon-Noida-Ghaziabad Hindustan
Motors Honda SIEL Maruti Suzuki Tata
Motors .
Skoda Tata Motors West Ford Hindustan
Motors Hyundai Mahindra & Mahindra
Toyota Kirloskar Volvo South Tata Motors
Hindustan Technology driven growth
Motors East.
6. Demand Driver s
Demand Drivers The growth in domestic
demand is driven by a number of factors
including: Overall economic growth Rising
income levels Low cost of finance and easy
availability of finance Increased consumer
awareness Closer linkages with global auto
trend leading to introduction of
contemporary models Government’s
specific policy initiatives such as lower
excise duties on smaller cars Increased job
demands Growth of satellite towns Onset
Technology driven growth
7. Future Trends
Future Trends Individual buyers, lease
rental-based bulk buyers for high volume
growth More importance to fuel efficiency,
adaptability with road condition, heavy
traffic Not many crave a status symbol
small car is the choice of the hour
Government regulations favouring
manufacturing of small cars The
development of a vibrant used car market
will drive the growth of new car and UV
sales by Helping owners: Dispose old car;
Upgrade to a new car Creating potential
customers for new cars: Used car owners
upgrade to new modelsgrowth
Technology driven Demand from two-
8. Production & Sales of cars since 2001 to
2010
Passenger Cars: { Maruti, Hyundai, Honda, Fiat, Tata, Volkswagen, BMW,
Toyota, Mercedes Benz, Nissan, Skoda, M&M, Audi, General Motors }
Year Production Sales
2000-2001 504654 590647
2001-2002 564126 570473
2002-2003 557709 611715
2003-2004 781764 821534
2004-2005 960505 980595
2005-2006 1045881 1052287
2006-2007 1238032 1269153
2007-2008 1416480 1413395
2008-2009 1516791 1551012
2009-2010 1926484 1968497
Total 10829308 10829308
Technology driven growth
9. Trend of Sales of passenger cars from 2001 to 2010
Technology driven growth 9
10. Market Share of all passenger cars
since 2001-2010
Technology driven growth 10
