The Indian automotive industry has grown significantly over the past decades. It is now the 4th largest market globally in terms of volume. Passenger vehicles account for the majority of the market, with over 3 million units sold annually between 2012-2017. Maruti Suzuki dominates the market, capturing over 70% share, followed by Hyundai. Key factors driving growth include rising incomes, lower financing costs, and improved infrastructure. However, challenges remain around developing infrastructure further, increasing cost competitiveness, and ensuring availability of raw materials and advanced technology to support continued expansion.
Doing business in India (special focus: Indian Automotive Industry)Ratna Chatterjee
What is India ?
What is the profile of an Indian Consumer ?
What is it to do business in India ?
What is Make-in-India ?
What is the Indian Automotive Industry ?
India Automobiles Sector Report April 2014iimjobs.com
For leading industry jobs, please visit www.iimjobs.com
India Automobiles Sector Report April 2014
India represents one of the world’s largest automobile industries. Easy availability of finance and rising income levels are encouraging the middle class population to upgrade their two wheelers to a car. Besides, the growing organised used car market has also been a positive growth factor in the used car market of the country. Driven by the above factors, the used cars market is anticipated to grow at a compound annual growth rate (CAGR) of 16 per cent during 2013–17, highlighted the RNCOS report titled, ‘Booming Used Car Market in India Outlook 2017’.
India is quietly becoming a production hub of high-end vehicles meant for export to China. The US-based motorbike maker Harley Davidson, Austrian motorcycle manufacturer KTM and Mahindra & Mahindra have also preferred to set up manufacturing facilities in India than in the relatively low-cost China and export the output.
Furthermore, India is set to become Mercedes Benz’s fastest-growing market worldwide ahead of China, the US and Europe, according to internal projections. We expect growth rates to be the fastest in India globally, and expect sales to move up by 10 per cent over the next five years or so, as per Mr Matthias Luhrs, Vice-President (Global Sales), Mercedes Benz Cars.
Automobiles production increased at a compound annual growth rate (CAGR) of 12.2 per cent over FY05-13, while the export volumes increased at a CAGR of 19.1 per cent.
Strong demand growth due to rising incomes, growing middle class, and the young population is likely to propel India among the world's top five auto-producers by 2015.
India has significant cost advantages; auto firms save 10-25 per cent on operations in India as compared to Europe and Latin America. A large pool of skilled manpower and a growing technology base are some of the leading factors.
The government aims to develop India as a global manufacturing as well as research and development (R&D) hub. There has been a wide array of policy support in the form of sops, taxes and FDI encouragement. Under the Union Budget 2013-14, the government has also proposed to allocate US$ 2.7 billion for Jawaharlal Nehru National Urban Renewal Mission (JNNURM) to bolster sales volumes of Medium and Heavy Commercial Vehicles (MHCV).
The world's cheapest car (Tata Nano) has directed focus towards the low-income market. Bajaj Auto, Hero Honda and Mahindra & Mahindra (M&M) jointly plan to develop a technology for two-wheelers to run on natural gas. Electric cars are likely to be a sizeable market segment in the coming decade.
Doing business in India (special focus: Indian Automotive Industry)Ratna Chatterjee
What is India ?
What is the profile of an Indian Consumer ?
What is it to do business in India ?
What is Make-in-India ?
What is the Indian Automotive Industry ?
India Automobiles Sector Report April 2014iimjobs.com
For leading industry jobs, please visit www.iimjobs.com
India Automobiles Sector Report April 2014
India represents one of the world’s largest automobile industries. Easy availability of finance and rising income levels are encouraging the middle class population to upgrade their two wheelers to a car. Besides, the growing organised used car market has also been a positive growth factor in the used car market of the country. Driven by the above factors, the used cars market is anticipated to grow at a compound annual growth rate (CAGR) of 16 per cent during 2013–17, highlighted the RNCOS report titled, ‘Booming Used Car Market in India Outlook 2017’.
India is quietly becoming a production hub of high-end vehicles meant for export to China. The US-based motorbike maker Harley Davidson, Austrian motorcycle manufacturer KTM and Mahindra & Mahindra have also preferred to set up manufacturing facilities in India than in the relatively low-cost China and export the output.
