Decline and revival of automotive industry

1. Revive the automotive business
Ambika Sharma-D 3

2.  India 2nd in 2 wheeler production
 India 3rd in small car segment
 India 5th in commercial vehicles
 6th largest passenger vehicle
producer in the world

3. • Marginal growth in FY 2012-13 compared to FY 2011-12
• Major trends in sales and production of Commercial vehicles in 2012-13
i. Decline in production-16,382
ii. Decline in sales-97,392
• Export trends of Three-wheelers and commercial vehicles in 2012-13
i. Decline in Three-wheelers-59,788
ii. Decline in commercial vehicles-12,719

4.  High interest rates
 High fuel prices
 Insufficient monsoon patterns
 Challenges in neighboring countries
• Sri Lanka –exports banned
• Bangladesh ,Bhutan and Nepal becoming second-hand vehicles market
 Overselling in the boom times which gave rise to a false sense of anticipated demand and led
to high investments and low returns
 Booming Auto Segments taxed by Govt.(Tax on SUV is increased),no Clear cut guidelines /
rules by the Govt. (SX4 / Corolla is an SUV as per Govt.)
 Indian mindset to buy a "used" car initially to get accustomed and then settling with it instead of
upgrading to a new car

5. KEY PLAYERS IN AUTOMOBILE INDUSTRY IN INDIA

6. • Toyota Kirloskar motor India Pvt. Ltd. competes in the automotive industry
• Decline in total sales by 4.30% in 2013-14
• Decline in market share by 1 % point to 5.18%
• Failure of budget Etios to gain much traction
• Failure to break the cost barrier
in small car segment

7. • Should promote business and cost structure reforms to
realize a solid management platform so that it can respond
quickly to the changing market circumstances
• A shift toward smaller, more fuel-efficient vehicles, which Toyota can
manufacture at a relatively low price, will support growth
• Should consider making Lexus a priority in market to give it a competitive
edge in luxury market

8. • Should also cut out layers of middle management so that
engineers get more authority over what specific customer
needs are answered in the design and development of a
new car

9. • Smart city car development
• Alternate fuel consumption technology to be imbibed in engines
• Infrastructure support to make newer technology vehicles readily
usable
• Marketing push to motivate people to accept the change in
technology and switch to newer ones like electric cars
• More tie-ups with firms for usage of vehicles as company vehicles

10. THANK YOU