Automobile sector in India

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Automobile sector in India

  1. 1. INDIAN AUTOMOBILE INDUSTRY
  2. 2. Automobile Industry <ul><li>Where it has been </li></ul><ul><li>Where its going </li></ul>
  3. 3. Indian automotive industry Pre 1983 1983-1993 1993-2007 <ul><li>Closed market </li></ul><ul><li>• Growth of market limited by supply </li></ul><ul><li>• Outdated models </li></ul><ul><li>Players </li></ul><ul><li>• Hindustan Motors </li></ul><ul><li>• Premier </li></ul><ul><li>• Telco </li></ul><ul><li>• Ashok Leyland </li></ul><ul><li>• Mahindra & Mahindra </li></ul><ul><li>Suzuki, Japan and GOI joint </li></ul><ul><li>venture to form Maruti Udyog </li></ul><ul><li>• Joint ventures with companies in commercial vehicles and components </li></ul><ul><li>Players </li></ul><ul><li>• Maruti Udyog </li></ul><ul><li>• Hindustan Motors </li></ul><ul><li>• Premier </li></ul><ul><li>• Telco </li></ul><ul><li>• Ashok Leyland </li></ul><ul><li>• Mahindra & Mahindra </li></ul><ul><li>Delicensing of sector in 1993 </li></ul><ul><li>• Global major OEMs start assembly in India (Toyota, GM, Ford, Honda, Hyundai) </li></ul><ul><li>• Imports allowed from April 2001; alignment of duty on components and parts to ASEAN levels </li></ul><ul><li>• Implementation of VAT </li></ul>
  4. 4. Automotive Companies in India Major Multi-national companies Major Indian Companies
  5. 5. NODAL AGENCIES <ul><li>ARAI </li></ul><ul><li>Provide research & development, testing, certification and calibration support for developing safe, reliable and eco-friendly vehicles / components </li></ul><ul><li>SIAM </li></ul><ul><li>Apex Industry body representing 44 leading vehicle and vehicular engine manufacturers in India. </li></ul>
  6. 8. Future Prospects Of Indian Automobile Industry
  7. 9. <ul><li>SKODA AUTO </li></ul><ul><li>SKODA Auto is planning to make India its regional manufacturing hub. </li></ul><ul><li>Company plans to start to manufacturing in India from 2010 with a target of 50000 cars a year. </li></ul><ul><li>TATA MOTORS </li></ul><ul><li>TATA motors plan to manufacture 80000 units of its NANO car in Pantnagar plant in UTTARAKHAND. </li></ul><ul><li>The Mother facility in SANAND, Gujarat may be fully functional by 2010-11 with a capacity of 1.5 lakhs/year </li></ul>
  8. 10. <ul><li>RENAULT </li></ul><ul><li>RENAULT has entered into partnership with NISSAN Motors to setup a manufacturing unit near Chennai. </li></ul><ul><li>Project costs around $ 901.35 millions and having Capacity of 4lakh cars /year </li></ul><ul><li>HONDA MOTORS </li></ul><ul><ul><li>Investing US $ 250 million in a new plant in Rajasthan with capacity of 60,000 car per year </li></ul></ul>
  9. 11. <ul><li>TOYOTA –KIRLOSKAR </li></ul><ul><li>• Toyota- Kirloskar motors planning to launch its own small car in India by 2011 </li></ul><ul><li>GENERAL MOTORS </li></ul><ul><li>To manufacture small cars at its Talegaon, Maharashtra plant with 80% local input. </li></ul>
  10. 12. Why India?
  11. 13. GROWTH DRIVERS OF INDIAN AUTO MARKET 2010 <ul><li>Rising industrial and agricultural output </li></ul><ul><li>Favorable demographic distribution with rising working population and middle class </li></ul><ul><li>Urbanization </li></ul><ul><li>Greater affordability of vehicles </li></ul><ul><li>Easy finance schemes </li></ul>
  12. 14. The Indian Auto Components Market <ul><li>Original Equipment Manufacturers (OEMs) </li></ul><ul><li>Replacement Parts Production and Distribution : e.g. Air filters, oil filers and replacement lights </li></ul><ul><li>Rubber Fabrication : tyres, hoses, belts etc. </li></ul><ul><li>Estimated component market size is US$ 6.7 bn </li></ul>
  13. 15. The Indian Auto Components Market
  14. 16. Composition Of Indian Auto Exports
  15. 18. PEST ANALYSIS OF INDIAN AUTOMOBILE INDUSTRY
  16. 19. POLITICAL <ul><li>Indian govt. launched AUTO POLICY for its Self Sustained growth. </li></ul><ul><li>Allowed Foreign Equity Investment up to 100% </li></ul><ul><li>Formulation of FUEL POLICY </li></ul><ul><li>Promotes for Vehicles propelled by AES </li></ul>
  17. 20. ECONOMIC <ul><li>Weighted Tax Deductions up to 150% for in house R&D activities. </li></ul><ul><li>Reduced Interest rates for export financing. </li></ul><ul><li>Economy has grown over 8.5% per annum for last 5 years. </li></ul><ul><li>Manufacturing sector has grown 8-10 % for last few years. </li></ul>