Furthermore, India is set to become Mercedes Benz’s fastest-growing market worldwide ahead of China, the US and Europe, according to internal projections. We expect growth rates to be the fastest in India globally, and expect sales to move up by 10 per cent over the next five years or so, as per Mr Matthias Luhrs, Vice-President (Global Sales), Mercedes Benz Cars.
Automobiles production increased at a compound annual growth rate (CAGR) of 12.2 per cent over FY05-13, while the export volumes increased at a CAGR of 19.1 per cent.
Strong demand growth due to rising incomes, growing middle class, and the young population is likely to propel India among the world's top five auto-producers by 2015.
India has significant cost advantages; auto firms save 10-25 per cent on operations in India as compared to Europe and Latin America. A large pool of skilled manpower and a growing technology base are some of the leading factors.
The government aims to develop India as a global manufacturing as well as research and development (R&D) hub. There has been a wide array of policy support in the form of sops, taxes and FDI encouragement. Under the Union Budget 2013-14, the government has also proposed to allocate US$ 2.7 billion for Jawaharlal Nehru National Urban Renewal Mission (JNNURM) to bolster sales volumes of Medium and Heavy Commercial Vehicles (MHCV).
The world's cheapest car (Tata Nano) has directed focus towards the low-income market. Bajaj Auto, Hero Honda and Mahindra & Mahindra (M&M) jointly plan to develop a technology for two-wheelers to run on natural gas. Electric cars are likely to be a sizeable market segment in the coming decade.
This PPT is on automobile industry- four wheeler sector, by which you will be able to understand market share, and performance of automobile- four wheeler sector.
Market Research Report : Auto ancillary market in india 2014 - SampleNetscribes, Inc.
For the complete report, get in touch with us at: info@netscribes.com
Abstract :
The report highlights the analysis of the drivers and explains the factors for growth of the industry. Growing Automotive industry, the auto after market demand, the healthy economic outlook also opportunities from new US IT Compliance Law, are the key drivers of this market. Auto makers are placing bulk orders for supply of auto parts to the auto parts manufacturers. India is also an attractive destination for the foreign investors with consistently increasing FDI in the automobile sector. The original equipment manufacturers (OEMs) and the aftermarket or replacement market are the two prime source of demand for auto components in India but Strong aftermarket provides better sales stability and higher operating margins than an OEM.
There are various challenges too that the Auto Ancillary industry faces, Rising labor costs, Counterfeit Market, Technical Inefficiency and depreciating currency are the major challenges faced by the auto ancillary industry. Rise in steel prices further adds to the cost disadvantage as steel is a primary raw material for the auto ancillary industry. Organized sector facing serious threats from rapidly growing counterfeit market in India, Fake auto parts hold a considerable amount of share of the total aftermarket. Since the finishing and packaging of fake parts closely replicate the original products, consumers fail to differentiate between the fake and original parts. Depreciating currency has adverse impact on the imports resulting in declining profits for the import dependent auto parts manufacturers. However, on the positive side, it has increased the cost-competitiveness of exports and also OEMs will look towards sourcing from local players due to higher price of imports
Government has plans of setting up the National Automotive Board (NAB) which will act as a catalyst between the government and the auto parts industry. Auto Component manufacturing companies should identify the long term growth pockets and enhance global competitiveness accordingly. They should diversify into adjacent fields of business, such as defense, construction, farm implements etc. They should also cooperate with government to enhance country competitiveness.
