The automotive industry is a major global economic sector involving the design, development, manufacture, marketing and sale of motor vehicles. The Indian automotive industry has grown rapidly since market liberalization in 1991 and is now one of the largest in the world. In Kerala, automobile sales have seen strong growth in recent decades driven by rising incomes. Popular car brands in Kerala include Maruti, Hyundai, Ford and Volkswagen, with Maruti maintaining a strong market leading position. The AM Group operates multiple automotive dealerships in northern Kerala representing brands like Maruti, Honda and IOC lubricants.

2. INTRODUCTION
The automotive industry is a term that covers a wide range of companies and organisations
involved in the design, development, manufacture, marketing, and selling of motor
vehicles, towed vehicles, motorcycles and mopeds. It is one of the world's most
important economic sectors by revenue. The automotive industry is increasingly becoming
the cynosure of the manufacturing sector across the globe. The industry has been evolving
over the years, meeting up with challenges as diverse as transitions, consolidations and
restructuring, and thereby adapting to the new market conditions.
Automotive industry is the key driver of any growing economy. It plays a pivotal role in
country's rapid economic and industrial development. It caters to the requirement of
equipment for basic industries like steel, non-ferrous metals, fertilisers, refineries,
petrochemicals, shipping, textiles, plastics, glass, rubber, capital equipments, logistics, paper,
cement, sugar, etc. It facilitates the improvement in various infrastructure facilities like
power, rail and road transport. Due to its deep forward and backward linkages with almost
every segment of the economy, the industry has a strong and positive multiplier effect and
thus propels progress of a nation. The automotive industry comprises of the automobile and
the auto component sectors. It includes passenger cars; light, medium and heavy commercial
vehicles; multi-utility vehicles such as jeeps, scooters, motor-cycles, three wheelers, tractors,
etc; and auto components like engine parts, drive and transmission parts, suspension and
braking parts , electrical, body and chassis parts; etc.
In the last few years, the world automotive industry has changed its locational preferences
due to various reasons. Earlier, the automotive industry was largely confined to the triad -
North America, Europe and Japan; however, with the emergence of some vibrant developing
economies, like Brazil, India and China, the global automotive industry has been considering
a different growth perspective, and has been relocating the operations. These growing
developing economies has been evolving as the manufacturing hub, as also the newfound
markets, for the global majors like Ford, General Motors, Chrysler, Toyota, Honda, Nissan
and BMW, who are competing to enhance their market share in these markets. Increasing
growth in GDP and the growing disposable income has catapulted these emerging economies
as market for automotives, while the low cost of operations and skills in design and R&D
made them as destinations for investment and manufacturing operations.

3. AUTOMOBILE INDUSTRY IN INDIA:
The Automobile Industry in India is the eleventh largest in the world with an annual
production of approximately 2 million units. India is expected to overtake China as the
world’s fastest growing car market in terms the number of units sold and automotive industry
is one of the fastest growing manufacturing sectors in India. India has become a huge
attraction for car manufactures around the world. The entry of global auto-majors into India
has significantly altered the automobile-manufacturing scenario in the country. The changes
in design and adaptation of international technologies have enabled the Indian automotive
industry to compete globally, and thus are also exposed to global challenges. Alongside the
challenges, the trend also presents a plethora of opportunities to Indian automotive industry,
which needs to be capitalized, so as to emerge as a successful global player
In India, Automotive is one of the largest Industries showing impressive growth over the
years and has been significantly making increasing contribution to overall industrial
development in the country. Presently, India is the world's second largest manufacturer of
two wheelers, fifth largest manufacturer of commercial vehicles as well as largest
manufacturer of tractors. It is the fourth largest passenger car market in Asia as well as a
home to the largest motor cycle manufacturer. The Automotive Industry directly and
indirectly employs million individuals in India. The Industry is valued at about us$34 billion
contributing about 3.1%of India ‘s GDP(nominal)India’s cost competitive auto components
Industry is the second largest in the world. The installed capacity of the Automobile sector
has been 9,540,000 vehicles, comprising 1,590,000 four wheelers (including passenger cars)
and 7,950,000 two and three wheelers. The sector has shown great advances in terms of
development, spread, absorption of newer technologies and flexibility in the wake of
changing business scenario.
The Indian Automotive Industry has made rapid strides since delicensing and opening up of
the sector in 1991. It has witnessed the entry of several new manufacturers with the state-of-
art technology, thus replacing the monopoly of few manufacturers. At present, there are 15
manufacturers of passenger cars and multi-utility vehicles, 9 manufacturers of commercial
vehicles, 16 of two/ three wheelers and 14 of tractor, besides 5 manufacturers of engines. The
norms for foreign investment and import of technology have also been liberalised over the

