The Indian automobile industry has evolved significantly over the past century. In the early years, vehicles were scarce and the industry was tightly regulated. Liberalization in the 1990s opened the industry to more foreign participation and competition. Major players like Maruti Suzuki and Hyundai now dominate the market. The industry faces challenges like rising costs and competition from China but is growing with rising incomes. Passenger vehicles account for about 15% of the market while two-wheelers make up the majority.

1. AUTOMOBILE INDUSTRY IN
INDIA
Prabhjot Singh
Raghu Monga
Robin Kumar
Sandeepika Sharma

2. EVOLUTION IN INDIA

3. AUTO INDUSTRY
 The year 1898 saw the first car rolling out, on the streets
of Mumbai.
 A land of Premier Padminis, Ambassadors, scooters,
temps, trucks and autos galore, India had not seen much
of choice in vehicles.
 Since then Indian auto industry has witnessed a lot of
change.

4. PROTECTIONISM – EARLY
1980s
 The manufacturing of automobiles especially cars was
subject to strict licensing, restrictive tariff structure and
limited avenues for expansion.
 The foreign technology collaboration came with the
inception of Maruti Udyog in collaboration with Suzuki of
Japan in the passenger car segment.
 Indian roads saw the launch of Maruti 800.
 It was still not very easy to own a car, first was
affordability and next was a long waiting period.

5. LIBERALISATION – 1990s
 With liberalization, some more Japanese manufacturers
entered the two-wheeler and the commercial vehicle
segment in a collaborative arrangement.
 This period characterized joint ventures in India and the
market started opening up.
 Automobile Industry was delicensed in July 1991 with
the announcement of the New Industrial Policy.
 The passenger car industry was, however, delicensed in
1993.

6.  The era of controls and protection came to an
end.
 Decrease in customs and excise duties meant
that a vehicles started getting affordable.
 The entry of foreign banks with attractive auto
finance schemes helped garner a huge base of
middle class population.
 However the market was still ruled by the sellers.

7. GLOBALISATION – 2000s
 A Core Group on Automotive Research and Development
(CAR) was established in 2003 for encouraging R&D
activities.
 Indian economy also witnessed rapid industrialization.
Factories needed transport both for goods and for their
employees.
 Pushed the demand for efficient logistics and that in turn
increased the number of commercial vehicles.

8. MARKET SIZE

9. GROSS TURNOVER
YEAR (IN USD MILLION)
2004-2005 20,896
2005-2006 27,011
2006-2007 34,285
2007-2008 36,612
2008-2009 38,238
Source: Society of
Indian Automobile
Manufacturers
(SIAM)

10. RECENT FACTS & FIGURES
 In 2010-11, the overall domestic passenger car sales
rose by 29.73 per cent to 19,82,702 units from
15,28,337 units in the previous fiscal.
 Hyundai Motor India also saw its market share
declining to 18.10 per cent in FY 2011 from 20.61 per
cent in the previous year.
 Tata Motors too lost its market share during the said
period, falling to 12.92 per cent with sales of 2,56,202
units.
 General Motors India (GMI) and Honda Siel cars India
(HSCI) also lost their market share last fiscal. While
GMI's share fell to 4.40 per cent from 4.62 per cent,

11. MAJOR PLAYERS IN THE
INDUSTRY
•Mahindra • Hyundai Motor India
&
Mahindra
Limited
• Maruti Suzuki •Ashok Leyland
India Ltd

12. OTHER PLAYERS IN THE
INDUSTRY
TATA Motors
• The Bajaj Group
• Hero Group • Ford India

13. GLOBAL PLAYERS IN INDIA
 Audi
 Honda
 Mercedes
 Ferrari
 Nissan
 BMW

14. MARKET SHARE OF MAJOR
PLAYERS

15. MARKET SHARE
 Maruti Suzuki India: Passenger Vehicles
46.07%
 Hyundai Motor India: Passenger Vehicles
14.15%
 Mahindra & Mahindra: Commercial Vehicles
10.01%, Passenger Vehicles 6.50%, Three
Wheelers 1.31%
 Ashok Leyland: Commercial Vehicles 22%

16. MARKET SHARE OF DIFFERENT
VEHICLES IN THE INDIAN AUTOMOBILE
INDUSTRY
 Passenger Vehicles : 15.86%
 Commercial Vehicles : 4.32%
 Three Wheelers : 3.58%
 Two Wheelers : 76.23%

17. CHALLENGES
 Rising oil price  Chinese Competition
 Human resources  Environmental Issue
 Nurturing Talented  Low R&D Orientation
Manpower
 Rising cost of raw
 Fuel Technology materials
 Increasing rates of  Too much competition
interest

18. IMPACT OF GLOBAL CRISIS ON
INDUSTRY
 The automotive industry crisis of 2008–2010 was a
part of a global financial downturn
 The crisis affected European and Asian automobile
manufacturers, but primarily felt in the American
automobile manufacturing industry
 Citing falling production numbers, the State Bank of
India reduced interest rates on automotive loans in
February 2009
 Manufacturer hopes the low cost will encourage
customers to purchase the vehicle despite the
ongoing credit crisis

19. RECENT TRENDS
 Unlike in the past, the Indian Government has
gone through a total role reversal by becoming
the enabler rather than the controller.
 In the recent past it has started providing better
infrastructure, conducive atmosphere to attract
investments and implementing growth oriented
economic policies.

20.  Competition: Immense pressure has grown on
the Indian companies. A lot of joint ventures have
taken place, some others have invested heavily
on R&D.

21.  Customer: Armed with higher buying power and
an ever increasing expectation from products and
services, the customer is undoubtedly the king
and has propelled a fierce competition among the
major players in the market.

22.  Safety Norms: cars as well as two-wheelers
have met the most stringent international norms
of pollution.
 Euro II vehicles have become the norm of the
day all over India. Unfortunately, in the Indian
context, safety in motor vehicles is a relatively
neglected area.
 Bad roads coupled with the absence of adequate
safety features in the vehicles such as airbag and
crumple zone needs immediate attention.
 But awareness is on the increase and the use of
seat belts while driving has been made
mandatory.

23.  Bikes: Keeping apace with the global trends the
two-wheeler segment has witnessed tremendous
growth both qualitatively and quantitatively. Bikes
with higher engine capacities have done
commendably well on the Indian roads. Bike
styling and fuel efficiency has also seen major
developments

24. THANK YOU