Table of Contents :
Slide 1: Executive Summary
Macro Economic Indicators
Slide 2: GDP at Factor Cost: Quarterly (2010-11 - 2013-14), Inflation Rate: Monthly (Jul-Dec 2013)
Slide 3: Gross Fiscal Deficit: Monthly (Feb 2013 - Jul 2013), Exchange Rate: Half Yearly (Oct 2013- Mar 2014)
Slide 4: Lending Rate: Annual (2008-09 - 2011-12), Trade Balance: Annual (2010-11 – 2013-14), FDI Annual (2009-10 - 2012-13)
Market Overview
Slide 5: Auto Ancillary Market – Transition
Slide 6: Auto Ancillary Market – Overview
Slide 7: Auto Ancillary Market – Market Size & Growth (2008-18), Market Segmentation - Sector wise
Slide 8: Auto Ancillary Market – Contribution to Employment Generat
InAlliance Consulting : Indian Automotive Sector snapshotBenoit Teppe
India's automotive sector is booming and represents serious growth potential for Western Tier 1 and Tier 2 suppliers. Several decisions face such new entrants however, including whether to sell directly or assemble / manufacture locally, and whether to do this alone or with a local partner.
This PPT is on automobile industry- four wheeler sector, by which you will be able to understand market share, and performance of automobile- four wheeler sector.
Market Research Report : Auto ancillary market in india 2014 - SampleNetscribes, Inc.
For the complete report, get in touch with us at: info@netscribes.com
Abstract :
The report highlights the analysis of the drivers and explains the factors for growth of the industry. Growing Automotive industry, the auto after market demand, the healthy economic outlook also opportunities from new US IT Compliance Law, are the key drivers of this market. Auto makers are placing bulk orders for supply of auto parts to the auto parts manufacturers. India is also an attractive destination for the foreign investors with consistently increasing FDI in the automobile sector. The original equipment manufacturers (OEMs) and the aftermarket or replacement market are the two prime source of demand for auto components in India but Strong aftermarket provides better sales stability and higher operating margins than an OEM.
There are various challenges too that the Auto Ancillary industry faces, Rising labor costs, Counterfeit Market, Technical Inefficiency and depreciating currency are the major challenges faced by the auto ancillary industry. Rise in steel prices further adds to the cost disadvantage as steel is a primary raw material for the auto ancillary industry. Organized sector facing serious threats from rapidly growing counterfeit market in India, Fake auto parts hold a considerable amount of share of the total aftermarket. Since the finishing and packaging of fake parts closely replicate the original products, consumers fail to differentiate between the fake and original parts. Depreciating currency has adverse impact on the imports resulting in declining profits for the import dependent auto parts manufacturers. However, on the positive side, it has increased the cost-competitiveness of exports and also OEMs will look towards sourcing from local players due to higher price of imports
Government has plans of setting up the National Automotive Board (NAB) which will act as a catalyst between the government and the auto parts industry. Auto Component manufacturing companies should identify the long term growth pockets and enhance global competitiveness accordingly. They should diversify into adjacent fields of business, such as defense, construction, farm implements etc. They should also cooperate with government to enhance country competitiveness.
Table of Contents :
Slide 1: Executive Summary
Macro Economic Indicators
Slide 2: GDP at Factor Cost: Quarterly (2010-11 - 2013-14), Inflation Rate: Monthly (Jul-Dec 2013)
Slide 3: Gross Fiscal Deficit: Monthly (Feb 2013 - Jul 2013), Exchange Rate: Half Yearly (Oct 2013- Mar 2014)
Slide 4: Lending Rate: Annual (2008-09 - 2011-12), Trade Balance: Annual (2010-11 – 2013-14), FDI Annual (2009-10 - 2012-13)
Market Overview
Slide 5: Auto Ancillary Market – Transition
Slide 6: Auto Ancillary Market – Overview
Slide 7: Auto Ancillary Market – Market Size & Growth (2008-18), Market Segmentation - Sector wise
Slide 8: Auto Ancillary Market – Contribution to Employment Generat
InAlliance Consulting : Indian Automotive Sector snapshotBenoit Teppe
India's automotive sector is booming and represents serious growth potential for Western Tier 1 and Tier 2 suppliers. Several decisions face such new entrants however, including whether to sell directly or assemble / manufacture locally, and whether to do this alone or with a local partner.
Narayaniyam is a medieval Sanskrit text, comprising a summary study in poetic form of the Bhagavata Purana. It was composed by Melpathur Narayana Bhattathiri, (1560-1666 A.D.) one of the celebrated Sanskrit poets in Kerala. Even though the Narayaneeyam was completed as early as 1586 A.D., it appeared in print only after more than 250 years. The Bhagavata Purana is a major Hindu scripture consisting of about 18,000 verses, mainly devoted to the worship of Krishna.