4. years for manufacture of vehicles. At present, 100% foreign direct investment (FDI) is
permissible under the automatic route in this sector, including passenger car segment. The
import of technology for technology upgradation on royalty payment of 5% without any
duration limit and lump sum payment of USD 2 million is also allowed under automatic route
in this sector. The Indian automotive industry has already attained a turnover of Rs. 1,65,000
crore (34 billion USD) and has provided direct and indirect employment to 1.31 crore people
in the country.
The growth of Indian middle class, with increasing purchasing power, along with strong
macro-economic fundamentals has attracted the major auto manufacturers to Indian market.
The market linked exchange rate, well established financial market, stable policy governance
work and availability of trained manpower have also shifted new capacities and flow of
capital to the auto industry of India. All these have not only enhanced competition in auto
companies and resulted in multiple choices for Indian consumers at competitive costs, but
have also ensured a remarkable improvement in the industry's productivity, which is one of
the highest in Indian manufacturing sector.
The Department of Heavy Industry, under the Ministry of Heavy Industries and Public
Enterprises, is the main agency in India for promoting the growth and development of the
automotive industry. The department assists the industry in achievement of its expansion
plans through policy initiatives, suitable interventions for restructuring of tariffs and trade,
promotion of technological collaboration and up-gradation as well as research and
development. The department is also concerned with the development of the heavy
engineering industry, machine tools industry, heavy electrical industry, industrial machinery,
etc.
In order to accelerate and sustain advancements in the auto sector, the department has
undertaken several policy measures and incentives. The most important being the
announcement of the 'Auto Policy' of 2002, which aims to establish a globally competitive
automotive industry in India and double its contribution to the economy by 2010. Another
milestone in this field has been the launching of the National Automotive Testing and R
&D Infrastructure Project (NATRIP) which aims to create core global competencies in
automotive sector and facilitate its integration with the world economy. It seeks to develop
'state-of -the- art' testing, validation and R& D infrastructure in the country with a view to
support the growth and development effort of the automotive industry to reach international

5. levels. The announcement of 'Automotive Mission Plan' for the period of 2006-2016 is a
major step taken to make India a global automotive hub. The Mission Plan aims to make
India emerge as the destination of choice in the world for design and manufacture of
automobiles and auto components, with output reaching a level of US$ 145 billion
(accounting for more than 10% of the GDP) and providing additional employment to 25
million people by 2016.
All such initiatives indicate that the Indian automotive industry has been emerging as a
sunrise sector of the economy. It is not only meeting the growing domestic demands, but also
gradually increasing its penetration in the international markets. It has been continuously
restructuring itself and absorbing newer technologies in order to align itself to the global
developments and realize its potentialities. Endowed with several advantages like low cost
and high skill manpower; globally competitive auto-ancillary industry; established testing and
R & D centres; production of steel at lowest cost; etc., the industry provide immense
investment opportunities. This has instilled confidence in auto manufacturers to face
international competition as well as improve quality standards of vehicles with safety norms
in the wake of rapidly increasing traffic. Various policy incentives including time bound
implementation of Automotive Mission Plan together with establishment of world class
testing, homologation and certification facilities would ensure Indian automotive industry a
distinct edge amongst the newly emerging automotive destinations of the world.
^

6. IN KERALA
The automobile segment has witnessed a decade of robust growth in Kerala. The
years that followed the dawn of the new century saw the introduction of a host of new
models which were well received by the customers. There is a steady rise in the
number of trendy cars moving around the streets, regardless of the inadequacies in
the road infrastructure.
The replacement cycle of cars has undergone a change . The emerging concept in the
automobile consumer market gets reflected in his observation. People prefer to
change the cars more often than earlier.
A large number of customers, who have been replacing their cars after about five
years of use, are now opting for a new car after three years on an average, The trend
given rise to demand for new models with advanced features. “There is a high level of
disposable income among the prospective buyers”, he says.
There has been high growth in the multi-purpose vehicle (MPVs) segment. The 7-10-
seater MPVs sold by the company is much in demand and it is growing around 30-35
per cent annually, he says. The increased demand is partly because of the exposure to
the vehicle worldwide. Many Keralites working abroad have come across the
performance of the vehicle in the Middle East and Far East.
Luxury cars have made an impressive entry into Kerala in recent years. Volkswagen,
an internationally recognised manufacturer in the luxury car segment, opened a
showroom in Kochi two years ago. About 1,000 cars have been sold through EVM
Motors, the distributor in Kochi, since then. The company has opened two more
showrooms in Kerala, but Kochi continues to take the lead in sales. Recession has not
affected the Volkswagen sales in Kerala, says Gishul Bose, sales manager.
The company sells several models, with a price range of Rs.9.35 lakh to Rs.61.4 lakh.
On an average, about 100 cars are sold in Kochi annually, registering a growth rate of
40-50 per cent in annual sales, according to him.
The story is similar in the case of other brands such as Maruti, Hyundai, Ford, Tata,
Chevrolet, BMW, Audi and Volvo. In fact, Kairali Ford, the regional distributors of
Ford cars, organised a function in the city to celebrate the sale of 1,000 {+t} {+h} car
of the Figo model. The company sold 688 cars in April this year and set another
record of 72 deliveries on a single day. The sales figures of Maruti have been zooming
and the manufacturer has been introducing grand new models at frequent intervals.
The latest in the series is the Alto K10, a modified version of the popular Alto.

