Automobile Industry
Name- Debdoot Sarkar
Roll no.- 110 (BETA)
New Delhi Institute of Management
AUTOMOBILE HISTORY & INDIA
AUTOMOBILE INDUSTRY 2
GREEK Word – (Autos-Self) ; (Motivus-Motion) ; Self Powered Vehicle
• 1769- Nicolas J.Cugnot- French engineer- steam powered vehicle
• 1806- Fuel Gas Vehicle- Internal Combustion
• 1838- Robert Davidson – 1st Electric Vehicle
• 1888- Karl Benz – 1st license auto maker
Indian History
• 1897- 2 brother’s company- Mahindra Jeep CJ-3A
• 1901- Jamshedji Tata
• 1945- Tata Motors
• 1981- Maruti Suzuki
• 1994- Mercedes Benz
• 1996- Hyundai
DETERMINANTS & HIGHLIGHTS
Low price and healthy competition
Exchange rate and affordability
Product innovation
Demographics and infrastructure
Union budget
2nd largest 2-wheeler/4th largest Commercial/7th largest passenger-car market
Revenue and employment (13mil.)
7% of industrial output
AUTOMOBILE INDUSTRY 3
Current scenario:
AUTOMOBILE INDUSTRY 4
 23.37 million vehicles produced yearly
 4th Largest auto exporter in Asia
 2nd largest market after China
 Tata Motors- commercial vehicles- market share 64%
 Maruti Suzuki- passenger cars- market share 47%
 Valuation of $140 billion with 35billion in export
 11% contribution towards GDP
 Massive growth rate @19%
 31% globally sold hatches produced in INDIA
AUTOMOBILE INDUSTRY 5
AUTOMOBILE INDUSTRY 6
COMPETITORS
AUTOMOBILE INDUSTRY 7
MAJOR INVESTMENTS
• MV AUGUSTA & KINETIC
• CLEAN MOTION BATTERY CAR (10mil. US$)
• ISUZU - Andhra Pradesh (3000CR. INR)
• FORD MUSTANG
• GENERAL MOTORS (1bil. USD)
• CHRYSLER (3500 CR. INR) JEEP CHEROKEE
• MAHINDRA ACQUIRED 51% of PEUGEOT
• BMW & 7 INDIAN AUTO PARTS MAKER
• MERCEDES –GLA CLASS
AUTOMOBILE INDUSTRY 8
Top 10 Export destination:
1 United States 1.2 billion 8.4%
2 Mexico $1 billion 6.9%
3 South Africa $888.8 million 6.1%
4 United Kingdom $637.4 million 4.4%
5 Sri Lanka $596.9 million 4.1%
6 Bangladesh $592.1 million 4.1%
7 Turkey $580.4 million 4%
8 Nigeria $546.8 million 3.8%
9 United Arab Emirates $433.6 million 3%
10 Colombia $428.9 million 3%
AUTOMOBILE INDUSTRY 9
SWOT ANALYSIS
OPPORTUNITY
• EMPLOYMENT
• FOREIGN COLLABORATION
• CUT IN EXCISE DUTY
• ROADWAYS & STANDARD OF LIVING
STRENGTHS
• LARGE DOMESTIC MARKET
• LABOUR COST ADVANTAGE
• GOVERNMENT INCENTIVES
• INCREASED EXPORT
THREATS
• TECHNOLOGY
• IMPORT TARIFF
• SMALL CARS FAIL INTERNATIONAL STD.
• POLITICAL INSTABILITY
WEAKNESS
• LOW PRODUCTIVITY
• COST OF OVERHEADS
• LOW INVESTMENT IN R&D
• LOW COST VEHICLES
AUTOMOBILE INDUSTRY 10
CASE STUDY- ROYAL ENFIELD
AUTOMOBILE INDUSTRY 11

Automobile Industry

  • 1.
    Automobile Industry Name- DebdootSarkar Roll no.- 110 (BETA) New Delhi Institute of Management
  • 2.
    AUTOMOBILE HISTORY &INDIA AUTOMOBILE INDUSTRY 2 GREEK Word – (Autos-Self) ; (Motivus-Motion) ; Self Powered Vehicle • 1769- Nicolas J.Cugnot- French engineer- steam powered vehicle • 1806- Fuel Gas Vehicle- Internal Combustion • 1838- Robert Davidson – 1st Electric Vehicle • 1888- Karl Benz – 1st license auto maker Indian History • 1897- 2 brother’s company- Mahindra Jeep CJ-3A • 1901- Jamshedji Tata • 1945- Tata Motors • 1981- Maruti Suzuki • 1994- Mercedes Benz • 1996- Hyundai
  • 3.
    DETERMINANTS & HIGHLIGHTS Lowprice and healthy competition Exchange rate and affordability Product innovation Demographics and infrastructure Union budget 2nd largest 2-wheeler/4th largest Commercial/7th largest passenger-car market Revenue and employment (13mil.) 7% of industrial output AUTOMOBILE INDUSTRY 3
  • 4.
    Current scenario: AUTOMOBILE INDUSTRY4  23.37 million vehicles produced yearly  4th Largest auto exporter in Asia  2nd largest market after China  Tata Motors- commercial vehicles- market share 64%  Maruti Suzuki- passenger cars- market share 47%  Valuation of $140 billion with 35billion in export  11% contribution towards GDP  Massive growth rate @19%  31% globally sold hatches produced in INDIA
  • 5.
  • 6.
  • 7.
  • 8.
    MAJOR INVESTMENTS • MVAUGUSTA & KINETIC • CLEAN MOTION BATTERY CAR (10mil. US$) • ISUZU - Andhra Pradesh (3000CR. INR) • FORD MUSTANG • GENERAL MOTORS (1bil. USD) • CHRYSLER (3500 CR. INR) JEEP CHEROKEE • MAHINDRA ACQUIRED 51% of PEUGEOT • BMW & 7 INDIAN AUTO PARTS MAKER • MERCEDES –GLA CLASS AUTOMOBILE INDUSTRY 8
  • 9.
    Top 10 Exportdestination: 1 United States 1.2 billion 8.4% 2 Mexico $1 billion 6.9% 3 South Africa $888.8 million 6.1% 4 United Kingdom $637.4 million 4.4% 5 Sri Lanka $596.9 million 4.1% 6 Bangladesh $592.1 million 4.1% 7 Turkey $580.4 million 4% 8 Nigeria $546.8 million 3.8% 9 United Arab Emirates $433.6 million 3% 10 Colombia $428.9 million 3% AUTOMOBILE INDUSTRY 9
  • 10.
    SWOT ANALYSIS OPPORTUNITY • EMPLOYMENT •FOREIGN COLLABORATION • CUT IN EXCISE DUTY • ROADWAYS & STANDARD OF LIVING STRENGTHS • LARGE DOMESTIC MARKET • LABOUR COST ADVANTAGE • GOVERNMENT INCENTIVES • INCREASED EXPORT THREATS • TECHNOLOGY • IMPORT TARIFF • SMALL CARS FAIL INTERNATIONAL STD. • POLITICAL INSTABILITY WEAKNESS • LOW PRODUCTIVITY • COST OF OVERHEADS • LOW INVESTMENT IN R&D • LOW COST VEHICLES AUTOMOBILE INDUSTRY 10
  • 11.
    CASE STUDY- ROYALENFIELD AUTOMOBILE INDUSTRY 11