קלאב 4 יו הינה חברה שנותנת שירות להגרלות הלוטו של מפעל הפיס.
שירותי החברה כוללים מילוי אוטומטי של טפסי הלוטו, שליחתם, בדיקתם, עדכוני זכיות
והעברתם ישירות לחשבון בנק הלקוח.
שירות לקוחות - קלאב פור יו:
072-2507752/4
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OMNILIFE Empresa de suplementos nutricionais com 24 anos de existência. Mais de 200 produtos sendo que 23 produtos já aprovados pela ANVISA aqui no Brasil. Empresa com a Matriz no México e fabrica própria em Colombia em breve no Brasil
Asia-Pacific countries have contributed to growth of the global automobile sector. Developing Asia Pacific region will contribute 62.2% of auto and auto components sector growth for the period 2015-19. The quantitative growth in this region is expected to reach 101mn units in 2017 at a CAGR of 5%. India is a significant contributor from this region with a potential to become the 4th largest automobile producer by 2020. Automobile sector contributes 7.1% to the Indian GDP and was more than 45% of manufacturing GDP in FY14. Karnataka is the 4th largest state in automotive production with output of USD 2.8 bn, contributing 8.5% to national sector output. The automotive industry provides employment to more than 55,000 workers in the state of Karnataka.
Mahindra & Mahindra is a renowned automobile manufacturing company based out of India and since its inception in 1945, the company has been going strong with its cars being ranked as among the most trusted and most reliable cars in the market since the past six decades. While the company has its headquarters in Mumbai, India, it has several assembly units across the world, making it a truly global company as far as its operations and reach are concerned.
Indian auto industry contributes approx 7.1% o the GDP of India. 31% of the small cars sold globally were manufactured in India (FY 2014-15). With approx. 20 million vehicles sold annually- auto industry has a great potential to engine Make In India. The presentation discusses about the market size, advantage, growth drivers, key segments , FDI & opportunities for Indian MSMEs in this sector.
Automobile Industry Analysis- Indian marketRiya Aseef
• With sales of around 40,000 luxury cars in 2017, India became the 27th most attractive luxury market in the world.
• The luxury car market in India is expected to grow at 25 per cent CAGR till 2020.
• Audi is launching its luxury electric SUV in India in 2019. The electric SUV will be called e-Tron.
• Premium motorbike sales in India crossed one million units in FY18.
• As of February 2019, Lamborghini sold 45 units in the year 2018 and expects a jump in sales by 60 per cent in the year 2019.
• Volvo plans to assemble hybrid electric cars in India and also scale its market share to 10 per cent by 2020 in Indian luxury car segment.
• As of May 2019, Jaguar Land Rover launched its locally assembled Range Rover Velar making the JLR cars more affordable by quite some margin.
• BMW crosses 10,000 unit mark for the first time in a calendar year 2018. BMW along with Mini grew 13 per cent compared to 2017. Mini sales rose by a staggering 66 per cent in 2018.
This report is about automobile sector, maruti suzuki company and alto k1o product where everything has mentioned regarding to finance marketing and Human resources of comoany
A Microeconomics focused presentation of Tata Motors - 2 Wheeler Era. Discussed in detail on how TATA can introduce a new 2 wheeler in an already existing competitive market and try to gain a market share. All strategies including Finance, Marketing and Sales have been briefly discussed with a 5-year growth plan.
Automotive Intelligence for Professionals: The India AutoBook includes company profiles of OEM car makers, multinational and local automotive parts suppliers as well as organizations, media and exhibitions.
It also includes detailed statistics about Automotive sales, market share and OEM capacities.
The India AutoBook helps you to identify new customers in the Automotive industry and provides key contact information.
The India AutoBook helps you to identify new customers in the Automotive industry and provides key contact information.
Automotive Intelligence for Professionals: The India AutoBook includes company profiles of OEM car makers, multinational and local automotive parts suppliers as well as organizations, media and exhibitions.