7. The automobile segment continues to prosper with the banks providing loans at the
doorsteps of the consumers. The trend is set to grow. The sky, and not the road,
seems to be the limit for automobiles in Kochi.
Maruti leads the pack
Maruti cars, which created a revolution on the Indian roads, have a strong presence
in kerala.Despite the presence of most of the prominent players in the international
automobile industry in Kerala, customers continue to choose the brand in large
numbers. Kochi remains one of the top 10 cities in India for Maruti Suzuki India
Limited.
Even those models having a waiting period are receiving good bookings, according to
P.D. Sebastian, chief general manager of Indus Motors, one of the prominent dealers
of Maruti cars.
The automobile industry has registered rapid growth during the past decade. The
increasing competition is clearly visible in Kochi. The introduction of new models,
24x7 service facility and modernisation of showrooms are part of the growth story.
The distributor has increased its presence to over 80 selling points and 34 service
stations across the State. It sold 30,000 cars last year, of which 13,000 were in
central Kerala, with its hub in Kochi. About 3,800 vehicles were sold by the
distributor during the Onam season this year. Popular Automobiles, another
distributor, has also registered improved sales. The figures speak volumes of the
impact the brand has on customers in Kochi.

8. PROFILE
A.M Motors Private Limited is an authorised dealer for Maruti Udyog Ltd, for Markreting ,
Sales, Spares, Maruti genuine accesories, and service of Maruti range of vehicles.
A.M. MOTORS began operations in the year 2000 as the authorized dealership for sales and
service of Maruti cars. Apart from sales and service of Maruti cars, A.M. MOTORS also
facilitates exchange of used-cars and sale of Maruti-certified used-cars through their TRUE
VALUE division.
A.M MOTORS offers a wide range of value-added products to its customers to provide a
complete solution to their needs. These include Insurance, Maruti Finance, Maruti Genuine
Accessories and Extended Warranty.
A.M MOTORS is operates in three districts of Calicut, Malappuram and Palakkad and has
twenty branches at Perintalmanna, Manjeri, Tirur, Chemmad, Valanchery, Nilambur,
Vengara, Kottakkal, Kondotty, Ponnani, Changaramkulam, Calicut City, Feroke Chungam,
Kuttyadi, Thamarassery, Pattambi, Ottapalam, Mannarkad and Cherpalchery.
The workshops of A.M. MOTORS are equipped with state-of-the art servicing and collision-
repair equipment. A team of dedicated technicians trained at Maruti Suzuki India Limited are
available to provide after-sales service of international standards.
A.M. MOTORS has been adjudged by Maruti Suzuki as a PLATINUM dealer, featuring
among the elite group in the country recognized for the highest levels of quality. Showed
sustained improvement in Balanced Score Card performance year on year rising from
Bronze-band in 2005-06, to Silver-band in 2006-07, to Gold-Band twice in 2007-08 & 2008-
09. Became a PLATINUM dealer for stellar performance in 2009-10. Repeated the
performance in 2010-11 by emerging as PLATINUM PLUS dealer
A.M. HONDA is a sister concern. It began operations in 2004. A.M. HONDA is the
authorized dealership for Honda Motorcycles & Scooters (India) Limited.A.M. HONDA is
located at Angadipuram and has branches in Tirur, Kondotty and Manjeri. A.M.

9. HONDA emerged as the all-India runner up for overall excellence in 2010-11 and was
awarded for the same in the All India Dealer Conference held at Bangkok in March 2011.
VISCO LUBES is authorized distributor of SERVO brand lubricants of Indian Oil
Corporation (IOC). VISCO LUBES distributes SERVO brand of lubricants to the retail
outlets of IOC, automobile dealerships and bazaar shops. VISCO LUBES began operations in
Malappuram in the year 2002 and expanded to Calicut and Wayanad districts in the year
2007.
A.M. Petroleum is the retail outlet of Indian Oil Corporation.
Malabar Espat and Sun Ferromelt Industries at Kanhangad are the steel plants owned by AM
group.
A.M. Group have also forayed into hospitality business (Meadows Residency at Ooty).