The automobile industry designs, develops, manufactures, markets and sells motor vehicles globally. It is expected to see 7% growth in 2021, though the industry in India has been impacted by the global financial crisis. The document discusses the automobile industry crisis from 2008-2010 and analyzes the key demand and supply factors affecting the industry. On the demand side, factors include financing options, marketing, vehicle price, consumer income and affordability. Supply factors include production capabilities, operations efficiency, distribution networks, technology access and costs of raw materials. Studying these demand and supply dynamics provides insight into upturns and downturns in the automobile sector.

1. AUTOMOBILE
INDUSTRY
GROUP 3: LAKSHAY SHARMA (20DM110)
GARV JAIN (20DM078)
KAVITA CHOUDHURY (20DM103)
HIMANSHU TALMALE(20DM084)
KANISHKA SINGH (20DM096)
JAYANT NARBAR (20DM090)

2. Introduction
The automobile industry designs, develops,
manufactures, markets, and sells the world's
motor vehicles. The automotive industry is
one of the most important economic sectors
by revenue. In 2021, the automobile industry
is expected to see a growth rate of around
7%, with the disclaimer that the auto industry
in India has been hit badly by the ongoing
global financial crisis.

3. Problem • The automobile industry
crisis of 2008—2010
• Fewer fuel-efficient
models to offer to
consumers
• Creative marketing
strategies to entice
reluctant consumers
• Substantial increase in the
prices of automotive fuels
• High profit margins

4. Findings
The automobile industry crisis of
2008—2010 makes us wonder what
are the factors which lead to such a
crisis. Let us discuss in detail the
various demand and supply factors
which affect the automobile sector

5. Demand Factors
 Financing Options
Auto industry observers cite car loans as the
biggest driving factor for the expansion of the
Compact Car segment.
Advertising and Marketing
Companies now a days are using even
aggressive selling techniques for which they are
even coping with the Film celebrities and Cricket
stars.
Price of The Car
Law of demand also states that with an increase
in price the demand of the commodity decreases
and vice versa.
Income of Consumer / Buyer
We have seen that due to increase in the Income
of the general public, there has been a shift from
the Lower CC-segment cars to the Upper CC-
segment cars.
Increase in Affordability
Passenger cars is driven mainly by greater
affordability, which in turn increases the
aspiration level of the customers.
Availability of Easy Financing Options
Car industry has been benefited through
significant increase in affordability due to the
decrease in EMIs.

6. New Offerings
Due to escalation in competition in the Indian car market, the frequency of new model launches has
increased
Demographic Drivers
Increase in per capita income increases the consumption tendency of the customer.
Exports
India is fast emerging as a manufacturing hub for leading global carmakers.

7. Supply Factors
 Presence Across Segments
Various product segments can
ensure higher volume and better
capacity utilization by using the
common manufacturing capacity.
 Efficient Operations
Effective and successful operation
methods like platform commonality,
reduction in vendor base.
 Wide Dealer Network and
Availability of Finance
A wide dealer network helps the
company serve customers over wide
geographical area.

8.  Access to Latest Technologies
Substantial portion of Indian customer is
looking to upgrade in higher segment.
 Price of The Car
Price of the car is high in the market, the
manufacturer or the supplier will want to
supply more units in the market so he can
earn more profits.
 Factors of Production
Cost of the raw material (Steel, Spare Parts,
Rubber) increases there will be an increase in
the cost of production leading to decrease in
profit margins.
 Government Policies and Taxes
Change in the government policies regarding
the increase in the road tax charged or the tax
which is to be paid per unit sold.

9. Conclusion
• Market economies are assumed to have
many buyers and sellers, high
competition and many substitutes.
• Demand and supply refer to the
relationship price has with the quantity
consumers demand and the quantity
supplied by producers.
• By studying various demand and supply
factors affecting the automobile industry
we can conclude that an upturn or
downturn in this sector is due to an
aggregate effect of multiple factors.

10. THANK YOU