It also includes detailed statistics about Automotive sales, market share and OEM capacities.
Mahindra Presentation : Analysis of Mahindra & Mahindra ScorpioAnand Tomar
Analysis and presentation of Mahindra as a part of my final 1st semester project report of my PGDM course.
Analysis is on following topics : Sector, Company,, Product, Services, Marketing Strategies, Financial Analysis ,Human Resource Management of Mahindra
2. 2
Indian Automobile Industry Overview
Historical View :
The dawn of automobile actually goes back to 4000 years when the first wheel was used for transportation in
India
In 1897, the first car ran on an Indian road. An embryonic automotive industry emerged in India in the
1940s. Hindustan was launched in 1942, long-time competitor Premier in 1944, building GM and Fiat products
respectively. Mahindra & Mahindra was established by two brothers in 1945, and began assembly of Jeep
CJ-3A utility vehicles. Hindustan was the first to launched in 1942.
Current Scenario :
The Indian auto industry is one of the largest in the world with an annual production of 21.48 million vehicles in
FY 2013-14 .
India has became 4th largest automotive market by volume, by 2015
The automobile industry accounts for 22 per cent of the country's manufacturing gross domestic product
(GDP).
India is also a substantial auto exporter, with solid export growth expectations for the near future.
Various initiatives taken by the Government of India and the major automobile players in the Indian market is
expected to make India a leader in the Two Wheeler and Four Wheeler market in the world by 2020.
India is also a substantial auto exporter, with solid export growth expectations for the near future.
The today's market is growing fast in terms of economy, the industry grew 16-18%, selling around three million
units as per news article –Business standard
According to the New York Times, India's strong engineering base and expertise in the manufacturing of low-
cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile
companies like Hyundai, Nissan, Toyota, Volkswagen, and Maruti Suzuki
1
4. 4
Passenger Car Market (2012 - 2017)
In 2012-17 Shows the marker goes
continuous high as per the sales growth
Sales growth is ~ 12.98 during the future
years
Currently the sales shows the highest % of
growth rate as per the trend Indian market is
Passenger car driven market (2014-2015)
In April-March 2015, overall automobile
exports grew by 14.89 percent over the same
period last year. Passenger Vehicles, grew
by 4.42 percent during April-March 2015 over
the same period last year.
Maruti Suzuki has captured the largest share
in Indian market by 1152128 Units.
0.5%0.1%3.0%2.3%0.0%7.4%18.4%
12.6%
72.2%
11.1%
11.4%
4.4%
47.1%
75.0%
100.0%
Supply Share Jan'14-Dec'14
Fiat
Force Motors
Ford
General Motors
H.M.
Honda
Hyundai
Mahindra
Maruti Suzuki
Nissan
Renault
Skoda
3
5. 5
Market by segmentation (Classification)
The market has been divided by
Samlll, Medium, Premium &
Luxury Segment which is further
categories by Cost & feature of
Vehicle.
Luxury Category ~INR=<25 Lac
Higher-end cars, Premium
category~INR. 10-15 Lac length is
=<5000 MM, Mid size Vehicle
category ~ INR. 3.5 -6 Lac with 3401
-4000 MM size and Small very
economical basic feature category
vehicles =<3.5 lac size upto
3400MM.