  18. 21. Social <ul><li>Changed Lifestyle leads to Increased demand </li></ul><ul><li>The Average family size is 4 which makes it favorable to buy a four wheeler. </li></ul><ul><li>4 th largest economy on PURCHASING PARITY INDEX </li></ul><ul><li>Preference for small and compact car </li></ul><ul><li>Preference for Fuel efficient cars with low maintenance </li></ul>
  19. 22. TECHNOLOGICAL <ul><li>More & more emphasis on R&D. </li></ul><ul><li>Govt .is promoting NATRIP(National Automotive testing and R&D Infrastructure Project) to support the growth of Auto industry in India. </li></ul><ul><li>Customized solutions (Designer cars ets)can be provided with proliferation of technology. </li></ul><ul><li>With Entry of global brands both product and production process has been improved. </li></ul>
  20. 23. SWOT ANALYSIS OF INDIAN AUTOMOBILE INDUSTRY
  21. 24. STRENGTHS <ul><li>Automobile industry is established and </li></ul><ul><li>Evergreen industry. </li></ul><ul><li>India is the strongest player in small car segment </li></ul><ul><li>Indian Companies are best cost innovators </li></ul><ul><li>Assembly line manufacturing, and JIT inventory management, the automotive industry has been able to achieve significant gains in productivity. </li></ul><ul><li>Exceptional human resource base </li></ul>
  22. 25. WEAKNESS <ul><li>India lack proper infrastructural facilities </li></ul><ul><li>Poor after sales service </li></ul><ul><li>the automotive industry lags behind other sectors such as IT and financial services in management training, reward </li></ul><ul><li>and retention. </li></ul>
  23. 26. Opportunities <ul><li>Small cars is a future </li></ul><ul><li>Green cars </li></ul><ul><li>Auto financing </li></ul><ul><li>Royalty through Patents </li></ul>
  24. 27. THREATS <ul><li>Global Crisis </li></ul><ul><li>Companies not focusing on R & D are under great risk </li></ul><ul><li>High competition from foreign players </li></ul><ul><li>Lack of technology for Indian companies </li></ul>
  25. 28. <ul><li>Due to liquidity crunch buyers stayed away </li></ul><ul><li>Mahindra & Mahindra recorded a fall of about 40%, Tata Motors showed 12% decline in the car sales. </li></ul><ul><li>Resulted into less production </li></ul><ul><li>Job Cuts </li></ul>Impact Of Global Recession
  26. 29. Three Major Players of Automobile(Car) Sector
  27. 30. MARUTI SUZUKI <ul><li>Founded: 1981 (as Maruti Udyog Limited) </li></ul><ul><li>Headquarters: Delhi, India </li></ul><ul><li>Key people: Mr. Shinzo Nakanishi, Managing Director and CEO </li></ul><ul><li>Revenue: US$4.8 billion (2009) </li></ul><ul><li>It offers 14 brands and over 150 variants </li></ul>
  28. 31. WHY MARUTI ??? <ul><li>Sales and service network </li></ul><ul><li>Maruti Insurance </li></ul><ul><li>Maruti TrueValue </li></ul><ul><li>Maruti Driving School </li></ul>
  29. 32. Hyundai <ul><li>Founded: 6 May 1996 </li></ul><ul><li>Headquarters: Chennai, India </li></ul><ul><li>Key people: Mr. H.W. Park, MD </li></ul><ul><li>The second largest car manufacturer in India </li></ul><ul><li>HMIL presently markets 6 models of passenger cars across segments. </li></ul><ul><li>HMIL has set up a modern research and development facility in the cyber city of Hyderabad. </li></ul>
  30. 34. TATA MOTORS <ul><li>Founded in 1945 by JRD Tata </li></ul><ul><li>Headquarters: Mumbai, Maharashtra </li></ul><ul><li>Revenue: $20 billion (2009) </li></ul><ul><li>Key people: Ratan Tata, Chairman; Ravi Kant, Vice Chairman; Carl Peter Forster, CEO </li></ul><ul><li>Tata Motors is a dual-listed company </li></ul>
  31. 35. IMPORTANT DEVELOPMENTS <ul><li>Tata Indica </li></ul><ul><li>Tata Nano </li></ul><ul><li>Compressed Air Car </li></ul><ul><li>Electric Vehicles </li></ul>
  32. 36. CAREER OPTIONS AFTER MBA IN AUTOMOBILE SECTOR
  33. 37. CHENNAI IS CALLED AS “DETROIT” OF INDIA
  34. 38. Opportunities for All <ul><li>Stream Designations Offered </li></ul><ul><li>HR HR Manager, Personnel Manager, Compensation Analyst. </li></ul><ul><li>Marketing Sales Manager, Marketing Manager, Product manager </li></ul><ul><li>Operations Production Manager, Purchase Manager, Inventory Manager </li></ul><ul><li>Finance Financial Analyst, Risk Manager. </li></ul>
  35. 39. Interested in & around Mumbai? <ul><li>MUMBAI: MAHINDRA AND MHINDRA. </li></ul><ul><li>PUNE: TATA MOTORS, TELCO, FORCE MOTORS,LUCAS TVS, MAHINDRA & MAHINDRA,VOLKSWAGON, GM,DAIMLER – CHRYSLER,FIAT INDIA,BAJAJ AUTO,EICHER, KINETIC, BAJAJ TEMPO,HERO HONDA MOTORS LTD,PIAGGIO,PREMIER Ltd, </li></ul><ul><li>Besides This Many Auto Component Industries are in Pune. </li></ul>

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