passenger car" as a unique class, but
also identifies two other categories
involving passenger vehicles—the
"passenger van" and "light utility
vehicle"—and these categories are
inconsistently handled across the
country
Car Segment
•A1
•A2
•A3
•A4
•A5
•A6
•B1
•B2
•SUV
Length of Car
•Up to 3400 mm
•3401 to 4000 mm
•4001 to 4500 mm
4501 to 4700 mm
•4701 to 5000 mm
•more than 5000mm
•Vans
•MUV/MPV
•SUV
Model
Type/Brand
•Nano
•Alto, i 10, wagon R
•Manza, Logon, Dzire,
City
•Corolla, Octavia, Optra
•Accord, Camry, Sonata
•Mercedes S class
•Versa, Omni
•Sumo, Innova
•Vitara, CRV
Car Segment
•A
•A1
•A2
•B1
•B2
•C1
•C2
•D1
•D2
•SUV
Distinguishing
feature/Cost
•=<3.5 Lakh
•3.5 to 6 lakh
•6 to 7.5 Lakh
•Vans
•MUV/MPV
•7 to 8 Lakh
•8 to 9.5 Lakh
•10 to 15 Lakh
•15 to 25 Lakh
•SUV
Model Type/Brand
•Alto, Spark, Nano, Eon
•Santro, Indica, Beat
•Ritz, i10, i20, Swift, Figo
•Versa, Omni
•Sumo, Innova
•Indigo, Fiesta, Sunny
•Verna, Manza, Linea
•Fluence, Corolla
•Sonata, Camry, Kizashi
•Vitara, CRV
Segment by Length/Model type
Segment by Value
4
6. 6
Key Factors for Driving Growth
Finance
Availability
• Investment allowance (additional depreciation) at the rate of 15% to manufacturing companies that invest more than INR 1
Billion in plant and machinery acquired and installed between 01.04.2013 and 31.03.2015
• For large and mid-segment cars – the duty has been reduced from 27% to 24% and 24% to 20% respectively.
• A lower rate of excise duty on automobiles provided in the interim budget has been extended, until December 2014
Rising Family
Income
• A growing working population and an expanding middle class are expected to remain key demand drivers
• ndia has the world’s 12th largest number of high net worth individuals, with a growth of 20.8%, the highest among the top 12
countries
• Increasing disposable incomes in the rural agri-sector
Favorable
duty structure
• Easy finance schemes, owing to which the auto finance industry has grown at the rate of 13% between 2008-13. Car finance
penetration has increased from 68% to 70% between 2008-10 and between 70% to 72% in 2011-13
• Favourable government policies like lower excise duties, automotive mission plans, the constitution of NATRiP etc
• 100% FDI is allowed under the automatic route in the auto sector, subject to all the applicable regulations and laws.
Improved
Infrastructure
• To emerge as the world’s destination of choice for design and manufacture of automobiles and auto components with output
reaching a level of USD 145 Billion, accounting for more than 10% of the GDP and providing additional employment to 25
Million people by 2016.
• The setting up of a technology modernization fund focusing on small and medium enterprises.
• The Automotive Mission Plan II for the period 2016-26 is under preparation and will be finalized by mid-2015
5
7. 7
Key Challenges In Indian Industry
Infrastructure development
6
1
2
3
4
5
6
7
8
Cost competitiveness
Improve productivity of both labour and capital
Scale up Capacities & Absorbing newer technologies
Favorable and predictable business environment
Availability of raw material commensurate with growth
Availability of auto grade technically advanced material
Availability of cost effective capital
8. 8
Key players and their share in passenger car market
List of Top 10 Automobile Companies in India (Figures in Crores)
ET
500 Rank
Company Turnover PAT MCRP CR Assets
7th Tata Motors Ltd. 123,223 9,274 56,500 52,209
2th Mahindra & Mahindra Ltd. 37,026 3,080 49,945 36,926
19th Maruti Suzuki India Ltd. 38,141 2,382 31,476 14,763
41th Hero MotoCorp Ltd. 19,669 1,928 40,399 4,447
46th Bajaj Auto Ltd. 17,008 3,455 46,886 5,155
67th Ashok Leyland Ltd. 11,133 631 6,653 6,621
101th Sundaram Clayton Ltd. 7,419 65 529 2,429
110th TVS Motor Company Ltd. 6,570 128 2,985 1,745
148th Eicher Motors Ltd. 5,139 243 4,448 474
396th Force Motors Ltd. 1,574 59 730 583
22,889
19,669
19,533
12,861
9,541
8,724
8,515
7,667
6,820
6,709
0
5,000
10,000
15,000
20,000
25,000
Top 10 selling cars of January 2015-
Units
Key observations
Among the top 10 selling cars for the
month, 4 are from Maruti Suzuki India, 3
from Hyundai, 2 from Honda and 1 from
Mahindra
Mahindra's top-selling product, the
Bolero, once again retained its position
in the top-10 selling cars in India
7